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

Job Creation Incentives

Life Sciences and R&D

Property Tax Exemptions

Sales & Use Tax Exemptions

Training Programs

Utility Incentives

Venture Capital

Tax & Incentive Profile

Job Creation Incentives

INFORMATION FOR BOTH KANSAS AND MISSOURI IS PRESENTED BELOW.

Kansas

Promoting Employment Across Kansas (PEAK)

PEAK offers "qualified" companies relocating operations to Kansas the ability to retain employee withholding taxes. Qualified companies include both new operations in Kansas as well as relocated operations to the state. In 2013, it will be available for qualifying business retention projects as well.

Companies locating in a metropolitan county (Douglas, Johnson, Leavenworth, Shawnee or Wyandotte) and hiring at least 10 new employees within two years or locating in a non-metropolitan county and hiring at least five new employees within two years would be eligible to retain 95 percent of new employee withholding taxes for a period of five to seven years, provided such employees are compensated at a rate equal to, or greater than, 100 percent of the county median wage. Certain "high-impact" projects resulting in the hiring of at least 100 new employees within two years, regardless of location, could qualify for withholding tax diversions of 95% for seven to ten years. The number of years the withholding tax will be retained is dependent on the level the median annual wage exceeds the county wage and the discretion of the Secretary of Commerce.

Business entities within certain industry groups and sectors (including bioscience companies, gambling entities, retailers and utilities) would be excluded from being considered as "qualified' companies. Certain income tax credits associated with hiring new employees under current law also would no longer be available to companies participating in PEAK.

The PEAK program also has an alternative wage threshold that requires the company to pay above county average wages in the comparable NAICS code for businesses in the region. This alternative carries with it a limit of 5 years on any PEAK benefits.

The Kansas Department of Commerce has discretionary authority in the consideration of any application.

Missouri

Missouri Quality Jobs

The Missouri Quality Jobs Program facilitates new quality jobs by targeted business projects through the retention of Missouri state withholding tax on new jobs and state tax credits, which are refundable and/or sellable. Eligible businesses include for-profits and non-profit businesses except for gambling, retail trade, food and drinking places, companies regulated by the Public Service Commission, companies that are delinquent in non-protested taxes or other payment, any company that has filed for or has publicly announced its intention to file for bankruptcy, public entities or religious entities.

The Missouri Quality Jobs Act is divided into three separate programs each with separate qualification requirements: The Small Business and Expanding Business Program; the Technology Business Program; and the High Impact Projects Program. The programs will be overseen by the Missouri Department of Economic Development.

The average wage of the new jobs must equal or exceed the county average wage, and the company must offer health insurance and pay at least 50% of the premium. There is no annual cap on the retained withholding taxes, but the annual cap of tax credits for all projects is $80,000,000, which is provided on a first come basis.

Technology Business Program (classified by NAICS code)

• Qualifying employers must provide a minimum 10 new jobs within two years;
• Qualifying employers providing jobs at county average wage may retain withholding taxes and receive refundable tax credits for a total amount equal to 5% of the payroll resulting from the newly created jobs for a period of five years;
• Qualifying employers providing jobs at 120% of county average wage may retain withholding taxes and receive refundable tax credits for a total amount equal to 1/2% of the payroll resulting from the newly created jobs for a period of five years;
• Qualifying employers providing jobs at 140% or more of county average wage may retain withholding taxes and receive refundable tax credits for a total amount equal to 1% of the payroll resulting from the newly created jobs for a period of five years.

Small Business and Expanding Business Program

• Qualifying employers must provide a minimum 20 new jobs in rural areas (counties with less than 75,000 population or that do not contain a city with more than 50,000 population) or 40 new jobs in non-rural areas within two years;
• Jobs must pay at least the county average wage for the county in which the project is located
• Qualifying employers providing jobs at county average wage may retain all withholding taxes resulting from the newly created jobs for a period of three years;
• Qualifying employers providing jobs at 120% of the county average wage may retain all withholding taxes resulting from the newly created jobs for a period of five years.

High Impact Projects Program

• Qualifying employers must provide a minimum of 100 new jobs within two years of the date of hiring the first new job, and the first new job must be within one year of the proposal date;
• Qualifying employers providing jobs at county average wage may retain withholding taxes and receive refundable tax credits for a total amount equal to 3% of the payroll resulting from the newly created jobs for a period of five years; plus,
• Average Wage Bonus:
  • If average wage is greater than 120% and up to 140%: 1/2% bonus of payroll of the new jobs
  • If average wage is greater than 140%: 1% bonus of payroll of the new jobs
• Local Incentive Bonus - amount of local incentives provided to the project as a percentage of the amount of the new local tax revenues derived from the project, over 10 years:
  • 10-24%: 1% bonus of payroll of the new jobs
  • 25-49%: 2% bonus of payroll of the new jobs
  • 50% or more: 3% bonus of payroll of the new jobs
• Maximum annual tax credits per company are $750,000 (or $1 million, if approved by the Quality Jobs Task Force). No limit on the withholding tax.

Annual Average Wages by County (effective until 7.01.08)
County	Rural/Non-rural	Annual Average Wage (MERIC)
Buchanan	Non-rural	$35,979
Cass	Rural	$28,941
Clay	Non-rural	$45,798
Clinton	Rural	$26,665
Jackson*	Non-rural	$46,111
Johnson	Rural	$26,679
Lafayette	Rural	$26,588
Livingston	Rural	$28,842
Platte	Rural	$38,505
Ray	Rural	$28,099
MISSOURI		$40,856

Note: 620.1875. Sections 620.1875 to 620.1890, shall be known and may be cited as the "Missouri Quality Jobs Act."

620.1878. For the purposes of sections 620.1875 to 620.1890, the following terms shall mean:

(1) "Average wage," the new payroll divided by the number of new jobs;

(2) "Commencement of operations," the starting date for the qualified company's first new employee, which must be no later than twelve months from the date of the proposal;

*"County average wage," the average wages in each county as determined by the department for the most recently completed full calendar year. However, if the computed county average wage is above the statewide average wage, the statewide average wage shall be deemed the county average wage for such county. The department shall publish the county average wage for each county at least annually.

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.