Rural Development
Association of Northeast Kansas

About RDA
What's New?
Grant Services
Business Services
Incentives
Microloans
Kansas Rural Business Development Program
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Above: Seal of the State of Kansas with the motto "Ad Astra per Aspera," Latin for "To the Stars Through Difficulties."

RDA and the State of Kansas are constantly working to maintain a pro-business atmosphere in our region.  We have much to offer in the way of tax incentives, credits, exemptions, and grants.  There are many different enticements available to fit the needs of your particular business.  

RDA acts as the local agent to process all incentive requests for local businesses.  Please Contact RDA with inquiries regarding these tax credits and incentives.

Tax Exemptions/Abatements - Many cities within RDA territory and have local Property Tax Exemption policies pursuant to Article 11, Section 13 of the Constitution of the State of Kansas.  Local taxing entities may grant property tax exemptions on up to 100 percent of improvements to a property for those businesses that engage in one of three fields:

1. Manufacturing articles of commerce;
2. Conducting research and development;
3. Storing goods or commodities which are sold or traded in interstate; or commerce.

Nemaha County, the City of Sabetha, and the City of Seneca currently have tax exemption policies.

Neighborhood Revitalization Zones - Most areas of  Brown County and its incorporated cities have enacted the Neighborhood Revitalization Act as an incentive for new development, pursuant to K.S.A. 12-17, 116 et seq..  The act provides for a property tax exemption of 75 percent on all improvements for the first five tax years after significant improvements to a property, regardless of the use for the property.

Kansas Enterprise Zone - Enterprise Zone status was granted by the State of Kansas to Brown and Nemaha Counties after RDA developed a regional strategic plan and an application for Enterprise Zone status.  With this status, manufacturers that expand or locate in Brown or Nemaha Counties can take advantage of potentially lucrative benefits including:

1. A sales tax exemption on all new building materials and machinery/equipment purchases;
2. An investment tax credit of $1000 per $100,000; and
3. A job creation tax credit of $2500 per new job created due to an expansion in Brown or Nemaha County.

 Tax credits may be carried over indefinitely and may be used to offset 100 percent of state tax liability.

Retail businesses may take advantage of the sales tax exemption by creating two net new jobs and locating in a community of 2500 or less population.

High Performance Incentive Program (HPIP) - HPIP can provide a high level of incentives to businesses that meet the following criteria:

1. The business must pay an above average wage;
2. The business must invest two percent of payroll expenses in training or the business must participate in one of the state's workforce training programs;
3. The business must submit a "Capital Investment Project Description" prior to start of investment; and,
4. The business must be in major SIC categories 20-51 or 60-89.

If a business meets these criteria it may reap the following benefits:

1. A sales tax exemption of the entire project;
2. A ten percent investment tax credit on capital investments in excess of $50,000;
3. A workforce training tax credit up to $50,000 per year on training expenditures above two percent of company payroll; and
4. Priority consideration for other programs.

Job Expansion and Investment Tax Credit - All Businesses can receive the following incentives if they create at least two new jobs and do not qualify for the Enterprise Zone or HPIP programs.

1. Income tax credit of $100 per $100,000 of investment;and
2. Job creation tax credit of $100 per net new job created.

Kansas Economic Opportunity Initiative Fund (KEIOF) and Kansas Existing Industry Expansion Program (KEIEP) - KEIOF and KEIEP are zero percent interest, "forgivable" loans that are made to new or expanding industries that create a significant amount of job growth in rural or distressed areas.  The amount of the loan may vary.  However, as job creation goals are met, the loan can be forgiven, thus becoming a grant.

Kansas Industrial Training (KIT) - Kansas offers incentives to manufacturers that create at least five new jobs in order to train the new employees for their positions.  Funds can be used for many purposes including instructors' salaries, training aids, and training facilities.

Kansas Industrial Retraining (KIR) - Similar to KIT, KIR grants offer retraining funds to restructuring companies whose employees are likely to be displaced due to obsolete or inadequate job skills or knowledge.

Other benefits - The State of Kansas also offers the following incentives to qualified businesses:

* Some Communities have individual incentives that have been approved by the local governments.  Visit the community pages to find what each city and county has to offer!

Financing

RDA organizes efforts so that a company expanding or locating in Brown County or Nemaha County can take advantage of one or more of these financing alternatives.  These programs can make large projects more feasible by greatly reducing financing costs.

Community Development Block Grant (CDBG) Program - A company that wishes to undertake a major expansion can work with a community to apply for a CDBG grant from the Kansas Department of Commerce and Housing.  Businesses can apply for up to $750,000 or $35,000 per new net job created or retained with minimum interest rates of 3.5 percent below the current Prime Rate (minimum four percent interest rate).  At least 51 percent of the new or retained jobs must be filled by employees who meet income guidelines.  Contact RDA for more information.

Rural Economic Development Loans - USDA Rural Development can provide a grant of up to $450,000 to a rural utility that can, in turn, provide a zero interest loan to a new business.  As the funds are repaid, the utility can establish a local revolving loan fund to make loans to other businesses.  A business must locate within the service area of a participating utility in order to qualify.

Industrial Revenue Bonds (IRB's) - Industrial Revenue Bonds are issued through a municipality to help fund a major business expansion.  Although a city sponsors an IRB issue, the company pays off the bonds through a separate bond holder.  Generally, large projects can obtain very favorable rates with an IRB issue.  In addition, property tax exemptions generally accompany IRB's.