High Performance Incentive Program; Decoupling Kansas Industrial Training and Kansas Industrial Retraining; SB 65

SB 65 decouples participation in the Kansas Industrial Training program or the Kansas
Industrial Retraining program as a method to qualify for the High Performance Incentive
Program (HPIP) tax credit. The bill also eliminates the HPIP certification and recertification by a business to dedicate 2.0 percent of payroll for training purposes.

The bill also allows a company to transfer up to 50 percent of HPIP tax credits to another company or individual per year. Transferability is allowed only for projects placed into service on or after January 1, 2021. In the event a transferee’s tax liability is less than the amount transferred, the transferee may carry forward the credits for up to 16 years. The bill states in the event the Secretary of Revenue determines a tax credit is not allowable, the taxpayer who originally earned the credit is liable for the amount that is disallowed.