Inventory Tax Exemption

All merchant's and manufacturers' inventory is exempt from state property taxes.

ELIGIBILITY
All businesses.

Venture Capital Tax Credit

Kansas venture capital company investors may claim credit against Kansas income tax.

ELIGIBILITY
Investments must be directed to certified Kansas venture capital companies

BENEFITS
Credit is 25% of the cash investment.

The entire credit may be claimed in one year; if credit is greater than liability, it may be carried forward until used.

Tax Credit For Research

Taxpayers investing in research and development may claim credits against Kansas income tax.

ELIGIBILITY
Qualified research expenditures are defined in federal internal revenue code of 1954, as amended.

BENEFITS

• Maximum credit is 6.5% of qualified R&D expenditures.
• 25% of the credit may be claimed each year. Remaining credits may be claimed at a rate of 25% each year until exhausted.

Local Seed Capital Pool Tax Credit

Local seed capital pool investors may claim credit against Kansas income tax.

ELIGIBILITY
Investments must be directed to certified Kansas local seed capital pools.

BENEFITS

• Credit is 25% of the cash investment.
• The entire credit may be claimed in one year; if credit is greater than liability, it may be carried forward until used.

Tax Credit For Day Care Facilities

Businesses providing day care service to employees may claim credits against Kansas income tax.

ELIGIBILITY
Day care facilities must be licensed or registered in Kansas.

BENEFITS
The credit to employers during the first year is 50% of the expenditures to provide services. In subsequent years, the allowed credit is 30%.

Maximum annual credit:

• First year: $45,000
• After first year: $30,000
• Statewide: $3,000,000

Property Tax Exemption

City and county governments may exempt all or portions of a business's buildings, land, improvements and tangible personal property from property tax for ten years.

ELIGIBILITY
New businesses and existing businesses that are creating new jobs as a result of an addition or expansion.

Two types of exemptions:

1) If the building is used for manufacturing or storing goods traded in interstate commerce, it may be exempted according to the Kansas Constitution.

2) A broader use of property tax exemptions may be granted to businesses receiving IRBs under K.S.A. 12-1741. Up to 10 years of tax may be exempted to manufacturers or for industrial purposes. Most retail establishments will be excluded from receiving this exemption as of January 1, 1995.

Enterprise Zone and Job Expansion and Investment Tax Credits Investment and job creation credits and sales tax exemptions to companies creating jobs and/or renovation or expanding in Kansas.

ELIGIBILITY
Manufacturers (SIC 20-39) creating at least 2 net new jobs and anon-manufactures and non-retail must create at least 5 net new jobs.

A non-manufacturing business means any commercial enterprise other than a manufacturing business or a retail business. Includes business headquarters, insurance investment companies, financial institutions, and ancillary support operations of a retail enterprise. Also includes catalog and mail-order house (SIC 5961) as well as prepackage software companies (SIC 7372).

BENEFITS

• State and local sales tax exemption on expenses relating to construction, reconstruction, remodeling and equipping a facility.
• Income tax credit of $1,000 per $100,000 investment.
• Job creation tax credit. In Fort Scott/Bourbon County $2,500 per new job created.

Retailers creating at least 2 new jobs receive:

• Sales tax exemption if located in community with population of 2,500 or less.
• Income tax credit of $100 if located in community with population of 2,500 or less.
• Income tax credit of $100 per $100,000 of investment.

High Performance Incentive Program (HPIP)

Sales tax exemption, investment tax credits, workforce training tax credits, matching funds for consulting service and priority consideration for other state assistance programs.

ELIGIBILITY

Business must:

• employ less than 500 employees per individual facility.
• pay above average wage for its 2-digit SIC in Fort Scott/Bourbon County.
• invest 2% of payroll in training or participate in one of the state's workforce training programs.

Businesses in major SIC categories of 01-19 and 50-59 are not eligible.

Businesses in major SIC categories of 40-49 and 60-89 must also demonstrate that at least 51% of sales are to a combination of Kansas manufacturer and/or out-of-state commercial or governmental customers.

BENEFITS

• State and local sales tax exemption.
• 10% Investment tax credit on capital investments in excess of $50,000.
• Workforce training tax credit up to $50,000 per year on training expenditures above 2% of company payroll.
• Potential matching funds for approved consulting services.
• Priority consideration for other assistance programs.

KPL/ KG&E Electric and Natural Gas Business Incentive 5 Year Plan

TYPE OF FINANCING

• 25% on first year net KPL electric costs
• 50% on first year KG&E electric capacity charges
• 50% on first year natural gas transportation costs in excess of 30,000 mcf per year

ELIGIBILITY
Contact Western Resources, Bob Ortiz, (316) 223-7711

Neighborhood Revitalization Program

The City of Fort Scott, USD234 School District, and Fort Scott Community College have adopted a tax rebate program for businesses and residents in a defined area of Fort Scott. The program allows residents that make improvements in excess of 5% of the total current valuation of land and buildings to apply for the rebate.

The County Appraiser will make final determination of whether the improvement qualifies. All taxes including those on the improvements must be paid in full before a rebate can be made. To begin the process a building permit and a revitalization program application must be obtained prior to beginning any improvements. Buildings within the historic district may qualify for up to 100% for five years. All construction must meet local codes.

For details concerning the application process, please contact the Economic Development Director, Dale Bunn, at (620) 223-0550.