In this section

Taxes

Business Formation Fees

Corporate Franchise Taxes

Income Taxes - Corporate

Income Taxes - Individual

Property Taxes

Sales & Use Taxes

Unemployment Insurance

Workers' Compensation

Incentives

Advanced Energy

Enterprise Zones

Financing Programs

Foreign Trade Zones

Income Tax Credits

Int'l Trade Incentives

Life Sciences and R&D

Property Tax Exemptions

Sales & Use Tax Exemptions

Training Programs

Utility Incentives

Venture Capital

Tax & Incentive Profile

Enterprise Zones

INFORMATION FOR BOTH KANSAS AND MISSOURI IS PRESENTED BELOW

Kansas

The Kansas Enterprise Zone Act offers corporate income tax credits for new job creation and qualified capital investment and sales tax exemptions to qualifying new and expanding businesses. The exact amount of the Enterprise Zone Act benefit differs depending on the location of the facility (metropolitan, non-metropolitan or designated non-metropolitan).

Starting on January 1, 2011, the Enterprise Zone job creation and investment tax credits will continue to be available throughout Kansas except for the metropolitan counties of Douglas, Johnson, Leavenworth, Shawnee and Wyandotte; however, the sales tax exemption under the Enterprise Zone program is still available for metro-designated counties. All non-metropolitan counties are considered in an Enterprise Zone under this program and can offer the benefits of this program to eligible companies. The benefits include corporate income tax credits of $1,500 per net, new job created an a one percent tax credit on qualified net, new capital investment. Designated non-metropolitan counties can offer a tax credit of $2,500 per net, new job created. The credits can be used to significantly reduce a firms's corporate income tax liability in a given year, and any unused credits may be carried forward until exhausted.

To be eligible, manufacturing facilities must create at least two net new jobs and non-manufacturing facilities must create at least five net new jobs, and ancillary support and headquarters need to create at least 20 net new jobs.

Missouri

Enhanced Enterprise Zones are specified geographic areas designated by local governments and certified by the Missouri Department of Economic Development (DED). Individual business eligibility will be determined by the zone based on the creation of sustainable jobs in a targeted industry or demonstrated impact on local industry cluster development. Gambling establishments, retail trade, and food and drinking places are prohibited from receiving the state tax credits. Service industries can be eligible if a majority of their annual revenues will be derived from services provided out of the state. DED will consult with the local government in determining eligibility.

The Enhanced Enterprise Zone Program is a discretionary program offering state tax credits to Enhanced Business Enterprises. Tax credits may be provided each year for up to ten tax years after the project commences operations. To receive tax credits in any of the ten years, the facility must create at least two new jobs and $100,000 in new investment in that year as compared to the base year (the year prior to the commencement of operations at the facility). Eligible investment expenditures include the original cost of machinery, equipment, furniture, fixtures, land and building, and/or eight times the annual rental rate paid for the same. Inventory is not eligible.

Tax credits can only be applied to tax liability for the year in which they were earned. The tax credits are refundable or may be transferred, sold or assigned. The sale price cannot be less than 75% of the par value of such credits.
Tax credits will be an amount authorized by DED based on the state economic benefit, supported by the number of new jobs and new capital investment that the project will create. Tax credits issued under this program are limited to $7,000,000 annually.

Applicants must be eligible for and receive at least 10 years’ local property tax abatement at 50% pursuant to the local enhanced enterprise zone plan. A facility may not earn tax credits for more than one 10 year period. A business cannot earn tax credits under this program if earning Business Facility, Rebuilding Communities or Brownfield Jobs and Investment tax credits for the same project for the same tax period.

See the Income Tax Credits and the Property Tax Exemptions sections of this publication for detailed information about enterprise zone benefits.

 

DEFINING THE GREATER KC METRO AREA

Kansas City is a Missouri/Kansas bi-state metropolitan area. All statistical references made to Kansas City Metropolitan Statistical Area (MSA) include the counties of Cass, Clay, Clinton, Jackson, Lafayette, Platte and Ray in Missouri, and Johnson, Leavenworth, Miami and Wyandotte counties in Kansas. The greater Kansas City area also includes the adjoining Lawrence, KS, St. Joseph, MO, and Topeka, KS MSAs, as well as the Atchison, KS, Chillicothe, MO, Ottawa, KS, and Warrensburg, MO areas.