Kansas

Quick Facts

Kansas Governor Sam Brownback

Kansas Governor Sam Brownback

 

  • Capital: Topeka
  • Population (2012 Est.): 2,885,905
  • Largest Cities (2012): Wichita, 385,577; Overland Park, 178,919; Kansas City, 147,268; Olathe, 130,045; Topeka, 127,939
  • Targeted Industries: Alternative Energy, Distribution, Advanced Manufacturing, Value Added Food Manufacturing, Bioscience
  • GDP (All Industry 2012): $138.9 billion*

*Bureau of Economic Analysis, U.S. Department of Commerce

kansas

Incentives

Rural Opportunity Zones (ROZ): Designed to spur economic development in and expand job growth in 73 key counties around the state. The program has two main incentives:

  • A state income tax exemption for up to five years to individuals who move to a ROZ county from outside the state. Individuals must not have lived in Kansas for the past five years, nor have a Kansas source income of more than $10,000 per year over the past five years.
  • Student loan forgiveness of up to $3,000 per year ($15,000 maximum benefit) for individuals who graduate from an accredited post-secondary institution and move to a ROZ county. The student loan forgiveness portion of the program is a county-state partnership, and counties must opt in to participate.

Right-to-Work State: Union membership in Kansas is 6.8%, well below the national average.

Workers’ Compensation: Kansas ranks 9th lowest in the U.S. for worker compensation rates.

FINANCING

Promoting Employment Across Kansas (PEAK): This program offers qualified companies the ability to retain 95% of their payroll withholding tax for up to five to seven years. It is available for new operations in Kansas as well as relocated operations to the state. In 2013, PEAK became available for qualifying business retention projects as well. Companies need to create at least 10 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 two years can retain 95% of payroll withholding tax for up to a period of 10 years. The number of years that the withholding tax can be retained depends on how much the annual median wage of the jobs at the Kansas worksite will exceed the current county median wage and the discretion of the Secretary of the Kansas Department of Commerce. A PEAK application must be submitted before locating or creating PEAK-eligible jobs in Kansas.

Industrial Revenue Bonds (IRBs): Industrial Revenue Bonds are a popular method of financing up to 100% of a growing business’ land, building and equipment. IRBs are securities issued by cities and counties to provide funds for creditworthy companies to acquire land, construct and equip new facilities or remodel and expand existing facilities. IRBs allow fixed-rate financing for the life of the bond for the project.

Community Development Block Grant (CDBG): Eligible small city and county governments may apply for these economic development funds to assist an expanding or new business in Kansas. There are two parts to the program: business finance and infrastructure. Under business finance, funds are available for working capital, machinery and equipment and real property. The interest rate is currently set at 3% below prime or 4% (whichever is greater). The term of the loan is based on the asset being financed—working capital loan is 6.5 years, machinery and equipment 10 years and real property is 15 years. For business loans, a match is required of $.50 to every $1 of CDBG funds. For infrastructure, funding is available for water lines, sewer lines, roads, rail spurs and pre-treatment facilities. Infrastructure funding requires that a quarter of the funds be paid back over a 10-year period at a rate of 0%. Funding requires the creation or retention of one full-time job per $35,000 of CDBG assistance up to the maximum of $750,000. At least 51% of the jobs created or retained must be held by individuals, who at the time of hire, meet HUD’s low and moderate income test, which is based on median family income in the county in which the project is located.

Partnership Fund: Commerce provides low-interest state funds to cities and counties for infrastructure improvements that support Kansas basic enterprises such as manufacturing and distribution. Eligible projects may include construction, rehabilitation or expansion of public facilities, including roads, streets, highways, water supply and treatment facilities, water distribution lines, wastewater collection lines and related improvements.

Kansas Bioscience Authority (KBA): Commerce works in partnership with the Kansas Bioscience Authority to assist in the expansion and recruitment of bioscience companies. The KBA has direct financing programs and other resources that can be used to recruit new bioscience companies and world-class scholars, fund equipment and lab space for research and facilitate the commercialization of bioscience discoveries.

SITE LOCATION ASSISTANCE

The Business Recruitment Team for the Kansas Department of Commerce can assist with various site location needs. Whether you’re seeking buildings or sites, our team has the resources and information to help you make an informed decision. Our Business Recruitment Team creates customized incentive proposals for clients based on capital investment, job creation, employee salaries and each company’s unique needs. We also coordinate with community economic development professionals for local incentives such as discounted building and land purchases, reduced property taxes, build-to-suit agreements and finance packages. All types of assistance offered for new company locations are also available for subsequent expansions.

TAX INCENTIVES

Effective Tax Year 2013, certain Kansas businesses will enjoy significant tax relief. Kansas passed a business income tax exemption which eliminates certain non-wage business income on lines 12, 17 and 18 of IRS Form 1040 for Partnerships, Limited Liability Corporations, Limited Liability Partnerships, Sole Proprietorships and Subchapter-S Corporations that have elected at the federal level to be taxed as a pass-through entity.

Effective July 1, 2013, the Kansas state sales and use tax rate will be 6.15%. However, there are several sales tax exemptions available, which include:

  • Labor services related to original construction
  • Remodeling costs, furnishings, furniture, machinery and equipment for qualified projects
  • New machinery and equipment for manufacturing and distribution. This also includes pre- and post-production machinery and equipment, including raw material handling, waste storage, water purification and oil cleaning, as well as ancillary property such as gas pipes, electrical wiring and pollution control equipment
  • Tangible personal property that becomes an ingredient or component part of a finished product
  • Tangible personal property that is immediately consumed in the production process, including electric power, natural gas and water
  • Incoming and outgoing interstate telephone or transmission services (WATTS)
  • Real and personal property financed with an Industrial Revenue Bond

High Performance Incentive Program (HPIP): This program provides a 10% corporate income tax credit on the qualified capital investment of an eligible company. Qualified capital investment can include such items as the purchase or lease of a facility or equipment, remodeling or build-out costs, fixtures, furniture and computers. Equipment transferred to Kansas from out-of-state is also credited at the original acquisition cost. The 10% tax credit is awarded to companies that operate an eligible business, pay above-average wages and invest in employee training. The credits can be used to significantly reduce a company’s corporate income tax liability in a given year. Credits must be used within a consecutive 16-year period. The minimum investment threshold to qualify for HPIP is $1 million for the urban counties of Douglas, Johnson, Sedgwick, Shawnee and Wyandotte. For all other counties, the minimum investment threshold is $50,000. A key component of HPIP is the completion of the Project Description form, which must be submitted to the Department of Commerce prior to the company signing any document, such as a lease or purchase agreement, which commits the company to locating or expanding in Kansas.

Machinery & Equipment Expensing Deduction: Eligible Kansas taxpayers are allowed to claim an expense deduction for business machinery and equipment, placed into service in Kansas. This is a one-time deduction for each qualified purchase of machinery and equipment in the year that it is placed in service. Unused expense deduction is treated as a Kansas net operating loss that may be carried forward for 10 years. Eligible investment is machinery and equipment depreciable under the Modified Accelerated Cost Recovery System (MACRS) in section 168 of the Internal Revenue Code, or canned software as defined in section 197 of the Internal Revenue Code. Examples of eligible equipment include manufacturing equipment, office furniture, computers, software and racking.

Machinery and Equipment Property Tax Exemption: Commercial and industrial machinery and equipment acquired by qualified purchase or lease or transferred into the state is exempt from state and local property tax. The exemption pertains to machinery and equipment used in the expansion of an existing facility or the establishment of a new facility. The exemption covers machinery and equipment used in manufacturing or warehousing/distribution, commercial equipment, computers, desks and chairs, copiers and fax machines.

Property Tax Abatement: Cities or counties may exempt real property from ad valorem taxation. The tax abatement can include all or any portion of the appraised buildings, land and improvements. A total or partial tax abatement may be in effect for up to 10 years after the calendar year in which the business commences its operations. Any property tax abatement is the decision of the city or county.

Inventory Tax Exemption: All merchant and manufacturers’ inventories are exempt from property taxes.

Research Tax Credit: Kansas offers an income tax credit equal to 6.5% of a company’s investment in research and development above the average expenditure of the previous three-year period. 25% of the allowable annual credit may be claimed in any one year.

No Local Income Taxes: Kansas cities and counties do not impose an earnings tax on personal or corporate income.

No Kansas Franchise Tax: Kansas eliminated its franchise tax in 2011.

WORKFORCE DEVELOPMENT

The Department of Commerce has two workforce training programs to offset a company’s training costs. Projects involving a Kansas Basic Industry—which includes manufacturing, distribution or regional/national service facilities—may qualify for these programs. Both of these programs offer direct financial assistance to pay a negotiated portion of the costs to train a company’s employees. Companies may apply the assistance toward items such as instructors’ salaries; meals, travel and lodging (including out-of-state or international travel); video development; textbooks and training manuals; supplies and materials; temporary training facilities and curriculum planning and development.

Kansas Industrial Training (KIT): Companies creating new jobs may qualify for this assistance. Eligibility for the program depends on the number of jobs created and the corresponding wages.

Kansas Industrial Retraining (KIR): This program is to retrain a Kansas company’s existing workforce on new technology or production activities.

State Listings

  • Kansas Bioscience Authority

    Duane Cantrell
    President & CEO
    10900 South Clay Blair Boulevard
    Olathe, KS 66061
    P: 913-397-8300
    [email protected]
    www.kansasbioauthority.org
  • Kansas Chamber of Commerce

    Mike O'Neal
    President & CEO
    835 SW Topeka Boulevard
    Topeka, KS 66612
    P: 785-357-6321
    [email protected]
    www.kansaschamber.org
  • Kansas Department of Commerce

    Barbara Hake, CEcD
    Business Recruitment Manager
    1000 SW Jackson, Suite 100
    Topeka, KS 66612
    P: 913-307-7379
    [email protected]
    www.KansasCommerce.com/KBIZ

 

Utility Listings

  • Black Hills Energy

    Gabe Schlickau
    Manager, Economic Development (Kansas)
    3845 West Harry
    Wichita, KS 67213-1450
    P: 316-941-1656
    [email protected]
    www.blackhillsenergy.com
  • Kansas City Board of Public Utilities


    Director, Economic Development & Retail Services
    540 Minnesota Avenue
    Kansas City, KS 66101
    P: 913-573-9014
    [email protected]
    www.bpu.com

 

Regional Listings

  • Greater Wichita Economic Development Coalition

    Debra Teufel, CEcD
    Vice President, Business Development
    350 West Douglas
    Wichita, KS 67202-2970
    P: 316-268-1131
    [email protected]
    www.gwedc.org
  • Larned Area Chamber of Commerce

    Courtland Holman
    Executive Director
    502 Broadway
    Larned, KS 67550
    P: 620-285-6916; 800-747-6919
    [email protected]
    www.larnedks.org
  • Regional Development Association of East Central Kansas

    Kent Heermann, CEcD
    President
    719 Commercial Street
    Emporia, KS 66801
    P: 620-342-1600, ext. 16
    [email protected]
    www.emporiarda.org
  • South Central Kansas Economic Development District

    Bill Bolin
    Executive Director
    200 West Douglas, Suite 710
    Wichita, KS 67202
    P: 316-262-7035
    [email protected]
    www.sckedd.org
  • Southeast Kansas Inc.

    Kathy Swezey
    Executive Director
    P.O. Box 175
    Cherokee, KS 66724
    P: 620-249-5606
    [email protected]
    www.sekinc.org
  • Western Kansas Rural Economic Development Alliance (wKREDA)

    Ralph Goodnight
    President
    P.O. Box 980
    Hays, KS 67601
    P: 800-982-3501
    [email protected]
    www.wkreda.com

 

County Listings

  • Anderson County Development Agency (ACDA)

    Dennis Arnold
    Director
    131 West Fifth Avenue, P.O. Box H
    Garnett, KS 66032
    P: 785-448-5496
    [email protected]
    www.garnettksonline.com
  • Atchison Area Chamber of Commerce

    Jacque Pregont
    President & CEO
    P.O. Box 126
    Atchison, KS 66002
    P: 913-367-2427
    [email protected]
    www.atchisonkansas.net
  • Butler County Economic Development

    David Alfaro
    Director
    121 S. Gordy, Suite 102
    ElDorado, KS 67042
    P: 316-322-4242
    [email protected]
    www.bucoks.com
  • Clay County Economic Development Group

    Lori Huber
    Director
    517 Court Street
    Clay Center, KS 67432
    P: 785-632-5974
    [email protected]
    www.claycountyecodevo.com
  • Dodge City/Ford County Development Corporation

    Joann Knight
    Executive Director
    311 West Spruce, P.O. Box 818
    Dodge City, KS 67801
    P: 620-227-9501
    [email protected]
    www.dodgedev.org
  • Edwards County Economic Development

    Brian Taylor
    President
    721 Marsh Avenue, P.O. Box 161
    Kinsley, KS 67547
    P: 620-659-2711
    [email protected]
    www.edwardscounty.org
  • GO Topeka Economic Development

    Scott Smathers
    Vice President, Economic Development
    120 SE 6th Avenue, Suite 110
    Topeka, KS 66603-3515
    P: 785-234-2644
    [email protected]
    www.gotopeka.com
  • Harper County Economic Development

    Mike Lanie
    Director
    624 N LL&G
    Anthony, KS 67003
    P: 620-842-6004
    [email protected]
    www.harpercounty.com
  • Harvey County Econ. Development Council

    Mickey Fornaro-Dean
    Executive Director
    500 N. Main, Suite 109
    Newton, KS 67114
    P: 316-283-6033
    [email protected]
    www.harveycoedc.org
  • Hutchinson/Reno County Chamber of Commerce

    Abby Stockebrand
    Economic Development Coordinator
    117 North Walnut, P.O. Box 519
    Hutchinson, KS 67504-0519
    P: 620-662-3391
    [email protected]
    www.hutchchamber.com/
  • Jefferson County Economic Development Commission


    Director
    P.O. Box 104
    Oskaloosa, KS 66066
    P: 785-863-2272
    [email protected]
    www.jfcountyks.com
  • Junction City Area Chamber of Commerce Economic Development

    Susan Jagerson
    Economic Development Specialist
    222 W 6th St, PO Box 26
    Junction City, KS 66441
    P: 785-762-1976
    [email protected]
    www.jcgced.com
  • Kingman County Economic Development Council

    Daniel J. Shea, MRCP
    Executive Director
    324 North Main Street
    Kingman, KS 67068
    P: 620-532-3694
    [email protected]
    www.kingmanks.com
  • Leavenworth County Development Corporation

    Steve Jack
    Executive Director
    1294 Eisenhower Road
    Leavenworth, KS 66048
    P: 913-727-6111
    [email protected]
    www.lvcountyed.org
  • Marshall County Economic Development Office


    Director
    1201 Broadway, Suite 3, P.O. Box 391
    Marysville, KS 66508
    P: 785-562-9820
    [email protected]
    www.marshallco.net
  • Northeast Johnson County Chamber of Commerce

    Deb Settle
    President & CEO
    5800 Foxridge Drive, Suite 100
    Mission, KS 66202
    P: 913-262-2141
    [email protected]
    www.nejcchamber.com
  • Pottawatomie County Econ. Dev. Corp.

    Robert L. Cole
    Director
    1004 Lincoln, P.O. Box 288
    Wamego, KS 66547
    P: 785-456-9776
    [email protected]
    www.ecodevo.com
  • Republic County Economic Development Corporation

    Sarah Hartung
    Director
    1819 L Street, P.O. Box 178
    Belleville, KS 66935
    P: 785-527-2310
    [email protected]
    www.republiccountykansas.com
  • Sedgwick County Economic Development

    Chris Chronis
    Chief Financial Officer
    525 North Main, Suite 823
    Wichita, KS 67203
    P: 316-660-7591
    [email protected]
    www.sedgwickcounty.org
  • Southwest Johnson County Economic Development Corp.

    Tom Riederer
    President
    P.O. Box 456
    Gardner, KS 66030
    P: 913-715-6007
    [email protected]
    www.thinksouthwestjohnsoncounty.com
  • Wyandotte Economic Development Council

    Greg Kindle
    President
    727 Minnesota Avenue, P.O. Box 171337
    Kansas City, KS 66117
    P: 913-371-3198
    [email protected]
    www.wyedc.org/

 

City Listings

  • City of Leavenworth

    Scott J. Miller
    City Manager
    100 North 5th Street
    Leavenworth, KS 66048
    P: 913-682-4232
    [email protected]
    www.lvks.org
  • City of Pittsburg

    Tammy Nagel
    City Clerk
    201 West 4th Street
    Pittsburg, KS 66762
    P: 620-230-5532
    [email protected]
    www.pittks.org
  • Lawrence Chamber of Commerce

    Brady Pollington
    Economic Development Project Manager
    646 Vermont Street, Suite 200
    Lawrence, KS 66044
    P: 785-865-4425
    [email protected]
    www.lawrencechamber.com
  • Lenexa Chamber of Commerce

    Blake Schreck, CED
    President
    11180 Lackman Road
    Lenexa, KS 66219
    P: 913-888-1414
    [email protected]
    www.lenexa.org
  • Manhattan Area Chamber of Commerce

    John Pagen
    Economic Development Director
    501 Poyntz Avenue
    Manhattan, KS 66502
    P: 785-776-8829
    [email protected]
    www.manhattan.org
  • Olathe Chamber of Commerce

    Tim McKee
    Executive Vice President, Economic Development
    P.O. Box 98
    Olathe, KS 66051
    P: 913-764-1050
    [email protected]
    www.olathe.org
  • Ottawa Area Chamber of Commerce

    John Coen
    President & CEO
    109 East Second Street, P.O. Box 580
    Ottawa, KS 66067
    P: 785-242-1000
    [email protected]
    www.ottawakansas.org
  • Overland Park Economic Development Council

    Beth Johnson
    Senior Vice President of Economic Development
    Corporate Woods Building 29, 9001 West 110th Street, Suite 150
    Overland Park, KS 66210
    P: 913-766-7612
    [email protected]
    www.opedc.org
  • Pratt Area Chamber of Commerce

    Jan Scarbrough
    Executive Director
    114 North Main
    Pratt, KS 67124
    P: 620-672-5501
    [email protected]
    www.prattkansas.org
  • Salina Area Chamber of Commerce

    Dennis Lauver
    President
    P.O. Box 586, 120 West Ash Street
    Salina, KS 67402
    P: 785-827-9301
    [email protected]
    www.salinakansas.org
  • Shawnee Economic Development Council

    Andrew Nave, CEcD
    Executive Director
    15100 West 67th Street, Suite 202
    Shawnee, KS 66217-9344
    P: 913-631-6545
    [email protected]
    www.shawnee-edc.com
  • Spring Hill Chamber of Commerce

    Ann Jensen
    Executive Director
    P.O. Box 15
    Spring Hill, KS 66083
    P: 913-592-3893
    ajensen@spring[email protected]
    www.springhillks.org