The purpose of the business and job development credit is to provide tax incentives throughout the state which encourage businesses to create new jobs through capital investment projects involving the building of new facilities or the expansion or renovation of existing facilities. There are two different acts within the Kansas statutes which provide an income tax credit for those businesses which make an investment and create jobs as a result of that investment. The acts are the Job Expansion and Investment Credit Act of 1976 and the Kansas Enterprise Zone Act.

Job Expansion And Investment Credit Act Of 1976 (Income Taxpayer)

Effective for all taxable years beginning after December 31, 1975.

Qualifications

The business and job development credit is allowed as a direct tax credit against the income tax of any Kansas taxpayer if:

• an investment in a qualified business facility is made, and;
• at least two qualified business facility employees are hired as a direct result of that investment.

There is no minimum amount of investment necessary to qualify for the credit, however, some investment must have been made. The taxpayer must qualify for the credit during the first taxable year that operations occur at the qualified business facility investment.

Credit Amount

For an investment that began operations after December 31, 1993, the credit amounts are as follows:

• Employee - $100 for each qualified employee
• Investment - $100 for each $100,000 of qualified investment

For an investment that began operations prior to December 31, 1993, the credit amounts are as follows:

• Investment is located in an enterprise zone:
  • Employee
    • Kansas resident - $350 for each qualified employee $500 for each qualified targeted employee as defined in the Internal Revenue Code
    • Kansas nonresident - $100 for each qualified employee

  • Investment - $350 for each $100,000 of qualified investment

• Investment is not located in an enterprise zone:
  • Employee - $100 for each qualified employee
  • Investment - $100 for each $100,000 of qualified investment

  Limitation of Credit

  The credit is limited to 50% of the tax on the qualified business facility income for the tax year, but in no case can the credit from all qualified investment and employees be more than 50% of the Kansas income tax in any one tax year.

  The credit is recomputed each year for a 10 year period and no carryover of unused credit is allowed.

  More information about this credit is available on the Kansas website.

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