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:
Contact the State Department of Revenue at 785-296-6741.
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- 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.
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.
Inventory includes those items that:
Items of inventory are exempt from property tax.
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.
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.
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:
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).
Qualified research expenditures are defined in federal internal revenue code of 1986, amended.
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.
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.
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.
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.
Creation of one new job that pays an average wage of at least the Counties Median Wage, in which the business resides.
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.
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.
Federal tax credit up to $2,400 per qualified hire.
Contact: Joyce Heiman, WOTC Program Manager, at 785-296-7435.