A Variety of state, city and county incentives are available to expanding companies
State of Kansas Incentives
PEAK (Promoting Employment Across Kansas)
High Performance Incentive Program
KIT (Kansas Industrial Training)
KIR (Kansas Industrial Retraining)
City of Wichita / Sedgwick County Incentives
IRBs (Industrial Revenue Bonds)
Abatement of Property for Economic Development Purposes
Additions to or expansions of existing buidlings qualify for the property tax exemptions if, as a result of the expansion, new jobs are created. Total or partial ad valorem tax may be in effect for up to 10 years after the calendar year in which a business commences its operations or an expansion is completed. There is no personal property tax on machinery and equipment purchased after June 30, 2006.
EDX (Kansas Constitutional Amendment)
Machinery & Equipment Expensing Deduction
Effective January 1, 2012 Kansas taxpayers will be allowed to claim an expense deduction for business machinery and equipment, placed in service in Kansas during the tax year. The one-time deduction is allowed 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) is section 168 of the internal Revenue Code, or canned software as defined in section 197 of the Internal Revenue Code. business machinery and equipment newly purchased, leased or moved into Kansas is exempt from property tax. Examples of eligible equipment include manufacturing equipment, office furniture, computers, software and racking.
Business Machinery & Equipment Property Tax Exemption
Effective July 1, 2006, business machinery and equipment newly purchased, leased or moved into Kansas is exempt from property tax. This is of particular benefit to capital-intensive manufacturing operations. The exemption applies equally to manufacturing equipment and office business equipment, furniture and fixtures. Items of business personal property under $1,500 original purchase price are also exempt from property tax regardless of date of purchase.
Business Inventory Property Tax Exemption
Effective January 1, 1989, merchant and manufacturer business inventories (raw materials, goods-in-process and finished goods) are exempt from property tax by Kansas constitutional amendment.
Sales Tax Exemption
Prior application for a Project Exemption Certificate can be made under the High Performance Incentive Program (HPIP.) If approved, this permits 100% sales tax exemption on items used to construct, build-out, remodel, furnish and equip the worksite. Such exemption covers all eligible taxable purchases of capital investment made by the entity submitting the application. Alternatively - if IRBs are utilized - sales tax exemptions can be provided for IRB-financied purchases subject to local governing body approval. Click here for more information and to dowload project and utility sales tax exemption application forms.
Foreign Trade Zone
Trade Show Assistance Program
Income Tax Credit for Research & Development