Big changes are coming to Kansas that will affect businesses applying for certain tax credits and incentives through the Kansas Department of Commerce. For the first time in state history, businesses will be paying the application fee for economic development incentive programs.
The notification below is listed on the Kansas Department of Commerce website:
ATTENTION!! COMING SOON …
The 2016 Kansas Legislature enacted Senate Substitute for House Bill 2509, effective July 1, 2016, allowing the Secretary of Commerce to charge fees to recover administrative costs of up to $750 per application for processing and oversight of State economic development programs. These programs include, but are not limited to: Promoting Employment Across Kansas, High Performance Incentive Program, Job Creation Fund Program, Kansas Industrial Training, Kansas Industrial Retraining, Rural Opportunity Zones Program and Community Service Tax Credit Program. HB 2509 also allows a new fee for STAR Bond projects and modifies the existing application fee for Private Activity Bonds.
The change is now official, and the information is stated on the corresponding pages of the Kansas Department of Commerce website. For applications received on or after October 1, 2016, the following nonrefundable fees are required at the time of submission:
- Kansas Industrial Training and Retraining Programs: $500
- Promoting Employment Across Kansas Program: $750
- High Performance Incentive Program:
- First-time certifications - $750 per worksite location
- Recertifications – $250
- One-page carryforwards only – $0
Earlier this year, the following nonrefundable application and registration fees were implemented for Kansas Angel Investors Tax Credit per Kansas Statutes Annotated 74-8133(f):
- $250 application fee (assessed to companies that apply for designation as a qualified Kansas business)
- $50 registration fee (assessed to investors or the transferees of investors requesting the issuance of Kansas tax credit certificates)
- $25 certificate replacement fee (assessed to investors or the transferees of investors requesting a certified copy of a lost Kansas tax credit certificate)
No application fees are listed for the Rural Opportunity Zones Program, Community Service Tax Credit Program or any other programs at this time.
If your business is planning to open a new site, make a significant capital investment and/or increase its workforce in Kansas, you may want to take advantage of the “no application fee” opportunity before the October 1 deadline.
Contact your BKD tax advisor if you need more information or have questions on how your business can benefit from Kansas’ incentive programs.