Doniphan County and the state of Kansas offers an exceptional package of incentives designed to increase the profitablity of companies who decide to locate or expand their operations in the state of Kansas. The Doniphan County Economic Development Commission works in conjuction with business and civic leaders along with local, state and regional economic development organizations to provide consulting and technical assistance to new and expanding businesses. Below is a listing of the incentives offered by Doniphan County and the State of Kansas.
DONIPHAN COUNTY INCENTIVES
INDUSTIRAL REVENUE BONDS: Industrial Revenue Bonds are the most popular and cost-efficient methods of financing business growth currently available to credit-worthy companies. State law allows exemption of property tax financed with IRB's (taxable or tax-exempt) from local ad valorem (real estate and personal property) taxation. Such an exemption may be extended for up to 10 years after the bonds have been issued. However, cities or counties may require that a percentage of normal taxes be paid over the 10-year period to help offset direct costs for city or county services. Doniphan County has adopted a policy that allows us to offer the full 10-year ad valorem tax exemption. The cost of the building materials and permanent installation of equipment are also exempt from state and local sales taxes. The City that is granting the bonds has to sign off on the Industrial Revenue Bonds.
Eligibility:
1) New manufacturing businessess
2) New Non-manufacturing, non-retail businesses
Benifits:
a) A full 10-year ad valorem tax exemption
NEIGHBORHOOD REVITALIZATION PROGRAM: The Neighborhood Revitalization Act passed by the Kansas Legislature in 1994, authorizes municipalities and counties to establish tax rebate programs in order to provide incentives for property owners to make improvements and build new structures. The tax rebate is the part of the ad valorem property tax paid by a taxpayer on a parcel qualified under the Program that is attributable to the increase in the assessed valuation of the parcel. In Doniphan County, the proposed project must increase the appraised value a minimum of $5,000. Before construction starts, an application to qualify and participate must be approved by the County Appraiser's Office.
Eligibility:
1) New manufacturing businesses
2) New Non-manufacturing, non-retail businesses
Benefits:
a) A tax rebate on improvements and new structures
KANSAS STATE INCENTIVES
KANSAS ENTERPRISE ZONE ACT: An act that allows for statewide buisness development incentives. Tax credits earned under the program may be used to offset 100% of the business annual state income tax liability. Unused credits may be carried forward indefinitely and applied to subsequent tax years until used.
Eligibility:
1) Manufacturing business must creat two net new jobs.
2) Non-manufacturing, non-retail businesses must creat five net new jobs.
3) National headquarters and anciliary operations must creat 20 net new jobs.
Benefits:
a) A one-time job creation tax credit of $2400 per net new job.
b) An investment tax credit of $1,000 per $100,000 qualified business facility investment.
c) Sales tax exemption on the purchase of personal property or services purchased for the purpose of consturcting, reconstructing, enlarging, remodeling, or equipping a qualified business facility.
Tax credits earned under this program may be applied toward 100% of the state corporate income tax and any unused tax credits may be carried forward until used as long as the created jobs exist.
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.
Eligibility:
1) Must pay above average industry wages.
2) Invest an amount equal to 2 percent of payroll in employee training or participate in State training program.
3) Business activities fall within NAICS codes other than those for agriculture, mining, construction and retailing. For companies that are otherwise eligible but are not manufacturers at least 51% of revenues must be generated from sales to Kansas manuafacturers; and/or out-of-state commercial, and/or governmental customers.
Benefits:
a) A tax credit for capital investment, with a 10-year carry-forward, equal to up 10 percent of the eligible investment that exceeds $50,000.
b) Exemption from sales tax for eligible capital investments/services.
c) A potential workforce training tax credit up to $50,000 per year on training ependitures above 2 percent of the company payroll.
d) Priority consideration for other assistance programs offered through Commerce, KTEC and MAMTC.
WORK OPPORTUNITY TAX CREDITS: 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.
Eligibility:
Private-for-profit employers. Hires not elegible for certification: relatives, non-related dependents, self-employed individuals, non-qualifying re-hires, majority stockholders, members of partnerships and Sub-Chapter S shareholders.
Benefits:
Federal tax credit up to $2400 per qualified hire.
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 transportaion, 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.
Eligibility:
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.
Company must provide dollar-for-dollar match.
Kansas Industrial Training (KIT): The KIT program is designed to help new and expanding companies offset the cost of training workers for new jobs. Training funds can be used to reimburse negotiated cost for pre-employment, on-the-job and classroom training.
Eligibility:
Creation of one new job that pays an average wage of $9.50 per hour.
Benefits:
Up to 100 percent training. Average award is currently $300 per position trained.
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.
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 facilty is exempt from sales tax. The installation, repair and maintenance services performed on this equipment shall also be exempt rom sales tax.
INVENTORY PROPERTY TAX EXEMPTION: A property tax exemption exists for merchants' and manufacturers' inventory.
Eligibility:
Inventory includes those items that:
a) are primarily held for sale in the ordinary course of business (finished goods);
b) are in process of production for sale (work in progress); or
c) are to be consumed either directly or indirectly in the production of finished goods (raw materials and supplies).
Benefits:
Items of inventory are exempt from property tax.
COMMERCIAL & INDUSTIRAL PROPERTY TAX EXEMPTION: All commercial and industrial, telecommunications and railroad machinery and equipment acquired by qualified purchase or lease
- made or entered into after June 30, 2006
- as a result of a bona fide transaction
- not consummated for the purpose of avoiding taxation
- transported into Kansas after June 30, 2006, for the purpose of expanding and exisiting business or the creation of a new business shall be exempt from personal property tax.
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.
Eligibility:
Qualified research expenditures are defined in federal internal revenue code of 1986, amended.
Benefits:
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.