Local Incentives

Private Activity Bonds

Qualified Private Activity Bonds (PABs) are federally tax-exempt bonds. Under the federal volume cap, Kansas has a total 2018 bond allocation of $311,375,000 for this purpose. The types of bonds qualifying for such tax-exempt status are:

  • Exempt facility bonds
  • Qualified mortgage bonds
  • Qualified veterans’ mortgage bonds
  • Qualified small issue bonds
  • Qualified student loan bonds
  • Qualified redevelopment bonds
  • Qualified 501(c)(3) bonds

In Kansas, the primary demand for bond allocation has been for the issuance of exempt facility bonds, mortgage revenue bonds and qualified small issue bonds (or industrial revenue bonds).

Contacts

David Soffer

Public Service Executive

Kansas Department of Commerce

1000 S.W. Jackson St. Suite 100
Topeka, KS 66612

Phone: (785) 296-2825

David.Soffer@ks.gov

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Category: State

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The Department of Commerce is offering matching grants for the revitalization of underutilized, vacant, or dilapidated downtown buildings through the Historic Economic Asset Lifeline (HEAL) program. The grants are intended to bring buildings back into productive use as spaces for new or expanding businesses, childcare, housing, arts and culture, civic engagement, or entrepreneurship. Application window closes on December 20, 2021 - apply today!

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Kansas Certified Development Companies (CDC) help businesses access the numerous loan programs available from a variety of sources. These loan packages match the business' financial need with the source of funds, providing small business customers the best combination of rates and terms possible.

Each CDC has an area of operation in which it focuses its efforts on serving the small-business community. The state provides financial support to augment these efforts. A list of CDCs and their service areas is available from the Business and Community Development Division.

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The Kansas Industrial Retraining program is a job retention tool that helps employees of restructuring companies who are likely to be displaced because of obsolete or inadequate job skills and knowledge.

To participate, a company must retrain at least one existing position at an average wage equal to or greater than the median wage for their county as well as show the employee will be displaced.

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The KIT program may be used to assist firms involved in job creation. Training can include subjects that provide knowledge and specific skills necessary for job entry including instruction on the company’s own production equipment on the plant floor or on similar machinery in a classroom setting.

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The Board of Tax Appeals (BOTA) Liaison provides instruction and technical assistance to parties interested in property tax abatement. In 1998, the Kansas Legislature adopted K.S.A. 79-213, which authorizes the Kansas Department of Commerce to provide aid to businesses and governmental entities applying for economic development and/or industrial revenue bond tax abatements. In 2006, the Kansas legislature passed K.S.A. 79-223, legislation that exempts property tax on commercial and industrial machinery and equipment brought into Kansas after June 30, 2006.

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The Shuttered Venue Operators (SVO) Grant program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the SBA’s Office of Disaster Assistance.

Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.

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A special kind of TIF – Sales Tax and Revenue (STAR) Bonds – was created by the Kansas Legislature. STAR Bonds are used to assist the development of major entertainment or tourism destinations using the sales tax revenues generated by associated retail development. STAR Bonds allow state sales tax revenue generated by the project to be used along with local sales taxes as a source of revenue to retire bonds issued to finance eligible project costs.

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Sales Tax Revenue (STAR) Bonds provide Kansas municipalities the opportunity to issue bonds to finance the development of major commercial, entertainment and tourism areas and use the sales tax revenue generated by the development to pay off the bonds.

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The Kansas Capital Multiplier Loan and Venture Funds are programs that provide matching funds through a partner network to eligible businesses in communities across Kansas. Funding is provided through the United States Treasury via the State Small Business Credit Initiative (SSBCI).

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