Business Incentives – Wichita KS
Tax Incentives – Wichita
Businesses and organizations choose to launch, expand, or relocate operations to Wichita for many reasons. A key consideration is the favorable state tax environment which is amongst the most competitive in the nation. This dynamic is highlighted by the lack of corporate franchise and business inventory taxes, and the exemption of new business machinery and leased equipment from property tax. In addition, several important state and local business incentive programs are also available. The confluence of these provides an important advantage to businesses operating in, or expanding to, the Wichita area. The details of eligibility requirements and specific benefits vary. A summary of each office and corporate incentive is outlined below.
Wichita Corporate Incentives
- Industrial Revenue Bonds are available to for-profit companies looking to expand, or non-profit organizations developing new facilities. Commercial businesses may be considered for the program if there is a capital investment to develop new facilities, add machinery or equipment, and create new jobs. To qualify, most of the revenue must be generated from outside Sedgwick County and meet certain wage standards. Participating organizations can receive a sales tax exemption on certain purchases and access to property tax abatements.
- Economic Development Exemptions are used to incentivize manufacturing, research and development (R&D), and warehousing companies to grow in the area. The program offers exemptions on taxes to lands and buildings for a maximum of 10 years. The amount of abatement is determined by capital investments and job creation benchmarks.
- Tax Increment Financing (TIF) districts are used to fund the rehabilitation of distressed areas. The program uses the increased property value resulting from redevelopment to help pay the upfront rehabilitation project costs. This is a useful program because it reduces the higher costs of redevelopment typically associated with such projects. Additional details on project requirements including application details and reporting requirements are available online.
Kansas Corporate Incentives
- The Kansas Certified Sites Program is an important designation issued to properties that have completed program requirements to demonstrate readiness for redevelopment. It reduces the risks associated with price, availability, utilities, access, and other potential development costs. The designation is available for three years once the required steps are taken.
- The Kansas Industrial Training program is available to assist with new job creation through expanded training opportunities. Training may include subjects that offer knowledge and specific skills needed for job entry including instruction on production equipment and other types of equipment in a classroom setting. Eligible expenses can include instructor salaries, curriculum planning, supplies, and minor training equipment.
- The International Trade Show Assistance Program helps introduce Kansas-based companies to foreign markets through participation in an international trade show program. A company may receive up to $3,500 per trade show, and $7,000 total, per year, for eligible trade show expenses.