Manufacturing businesses may be able to receive sales tax exemptions and state income tax credits if they create a net two (2) jobs. Non-manufacturing businesses must create a net five (5) new jobs. Income tax credit of $1,000. per $100,000. of investment. Job creation tax credit of $1,500. per net new job; the credit is $2,500. if located in a designated non-metropolitan region. Retail firms located in the Ford County cities with population under 2,500 may qualify for incentives. A firm is generally retail for the purpose of this act if it is primarily engaged in the sale of goods or services at retail. The Kansas Department of Revenue will determine if an individual firm is “retail” on a case by case basis. Contact: Kansas Department of Commerce & Housing, Business Development (785) 296-5298
Property Tax Abatement
Businesses that purchase or expand property for the purpose of: a) manufacturing articles of commerce; b) conducting research and development; or c) storing goods or commodities which are sold or traded in interstate commerce may qualify for property tax abatement with proper approval of the City or County governing body, with final approval from the State Board of Tax Appeals. Certain uses financed by Industrial Development Bonds may also qualify for property tax abatements. (this has to be approved by the State prior to the issuance). Contact: Dodge City/Ford County Development Corporation (620) 227-9501
Trade Show Assistance
Kansas Trade Show Assistance Program (KTSAP) is a financial assistance program that encourages Kansas companies to explore foreign markets through participation in trade shows. Upon approval prior to the trade show, the program will reimburse one-half of a company’s eligible direct expenses, not to exceed $3,500 per foreign show and $1,500 per domestic show that attracts foreign buyers. A company may not exceed $3,000 for domestic shows or $7,000 in total combined financial assistance during the state’s fiscal year. Contact: Kansas Department of Commerce & Housing, Trade Development Division (785) 296-4027
Research & Development Credit
State income tax credits of 6.5% of qualifying expenditures in research and development activities (above the average investment for such activities over the past two taxable years) may be claimed. Credit is limited to 25% of the total amount of the credit plus any applicable carry forward in any one taxable year. The amount of any remaining unused credit may be carried forward until the total amount of the credit is used. Contact: Kansas Department of Revenue 1-877-526-7738
Kansas Industrial Training
Kansas Industrial Training (KIT) program is a comprehensive and flexible work force training program designed to respond to the specific needs of new and expanding firms creating new jobs. Priority is given to Kansas basic industries-firms involved in manufacturing, regional or national service, interstate distribution, agriculture, mining, research and development, interstate transportation and some tourism activities. KIT funds can be used for instructor salaries, travel expenses, curriculum planning and development, textbooks and materials, and other training related costs. The program is administered on a first come first served basis. Grants average $700 to $800 for each new job.
Kansas Industrial Retraining
Kansas Industrial Retraining (KIR) program is a job retention tool which assists employees of restructuring industries who are likely to be displaced because of obsolete or inadequate job skills and knowledge. Eligible training expenses are identical to that of the KIT program. KIR guidelines require a dollar for dollar match. The program is administered on a competitive basis in 6 rounds each year.
The Investments in Major Projects and Comprehensive Training (IMPACT)
This program has two major components: State of Kansas Investments in Lifelong Learning (SKILL) and the Major Project Investment (MPI) funds. SKILL funds are used for workforce training costs and can cover training costs similar to the KIT program. MPI funds cover other expenses associated with business expansion or relocation. Under some circumstances, IMPACT may be used as a job retention tool. Contact: Kansas Department of Commerce & Housing Business Development (785) 296-5298
Work Opportunity Tax Credit and Welfare-to-Work Tax Credit (WOTC/W2W)
These programs are federal income tax credits that encourage employers to hire certain job seekers and reduce employer federal tax liability. The WOTC/W2W program was designed to help people move from welfare to work and gain on-the-job experience. WOTC/W2W joins other education and training initiatives and targeted tax credits that are helping American workers prepare for good jobs; ease the transition from job to job; and create high performance workplaces. Contact: Job Service Center (620) 227-2149
The High Performance Incentive Program
The High Performance Incentive Program is aimed at retaining high performance Kansas firms and attracting new high quality firms to Kansas. All firms must meet specific wage and training levels. To satisfy the training requirement, a firm must invest 2% of total wages paid in employee training, or it must participate in KIT, KIR, or IMPACT work force training programs. For some types of businesses, aggregate sales to out-of-state businesses and government agencies, and to Kansas manufacturers, must exceed 50% of revenues. Generally, the following industries are not eligible for the program: retailers, mining, agriculture, and construction. Headquarters and back-office operations are potentially eligible, no matter what industry they are connected with.