Incentives and Assistance for New or Expanding Companies
The Doniphan County Economic Development Commission works in conjunction 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.
To discuss these programs in detail, please contact the Doniphan County Economic Development Director:
Leah B. Johnson
Neighborhood Revitalization Program (NRP):
The Neighborhood Revitalization Program is a tool for municipalities to encourage improvements in aging and deteriorating commercial districts and residential neighborhoods within their communities. Property owners who complete rehabilitation or new construction on residential, commercial or industrial buildings in the target area can receive tax rebates for the increase in appraised value, which results from their work.
Before construction starts, an application to qualify and participate must be approved by the Doniphan County Appraiser’s office.
CRITERIA FOR ELIGIBILITY:
- The applicant must have completed and had approved an application to qualify and participate at the county appraiser’s office.
- The applicant must own the land.
- The proposed project must be on a permanent foundation
- The proposed project must be taxed as real estate.
- The applicant must supply the cost in formation and drawings with a minimum investment of $5,000.
- The applicant’s taxes and special assessments must be current
- The applicant must secure the appropriate building permits, if necessary.
- The applicant must pay the appropriate fee.
- The proposed project must have begun after January 1, 1996.
- The proposed project must increase the appraised value a minimum of $5,000.
- The applicant must complete part III of the application within 15 days of January 1st after completing part II, if the construction or improvement is only partially completed on January 1st.
PROPERTY TAX REBATE PERCENTAGE
Year 1-3…… 90%
Year 4……… 80%
Year 5……… 70%
Year 6……… 60%
Year 7……… 50%
Year 8……… 40%
Year 9……… 30%
Year 10……. 20%
APPLICATION FEE SCHEDULE
(paid to county appraiser)
$1,000,000- $5,000,000……. $100.00
***This program follows the property, not the applicants.***
There is the option to apply for the NRP if any improvements to the building are done. It is not uncommon for companies to have multiple projects going on where they are taking advantage of the NRP.
Please contact myself or the Doniphan County Appraiser, Danielle Kiefer, with more questions about the Neighborhood Revitalization Program or the application process.
Danielle Kiefer, Doniphan County Appraiser
Industrial 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.
Abatement of Property for Economic Development Purposes
The Municipalities within Doniphan County may abate ad valorem taxes on all or any portion of the appraised value of all buildings or added improvements used exclusively by a business for:
- Manufacturing articles of commerce;
- Conducting research and development; or
- Storing goods or commodities which are sold or traded in interstate commerce.
Additions to or expansions of existing buildings qualify for the property tax exemptions if, as a result of the expansion, new jobs are created. Total or partial ad valorem tax may be in effect for up to 10 years after the calendar year in which a business commences its operations or an expansion is completed. There is no personal property tax on machinery and equipment purchased after June 30, 2006.
EDX (Kansas Constitutional Amendment)
The Doniphan County Municipalities’ City Council and the Board of Doniphan County Commissioners may exempt property from taxation for a period of up to ten years. This may include all or any portion of both real and/or tangible personal property used exclusively in:
- Manufacturing articles of commerce
- Conducting research and development
- Storing goods or commodities which are sold or traded in interstate commerce
- Application available upon request.
Machinery & Equipment Expensing Deduction:
Effective January 1, 2012 Kansas taxpayers will be allowed to claim an expense deduction for business machinery and equipment, placed in service in Kansas during the tax year. The one-time deduction is allowed for each qualified purchase of machinery and equipment in the year that it is placed in service. Unused expense deduction is treated as a Kansas net operating loss that may be carried forward for 10 years. Eligible investment is machinery and equipment depreciable under the Modified Accelerated Cost Recovery System (MACRS) is section 168 of the internal Revenue Code, or canned software as defined in section 197 of the Internal Revenue Code. Business machinery and equipment newly purchased, leased or moved into Kansas is exempt from property tax. Examples of eligible equipment include manufacturing equipment, office furniture, computers, software and racking.
Business Machinery & Equipment Property Tax Exemption:
Effective July 1, 2006, business machinery and equipment newly purchased, leased or moved into Kansas is exempt from property tax. This is of particular benefit to capital-intensive manufacturing operations. The exemption applies equally to manufacturing equipment and office business equipment, furniture and factures. Items of business personal property under $1,500 original purchase price are also exempt from property tax regardless of date of purchase.
Business Inventory Property Tax Exemption:
Effective January 1, 1989, merchant and manufacturer business inventories (raw materials, goods-in-process and finished goods) are exempt from property tax by Kansas constitutional amendment.
Sales Tax Exemption:
Prior application for a Project Exemption Certificate can be made under the High-Performance Incentive Program (HPIP.) If approved, this permits 100% sales tax exemption on items used to construct, build-out, remodel, furnish and equip the worksite. Such exemption covers all eligible taxable purchases of capital investment made by the entity submitting the application. alternatively – if IRBs are utilized – sales tax exemption can be provided for IRB-financed purchases subject to local governing body approval.
Trade Show Assistance Program:
Assistance is available for up to one-half of a company’s direct foreign exhibition-related expenses (not to exceed $3,500 per show and $7,000 annually). Reimbursable expenses might include booth space, utility costs, transportation of equipment or materials, booth assembly/disassembly, interpreter fees at the show, translation fees for materials, etc. More information can be found here: www.kansascommerce.gov/kitsap
Income Tax Credit for Research & Development:
A company can qualify for an income tax credit for research and development if: Research and development occurred within the state of Kansas Expenditures increased above the company’s average expenditures for such activities during the prior two years. Tax credit is equal to 6.5% of the increased expenditure amount and is deductible over a 4-year period (25% annually.)
A copy of our economic development standard policy and procedures statement for tax exemptions and incentives is available upon request. Contact the Doniphan County Economic Development Office for more information.
State of Kansas Incentives:
PEAK (Promoting Employment Across Kansas)
This program PEAK is intended to encourage economic development in Kansas by incenting companies to relocate, locate or expand business operations and jobs in Kansas. During the benefit period, participating PEAK companies may retain 95% of the state payroll withholding tax of PEAK-Eligible employees/jobs that pay at or above the county median wage where the operations and jobs will be located. Depending on the number of PEAK jobs/employees to be hired in Kansas and their wage levels, the Secretary can approve benefit periods of up to 10 years. PEAK requires the qualified company to commit to creating ten (10) new jobs in metropolitan counties over a two-year period. The qualified company must also pay wages to the PEAK jobs/employees, that when aggregated, meet or exceed the county median wage for their industry. Qualified applicants include for-profit companies in eligible NAICS codes. Such companies must make available to full-time employee’s adequate health insurance coverage and pay at least 50% of the premium.
High Performance Incentive Program
Companies may be eligible for a Kansas Income Tax Credit equal to 10% of eligible capital investment that exceeds $50,000. This credit has a 10-year carry-forward provision and may offset 100% of a firm’s annual tax obligation. There is also a sales tax exemption. To qualify for this program the company must:
- Pay above average wages for the industry.
- Invest at least 2% of payroll in training or participate in one of the state’s workforce training programs.
- Otherwise eligible non-manufacturing worksites must also show that more than half of worksite revenues are from sales to specific kinds of customers, or else the worksite must be a headquarters or a back-office/support worksite of a national or multi-national corporation.
- Fall into major NAICS category 221, 311-425, 481-721, or 811-928 (generally excluded from eligibility are retailers and businesses involved in agriculture, construction and mining, unless the worksite is a headquarters or back-office of a national or multi-national corporation.)
KIT (Kansas Industrial Training)
This program provides training assistance in job creation. Training can include pre-employment, classroom and on-the-job training by in-house instructors or vendors. Trainees may receive instruction on the company’s own production equipment, on the plant floor, or on similar machinery in a classroom setting. Eligible expenditures include instructor salaries, curriculum planning and development, materials, supplies, textbooks and minor training equipment. Terms are negotiable and cover up to 100% of training costs.
KIR (Kansas Industrial Retraining)
This program provides training assistance to companies in industries that are restructuring due to changing technology and to companies diversifying production activities. Terms are negotiable and cover up to 50% of costs.
Click here for addittional Kansas Department of Commerce assistance and incentives that you may qualify for.