Finance and Incentives
Our Business Finance and Incentives staff oversees a variety of incentive and service programs. Staff works closely with the Business Development Retention & Expansion and Recruitment project managers to help you understand program requirements and provide the necessary forms and technical assistance to participate in Kansas business incentives. Programs include job creation tax credits, investment tax credits, sales tax project exemptions and revolving loan funds for local infrastructure projects, as well as "forgivable" and interest-bearing loans for certain types of new and existing businesses.
Business Finance and Incentives staff also provides cost-benefit analysis and liaison to the Kansas Court of Tax Appeals for local property tax abatement applications, Enterprise Zone designation as a non-metropolitan business region for counties and Private Activity Bond allocations.
Below is a list of Commerce financial incentives and programs.
Certified Development Companies
The network of Certified Development Companies throughout the state provides financial packaging services to small businesses using a variety of private and government sources.
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High Performance Incentive Program
This program provides tax incentives to eligible employers that pay above-average wages and are committed to skills development for their workers.
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Kansas Economic Opportunity Initiatives Fund
These funds are provided by the State Legislature to address unique opportunities or emergencies that may have substantial impact on the Kansas economy. Examples include major expansion of a Kansas business, potential location of a major employer in Kansas, or the closing of a major federal or state institution.
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Kansas Enterprise Zone
The Kansas Enterprise Zone Program provides potential Kansas sales tax exemption and Kansas income/privilege tax credits to businesses creating new jobs in Kansas through major capital investment projects.
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Kansas Partnership Fund
The Partnership Fund program provides loans to Kansas cities or counties for infrastructure improvements directly related to specific business projects creating new jobs and capital investment.
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Promoting Employment Across Kansas (PEAK) Program
PEAK allows qualified companies that are relocating out-of-state jobs to Kansas to retain 95 percent of the payroll withholding tax of the relocated jobs over five or more years.More...
Private Activity Bonds
Private Activity Bonds are federally tax-exempt bonds that can lower financing costs for qualifying projects.
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Recovery Zone Bonds
The American Recovery and Reinvestment Act has created two new types of bonds to help economically distressed areas.
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Property Tax Abatement Assistance
Assistance is provided to businesses and governmental entities applying for property tax abatement. Division staff liaisons with the Court of Tax Appeals, provides technical assistance on the application process, and runs a complimentary cost benefit analysis to ensure a COTA response within 30 days.
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STAR Bonds
Sales Tax Revenue (STAR) Bonds provide Kansas municipalities the opportunity to issue bonds to finance the development of major commercial, entertainment and tourism areas and use the sales tax revenue generated by the development to pay off the bonds.
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Wind and Solar Bond Financing
This incentive allows the State to issue up to $5 million in bond financing for eligible wind and solar energy manufacturers locating in Kansas. The bonds are paid off from the payroll withholding tax of the new jobs. To qualify, a project must create at least 200 new jobs within five years, pay at least a $32,500 average salary and generate a minimum capital investment of $30 million.
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