Kansas businesses can benefit from updated state tax incentives under the High Performance Incentive Program (HPIP), including an investment tax credit, sales tax exemption, and training tax credit. Recent changes allow for the transfer of up to 50% of the investment tax credit, making it more accessible for companies with limited tax liability. The process for claiming these benefits involves multiple steps and may require assistance from an expert.

1. Kansas businesses have an opportunity for state tax incentives of which you may want to be aware.
Recent changes to the Kansas High Performance Incentive Program (HPIP) make it more broadly available
than it was in the past.
Established in 1992, the HPIP provides an investment tax credit and sales tax exemption to companies in
qualified industries that pay above average wages. A training tax credit of up to $50,000 is also available
for companies that do a significant amount of employee training.
Since program inception, the investment tax credit has been claimed on the Kansas income tax return,
with a carryforward option of up to 16 years. That method has worked well for companies or shareholders
with Kansas income tax liability, but was of little or no value absent that tax liability.
EFFECTIVE JANUARY 1, 2021, UP TO 50% OF THE INVESTMENT TAX CREDIT
CAN BE TRANSFERRED.
This change significantly broadens the appeal for companies with net operating losses or other reasons
for zero or limited Kansas tax liability, and allows companies to purchase credits as well.
In addition to the option to transfer the HPIP credits, the training requirement has also been decoupled
from the tax credit. The training grant programs and training tax credit are still available, but are no longer
required simply for the purpose of HPIP certification. This change streamlines the process and opens the
door for companies making capital investment, but not necessarily creating new jobs.
The process to earn and maximize the benefits of the tax credit and sales tax exemption involves
multiple steps, which need to happen in a timely manner in order for expenditures to qualify. A CBIZ
incentives expert can walk you through the process from application to realization of benefits.
FOR MORE INFORMATION, CONTACT:
Chris Baltimore – cbaltimore@cbiz.com or 816.945.5273.
MAJOR INCENTIVES OPPORTUNITY
for Kansas Businesses
ALERT
ALERT
If your company is doing any of the following, HPIP incentives may be of value:
▀ Buying or constructing a new facility
▀ Remodeling and expanding an existing space
▀ Signing a lease for additional space or a new location
▀ Purchasing expensive machinery and equipment or furniture and fixtures