Promoting Employment Across Kansas (PEAK)
The PEAK incentive allows qualified companies that are locating new jobs or expanding an existing Kansas operation to retain 95% of the payroll withholding tax of the PEAK jobs up to a period of 10 years.
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. Businesses located outside of metropolitan counties must create five PEAK jobs within two years, and make available to full-time employees adequate health insurance coverage and pay at least 50% of the premium.
Rural Opportunity Zone (ROZ)
Rural Opportunity Zones (ROZ) are designed to spur economic development and expand job growth in 73 key counties around the state. The program has two main incentives:
- A state income tax exemption for up to five years to individuals who move to a ROZ county from outside the state. Individuals must not have lived in Kansas for the past five years, nor have Kansas source income of more than $10,000 per year over the past five years.
- Student loan forgiveness of up to $3,000 per year ($15,000 maximum benefit) for individuals who graduate from an accredited post-secondary institution and move to a ROZ county. The student loan forgiveness portion of the program is a county-state partnership, and counties must opt in to participate.
Local Community Incentives
Local communities in Kansas are excited about the prospect of adding dairies to their community and offer competitive packages ranging from loans to providing land for building sites.
Income Tax Exemption
Kansas has a new business income tax exemption which eliminates certain non-wage business income on lines 12, 17 and 18 of the IRS Form 1040 for entities structured as follows: Partnerships, Limited Liability Corporations, Limited Liability Partnerships, Sole Proprietorships and Subchapter-S Corporations. These entities have elected at the federal level to be taxed as a pass through entity.
Agricultural Projects Sales Tax Exemption
Beginning July 1, 2014 a sales tax exemption is available for capital investment in agriculture, including for dairies. The exemption is granted for the construction, reconstruction, enlargement or remodeling of a facility with a total cost of the project being no less than $50,000.
Machinery & Equipment Property Tax Exemption
A state and local property tax exemption is available for new or used commercial and industrial machinery and equipment acquired by qualified purchase or lease, or transferred into the state for the purpose of expanding an existing facility or establishing a new facility.
Sales Tax Exemption
In addition to other sales tax exemptions, the following ag-based items are exempt from sales tax:
- Purchases of animals primarily used for agriculture
- Production of food for human consumption
- Production of animal or dairy products
- Production of offspring for use in any such endeavor