Income Tax Incentives

High Performance Incentive Program (HPIP)
HPIP provides tax incentives to employers 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 and encourages capital investment in facilities, technology and continued employee training and education. A substantial investment tax credit for new capital investment in Kansas and a related sales tax exemption are the primary benefits of HPIP.  

HPIP offers employers four potential benefits: 
  • A 10 percent income tax credit for eligible capital investment that exceeds $50,000 ($1 million in five metro counties) at a company’s facility, with a carry-forward that can be used in any of the next 16 years in which the qualified facility re-qualifies for HPIP.
  • A sales tax exemption to use in conjunction with the company’s eligible capital investment at its qualified facility.
  • A training tax credit of up to $50,000.
  • Priority consideration for access to other business assistance programs.
Machinery & Equipment Expensing Deduction
Eligible Kansas taxpayers are allowed to claim an expense deduction for business machinery and equipment, placed into service in Kansas. This is a one-time deduction 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.

For more information about these income tax incentives, contact Heather Pierson, Business Recruitment Manager, Kansas Department of Commerce, at 785-296-5298.
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