High Performance Incentive Program
Category: State and Local Incentives
The High Performance Incentive Program (HPIP) provides tax incentives to qualifying employers who pay above average wages, along with having a robust commitment to teach skills development for their workers.
HPIP provides a 10% tax credit that is eligible for capital investment of at least $50,000 at the company’s facility. In the five metro counties of Douglas, Johnson, Sedgwick, Shawnee and Wyandotte, the threshold is $1 million. The tax credit has a 16-year carryforward provided facilities are able to requalify for HPIP.
Who Qualifies
To qualify, a company must:
- be a for-profit company subject to state taxes;
- pay above-average wages (as compared to other similar firms in the same geographical area with matching NAICS codes);
- make a significant investment in eligible employee training; and
- be either a manufacturer or able to document that most of its sales are to Kansas manufacturers and/or out-of-state businesses or government agencies.
A business in any NAICS code can qualify if it is a headquarters or back-office operation of a national or multi-national corporation.
Benefits
- A 10% income tax credit on eligible capital investment
- A sales tax exemption that will be used with the company’s eligible capital investment for the qualified facility
- A training tax credit up to $50,000
- Access to other business assistance programs
Wage Standards
- The wage standards allow companies to wage-qualify a worksite, based on their first three or four digits of their North American Industry Classification System (NAICS) code.
- Three-digit codes are divided up into six county regions along with six metro counties. Four-digit codes are divided into Eastern Rural, Western Rural and the six metro counties.
- WAGE STANDARDS LISTED IN HPIP RESOURCES ARE VALID FOR PERIODS ENDING BETWEEN JULY 1, 2020 TO JUNE 30, 2021
Contacts
Debra Teufel
Hutchinson/Reno County Chamber
President/CEO
117 N. Walnut
Hutchinson, KS 67501
Phone: 620-662-3391
debrat@hutchchamber.com
Richard Martinez
Kansas Department of Commerce
HPIP Program Manager
Phone: 785-296-7174
richard.martinez@ks.gov
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