High Performance Incentive Program

The High Performance Incentive Program (HPIP) provides tax incentives to qualifying employers who pay above average wages, along with having a robust commitment to teach skills development for their workers. 

HPIP provides a 10% tax credit that is eligible for capital investment of at least $50,000 at the company’s facility. In the five metro counties of Douglas, Johnson, Sedgwick, Shawnee and Wyandotte, the threshold is $1 million. The tax credit has a 16-year carryforward provided facilities are able to requalify for HPIP. 

Who Qualifies

To qualify, a company must: 

1. Be a for-profit company subject to state taxes; 
2. Pay wages exceeding the average wage standard (as compared to other similar firms in the same geographical area with matching NAICS codes); 
3. Be either a manufacturer or able to document that most of its sales are to Kansas manufacturers and/or out-of-state businesses or government agencies. 

A business in any NAICS code can qualify if it is a headquarters or back-office operation of a national or multi-national corporation.

Benefits

• A 10% income tax credit on eligible capital investment 
• A sales tax exemption that will be used with the company’s eligible capital investment for the qualified facility
• A training tax credit up to $50,000
• Access to other business assistance programs

Wage Standards

• The wage standards allow companies to wage-qualify a worksite, based on their first three or four digits of their North American Industry Classification System (NAICS) code. 
• Three-digit codes are divided up into six county regions along with six metro counties. Four-digit codes are divided into Eastern Rural, Western Rural and the six metro counties.
• See HPIP Resources for further wage standard information

Application Fees

(per worksite, unless a Complex of Buildings)

1. First time certifications – $750; or
2. Re-certifications – $250; or
3. One page carry-forward only – $0.

HPIP Tax Credit Transfers

During the 2021 Legislative Session, Senate Bill 65 was passed and signed by Governor Kelly. This legislation will permit an HPIP certified company to transfer HPIP tax credits, under certain conditions, to another entity or individual.

In the event the tax credit earned by the taxpayer and transferred to a transferee is later disallowed in whole or in part by the Secretary of Revenue, the taxpayer that originally earned the tax credit shall be liable for repayment to the state in the amount disallowed.