Job Creation Programs

Dylan Dear
Managing Fiscal Analyst

Elaina Rudder
Research Analyst

Chardae Caine
Fiscal Analyst

Kansas, through the Kansas Department of Commerce and Kansas Department of Revenue, hosts a variety of job creation incentive programs. These programs include both tax incentives and more direct business incentives.

Attracting Powerful Economic Expansion (APEX)

APEX is the most recent economic incentive program created by the 2022 Legislature. The APEX program includes many of the incentives offered in other Kansas programs and enhances them.

APEX is limited to businesses making capital investments in excess of $1.0 billion and provides incentives for both the qualifying firm and up to five qualified suppliers.

All APEX offers are subject to approval of the State Finance Council. Each time an APEX project is approved, the Kansas Corporate Tax Rate is reduced by 0.5 percent.

Qualifying Firm Incentives:

  • Refundable investment tax credits up to 15.0 percent of qualifying capital investment;
  • Partial rebate of payroll up to 10.0 percent per year, not to exceed 10 years;
  • Training reimbursement up to 50.0 percent of qualifying expenses, not to exceed $5.0 million annually; $25.0 million total;
  • Relocation reimbursement up to 50.0 percent for non-Kansas residents; limited to $1.0 million annually and $10.0 million total; and
  • 100.0 percent sales tax exemption up front for materials to construct facility.

Qualifying Supplier Incentives:

  • Refundable investment tax credits, scaled, up to 10.0 percent of first $100.0 million of qualifying capital investment;
  • Partial rebate of payroll withholding tax up to 65.0 percent per year, not to exceed 10 years;
  • Training reimbursement up to 50.0 percent of qualifying expenses, not to exceed $250,000 annually; $1.3 million total; and
  • 100.0 percent sales tax exemption up front for materials to construct facility.

Business Incentive Programs

Promoting Employment Across Kansas

Through PEAK, companies can retain 95.0 percent of payroll withholding tax for up to ten years.

Kansas Department of Transportation (KDOT) Economic Development Program

This program funds transportation improvements that can be shown to support job growth and capital investment in the state.

Utility Incentive Programs

These programs provide discounted rates or other cost-saving tools to assist companies looking to establish or grow their operations in Kansas.

Tax Credits and Financing Programs

High Performance Incentive Program (HPIP)

HPIP provides a 10.0 percent income tax credit on eligible capital investment, a sales tax exemption that will be used with the company’s eligible capital investment for the qualified facility, and a training tax credit up to $50,000.

Industrial Revenue Bonds (IRBs)

IRBs are issued by cities, counties, and the Kansas Development Finance Authority. Proceeds from the sale of the bonds to private investors are made available to enable creditworthy companies to purchase land and pay the costs of constructing and equipping new facilities or the costs of acquiring, remodeling and expanding existing facilities. Interest payable on all IRBs is exempt from Kansas income taxation, which reduces the rates by 2.0 to 2.5 percent below comparable taxable bonds.

Sales Tax and Revenue (STAR) Bonds

This 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.

Tax Increment Financing (TIF)

This program is applicable to industrial, commercial, intermodal transportation area, and residential projects that use the incremental increase in property taxes to finance improvements within the TIF district.

Real Property Tax Abatement

A property tax abatement up to 100.0 percent property tax for 10 years on real property is available if industrial revenue bonds are utilized or the abatement qualifies under the State Constitution. Abatement on real property is offered by the city or county where the property is located.

Personal Property Tax Exemption

Kansas law exempts the property tax on commercial and industrial machinery and equipment purchased or transferred into Kansas after June 30, 2006. 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 items such as computers, furniture, office equipment, business machinery, and manufacturing and warehouse equipment.

Kansas Aviation Tax Credits

An employer hiring incentive and tuition reimbursement for newly hired employees up to $5,000 per year and up to $25,000 total, an employer non-refundable tax credit of 10.0 percent of compensation up to $75,000 in credits per employee, and an employer tax credit of up to 50.0 percent of employee tuition in a qualified program for up to four years.