Business Incentives
and Financing in Kansas

Promoting Employment Across Kansas (PEAK) offers qualified companies the ability to retain 95 percent of their payroll withholding tax for up to five to 10 years.

Kansas Industrial Training (KIT) is a training incentive program to benefit companies creating net-new jobs in the state of Kansas.

KIR is a job retention tool that helps employees of restructuring companies who are likely to be displaced because of obsolete or inadequate job skills and knowledge.

Workforce AID addresses the skills gap currently challenging companies.

The KDOT plan includes an Economic Development Program to fund transportation improvements that can be shown to support job growth and capital investment in the state. All transportation modes are eligible, including roadway, rail, airport and public …

Many of our state utility partners can offer discounted rates or other costing-saving tools to assist companies looking to establish or grow their operations in Kansas.

In addition, SB339 recently passed allowing public investor-owned utilities access to a tool designed to attract new, very large electric utility economic development opportunities to the State of Kansas. With final approval by the Kansas Corporation Commission, this incentive provides a competitive rate to new customers with an electric demand of 50 MW or larger. 

Eligible customers include non-retail industries such as data centers, aviation and other large-scale industrial development. Customers benefit from the special rate for 10 years. A new load of at least 50 MW must be located at a single location. Renewable resources can be incorporated into the rate making, providing for additional savings and allowing customers to meet their corporate goals.

In addition, companies committed to meeting corporate sustainability goals from renewable sources have several options to reach those targets, including a Renewables Direct program offered by the state’s largest utility that allows commercial and industrial customers to offset a percentage of their energy usage through a renewable resource. This program is designed to provide large customers a path toward their sustainability goals with abundant, affordable renewable energy. A number of utilities across the state also have wind and solar energy as part of their electricity portfolio, and other arrangements such as energy efficiency incentives may be offered by some service providers.

For more information please reach out to your Commerce project manager, and they will connect you with the appropriate utility partner.

KITMAP provides funding for Kansas businesses to start or expand their exporting sales through engaging in various marketing activities including overseas sales trips.

The Kansas Department of Commerce’s Kansas International Trade Show Assistance Program can help a Kansas business make international connections and increase their exports.

STEP helps small businesses located in Kansas begin to export and existing exporters expand.

HPIP provides tax incentives to qualifying employers who pay above average wages, along with having a robust commitment to training and skill development for their workers.

Industrial Revenue Bonds (IRBs) are among the most popular and cost-effective methods of financing up to 100 percent of a new or growing business’ land, buildings and equipment.

Kansas has a variety of sales tax credit and exemption programs available that offer significant savings to companies.

Economic Development (CDBG-ED) program is a source of financing for companies that are expanding an existing facility or starting a new operation in a non-metropolitan area of Kansas.

Tax Increment Financing (TIF) is a real estate redevelopment tool applicable to industrial, commercial, intermodal transportation area and residential projects.

Sales Tax and Revenue (STAR) Bonds are a financing tool that allows Kansas municipalities to issue bonds to finance the development of major commercial, entertainment and tourism projects. The bonds are paid off through the sales tax revenue generated by the development.
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State law allows a 100% property tax abatement for ten (10) years on real property if industrial revenue bonds are utilized or it qualifies under the state Constitution, which allows companies that manufacture articles of commerce, conduct research and development or store goods or commodities sold in interstate commerce to receive a property tax abatement. Tax abatement on real property is offered by the city or county where the property is located.

Kansas law exempts the property tax on commercial and industrial machinery and equipment purchased or transferred into Kansas after June 30, 2006. The personal property tax exemption continues each year under the law.

This personal property tax exemption is unique and offers significant savings each year to companies. Savings will depend on the fair market value of the property, depreciation, the local mill levy rate and whether all equipment qualifies for the property tax exemption. The exemption can cover such items as: computers, furniture, office equipment, business machinery and manufacturing and warehouse equipment.

Tax incentives to assist aviation sector businesses in recruiting highly skilled talent, beginning in the 2022 tax year.

Federal Opportunity Zones is a new economic development tool enacted by the Federal Tax Cuts and Jobs Act of 2017, offers investors preferential tax treatment for capital gains invested in low-income communities designated as Opportunity Zones. The program is designed to encourage long-term investment in economically distressed areas and promote economic growth.

The Office of Minority and Women Business Development promotes business development with a focus on disadvantaged, minority- and women-owned businesses. Information and referrals are provided in the areas of procurement, contracting and subcontracting, financing and business management.

Private Activity Bonds are a useful resource for organizations wishing to implement projects within their communities to support their citizens.

The Board of Tax Appeals (BOTA) Liaison provides instruction and technical assistance for nonresidential entities applying for economic and/or industrial revenue bond tax abatements.

77 Kansas counites have been authorized to offer state income tax waivers and/or student loan repayments to new, full-time Kansas residents.