Business & Community Resources

Commercial & Industrial Property Tax Exemption

A commercial/industrial property tax exemption is available to all commercial and industrial, telecommunications and railroad machinery and equipment acquired by qualified purchase or lease that meet the following criteria:

  • Made or entered into after June 30, 2006
  • As a result of a bona fide transaction
  • Not consummated for the purpose of avoiding taxation
  • Transported into Kansas after June 30, 2006 for the purpose of expanding an existing business or the creation of a new business shall be exempt from personal property tax

Contact the State Department of Revenue at 785-296-6741.

Connect NWK 

Looking for a job or looking to post an available position? Check out What Connect NWK has to offer!

  • Connect NWK is a program of Northwest Kansas Economic Innovation Center (N.W.K.E.I.C.I.). Connect NWK helps people plant their roots in Northwest Kansas, where there's plenty of space to spread your wings and fly. With a range of vibrant businesses, industries, and agriculture to keep the economy humming, we're here to help working professionals chase their dreams, finding the perfect balance of career and convenience on the High Plains.
  • Visit the Connect NWK website

Day Care Facilities Tax Credit 

Tax credits are offered against Kansas Income tax liability for businesses providing child day care services to employees. These credits apply to taxpayers who pay for or provide child day care services for their employees or that provide facilities and necessary equipment for child day care services. (K.S.A. 79-32,190.)

Eligibility: Day care facilities must be licensed or registered pursuant to Kansas law.

Benefits: The amount of credit is based on the amount spent by the taxpayer less any contribution from its employees or any other source(s). Not to exceed $45,000 for the first year a facility is established or $30,000 for subsequent years. Any approved credit that exceeds the taxpayer’s tax liability for the tax year will be refunded.

Contact: Contact the State Department of Revenue at 785-368-8222.

High Performance Incentive Program (HPIP)

The HPIP provides an investment tax credit and other incentives to companies that pay above average wages and have a strong commitment to skills development for their workers. Eligible companies may receive substantial investment tax credits and other incentives if they satisfy wage and training criteria program.

Eligible NAICS include all NAICS that begin with 3 and other NAICS categories which include 2211 - 2213; 4231 - 4251; 4811- 5191; 5211 - 7213; and 8111 - 9281. A worksite with any NAICS code may qualify if they are designated, by the secretary, as a headquarters or back-office operation of a national or multi-national firm.

Eligibility

  • Must pay above average industry wage.
  • Invest an amount equal to 2% of payroll in employee training or participate in a State training program.
  • Business activities fall within NAICS codes other than those for agriculture, Mining, construction, and retailing. For companies that are otherwise eligible are not manufacturers at least 51% of revenues must be generated from sales to Kansas manufacturers; and/or out-of-state commercial; and/or governmental customers.

Benefits

  • A tax credit for capital investment, with a 16-year carry-forward, equal to up to 10% of the eligible investment that exceeds $ 1 million in Douglas, Johnson, Sedgwick, Shawnee and Wyandotte counties and exceeds $50,000 in all other counties.
  • Exemption from sales tax for eligible capital investments/services.
  • A potential workforce training tax credit up to $50,000 per year on training. Expenditures above two percent of the company payroll.
  • Priority consideration for other assistance programs offered through Commerce, KTEC, and MAMTC.

Cannot be used if taxpayer elects Expensing Deduction.

Contact: Ed Bryan, Commerce, at 785-296-7174.

Industrial Revenue Bonds

The City of WaKeeney and Trego County will consider Industrial Revenue Bonds (IRB's) on a case-by-case basis.

Inventory Property Tax Exemption 

A property tax exemption exists for merchants' and manufacturers' inventory.

Eligibility

Inventory includes those items that:

  • Are primarily held for sale in the ordinary course of business (finished goods)
  • Are in process of production for sale (work in progress)
  • Are to be consumed either directly or indirectly in the production of finished goods (raw materials and supplies)

Benefits

Items of inventory are exempt from property tax.

Contact

Contact the Kansas Department of Revenue at 785-368-8222.

Kansas Small Business Development Center - Fort Hays State University

The KSBDC offers free, confidential, one-on-one business consulting to prospective and current business owners. The center also hosts a series of low-cost seminars on small business topics, including writing an effective business plan, seeking funds, marketing, bookkeeping, and more. You may contact us at 785-628-5615, or email KSBD..

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 one-time 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. If the property is relocated outside Kansas or disposed of before the end of its federal depreciable life, the amount of the tax liability relieved by the deduction may be subject to repayment.

Eligibility
Eligible investment is in machinery and equipment depreciable under the Modified Accelerated Cost Recovery System (MACRS) in section 168 of the Internal Revenue Code, or canned software as defined in section 197 of the Internal Revenue Code. Examples of eligible equipment include manufacturing equipment, office furniture, computers, software, racking. Qualifying property excludes residential rental property, nonresidential real property, any railroad grading or tunnel bore or any other property with an applicable recovery period in excess of 25 years as defined under section 168(c) or (g) under the internal revenue code.

If taxpayer elects to claim expensing deduction, they cannot claim tax credits or other incentives under the following: high performance incentive program credit; research and development credit; alternative fuel vehicle credit; swine facility improvement credit; historic preservation credit; refinery credit or accelerated depreciation; oil or gas pipeline or accelerated depreciation; integrated coal or coke gasification nitrogen fertilizer plant credit or accelerated depreciation; biomass-to-energy plant credit or accelerated depreciation; integrated coal gasification power plant credit; renewable electric cogeneration facility credit or accelerated depreciation; biofuel storage and blending equipment credit or accelerated depreciation; carbon dioxide capture equipment credit; or film production credit.

Contact: Kansas Department of Revenue, at 785-296-2479.

Machinery Sales Tax Exemption

The sale of machinery and equipment (including repair and replacement parts and accessories) which is used in Kansas as an integral or essential part of an integrated production operation by a manufacturing or processing plant or facility is exempt from sales tax. The installation, repair and maintenance services performed on this equipment shall also be exempt from sales tax. (K.S.A. 79-3606). Form ST-201

Contact the Kansas Department of Revenue at 785-368-8222 .

Mid-America Manufacturing Technology Center (MAMTC)


MAMTC is a non-profit organization, whose mission is to improve the competitiveness of small and mid-sized manufacturers. MAMTC identifies and aids in solving technical problems in the manufacturing process by making the manufacturer aware of currently available technology and management techniques. MAMTC engineers are located in several Kansas cities and provide four main types of services, including one-on-one consultations, training, equipment demonstration, and industry networks. The key service is hands-on consultation, with a focus on identifying problems or areas of improvement, implementing steps to address future challenges.

Contact: Cal 913-649-4333 for more information.

Promoting Employment Across Kansas

The Promoting Employment Across Kansas (PEAK) incentive program allows qualified for-profit and regional / national non-for-profit headquarter companies that are locating new jobs or expanding existing Kansas operation, to retain 95% of the payroll withholding tax of the PEAK jobs up to a period of 10 years. Per K.S.A. 74-50,210 through 74-50,216 (also known as the PEAK Act), the Secretary of Commerce has sole discretion to approve qualified companies and determine length of benefit.The company's wages for PEAK jobs must meet or exceed the county median wage or regional North American Industry Classification System (NAICS) industry average wage.

Eligibility

  • Must be creating new jobs in Kansas resulting from relocating, locating or expanding
  • For-profit companies shall not have the NAICS assignment of a business.
    • Industry group 7132 (Gambling Industries) or 8131 (Religious Organizations);
    • Sectors 44 and 45 (Retail Trade), 61 (Educational Services), 92 (Public Administration) or 221 (Utilities including water and sewer services); Subsector 722 (Food Services and Drinking Places);unless applying as an international or national headquarters or an administrative/back office facility
  • Not-for-profit regional/national headquarters may apply.
  • Shall not be a bioscience company (as defined in KSA 2008 Supp. 74-99b33 and
  • Shall not be delinquent in the payment of taxes to any federal, state and/or local
  • Shall not be under the protection of the federal bankruptcy code.
  • Must make available to full-time employees adequate health insurance coverage and
  • Must have a median or average wage for PEAK jobs of at least 100 percent (100%) amendments thereto).
  • Must create a minimum of 10 PEAK jobs in a designated metropolitan (metro) county
  • Must create a minimum of 100 jobs within two years of application regardless of pay at least 50% of the premium of the county median wage (CMW) or industry NAICS as published by the Kansas Department of Labor (KDOL) at the time of application for the county in which the jobs will be located. Within two years of application to receive basic program benefits. Businesses located all other counties must create 5 PEAK jobs within two years. location to receive high impact program benefits.
  • Must be approved by the Secretary of Commerce (Secretary) to participate in

Applications are accepted throughout the year and must be received prior to hiring PEAK jobs/ employees in Kansas. For more information, see the Kansas Commerce website.

Contact: Darla Price, Commerce, at 785-296-1868.

Rural Opportunity Zone (ROZ)

Trego County Commissioners opted into the program on June 20, 2011. The program took effect July 1, 2011. The program has two main incentives:

  • State income tax credit for up to five years to individuals who move to a ROZ county from outside the state of Kansas. Individuals must not have lived in Kansas for the past 5 years, nor have a Kansas source of income of more than $10,000 a year for the past 5 years.
  • Student loan forgiveness of up to $3,000 per year (up to $15,000 maximum benefit) for individuals who graduate from an accredited post-secondary institution and move to a ROZ county.

Employers are allowed to sponsor their employees and/or hiring candidates for the ROZ.

Research Tax Credit

In order to encourage research and development activities within the state, taxpayers who invest in research and development are entitled to tax credits against Kansas income tax liability (K.S.A. 79-32182).

Eligibility
Qualified research expenditures are defined in federal internal revenue code of 1986, amended.

Benefits
Tax credit equals 6.5% of the amount by which a company’s investment in R&D that exceeds the average expenditure of the previous three year period. 25% of the allowable annual credit may be claimed in any one year. Unused credits may be carried forward indefinitely.

Cannot be used if taxpayer elects Expensing Deduction.

Contact: the State Department of Revenue at 785-368-8222.

Small-Business Owners, Share Your Perspectives

Owners and key financial decisionmakers of for-profit businesses, tell us about your recent experiences. Did your business seek financing such as loans or lines of credit in the last 12 months? How would you rate the financial condition of your business? What effect is the COVID-19 pandemic currently having on your business?

The Federal Reserve’s 2021 Small Business Credit Survey is open for responses, and Rural Development is a partner on this effort. By taking the survey, you contribute to data that directly informs the Fed, federal government agencies, service providers, and others—ultimately benefitting your business and other businesses like yours. Take the 10-minute survey now

The survey is open to businesses currently in operation, those recently closed, and those about to launch. The questions ask about business conditions, financing needs, and the effects of the pandemic on your business All responses are confidential.

The survey closes November 19, 2021. 

U.S.D.A. Rural Development in Kansas

For information on programs through the USDA Rural Develpment, please visit their website or 785-628-3081.

Utilities Sales Tax Exemption

Electricity, gas, and water consumed to run machinery and equipment to produce, manufacture, process, mine, drill or refine tangible personal property is exempt from state and local sales tax. Form BT/st-28B

Contact: the Kansas Department of Revenue at 785-368-8222.

Water & Sewer Infrastructure

The City of WaKeeney's investment on qualified projects will be to provide water and sewer infrastructure to the property line for new development within the city limits.

Work Force Training

The KIT and KIR programs can pay for the costs of training new employees or retraining existing workers. Instructors may come from your supervisory staff, community colleges, area technical schools, consultants, vendors, or other sources.

Training may take place at your business, a local school or temporary rental facility. Eligible costs include: instructors salaries, curriculum planning and development, travel expenses, materials and supplies, training aids, minor equipment, and certain training facilities.

Programs focus on firms involved in manufacturing, distribution, regional or national service, agriculture, mining, research and development, interstate transportation, and tourism activities primarily aimed at attracting out-of-state tourists.

Kansas Industrial Retraining (KIR)
For restructuring companies whose employees are likely to be displaced to obsolete or inadequate job skills or knowledge. The program will provide assistance for retraining existing employees.

Eligibility
Companies restructuring their operations through incorporation of existing technology, development and incorporation of new technology, diversification of production or the development and implementation of new production activities. Positions being retrained must be paid a minimum average wage of at least the Counties Median Wage, in which the business resides.

Benefits
Company must provide dollar-for-dollar match. Typical award is $300 to $500 per trainee.

Kansas Industrial Training (KIT)
The KIT program is designed to help new and expanding companies offset the costs of training workers for new jobs. Training funds can be used to reimburse negotiated costs for pre-employment, on-the-job and classroom training.

Eligibility
Creation of one new job that pays an average wage of at least the Counties Median Wage, in which the business resides.

Benefits
Up to 100% training costs. Typical award is $300 to $500 per trainee.

Work Opportunity Tax Credits

A federal tax credit of $2,400 per employee may be available as your company hires employees from specified target groups or are residents (18-39 years old) of Kansas 43 "Rural Renewal" counties in Kansas. Hiring a disable veteran provides a $4,800 tax credit. Prescreening of applicants and registration of job candidates required through the KANSAWORKS system. For more information, please contact Linda Koci by email or at 785-625-5654.

The Work Opportunity Tax Credit (WOTC) and Welfare-to-Work tax credit are federal income tax credits that encourage employers to hire job seekers who face the greatest barriers to employment.

Eligibility

Private-for-profit employers. Hires not eligible for certification: relatives, non-related dependents, self-employed individuals, non-qualifying re-hires, majority stockholders, members of partnerships and Sub-Chapter S shareholders. Contact program manager for listing eligible target groups.

Benefits

Federal tax credit up to $2,400 per qualified hire.

Contact: Joyce Heiman, WOTC Program Manager, at 785-296-7435.