As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Kansas
, and their state economic development professionals gave us some details (Kansas incentives site click here
Kansas offers a moderate selection of credits and incentives for new and existing businesses. CNBC ranked Kansas #28 in their 2016 America’s Top States for Business survey (Georgia was #8 in the same survey).
Incentives and Credits include:
Promoting Employment Across Kansas (PEAK)
— Offers qualified companies the ability to retain 95 percent of their payroll withholding tax for up to five to seven years. Available for new operations, relocated operations to the state, and qualifying business retention projects. Create at least ten new jobs within two years in metropolitan areas or five new jobs within two years in all other counties of the state. High-impact projects that create 100 new jobs within two years can retain 95 percent of payroll withholding tax for a period of ten years. A PEAK application must be submitted before locating or creating PEAK-eligible jobs in Kansas.
High Performance Incentive Program (HPIP) — Provides a 10 percent corporate income tax credit on the qualified capital investment of an eligible company. Minimum investment threshold is $1 million for the urban counties of Douglas, Johnson, Sedgwick, Shawnee and Wyandotte. For all other counties, the minimum investment threshold is $50,000. Must complete Project Description form to begin approval process.
Other Incentives — Local tax abatement, workforce training, and several financing programs, depending on the project.
Compared to Georgia, Kansas has:
- Slightly higher corporate but lower personal income tax rates
- Comparable combined state and local tax burden
- A narrower range of incentives
- Pre-approval required for most incentives
To summarize, Kansas is about average for business tax incentives in a central Midwest location.