High Performance Incentive Program – Project Description & Guidelines
As a critical first step in order to take advantage of HPIP tax credits, the firm must submit a Project Description Form to Commerce, estimating the scope of anticipated investment. Statute requires submission of the project description form before the company commits to move forward with the investment (e.g., by making a purchase, or signing a commitment document such as an equipment purchase order or lease agreement or construction contract, or moving assets into Kansas that are already owned by the company at an out-of-state location.)
High Performance Incentive Program Application
Sales Tax Exemption (Request for Project Exemption Certificate Form (PR-70b)
Eligible purchases include the purchase and installation of machinery and equipment, as well as materials used in the construction, reconstruction, enlarging, or remodeling of a qualified business facility. The exemption includes any quality control or pollution control equipment installed as a part of the aforementioned activities. Any person engaged in the building, remodeling, or enlargement of a facility that will be leased to a business for at least five years may receive the exemption as well. A business must file a Request for Project Exemption Certificate (Form PR-70b) with the Department of Revenue before starting the project.
Sales Tax Exemption Request Form
Warehouse/Distribution Sales Tax Exemption
A sales tax exemption is available on material handling equipment, racking systems and other related machinery and equipment that is used for handling, movement or storage of tangible personal property in a warehouse or distribution facility in the state. In addition, it can cover all sales of installation, repair and maintenance services performed on such machinery and equipment; and all sales of repair and replacement parts for such machinery and equipment.
Sales Tax Exemption on Warehouse/Distribution Equipment Request Form
Kansas Workforce Training Programs
The state of Kansas dedicates resources for employers to train and retrain employees in work-related skills. Companies new to Kansas, or Kansas businesses needing to expand or restructure, may qualify for financial assistance under one of our workforce training programs. These flexible programs offer services customized to your specific training needs and is a collaborative effort between your company and the Department of Commerce. We have a streamlined process to apply for and access our workforce development programs that offers maximum flexibility and minimum red tape.
Kansas Industrial Training
Kansas Industrial Retraining
Promoting Employment Across Kansas (PEAK)
This program offers qualified companies that are relocating operations to Kansas the ability to retain 95 percent of their payroll withholding tax for a period of five to seven years. Companies need to create at least ten new jobs within two years in metropolitan areas or five new jobs within two years in all other counties of the state. High-impact projects that create 100 new jobs within five years can retain 95 percent of payroll withholding for seven to ten years. The number of years that withholding can be retained depends on how much the annual average wage of the relocated jobs at the Kansas worksite will exceed the county average wage. Requests for these funds must be made through a Project Manager with the Kansas Department of Commerce.
PEAK Guidelines and Application
Median Wage by County
Wind and Solar Bond Financing
Kansas offers income tax credits for job creation and capital investment to qualified companies. When a qualified company creates the new jobs and capital investment and those have been placed into service, the company can file for relevant job and investment tax credits on a K-34 tax form. This tax document is submitted with their regular tax filing for that tax year. This form is used for companies filing under the Enterprise Zone Program or Job Expansion and Investment Tax Credit Act.
Kansas Business and Job Development Credit
This program allows for up to $5 million in bond financing per project for eligible wind and solar energy manufacturers. 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.
Wind and Solar Bond Financing
Schedules for Claiming the Kansas Business and Job Development Credit (K-34)
High Performance Incentive Program Tax Credit (K-59)
High Performance provides an investment tax credit to companies that pay above average wages and have a strong commitment to skills development for their workers. A substantial investment tax credit for new capital investment in Kansas is the primary benefit. When a company qualifies and becomes certified under the High Performance Incentive Program and that capital investment has been placed into service, the company can file for the corresponding investment tax credits on a K-59 tax form. This tax document is submitted with their regular tax filing for that tax year.
High Performance Incentive Program Tax Credit
Kansas Partnership Fund
The Partnership Fund provides low-interest state funds to cities and counties for infrastructure improvements to support Kansas basic enterprises. This would be a loan to the city or county. The interest rate is tied to the federal funds rate. The term is five to ten years for repayment. The city or county would need to determine a repayment source prior to receipt of the Partnership Funds. Requests for these funds must be made through a Project Manager with the Kansas Department of Commerce.
Kansas Partnership Fund Guide
Kansas Sales Tax Exemption Booklet
Kansas offers a variety of other sales tax exemptions via state law. This booklet contains the forms to file for those exemptions. Those include: electricity, gas and water consumed in manufacturing; manufacturing machinery and equipment; labor and services used in original construction; tangible personal property that becomes an ingredient or component part of tangible personal property; tangible personal property that is immediately consumed in the actual production process; and incoming and outgoing interstate-wide area telephone or transmission services (WATTS). Sales tax exemption certificates must be obtained from the Kansas Department of Revenue prior to any purchases.
Kansas Sales Tax Exemption Booklet