Links:
Contact:
202 W. Sycamore
Ness City, KS 67560
Phone number: (785)798-4864
Fax: (785)798-3680
E-mail: nessecodevo@gbta.net
202 W. Sycamore
Ness City, KS 67560
Phone number: (785)798-4864
Fax: (785)798-3680
E-mail: nessecodevo@gbta.net
Business Incentives
Many incentives are available to businesses that create new jobs by locating, expanding, or renovating within
Ness County.
Ness County has also been designated as an Kansas Enterprise Zone by Lieutenant Governor John Moore and
the Kansas Department of Commerce. The Kansas Enterprise Zone Act provides for a base level of state
supported incentives, such as income tax credits and sales tax exemptions, to businesses throughout the
state. Enhanced incentives are available in Ness County because of its non-metropolitan region designation.
Sales Tax Exemption
The purchase of certain tangible personal property and services is exempt from sales tax for new or expanding
businesses. Eligible purchases include materials used in the construction, reconstruction, enlarging, or
remodeling of a qualified business facility. An exemption is also available on the purchase and installation of
machinery and equipment. A business must qualify for the Job Creation Tax Credit to be eligible for the Sales
Tax Exemption.
Any person constructing, reconstructing, remodeling or enlarging a facility which will be leased for a period of
five years or more to a business that would be eligible for a sales tax exemption hereunder if such business
had constructed, reconstructed, enlarged, or remodeled such facility itself shall also be entitled to the sales
tax exemption.
The builder/developer is eligible for sales tax exemption on building, however, the lessee claims the
associated Job Creation and Investment Tax Credits. To qualify for the sales tax exemption, the
builder/developer must apply to the Department of Revenue by filing a Request for Project Exemption
Certificate. Included with the application should be a copy of the 5-year lease. The lessee must make a separate
application for sales tax exemption on the machinery and equipment to be installed at the facility. Where
possible, these applications should be made at the same time with a brief cover letter.
Job Creation Tax Credit
The Act provides for an enhanced credit available in designated non-metropolitan regions of $2,500 for each
net new employee created by the relocation or expansion of a business. A minimum of two (2) net new jobs
must be created to qualify for this credit. For expanding businesses or those building a replacement facility, a
"net new employee" refers to those employees over and above the "employee base" calculated by averaging
the preceding year's annual employment. Qualification for the Job Creation Tax Credit is the threshold
requirement to qualify for the other incentives. The Job Creation Tax Credit is a one-time credit against the
business' Kansas state tax liability. The amount of credit that can be taken in any one year is limited to 50% of
the total tax liability. Any unused portion of the credit may be carried forward indefinitely and used in
succeeding years after reverifying the number of net new employees.
Investment Tax Credit
The Act provides for an Investment Tax Credit of $1,000 for each $100,000 (or major portion thereof) of qualified
business facility investment. A business must meet the job requirements of the Job Creation Tax Credit to be
eligible for the Investment Tax Credit. A builder/developer is not eligible for this credit as the credit passes to
the qualifying lessee. The Investment Tax Credit is a one-time credit against the business' Kansas state tax
liability. The amount of the credit that can be used in any one year is limited to 50% of the annual tax liability. Any
unused portion of the credit may be carried forward indefinitely and used in succeeding years after reverifying
the number of net new employees.
Other Available Credits
For businesses that are not eligible for Kansas Enterprise Zone incentives, there are other business and job
development tax credits available. In general, the incentives earned under the Kansas Enterprise Zone Act
provide a higher level of tax credits. Some businesses, however, may not be eligible for all enterprise zone
incentives, such as non-manufacturing businesses which create less than five jobs through their capital
investment projects. Business and job development tax credits are provided for businesses which create at
least two net new jobs through capital investment projects relating to relocation, expansion, or renovation. The
credits available are: (1) a credit of $100 for each net new qualified business facility employee; and (2) a credit
of $100 for each $100,000 (or major fraction thereof) in qualified business facility investment. Earned credits
may be used to offset up to 50% of the business' annual Kansas income tax liability. However, in contrast to the
Kansas Enterprise Zone Act incentives, unused credits may not be carried forward. The start of the 10-year
claim period may be deferred for up to three years.
Many incentives are available to businesses that create new jobs by locating, expanding, or renovating within
Ness County.
Ness County has also been designated as an Kansas Enterprise Zone by Lieutenant Governor John Moore and
the Kansas Department of Commerce. The Kansas Enterprise Zone Act provides for a base level of state
supported incentives, such as income tax credits and sales tax exemptions, to businesses throughout the
state. Enhanced incentives are available in Ness County because of its non-metropolitan region designation.
Sales Tax Exemption
The purchase of certain tangible personal property and services is exempt from sales tax for new or expanding
businesses. Eligible purchases include materials used in the construction, reconstruction, enlarging, or
remodeling of a qualified business facility. An exemption is also available on the purchase and installation of
machinery and equipment. A business must qualify for the Job Creation Tax Credit to be eligible for the Sales
Tax Exemption.
Any person constructing, reconstructing, remodeling or enlarging a facility which will be leased for a period of
five years or more to a business that would be eligible for a sales tax exemption hereunder if such business
had constructed, reconstructed, enlarged, or remodeled such facility itself shall also be entitled to the sales
tax exemption.
The builder/developer is eligible for sales tax exemption on building, however, the lessee claims the
associated Job Creation and Investment Tax Credits. To qualify for the sales tax exemption, the
builder/developer must apply to the Department of Revenue by filing a Request for Project Exemption
Certificate. Included with the application should be a copy of the 5-year lease. The lessee must make a separate
application for sales tax exemption on the machinery and equipment to be installed at the facility. Where
possible, these applications should be made at the same time with a brief cover letter.
Job Creation Tax Credit
The Act provides for an enhanced credit available in designated non-metropolitan regions of $2,500 for each
net new employee created by the relocation or expansion of a business. A minimum of two (2) net new jobs
must be created to qualify for this credit. For expanding businesses or those building a replacement facility, a
"net new employee" refers to those employees over and above the "employee base" calculated by averaging
the preceding year's annual employment. Qualification for the Job Creation Tax Credit is the threshold
requirement to qualify for the other incentives. The Job Creation Tax Credit is a one-time credit against the
business' Kansas state tax liability. The amount of credit that can be taken in any one year is limited to 50% of
the total tax liability. Any unused portion of the credit may be carried forward indefinitely and used in
succeeding years after reverifying the number of net new employees.
Investment Tax Credit
The Act provides for an Investment Tax Credit of $1,000 for each $100,000 (or major portion thereof) of qualified
business facility investment. A business must meet the job requirements of the Job Creation Tax Credit to be
eligible for the Investment Tax Credit. A builder/developer is not eligible for this credit as the credit passes to
the qualifying lessee. The Investment Tax Credit is a one-time credit against the business' Kansas state tax
liability. The amount of the credit that can be used in any one year is limited to 50% of the annual tax liability. Any
unused portion of the credit may be carried forward indefinitely and used in succeeding years after reverifying
the number of net new employees.
Other Available Credits
For businesses that are not eligible for Kansas Enterprise Zone incentives, there are other business and job
development tax credits available. In general, the incentives earned under the Kansas Enterprise Zone Act
provide a higher level of tax credits. Some businesses, however, may not be eligible for all enterprise zone
incentives, such as non-manufacturing businesses which create less than five jobs through their capital
investment projects. Business and job development tax credits are provided for businesses which create at
least two net new jobs through capital investment projects relating to relocation, expansion, or renovation. The
credits available are: (1) a credit of $100 for each net new qualified business facility employee; and (2) a credit
of $100 for each $100,000 (or major fraction thereof) in qualified business facility investment. Earned credits
may be used to offset up to 50% of the business' annual Kansas income tax liability. However, in contrast to the
Kansas Enterprise Zone Act incentives, unused credits may not be carried forward. The start of the 10-year
claim period may be deferred for up to three years.
Economic Development
 | |  | |  | |  | |  | |  | |  |
| Click here to: Read this before your build or renovate |