INVESTMENT TAX CREDIT
INCOME TAXPAYER-Effective for all taxable years beginning after Dec. 31, 1992.
PRIVILEGE TAXPAYER-Effective for all taxable years beginning after Dec. 31, 1995.
TRAINING AND EDUCATION TAX CREDIT
INCOME TAXPAYER-Effective for all taxable years beginning after Dec. 31, 1992.
PRIVILEGE TAXPAYER-Effective for all taxable years beginning after Dec. 31, 1997.
The High Performance Incentive Program:
- encourages companies to expand their capital investment in Kansas plant and equipment by providing an investment tax credit and an exemption from sales tax for a specific project;
- encourages accelerated growth in a business, leading to related job creation, by making state funds available to reimburse 50 percent of the costs of approved consulting services;
- gives companies a tax credit for making a cash investment in the training and education of its employees; and,
- stimulates growth in the Kansas economy by encouraging eligible nonmanufacturing companies to sell to specific kinds of out-of-state customers and to Kansas manufacturers.
Investment Tax Credit
A tax credit is available to those qualified businesses who make an investment in a qualified business facility.
Qualifications
A firm must be qualified by the Secretary of Commerce to be eligible for the investment tax credit. To become certified, a business must meet the following requirements:
- Must be a for-profit establishment subject to state income, sales or property taxes; AND EITHER,
- Identified under the North American Industry classification system, subsectors 311 to 339 (manufacturing) or the appropriate North American Industry Classification System (NAICS) designation as in effect Oct. 1, 2000;OR,
- Identified under the North American Industry classification system, subsectors 221, 423 to 425, 481 to 519, 521 to 721, and 811 to 928. At least 51 percent of the sales made by these groups must be to Kansas manufacturers and/or out-of-state commercial customers and/or out-of-state government agencies; OR,
- Identified as a corporate or regional headquarters or back office operation of a national or multi-national corporation regardless of NAICS code; AND EITHER,
- The company pays above average wages compared to other firms in its appropriate NAICS designation; OR,
- Is the only company in its appropriate NAICS designation; OR,
- Pays an average wage of at least 1.5 times the average wage paid by other industries (covered by the employment security law based on data maintained by the Secretary of Human Resources) but excluding compensation paid to owners with a 5 percent or more interest.
In addition to certification by the Secretary of Commerce, a firm must:
For information on the certification process, contact the Kansas Department of Commerce at 785-296-5298.
Credit Amount
For taxable years commencing on or after Jan. 1, 2012, for a qualified business facility investment in the county of Douglas, Johnson, Sedgwick, Shawnee or Wyandotte, the credit shall be an amount equal to 10 percent of that portion of the qualified business facility investment that exceeds $1,000,000.
For taxable years commencing prior to Jan. 1, 2012, for a qualified business facility investment in the county of Douglas, Johnson, Sedgwick, Shawnee or Wyandotte, the credit shall be an amount equal to 10 percent of that portion of the qualified business facility investment that exceeds $50,000.
For a qualified business facility investment made in any county in Kansas other than Douglas, Johnson, Sedgwick, Shawnee, or Wyandotte, the credit shall be an amount equal to 10 percent of that portion of the qualified business facility investment that exceeds $50,000.
Limitation of Credit
The credit is limited to the taxpayer's tax liability.
The amount of credit which exceeds the tax liability in any one taxable year may be carried forward for a period of 10 years. The taxpayer must be recertified for the majority of that tax year in which the carryforward is to be claimed, except that no carryfoward shall be allowed for deduction after the 10th taxable year succeeding the taxable year in which the credit initially was claimed.
For qualified business facility investment placed into service in taxable years commencing after Dec. 31, 2000 for which the amount of tax credit exceeds the tax liability in any one taxable year, the excess amount may be carried forward for a period of 16 years.
Procedures to Claim the Credit
You may download Schedule K-59 to claim the high performance incentive program credit. This schedule must be completed and submitted with the income or privilege tax return. You may also call the Department of Revenue voice mail system at 785-296-4937 to request Schedule K-59. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.
Training and Education Tax Credit
The high performance incentive program gives qualified firms an income tax credit for making a cash investment in the training and education of its employees for all taxable years beginning after Dec. 31, 1992. The program also gives qualified firms a privilege tax credit for making a cash investment in the training and education of its employees for all taxable years beginning after Dec. 31, 1997.
The tax credit must be claimed in its entirety in the tax year eligible.
Qualifications
For the training and education tax credit, a firm must be qualified by the Secretary of Commerce. To become certified a business must meet the following requirements:
- Must be a for-profit establishment subject to state income, sales or property taxes; AND EITHER,
- Identified under the North American Industry classification system, subsectors 311 to 339 (manufacturing) or the appropriate North American Industry Classification System (NAICS) designation as in effect Oct. 1, 2000;OR,
- Identified under the North American Industry classification system, subsectors 221, 423 to 425, 481 to 519, 521 to 721, and 811 to 928. At least 51 percent of the sales made by these groups must be to Kansas manufacturers and/or out-of-state commercial customers and/or out-of-state government agencies; OR,
- Identified as a corporate or regional headquarters or back office operation of a national or multi-national corporation regardless of NAICS code; AND EITHER,
- The company pays above average wages compared to other firms in its appropriate NAICS designation; OR,
- Is the only company in its appropriate NAICS designation; OR,
- Pays an average wage of at least 1.5 times the average wage paid by other industries (covered by the employment security law based on data maintained by the Secretary of Human Resources) but excluding compensation paid to owners with a 5 percent or more interest.
In addition to certification by the Secretary of Commerce, a firm must spend at least 2 percent of their total wages paid on worker training and education to qualify for the training and education tax credit.
For information on the certification process, contact the Kansas Department of Commerce at 785-296-5298.
Credit Amount
The credit is equal to the portion of the investment in the training and education that exceeds 2 percent of the businesses total payroll costs.
Limitation of Credit
The maximum credit in any single tax year is $50,000 or the taxpayers tax liability whichever is less.
Procedures to Claim the Credit
You may download Schedule K-59 to claim the high performance incentive program credit. This schedule must be completed and submitted with the income or privilege tax return. You may also call the Department of Revenue voice mail system at 785-296-4937 to request Schedule K-59. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.
Back to Tax Credits page.
Investment Tax Credit
A tax credit is available to those qualified businesses who make an investment in a qualified business facility.
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Kansas Industrial Training (KIT)
The Kansas industrial training (KIT) program provides training assistance to manufacturing, distribution, or regional or national firms and other businesses primarily engaged in the development or production of goods or the provision of services for out-of-state sale. The business must create at least five new jobs. The KIT program will pay a negotiated amount of the costs of training including instructor salaries, training aids and supplies and materials. You may download additional information regarding the Kansas Industrial Training (KIT) program.
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Kansas Industrial Retraining (KIR)
The Kansas industrial retraining (KIR) program provides retraining assistance to employees of restructuring industries which are likely to be displaced because of obsolete skills. At least five existing employees must be trained to qualify for the program. You may download additional information regarding the Kansas Industrial Retraining (KIR) program.
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State of Kansas Investments in Lifelong Learning (SKILL) Program
The state of Kansas investments in lifelong learning (SKILL) program provides funds for training assistance to businesses that are creating a large number of new jobs or creating new jobs paying higher than average wages. You may download additional information regarding the State of Kansas Investments in Lifelong Learning (SKILL) program.