The creation of the Promoting Employment Across Kansas (PEAK) Act, K.S.A. 74-50,210 through 74-50,216, was passed by the 2009 Kansas Legislature. The 2010 and 2011 Legislative Sessions passed subsequent changes to the Act to broaden the eligibility criteria to increase the companies that can apply. PEAK is intended to encourage economic development in Kansas by incenting companies to relocate, locate or expand business operations and jobs in Kansas. The Secretary of Commerce has discretion to approve applications of qualified companies and determine the benefit period. During the benefit period, participating PEAK companies may retain 95 percent (95%) of the payroll withholding tax of PEAK-Eligible employees/jobs that pay at or above the county median wage where the operations and jobs will be located. Depending on the number of PEAK jobs/employees to be hired in Kansas and their wage levels, the Secretary can approve benefit periods for up to 10 years.
PEAK requires the qualified company to commit to creating five new jobs in non-metropolitan counties or ten (10) new jobs in the metropolitan counties of Shawnee, Douglas, Wyandotte, Johnson, Leavenworth and Sedgwick over a two-year period. The qualified company must also pay wages to the PEAK jobs/employees, that when aggregated, meet or exceed the county median wage or North American Industry Classification System (NAICS) average wage for their industry. Qualified applicants include for-profit companies in eligible NAICS codes and not-for-profit headquarters facilities. Such companies must make available to its full-time employees “adequate” health insurance coverage (see Definitions) and be paying at least 50% of the premium.
On January 1, 2012, existing Kansas businesses that are expanding and creating new jobs will be eligible to receive benefits if approved by the Secretary. Expanding Kansas company benefits are capped at $4.8 million in State Fiscal Year (SFY) 2012 and $6.0 million in each succeeding SFY. Commencing January 1, 2013 and ending December 31, 2014, the Secretary also has discretion to utilize the PEAK program to retain jobs/employees of a qualified existing Kansas company. Benefits for retaining existing jobs are capped at $1.2 million in SFY 2013, $2.4 million in SFY 2014 and $1.2 million in SFY 2015.
Applications are accepted throughout the year and must be received prior to hiring PEAK jobs/ employees in Kansas.
Site location consultants and companies outside Kansas that are locating new operations should contact Barbara Hake, Business Recruitment Manager, at (913) 345-8347.
Existing Kansas companies that are relocating or expanding operations need to work with a Regional Project Manager for application process. Click here for map to locate your Regional Project Manager.
General PEAK questions may be directed to Darla Price, PEAK Program Manager, at (785) 296-1868.