Economic Development Incentives
City of Manhattan
Industrial Revenue Bond Financing
Used to finance an existing or new facility and equipment and offers lower interest rates than conventional financing.
General Economic Development Assistance in the Form of Loans or Grants
Based on capital investment and/or job creation, these incentives are performance based.
For more information on City of Manhattan Economic Development Funding Assistance please visit: Economic-Development
State of Kansas
Promoting Employment Across Kansas (Peak) Program
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.
Kansas Industrial Training (KIT)
KIT covers employee training expenses for new and expanding businesses including instructors' salaries; travel (including out-of-state travel where appropriate); meals and lodging; manuals and other supplies; temporary training facilities and curriculum planning and development.
Kansas Industrial Retraining (KIR)
The KIR program can be used to help upgrade skills of an existing workforce of basic enterprises that are restructuring due to the incorporation of existing technology, new technology, product diversification, or new production activities.
Kansas Capital Multiplier Loan Fund
Under the Kansas Capital Multiplier Loan Fund, businesses can apply for matching loans up to 9% of the private capital invested. Private capital invested includes the amount of the loans provided by financial institutions, certified development companies and other sources of private lending. Private capital also includes the entrepreneurs’ investment and funds provided by angel investors and angel investor groups. The minimum loan from the Kansas Capital Multiplier Loan Fund is $25,000, with a maximum loan of $500,000.
Kansas Capital Multiplier Venture FundUnder the Kansas Capital Multiplier Venture Fund, businesses can apply for matching equity up to 9% of the private equity invested. Private equity invested includes funds invested by private equity firms and angel investors. Businesses eligible include technology and biosciences companies working with a state entrepreneurial center, University Center of Excellence, and/or the Kansas Bioscience Authority (KBA). Rural businesses or businesses in distressed areas of urban communities that meet critical community needs; are growth businesses with local angel investors; or are larger businesses with less than 500 employees that have local angel investors and significant private equity investment may also qualify. The minimum equity investment contribution from the Kansas Capital Multiplier Venture Fund is $25,000, with a maximum equity investment contribution of $250,000.
The High Performance Incentive Program (HPIP)
HPIP offers income tax credits and workforce training credits to companies that pay above average wages for their industry, make capital investments in their operations and invest in workforce training.
Sales Tax Exemptions
For qualifying companies, the High Performance Incentive Programs offer a 100% sales tax exemption on the purchase of labor and materials to construct or remodel a facility, as well as on the machinery and equipment used in the facility.
Machinery & Equipment Property Tax Exemption
Commercial and industrial machinery and equipment acquired by qualified purchase or lease, or transferred into the state for the purpose of expanding an existing facility or establishing a new facility after June 30, 2006 is exempt from state and local property tax.
Machinery & Equipment Expense 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 onetime deduction is allowed for each qualified purchase of machinery and equipment in the year that it is placed in service. The expensing deduction is representative of the difference between the cost of the item and the present value of the stream of depreciation deductions allowed under normal federal depreciation rules.
Research & Development Tax Credit
This is an income tax credit equal to 6.5% of a company's investment in R&D above an average expenditure of the previous 3 year period.
Certified Development Companies
Kansas Certified Development Companies (CDC) assist businesses by developing loan packages that meet the financial need of a project. These packages often contain multiple sources of project funding, thus providing the small business customer with the best combination of rates and terms possible.
The Department of Commerce offers a diverse portfolio of financial incentives to Kansas businesses and producers engaged in conventional and renewable energy production.
Work Opportunity Tax Credit
The Work Opportunity Tax Credit helps people move from welfare to work and gain on the job experience by encouraging private employers to hire within one of several targeted groups of job candidates who traditionally face significant barriers to employment, reducing employer's federal income tax liability by as much as $2,400 per qualified new worker in the first year of employment.