Sumner County Economic Development Commission will work with the State of Kansas and local officials to provide a detailed, customized, competitive incentive package for your company should you be interested in relocating or expanding your business in Sumner County.

All incentives are subject to the company meeting the criteria for the program and approval from the governing body of the organization having jurisdiction over that incentive.

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***** NEWS *****

Rural Opportunity Zone (ROZ)

Effective July 1, 2014, Sumner County is a Rural Opportunity Zone (ROZ).  People who move to Sumner County after July 1, 2014 and prior to Jan. 1, 2016 and meet the qualifications of the program will now be eligible for State income tax waivers for up to five years. Sumner County is not currently participating in the Student Loan Forgiveness portion of this program. 

2014 Unemployment Insurance Changes

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New Employers:  Beginning in rate year 2015, all new employers, except those in the construction industry, who begin operation on July 1, 2014 or after are eligible for the Unemployment Insurance contribution rate of 2.7 percent.  Alternatively, if the employer moves to Kansas from another state, the employer may pay the Kansas rate corresponding with the employer’s earned experience from the previous state instead of the standard 2.7 percent.  However, the minimum rate is 1 percent. 

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Existing Employers: For rate year 2014, which began January 1, 2015, existing eligible positive balance employers will see a 15% discount on their 2014 state unemployment tax rates.  Additionally, an expanding employer in Kansas is eligible to receive a lower rate based on the employer’s reserve fund ratio history or the new employer rate of 2.7 percent for four years, subject to approval by the Secretary of Labor.  The Bill also removes the cap placed on voluntary contributions. 

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State of Kansas Incentives

Promoting Employment Across Kansas (PEAK):

This program offers qualified companies the ability to retain 95 percent of their payroll withholding tax for up to five to seven years. PEAK is available for new operations in Kansas as well as relocated operations to the state. It is also available for qualifying business retention projects which has been extended through 2018. Companies need to create at least 10 new jobs within two years in metropolitan areas or five new jobs within two years in all other counties of the state. High-impact projects that create 100 new jobs within two years can retain 95 percent of payroll withholding tax for a period of 10 years. The number of years that the withholding tax can be retained depends on how much the annual median wage of the jobs in the project will exceed the current county median wage and the discretion of the Secretary of the Kansas Department of Commerce. If the aggregate median wage of the new jobs does not qualify the project for PEAK, the annual average wage of the new jobs can be used.  Qualifying through the use of the average wage limits the benefits received. Effective July 1, 2014, companies in the bioscience industry may also be considered for PEAK if funding under the Kansas Bioscience Authority is not an option. A PEAK application must be submitted before locating or creating PEAK-eligible jobs in Kansas.

  

High Performance Incentive Program (HPIP):

This program provides a 10 percent corporate income tax credit on the qualified capital investment of an eligible company. Qualified capital investment can include such items as the purchase or lease of a facility or equipment, remodeling or build-out costs, fixtures, furniture and computers. Equipment transferred to Kansas from out-of-state is also credited at the original acquisition cost. The 10 percent tax credit is awarded to companies that operate an eligible business, pay above-average wages and invest in employee training. The credits can be used to significantly reduce a company’s corporate income tax liability in a given year. Credits must be used within a consecutive 16-year period. The minimum investment threshold to qualify for HPIP is $1 million for the urban counties of Douglas, Johnson, Sedgwick, Shawnee and Wyandotte. For all other counties, the minimum investment threshold is $50,000. A key component of HPIP is the completion of the Project Description form, which must be submitted to the Department of Commerce prior to the company signing any document, such as a lease or purchase agreement, which commits the company to locating or expanding in Kansas.

 

Machinery & Equipment Expensing Deduction

Eligible Kansas taxpayers are allowed to claim an expense deduction for business machinery and equipment placed into service in Kansas. This is a one-time deduction for each qualified purchase of machinery and equipment in the year that it is placed in service. Unused expense deduction is treated as a Kansas net operating loss that may be carried forward for 10 years. Eligible investment is machinery and equipment depreciable under the Modified Accelerated Cost Recovery System in section 168 of the Internal Revenue Code, or canned software as defined in section 197 of the Internal Revenue Code. Examples of eligible equipment include manufacturing equipment, office furniture, computers, software and racking. 

Machinery and Equipment Property Tax Exemption

Commercial and industrial machinery and equipment acquired by qualified purchase or lease or transferred into the state is exempt from state and local property tax. The exemption pertains to machinery and equipment used in the expansion of an existing facility or the establishment of a new facility. The exemption covers machinery and equipment used in manufacturing or warehousing/distribution, commercial equipment, computers, desks and chairs, copiers and fax machines.

 

EDX Property Tax Abatement

Cities or counties may exempt real property from ad valorem taxation. The tax abatement can include all or any portion of the appraised buildings, land and improvements. A total or partial tax abatement may be in effect for up to 10 years after the calendar year in which the business commences its operations. Any property tax abatement is the decision of the city or county.

 

Industrial Revenue Bonds (IRBs):

Industrial Revenue Bonds are a popular method of financing up to 100 percent of a growing business’ land, building and equipment. IRBs are securities issued by cities and counties to provide funds for credit worthy companies to acquire land, construct and equip new facilities or remodel and expand existing facilities. IRBs allow fixed-rate financing for the life of the bond for the project.

 

Businesses using Industrial Revenue Bonds as a financing mechanism may be eligible for these exemptions.

•  Property financed with IRBs is exempt from ad valorem taxation for up to 10 years after the bonds are issued.  However some localities may elect to negotiate payments   in lieu of taxes.

• The cost of construction labor, building materials, and machinery and equipment is exempt from state and local sales taxes if financed by IRBs

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Community Development Block Grant (CDBG)

Eligible small city and county governments may apply for Community Development Block Grant economic development funds to assist an expanding or new business in Kansas. There are two parts to the program: business finance and infrastructure. Under business finance, funds are available for working capital, machinery and equipment and real property. The interest rate is currently set at 3 percent below prime or 4 percent, whichever is greater. The term of the loan is based on the asset being financed - working capital loan is 6.5 years, machinery and equipment is 10 years and real property is 15 years. For business loans, a match is required of $.50 to every $1 of CDBG funds. For infrastructure, funding is available for water lines, sewer lines, roads, rail spurs and pre-treatment facilities. Infrastructure funding requires that a quarter of the funds be paid back over a 10-year period at a rate of 0 percent. Funding requires the creation or retention of one full-time job per $35,000 of CDBG assistance up to the maximum of $750,000. At least 51 percent of the jobs created or retained must be held by individuals, who at the time of hire, meet HUD’s low- and-moderate income test, which is based on median family income in the county in which the project is located. 

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Kansas Partnership Fund

Commerce provides low-interest state funds to cities and counties for infrastructure improvements that support Kansas basic enterprises such as manufacturing and distribution. Eligible projects may include construction, rehabilitation or expansion of public facilities, including roads, streets, highways, water supply and treatment facilities, water distribution lines, wastewater collection lines and related improvements. 
 

Energy Incentives

A variety of incentives are available in Kansas to Energy Related Projects/Businesses.  Please click here for more information 

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Kansas Bioscience Authority (KBA):

Commerce works in partnership with the Kansas Bioscience Authority to assist in the expansion and recruitment of bioscience companies. The KBA has direct financing programs and other resources that can be used to help with funding for new bioscience companies and world-class scholars, equipment and lab space for research and facilitate the commercialization of bioscience discoveries.

  

Sales Tax Exemptions

The Kansas state sales and use tax rate is 6.15 percent. However, there are several sales tax exemptions available which include: 

• Labor services related to original construction

• Remodeling costs, furnishings, furniture, machinery and equipment for qualified projects

• New machinery and equipment for manufacturing and distribution.  This also includes pre- and post-production machinery and equipment, including raw material handling, waste storage, water purification and oil cleaning, as well as ancillary property such as gas pipes, electrical wiring and pollution control equipment.

• Tangible personal property that becomes an ingredient or component part of a finished product

• Tangible personal property that is immediately consumed in the production process, including electric power, natural gas and water

• Incoming and outgoing interstate telephone or transmission services (WATTS)

• Real and personal property financed with an Internal Revenue Bond

• Other Tax Incentives and Business Incentives

 

Right-to-Work State - Union membership is  7.5 percent, well below the national average. Sumner County manufacturers are non-union.

Inventory Tax Exemption- All merchant and manufacturers' inventories are exempt from property taxes.

Research Tax Credit - Kansas offers an income tax credit equal to 6.5 percent of a company's investment in research and development above an average expenditure of the previous three-year period.  Twenty-five percent of the allowable annual credit may be claimed in any one year.

No Local Income Taxes - Kansas cities and counties do not impose income or earnings taxes on personal or corporate income.

No Kansas Franchise Tax - Kansas phased out its franchise tax in 2011.

Workers' Compensation - Kansas ranks 9th lowest in the U.S.. for worker compensation rates.

 

County Incentives/Programs 

Foreign Trade Zone

Sumner County is an Alternate Site FTZ under Sedgwick County's FTZ #161.

Foreign trade zones (FTZs) in Kansas provide a duty-free and quota-free entry point for foreign goods into specific areas under customs supervision for an unlimited period of time. Kansas offers a variety of sites managed by grantees in Kansas City (Zone 17) and Wichita (Zone 161).

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Kansas has taken advantage of the new Alternative Site Framework (ASF) foreign trade zone designation intended to provide greater flexibility and expedite access to the benefits of the Foreign Trade Zone program. As a result, a company in the designated region is not restricted to a site specific FTZ, as the entire county is eligible for FTZ benefits under the ASF designation. This streamlined approach offers a quicker turnaround time and lower cost, allowing grantees to locate zone designation where companies are located.

 

The Wichita FTZ has received approval to use the new ASF procedures for a central region that includes Butler, Harvey, McPherson, Reno, Saline, Sedgwick and Sumner counties. The new system makes it faster and less expensive for area businesses to establish their facilities as foreign trade zones, with an estimated turnaround time of 30 to 40 days.

EDX Property Tax Exemption 

Cities and Counties may exempt real property from ad valorem taxation for qualifying companies.  A total or partial tax abatement may be in effect for up to 10 years after the calendar year in which the business commences its operations.  

Neighborhood Revitalization Program

For information on this program please contact Wilma Cullum at the Sumner County Appraiser's Office - 620-326-8986.

 

Kansas Star Casino All-Stars Fund:

• K-12 – Eligible students will receive a $100 educational reward card to be used for school enrollment fees and/or at area merchants to purchase back to school supplies, school clothes and shoes.

• Teachers  - Full-time classroom teacher employed in Sumner County and Mulvane school districts are eligible for a grant of up to $500 to help purchase suppliers for their classrooms.

• Graduating Seniors – All high school seniors graduation from Sumner County or Mulvane school districts who qualify will be awarded a $1,000 scholarship to be used toward their post-secondary accredited education.

• More information can be found by visiting:  http://www.ksallstarscholarships.com/.

Kansas All Star Scholars Fund/Exploration Place Science Education Project -The goal of the Science Education Project is to put increased focus on science, math and technology to all third and fourth grade classes in Sumner County elementary schools. ​

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Local Incentives/Programs

City of Caldwell Incentives

Housing Incentives:

New Construction

These apply to new construction on a private lot. Upon completion of construction:

• One year of free water/sewer/storm water utilities (up to $1,500)

• Free Family Swim Pass (one year)

• Waiver of building permit fee

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1st Time Home Buyers:
These apply to first-time home buyers for an existing home

• Free building permit (remodel)

• Six (6) months free water/sewer/storm water utilities (up to $600)

• Free Family Swim Pass (one year)      

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Commercial Incentives:

These apply to all new commercial construction in the City of Caldwell.  To be given to any business that is newly established within the city limits of Caldwell.  Pyramid businesses (such as Amway) do not qualify.  Home-based businesses do not qualify.   Upon completion of construction:

• Water/sewer/storm water utility credit of $3,000

• Waiver of permit fee

These apply to first time purchase of existing commercial building:

• Water/sewer/storm water utility credit of $1,500

• Free building permit (remodeling)

No incentive for relocated or addition to existing business.

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Downtown Roof Grant Program:
It shall be the objective of this matching grant program to provide assistance for the repair and replacement of the roofs of existing commercial properties located on Main Street from Avenue B to 2nd Street. 

Applicants: Owners, building tenants, or a joint ventures of these two parties may submit an application under this grant program.

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For further information, please contact the City of Caldwell at 620-845-6514

City of Mulvane Incentives

Mulvane Downtown Revitalization Program
It shall be the objective of this matching grant program to provide assistance for the rehabilitation and upgrading of the existing commercial properties within the designated Downtown Revitalization Program Boundaries.  Owners, building tenants, or a joint venture of the two parties may submit an application.  Applicant must provide at least a 50% match.
 
Minimum Grant - $5,000;   Maximum Grant  - $10,000
 
Minimum Project Investment – must exceed $10,000
 
The Downtown Revitalization Program is funded by the City of Mulvane, Kansas and is administered by the Downtown Revitalization Program Board.  The number of grants awarded, and the amount of each grant will be determined by the Downtown Revitalization program Board with the approval of the City Council based on availability of funds.
 
For further information on this program, please contact Joel Pile at the City of Mulvane Building and Zoning Department at 316-777-9516 or email:  jpile@mulvane.us

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City of Oxford Incentives

Housing Incentives:

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New Construction:

These apply to new construction on a private lot. Upon completion of construction:

• Up to $1500 towards Driveway

• Free Family Swim Pass (one year)

• Waiver of building permit fee

• Waiver of utility connection fee

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1st Time Home Buyers:

These apply to first-time home buyers for an existing home

• Waiver of building permit fee (remodel)

• Free Family Swim Pass (one year) 

• Waiver of utility connection fee 

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Commercial Incentives:

These apply to all new commercial construction in the City of Oxford.  To be given to any business that is newly established within the city limits of Oxford.  Pyramid businesses (such as Amway) do not qualify.  Home-based businesses do not qualify.  The incentive is given to any entrepreneur willing to make an investment in our community.  Upon completion of construction:

• Driveway/Parking lot credit of $3,000

• Waiver of building permit fee

• First year of membership to the Oxford Chamber of Commerce is free.

These apply to first time purchase of existing commercial building:

• Waiver of building permit fee (remodeling)

• First year of membership to the Oxford Chamber of Commerce is free.

No incentive for relocated or addition to existing business.

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Other Local Incentives
Sumner County cities may offer additional incentives based on the specific project, job creation, and capital investment.  The Sumner County Economic Development Commission will work with the Cities to determine what additional incentives may apply to your company.

Please contact our office for additional information regarding any of these incentives. 

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WORKFORCE DEVELOPMENT

Workforce Solutions for Sumner County

The Sumner County Economic Development Commission is here to assist your business with your workforce needs. We will work with you to access training programs, conduct job fairs, post job openings, recruit employees and assist you with any other workforce needs you may have. We have a network of partner agencies to whom we can connect you as well. Please review the following information to give you a sample of the assistance that can be provided to your company.

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Workforce Alliance

The Workforce Alliance of South Central Kansas Inc. is a not-for-profit organization that manages federal job training funds and oversees the workforce development system in south central Kansas.   Workforce Alliance maintains an office in Sumner County for the convenience of our employers and citizens. The office is located at 314 N. Washington Wellington, Kansas, with office hours Monday-Thursday 9:00-12:00 & 1:00-4:30. The phone number is 620-326-2659.

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Kansas WORKReady!® Certificate

Kansas WORKReady!® is an initiative that uses WorkKeys® assessments to award Career Readiness Certificates to individuals to document their skills in three areas: Applied Mathematics: Locating Information: Reading for Information.
 
WorkKeys® is a reliable and nationally-validated assessment used to evaluate and analyze workplace skills. Thousands of jobs are "profiled" to identify skill levels necessary to perform each job. Skills measured by WorkKeys are transferable; skills necessary for most jobs. Tasks are based on workplace situations and do not require job-specific knowledge. 

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Career Technical Education initiative (Senate Bill 155)

In 2012, Governor Brownback launched a bold and innovative plan to enhance career technical education in Kansas and better prepare high school students for college and careers. Senate Bill 155 was the enacting legislation, and beginning with the 2012-2013 school year, Kansas high school students could qualify for free college tuition in approved technical courses offered at Kansas technical and community colleges.  Additionally, the program provides school districts with a $1,000 incentive for each high school student who graduates from that district with an industry-recognized credential in a high-need occupation.  Not only does this put the student on the fast track to a technical career, it also saves the family money on college tuition.

 

Kansas AllStar Scholars Fund/Exploration Place Science Education Project -The goal of the Science Education Project is to put increased focus on science, math and technology to all third and fourth grade classes in Sumner County elementary schools.

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Kansas Industrial Retraining Program (KIR): 

The KIR job retention program provides grants to restructuring companies whose employees are likely to be displaced due to obsolete or inadequate job skills or knowledge.

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Kansas Industrial Training Program (KIT): 

The KIT program provides funds to help new and expanding companies train workers for new jobs. 

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High Performance Incentive Program:

This program provides tax incentives to eligible employers that pay above-average wages and are committed to skills development for their workers.

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Early Childhood Associate Apprenticeship Program: 

The Early Childhood Associate Apprenticeship Program is an innovative certification program that targets individuals working in the childhood care and education field. 

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Incumbent Worker Training: 

This program provides grants to employers to assist with certain expenses associated with skills upgrade training for full-time employees of the company.

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Rapid Response: 

Rapid Response is a program designed to assist employers who are faced with staff reduction or layoff decisions.

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Registered Apprenticeship: 

The Registered Apprenticeship program is designed to provide employers with a skilled workforce while training existing workers in the latest technologies without loss of production time.

 

Workforce Solutions Fund: 

The Workforce Solutions Fund allows the Secretary of Commerce to help post-secondary training institutions throughout the state respond more effectively to the needs of Kansas businesses.