Seeking financial incentives is an excellent way for businesses to access capital, reduce costs, and gain a competitive edge in their respective industries.
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Incentives & Financing
Utility Incentive Programs
Many of our state utility partners can offer discounted rates or other costing-saving tools to assist companies looking to establish or grow their operations in Kansas.
In addition, SB339 recently passed allowing public investor-owned utilities access to a tool designed to attract new, very large electric utility economic development opportunities to the State of Kansas. With final approval by the Kansas Corporation Commission, this incentive provides a competitive rate to new customers with an electric demand of 50 MW or larger.
Eligible customers include non-retail industries such as data centers, aviation and other large-scale industrial development. Customers benefit from the special rate for 10 years. A new load of at least 50 MW must be located at a single location. Renewable resources can be incorporated into the rate making, providing for additional savings and allowing customers to meet their corporate goals.
In addition, companies committed to meeting corporate sustainability goals from renewable sources have several options to reach those targets, including a Renewables Direct program offered by the state’s largest utility that allows commercial and industrial customers to offset a percentage of their energy usage through a renewable resource. This program is designed to provide large customers a path toward their sustainability goals with abundant, affordable renewable energy. A number of utilities across the state also have wind and solar energy as part of their electricity portfolio, and other arrangements such as energy efficiency incentives may be offered by some service providers.
For more information please reach out to your Commerce project manager, and they will connect you with the appropriate utility partner.
Tax Credits and Financing Programs
Real Property Tax Abatement
State law allows a 100% property tax abatement for ten (10) years on real property if industrial revenue bonds are utilized or it qualifies under the state Constitution, which allows companies that manufacture articles of commerce, conduct research and development or store goods or commodities sold in interstate commerce to receive a property tax abatement. Tax abatement on real property is offered by the city or county where the property is located.
Kansas law exempts the property tax on commercial and industrial machinery and equipment purchased or transferred into Kansas after June 30, 2006. The personal property tax exemption continues each year under the law. This personal property tax exemption is unique and offers significant savings each year to companies. Savings will depend on the fair market value of the property, depreciation, the local mill levy rate and whether all equipment qualifies for the property tax exemption. The exemption can cover such items as: computers, furniture, office equipment, business machinery and manufacturing and warehouse equipment.
Federal Opportunity Zones is a new economic development tool enacted by the Federal Tax Cuts and Jobs Act of 2017, offers investors preferential tax treatment for capital gains invested in low-income communities designated as Opportunity Zones. The program is designed to encourage long-term investment in economically distressed areas and promote economic growth.