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There are
many other assistance programs available through various agencies.
Please review the following to find information that applies to your
needs. Links are provided when necessary to take you the appropriate
web site where you will find additional information on the program.
Economic
Development Administration (EDA) Investment Programs:
Contact GPDI for assistance in
completing an application for any of the following three EDA
Investment Programs.
Economic
Adjustment Assistance Program: The Economic Adjustment Program
assists state and local interests to design and implement strategies
to adjust or bring about change to an economy. The program focuses
on areas that have experienced or are under threat of serious
structural damage to the underlying economic base.
Research
and National Technical Assistance: The Research and Technical
Assistance Program supports research of leading edge, world class
economic development practices as well as funds information
dissemination efforts.
Local
Technical Assistance: The Technical Assistance Program helps
fill the knowledge and information gaps that may prevent leaders in
the public and nonprofit sectors in distressed areas from making
optimal decisions on local economic development issues.
U.S.D.A
Rural Development Cooperative Services: The mission of
Cooperative Services Program is to promote understanding and use of
the cooperative form of business as a viable organizational option
for marketing and distributing any products.
Click
here for more information on this program.
U.S.D.A
Rural Development Community Facilities Grant Program: Community
Facilities Grants assist in the development of essential community
facilities in rural areas and towns of up to 20,000 in population.
Grants are authorized on a graduated scale. Applicants located in
small communities with low populations and low incomes will receive
a higher percentage of grants.
Grants are available to public entities such as municipalities,
counties, and special-purpose districts, as well as non-profit
corporations and tribal governments.
In addition, applicants must have the legal authority necessary
for construction, operation, and maintenance of the proposed
facility and also be unable to obtain needed funds from commercial
sources at reasonable rates and terms.
Click
here for more information on this program.
U.S.D.A.
Rural Development Water and Waste Disposal Loan and Grant Program:
Water and Waste Disposal Loans and
Grants are made to construct, extend, or improve water and waste
disposal systems in rural areas and towns.
Click
here for more information on this program.
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Rural Economic Development Loan Program:
Provides zero-interest loans to electric and
telephone utilities financed by the Utilities Program, an agency of
the United States Department of Agriculture (USDA), to promote
sustainable rural economic development and job creation projects.
The Utilities Program utility is required to
re-lend, at zero-percent interest, the loan proceeds to an
eligible "third-party recipient" for the purpose of financing job
creation projects and sustainable economic development within rural
areas. A rural area is any area of the United States not included
within the boundaries of any urban area, as defined by the Bureau of
the Census.
Third-party recipients must provide an
irrevocable letter of credit to the utility, and may be private or public
organizations having corporate and legal authority to incur debt.
Click
here
for more information on this program.
Enterprise Zone (EZ):
The Kansas EZ Act provides a business and job
development tax credit and an exemption from sales tax for any
Kansas taxpayer who invests in a qualified business facility and who
hires a certain number of qualified employees as a direct result of
that investment. There is no minimum amount of investment necessary
to qualify; however, some investment must be made.
Click
here
for more information on this program.
Kansas Industrial Training (KIT):
The KIT program is
designed to help new and expanding companies offset the costs of
training workers for new jobs. Training funds can be used to
reimburse negotiated costs for pre-employment, on-the-job, and/or
classroom training. The maximum amount of assistance available
under the program is $2,000 per trainee.
Click
here
for more information on this program.
Kansas Industrial Retraining (KIR):
For restructuring
companies whose employees are likely to be displaced due to obsolete
or inadequate job skills or knowledge. The maximum amount of
assistance available under the program is $2,000 per trainee.
Click
here
for more information on this program.
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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. This program recognizes the need for
Kansas companies to remain competitive through capital investment in
facilities and technology and continued training and education for
their employees. A substantial investment tax credit for new
capital investment in Kansas is the primary benefit of this
program. (Use Schedule K-59 to claim tax credits for investment and
training.)
Click
here
for more information on this program.
Kansas
Economic Opportunity Initiative Fund (KEOIF):
This financial aid is
used to secure economic benefits and to avoid or remedy economic
losses. Forgivable loans are available by application only and are
dependent on the size of the project and level of local
commitment. The city or county on behalf of the qualified business
must submit the application.
Click
here
for more information on this program.
Community
Service Program:
Through this program, the state annually authorizes selected
non-profit organizations to offer tax credits to business donors
making contributions for approved projects in three main
categories: community service, crime prevention, and health care.
Click
here
for more information on this program.
Property Tax Exemption:
City and county
governments may exempt all or portions of a business’ buildings,
improvements, land, and tangible personal property from property tax
for not more than ten years.
Eligibility:
-
New
businesses and existing businesses that are creating new jobs as a
result of an addition or expansion. Property must be exclusively
for manufacturing, conducting research and development, or storing
goods that are sold or traded in interstate commerce.
-
A broader use of property tax
exemptions may be granted for not more than ten years by the
issuance of industrial revenue bonds (IRBs) for the purchase,
construction, improvement or remodeling of a facility for
agricultural, commercial, hospital, industrial, natural resources,
recreational development, or manufacturing purposes (see K.S.A.
12-1741). A retail enterprise identified under the SIC codes
52-59, cannot qualify for exemption, unless the facility is used to
house the headquarters or back office/ancillary support operations
of the retail enterprise.
Benefits:
Contact:
Local City/County
Governing Authority or
Cary Catchpole, Business
Development Division
Phone:
(785) 296-5298 Fax: (785) 296-3490
e-mail:
busdev@kansascommerce.com
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Inventory Property Tax Exemption:
A property tax exemption
exists for merchants’ and manufacturers’ inventory.
Eligibility:
Inventory includes those items that:
-
are primarily held for sale in the ordinary course of
business (finished goods);
-
are in process of production for sale (work in progress); or
-
are to be consumed either directly or indirectly in the
production of finished goods (raw materials and supplies).
Benefits:
Contact:
Taxpayer Assistance, Kansas Department of Revenue
Phone: (785) 368-8222
Web site:
www.ksrevenue.org
Original Construction Sales Tax
Exemption:
A sales tax exemption exists for all
services used in the original construction of a building or
facility.
Eligibility:
All businesses. “Original
construction” is defined as:
-
The first or initial construction of a new building or
facility;
-
The addition of an entire room or floor to an existing
building or facility;
-
The restoration, reconstruction, or replacement of a building
or facility damaged or destroyed by fire, flood, tornado, lightning,
explosion, or earthquake;
-
The completion of any unfinished portion of an existing
building or facility; or
-
The construction, reconstruction, restoration, replacement,
or repair of a bridge or highway;
-
Since July 1, 1998 labor services for the installation of
tangible personal property at any residence is also exempt.
Benefits:
Contact:
Taxpayer Assistance, Kansas Department of Revenue
Phone: (785) 368-8222
Web site: www.ksrevenue.org
Kansas Partnership Fund:
The Partnership Fund program provides loans to Kansas
cities or counties for infrastructure improvements directly related
to specific business projects creating new jobs and capital
investment.
Click
here
for more information on this program.
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Industrial Revenue Bonds (IRBs):
IRBs are a cost efficient
method to finance up to 100 percent of a company’s land, buildings,
and equipment. IRBs are securities issued by cities and counties to
finance the purchase of land, pay the cost of constructing and
equipping new facilities or purchase, remodel, or expand existing
facilities.
Eligibility:
-
Businesses qualifying for
taxable and tax-exempt IRBs must be creditworthy;
-
Specific projects eligible for tax-exempt financing include
manufacturing facilities, airports, docks and wharves, mass
commuting facilities, certain facilities for furnishing water,
sewage and solid waste disposal, qualified residential projects,
local district heating and cooling facilities, facilities furnishing
electricity or gas on a local basis, and certain hazardous waste
disposal facilities;
-
Businesses qualifying for taxable IRBs must meet the broad
guidelines outlined in K.S.A. 12-1740 et seq.
Benefits:
-
Tax-exempt IRBs allow holders an exemption from state and
federal income tax, resulting in the cost to finance using IRBs to
be two percent to 2.5 percent below conventional financing;
-
IRBs allow fixed rate financing for the life of the bond;
adjustable rates may be negotiated;
-
Only equity requirement is the cost of the bond issuance;
-
Exemption from real and personal property taxation for up to
ten years is allowed under Kansas law, whether the property is
financed through tax-exempt or taxable IRBs, provided all procedural
steps are followed.
Rate/Term:
-
Most bonds are structured over 15
years;
-
Principal repayment terms are flexible and can be structured
to meet your company’s needs. The bonds are usually not callable
before the third or fourth year;
-
IRBs can provide your company with up to $1 million of
tax-exempt bonds for a project regardless of the company or project
size;
-
A maximum of $10 million of tax-exempt IRBs can be issued for
a manufacturing project;
-
A company may not have more than $40 million outstanding
nationwide at any one time;
-
Taxable IRBs have no upper limit.
Contact:
Local City or County
Governing Authority
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Applied
Research Matching Fund (ARMF):
The Kansas Technology
Enterprise Corporation (KTEC) ARMF provides direct investment in
companies that are developing new technologies. The ARMF program
makes royalty, equity, or convertible debenture investments in
innovative technology companies. Financial returns are then
reinvested in other projects.
Eligibility:
Rate/Term:
Click
here
for more information on this program.
Technology Commercialization Seed Fund (TCSF):
Through direct investment, the TCSF program focuses on technology
commercialization, investing in companies that are ready for venture
funding. This program makes equity or convertible debenture
investments in companies preparing for commercialization. Financial
returns are then reinvested in other projects.
Eligibility:
Rate/Term:
Click
here
for more information on this program.
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