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  1. 1. oKansas Spotlight eaders: dustry Development R his was To Trade & In opportunities. T licy, al environm ent for business ic Po we offer an optim stitute for Publ fic Research In is the most business- Here in Kansas, in research done by the Paci sas ized luded that Kan 3 variables, recently recogn rbes magazine, which conc according to 14 Fo all 50 states conducted for udy measured aucracy. e nation. The st re ss the frie ndly state in th ate spending, and overall bu recently worked together to pa mic including ta x rates, st islative lead ers and I The Kan sas Econo r strengths, Leg ion in decades. dustry Building on ou onomic development legislat echnology and life sciences in addi- ng ec biot ra te most far-reachi growth in the state’s emerging uses industry profits to gene cluding Gro wth Act fuels m echanism that crui tment tools, in vative funding l of business re through an inno also modernizes our arsena compa- It tional growth. nt advantages to Property Tax Relief n offer significa me from a tradition of tax incentives. y in Kansas ca ce. Kansans co panding a facilit or e of our school Locating or ex which is our excellent workf . The excellenc restructuring nies, not th e least of is difficult to beat ting friendliness that e currently engaged in an exci est workforce Spurs Investment, honesty, hard work, and e ar e fin tionally, and w ing “to create th sas-based busi- has emerged as one of the most busi- system is recognized na system with our objective be ve our Kan ness-friendly places in the nation. ce training ” This will gi of our workfor ning system in the country. ketplace. system. “The elimination of the property tax trai the global mar transportation Growth in Kansas and technical us advantage in joy in Kansas is our excellent e are in the midst of on business purchases will help grow do nesses a tremen age businesses en nation, and w our businesses,” said Howard Fricke, nother advant the best in the ortation in- A ays are among prove our transp secretary of the Kansas Department of Kansas’ road s and highw ortation prog ram to further im Commerce. “But it doesn’t end there. ehensive transp n of cutting-edg e and a 10-year compr erful combinatio is a place where op- As businesses expand, they create more frastructure. includes a pow s sas companies you that Kansa k.” jobs and produce goods at a lower cost T he roster of Kan Come visit us. We will show are truly “as big as you thin to consumers. That’s what’s happening traditional in dustries. sta of possib ilities that sion create a vi BY JOE MONACO in Kansas, and that’s why the Kansas portunity and vi economy has been so robust.” I f location is the key to success in copiers, furniture and equipment used “Robust” might be an understate- Sincerely, business, then there are few better in manufacturing and warehousing— ment. The Kansas economy has been locations than Kansas. without the burden of paying property outright bullish in recent years, boast- Business is booming in the Sun- taxes on the purchase. The new legisla- ing a net increase in jobs in 26 of the lius flower State, thanks in part to the recent tion also raises the exemption for “low- past 28 months. The job growth stems Kathleen Sebe elimination of property taxes on new cost” items from $400 to $1,500, partially from existing Kansas compa- Governo r of Kansas business machinery and equipment. allowing businesses to devote less time nies’ ability to boost production and Signed into law in May by Governor to paperwork and more time to produc- develop new markets, a point illustrated Kathleen Sebelius, this historic tax re- ing goods. The result is tax relief that by the state’s record-high export totals lief paves the way for Kansas busi- benefits all Kansas companies, particu- in 2005. Of course, the other half of the nesses to invest in new machinery and larly those engaged in manufacturing, job growth equation is the increasing technology—including computers, and further exemplifies why the state number of out- (Continued on page 18)16 TRADE & INDUSTRY DEVELOPMENT • SEPTEMBER/OCTOBER 2006 17
  2. 2. Kansas (Continued from page 17)of-state manufacturers that are choos-ing to expand in Kansas and take In 2004, Forbes Magazine ranked Kansas theadvantage of one of the most business-friendly climates in the nation. most business-friendly state in the nation “We are obviously doing something and continues to list the state among theright,” Fricke said. “We have experi-enced remarkable growth in recent best places in the country to own a business.years, thanks to our efforts to attract andretain businesses. Our goal is to con- a secret. In 2004, Forbes magazine state’s success in creating and retainingtinue making Kansas a great place for ranked Kansas the most business-friendly high-value jobs and attracting” state in the nation and continues to list With a reputation like this, it’s no By no means is the recent property tax the state among the best places in the wonder Kansas is home to the opera-relief an isolated example of that goal. country to own a business. Pollina Cor- tional headquarters of Sprint Nextel andFor years, Kansas has had a carefully porate Real Estate agreed in its 2006 the world headquarters of Hill’s Pet Nu-planned assortment of incentives, tax annual survey, ranking Kansas among the trition, Garmin, Applebee’s, Paylesslevies, and tax credits designed to benefit nation’s top 10 pro-business states and ShoeSource and Cobalt Boats. More re-all businesses and ensure that no industry calling the state a leader in job creation cent additions to the Kansas businessis disproportionately burdened (See side- and retention. Kansas garnered the No. 1 community include Keebler and Capitolbar on page 20). The result is a regula- ranking in the Pacific Research Institute One, giving the state bragging rights totory and policymaking environment that for Public Policy’s 2006 annual eco- some of the most successful corporationsis among the most business-friendly in nomic freedom index, and in May, Area on Earth.the nation. Development magazine awarded Kansas Of course, no listing of Kansas-based Kansas’ pro-business climate is hardly its “Silver Shovel” award based on the businesses is (Continued on page 20)CIRCLE 30 ON READER SERVICE CARD CIRCLE 31 ON READER SERVICE CARD18 TRADE & INDUSTRY DEVELOPMENT • SEPTEMBER/OCTOBER 2006
  3. 3. Kansas (Continued from page 18)complete without the airplane manufac-turers that have made Kansas theaviation capital of the world, includingCessna, Boeing, Raytheon Aircraft,Spirit Aerosystems and Learjet Inc. Af-ter a downturn following the Sept. 11,2001 terrorist attacks, the Kansas avia-tion industry hasroared back andlast year totaled DOING BUSINESS IN KANSAS Kansas offers a variety of incentives, tax levies, tax credits, and other forms ofan all-time high financial assistance to help businesses grow and prosper. Some of the keyof $1.8 billion in programs are listed below. For a complete listing, visit, markingan 87 percent in- Incentive Programscrease from ENTERPRISE ZONE PROGRAM: This program offers corporate income tax credits for2003. In addi- new job creation and qualified capital investment in Kansas. The tax credit in the met-tion, increased Kansas Governor ropolitan areas of Kansas City, Topeka, Wichita, and Lawrence is $1,500 per new jobsales to overseas Kathleen Sebelius created. Designated non-metropolitan areas can provide a credit of $2,500 per newmarkets — par- job created.ticularly in China — indicate the Kansas HIGH PERFORMANCE INCENTIVE PROGRAM: This program provides a 10 percentaviation industry will again break sales corporate income tax credit on the qualified capital investment of an eligible company.records in 2006. The tax credit is awarded to companies that operate an eligible business, pay above-av- The aerospace giants are not the only erage wages, and invest in training their employeesKansas companies selling overseas.Kansas businesses totaled a record Taxes and Exemptions$6.72 billion in exports in 2005, shat- SALES TAX EXEMPTION: The Enterprise Zone and High Performance Incentive Pro-tering the previous high of $5.1 billion grams offer a 100 percent sales tax exemption on the purchase of labor and materialsset in 2000 and marking a 36 percent to construct or remodel a facility, as well as on the machinery and equipment used in theincrease from 2004. Last year’s upsurge facility. This exemption includes computers, furniture, and fixtures.also marks the third straight year the PROPERTY TAX EXEMPTION: Kansas communities can offer up to a 10-year propertystate has seen an increase in export to- tax exemption on real and personal property.tals. Kansas exports have increased 77 INVENTORY TAX EXEMPTION: All merchants’ and manufacturers’ inventories havepercent since 1997, and this year’s pre- been exempt from property taxes by constitutional amendment.liminary totals point toward another RESEARCH TAX CREDIT: Income tax credit equal to 6.5 percent of a company’srecord-setting year. investment in research and development above an expenditure of the previous three- “I am thrilled with these numbers,” year period.Secretary Fricke said. “Setting a new NO LOCAL INCOME TAXES: Kansas cities and counties do not impose income orrecord for exports illustrates that Kansas earnings taxes on personal or corporate income.manufacturers are successfully tappingnew overseas markets. Our international Financesuccess, coupled with the new property KANSAS ECONOMIC OPPORTUNITY INITIATIVES FUND: Commerce can provide a zerotax exemption on business machinery percent interest, forgivable loan to qualified companies. This loan can offset costsand equipment, paints the picture of a associated with the establishment of a new facility or the expansion of an existingstate that is on its way to reaching its facility. Eligible costs include site improvements, construction, build-out, and purchaseseconomic potential.” and relocation of machinery and equipment. The history of Kansas is one of INDUSTRIAL REVENUE BONDS: Industrial Revenue Bonds are a popular method ofrugged individualism and an unbridled financing up to 100 percent of a growing business’ land, building and equipment. IRBspioneering spirit. That spirit is alive to- are securities issued by cities and counties to provide funds for creditworthy companiesday in Kansas, a state blessed with wide to acquire land, construct and equip new facilities, or remodel and expand existing fa-open skies that allow us to think big and cilities. IRBs allow fixed-rate financing for the life of the bond for the project.dream even bigger. It’s not surprising COMMUNITY DEVELOPMENT BLOCK GRANT: Eligible small city and county govern-that a place like this offers endless op- ments may apply for these economic development funds to make water, sewer, orportunity for success in all aspects of other infrastructure improvements designed to assist companies in creating jobs. Thesebusiness, particularly manufacturing. funds may also be used by a business to acquire land or buildings, construct or renovateWe invite you to discover Kansas and facilities, purchase machinery and equipment, or for working capital.see what we mean. T&ID20 TRADE & INDUSTRY DEVELOPMENT • SEPTEMBER/OCTOBER 2006