Job Expansion and Investment Tax Credits

The Job Expansion and Investment Tax Credit Act of 1976 (K.S.A. 79-32,153 et seq., as amended) provides business incentives for those businesses that may not qualify for the E-Zone incentives. Eligibility for these credits requires the creation of at least two new jobs. This Act provides a job expansion credit of $100 per net new employee and an investment tax credit of $100 per $100,000 of qualified investment per year for ten years. These credits are earned in the year the capital investment is made and for each of nine successive years thereafter. Credits may be used to offset up to 50 percent of the business' Kansas income tax liability. Unused credits may not be carried forward. Companies can elect to delay the start of the credits by up to three years.

Qualifying for Job Expansion & Investment Tax Credits

The business must be a revenue producing, taxpaying, qualified Kansas business facility. Revenue producing includes the operation and/or management of enterprises which:

1. assemble, fabricate, manufacture, or process agricultural, mineral, or manufactured products;
2. store, warehouse, distribute, or sell agriculture, aquaculture, mining, or manufactured products;
3. feed livestock at a feedlot;
4. operate laboratories or other facilities for scientific, agricultural, aqua cultural, animal husbandry, or industrial research, development, or testing;
5. perform services of any type; or
6. feed aquatic plants and animals at an aquaculture operation (K.S.A. 79-32,154 et seq.).

Credits may be deferred for up to three years. Unused credits cannot be carried forward.