The Community Development Block Grant is a unique federal resource for communities. The Kansas Department of Commerce first accepted responsibility for administering these federally funded grants in 1984 under the John Carlin Administration.
The mission of the Community Development Block Grant (CDBG) Program is to partner with Kansas communities to help enhance their livability by providing financial, technical and business assistance.
One of three national objectives must be met:
All counties and cities that are not participants in the CDBG entitlement program are eligible, with the expectation of the following cities and counties:
Resources & Program Contact
Program Cost & Return on Investment
Program Compliance Rate
The Community Service Tax Credit program was created during the 1994 legislature under the Bill Graves Administration. The related statue is 79-32,195.
Kansas Community Service Program (CSP) has given nonprofit organizations a way to improve their ability to undertake major capital fund-raising drives for various projects. Tax credits are allocated each year and awarded on a competitive application basis to nonprofit organizations. The nonprofit organization may offer the Kansas income tax credits to contributors of approved projects.
Projects eligible for tax credit awards include community service, crime prevention, health care, and youth apprenticeship and technical training. Based on the scope and cost of the proposed project, applicants may request up to $250,000 in tax credits. Applicant organizations in rural areas (less than 15,000 population) are eligible for a 70 percent credit. Applicant organizations in non-rural areas are eligible for a 50 percent credit.
99.26% was the compliance rate for 2017-2018
HPIP was approved during 1992 legislature under the Joan Finney Administration. The statue related to HPIP is 74-50,133.
The High Performance Incentive Program (HPIP) is designed to offer business incentives to companies that make new capital investment in their companies, pay above-average wages for their industry, and invest in workforce training for their employees. For certain non-manufacturing firms, there may be an additional qualifier that a majority of their revenues will need to come from outside of Kansas. HPIP can offer corporate income tax credits and a sales tax exemption on purchases related to your project.
To be eligible for HPIP, a worksite must either pay above-average wages for its industry, or one-and-a-half times the statewide average wage exclusive of owner compensation. To determine whether a worksite pays above-average wages, the worksite’s wages will be compared to those of business establishments in like industries within the county or counties that comprise the appropriate HPIP wage region. Once the wage criterion has been met, the worksite must either invest an amount equal to two percent of its total payroll on qualified employee training or participate in the Kansas Industrial Training (KIT) program or the Kansas Industrial Retraining (KIR) program.
Firms must be certified by Commerce before filing for this credit. Participating businesses must be in the North American Industry Classification System (NAICS) categories 221, 311-339, 423-425, 481-721 or 811-928. If a business is in major NAICS non-manufacturing categories 221, 423-425, 481-721 or 811-928, more than half of sales must be to Kansas manufacturers and/or out-of-state commercial or government customers.
With regards to HPIP, there is not a compliance rate. There are no contracts and no penalties to a company that no longer qualifies for HPIP. The effective approval rate for companies that apply for HPIP is 100%. Companies can self-determine in advance if they will meet the HPIP requirements and typically only apply if they know their capital project will be HPIP certified.
The Individual Development Account Program Act was established during the 2004 legislature under the Kathleen Sebelius Administration. The related statue is 74-50,201.
Purpose Allows qualified Kansans of low-income levels the opportunity to achieve financial self-sufficiency through education and asset development via special savings accounts. Program participants can use the accrued savings to:
Criteria A family or individual whose household income is less than or equal to 200% of the federal poverty level at the time of application to an individual development account program may open an individual development account for the purpose of accumulating and withdrawing moneys for specified expenditures. IDA program participants must also complete an online money management course before they can open a special savings account that is eligible for a 2:1 match for every dollar they save. The online course allows Kansans to hone their financial responsibility skills and provides the foundation for future stability and self-sufficiency.
(877) 447-5927 Ext 702
Job Creation Funds (JCF)
JCF was created in FY2012 and replaced the former Investments in Major Projects and Comprehensive Training (IMPACT) and Kansas Economic Opportunities Initiative Fund (KEOIF).
The JCF program was designed as a deal closing fund to allow Kansas to be competitive in attracting new business as well as maintaining existing Kansas companies. The program is designed to promote job creation, job retention or other economic development activities.
Job creation funds are awarded to companies with an expectation that the company will create or retain a specific number of jobs, provide training, or be used for other types of economic development. Companies who fail to meet project criteria do not receive the intended funds or are required to pay funds back depending of the structure of the agreement. The secretary of commerce, in consultation with the secretary of revenue and the governor, shall administer the fund. Companies are required to enter into an Agreement and report progress on an annual basis typically over a 5-year period.
Over the past 3 years we have requested repayment from 26 companies totaling $818,926.60.
The Kansas Angels Tax Credit was established July 1st, 2005 under the Kathleen Sebelius administration. The related statues are 74-8131 through 74-8137.
The purpose of the Kansas angel investor tax credit act is to facilitate the availability of equity investment in businesses in the early stages of commercial development and to assist in the creation and expansion of Kansas businesses, which are job and wealth creating enterprises, by granting tax credits against the Kansas income tax liability of investors investing in these businesses. The Kansas angel investor tax credit act shall be administered by the secretary with the primary goal of encouraging individuals to provide seed-capital financing for emerging, Kansas businesses engaged in the development, implementation and commercialization of innovative technologies, products and services.
The Kansas Industrial Retraining was established during the 1989 legislature under the Mike Hayden administration. The related statue is 74-5066.
The KIR program is designed to assist companies who are restructuring or retraining their workforce.
Companies must be fall within one of the nine Kansas Basic Industry classifications, or they must be categorized as a regional or national headquarters with 51% of their revenue coming from outside of Kansas. In addition, the company will have to retrain at least one existing position and show the employee(s) to be trained are likely to be displaced because of obsolete or inadequate job skills and knowledge.
Kansas Industrial Training was established during the 1978 legislature under the Robert Bennett administration. The related statue is 74-5066.
The KIT program was designed to assist firms involved in creating at least one “net new job” in Kansas, whether it be a company coming to Kansas or a current Kansas company expanding their current workforce.
In order for the company to qualify for KIT training assistance, they are required to meet one of the nine Kansas Basic Industry classifications or categorized as a regional or national headquarters with 51% of their revenue coming from outside of Kansas.
Private Activity Bonds were established during the 1988 legislature under the Mike Hayden administration. The related statue is 74-5058.
Qualified Private Activity Bonds (PABs) are federally tax-exempt bonds. Under the federal volume cap, Kansas has a total 2018 bond allocation of $311,375,000 for this purpose.
Exempt facility bonds are used to fund activities such as:
Mortgage revenue bonds (MRBs) and mortgage credit certificates (MCCs) are issued to provide first-time homebuyers an enhanced opportunity to finance the purchase of a new home. Persons meeting certain financial and demographic guidelines are able to achieve substantial savings over the life of a home mortgage through the use of these available programs.
The types of bonds qualifying for such tax-exempt status are:
In Kansas, the primary demand for bond allocation has been for the issuance of exempt facility bonds, mortgage revenue bonds and qualified small issue bonds (or industrial revenue bonds).
Compliance rate is 100%
Promoting Employment Across Kansas was established July 1st, 2011 under the Sam Brownback administration. The related statues are 74-50,219 & 74-50,210.
The purpose of the PEAK program is to encourage economic development and job creation in Kansas. It allows qualified, for-profit companies creating net new jobs to retain or receive quarterly refunds for 95 percent of the payroll withholding tax for a period of up to 10 years for new “PEAK jobs” that pay at or above the county median wage.
The PEAK benefit and term are based on the number of PEAK jobs/employees to be hired, their wage levels, and other economic impact variables of a project. During the benefit term, participating PEAK companies may retain or be refunded 95 percent (95%) of the state withholding tax of PEAK-eligible employees that are paid at or above the county median wage where the PEAK business facility is or will be located.
Qualified companies must create within a two-year period and maintain thereafter, a minimum of five (5) new PEAK jobs in non-metropolitan counties or ten (10) new PEAK jobs in the metropolitan counties of Shawnee, Douglas, Wyandotte, Johnson, Leavenworth and Sedgwick to receive “Basic” program benefits. Qualified companies must create within a two-year period and maintain thereafter, a minimum of 100 new PEAK jobs regardless of location to receive “High Impact” program benefits. Aggregate wages of the PEAK jobs must meet or exceed the county median wage or North American Industry Classification System (NAICS) average wage for their industry. Applicants meeting program requirements may include for-profit companies and not-for-profit headquarters.
Qualified applicants also must:1) offer an adequate health insurance policy to its full-time employees within 180 days of hire that provides coverage for basic hospital and procedures care, physician care, mental health care, substance abuse treatment, prenatal and postnatal care, and prescription drugs, and pay at least 50 percent (50%) of the employee’s health insurance premium cost;2) not owe undisputed federal, state, or local taxes; and3) not be under or intend to seek protection under the federal bankruptcy code.
Rural Opportunity Zones were established July 1st, 2011 under the Sam Brownback administration. The statues that are related to ROZ are 74-50,222 & 79-32,267.
The purpose of the ROZ program is to encourage citizens to move to rural Kansas to combat population decline in those areas. The program has 2 parts;
Part 1: Up to 5-year 100% tax credit on Kansas income if a person changes their domicile to Kansas after being away for at least 5 years and having earned less than $10,000 in Kansas sourced income in each of those last 5 years. Part 2: Up to $15,000 reimbursed over 5 years to pay student loans on degrees earned prior to establishing domicile in a ROZ County.
Tax Credit Criteria:
Student Loan Repayment Assistance Criteria:
71.7% compliance rate. Out of 1344 participants only 380 have been disqualified from the program for noncompliance.
The STAR Bond Act was established in 1999 under the Bill Graves Administration. It was originally combined with Tax Increment Financing Act. The two programs were separated in 2007. The related statues is KSA 12-17,160.
The purpose of the act is to promote, develop, and stimulate the general and economic welfare of the state and its communities and to assist in the development and redevelopment of eligible areas within and without a city thereby promoting the general welfare of the citizens of the state.
STAR Bonds are a municipal financing program intended to create tourism and entertainment attractions drawing visitors from across the region and out of state. The state and local unit of government pledge the new sales tax generated by the tourist or entertainment attraction to pay down bonds that were issued to help finance the project. From the state perspective, STAR bonds are administered by the Secretary of Commerce
STAR Bond Overview
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