ABB 2006/7 | State Profiles | Mid West region | Kansas

Business is booming in Kansas, thanks in part to the recent elimination of property taxes on new business machinery and equipment. Signed into law in May, this historic tax relief paves the way for Kansas businesses to invest in new machinery and technology without having to pay property taxes on the purchase.

The new legislation also raises the exemption for “lowcost” items from $400 to $1,500, allowing businesses to devote less time to paperwork and more time to producing goods. The result is tax relief that benefits all Kansas companies, particularly those engaged in manufacturing. Other incentives available include:

• Income and premium tax credits for new job creation and investment and annual property taxes paid on machinery and equipment.
• Sales tax exemptions on the purchase of construction labour and materials, and facility machinery and equipment.
• Sales tax exemption on personal property that is consumed or becomes a component part in the manufacturing process.
• Property tax abatement on real and personal property for up to 10 years.
• Manufacturers’ and merchants’ inventories are exempt from property taxes.
• Industrial Revenue Bonds (IRBs) provide up to 100% financing of land, building, and equipment.
• Community Development Block Grant (CDBG) for projects in non-metro areas.
• Forgivable loans for project-related costs associated with the establishment or expansion of a business facility.

Diversified economy

Kansas is the home to major companies from all sectors of the economy. Companies headquartered in Kansas include:

• Applebee’s
• Cessna Aircraft Company
• Black & Veatch
• Koch Industries
• Payless ShoeSource
• Sprint Nextel
• Yellow Transportation

Kansas is in the top one-third of states for:

• Percent of adults with a high school diploma
• Percentage of adults with a college degree
• Number of students per instructional computer
• Pupil-teacher ratio

Electricity, natural gas and telecommunications

• Both the electric power and natural gas rates are below the national average.
• Kansas has excess electric generating reserve and transmission capacity through the three largest investor-owned companies in the state.
• Its telecommunication providers offer a wide array of digital subscriber line services to businesses.

Affordable living

Overall living costs in Kansas are 8% below the national average, which places it in the lowest one-third of states for cost of living.

A great place to live

Kansas cities routinely score well in national rankings of the best places to live, including:

• Morgan Quinto Press’ “Most Livable State”
• CNNMoney.com’s “Best Places to Live”
• Relocate-America.com’s “Top 100 Places to Live”

For more information, contact:
the Kansas Europe Office in the UK on:
Tel: +44 (0) 1372 363386
E-mail: reception@prowse.co.uk
Website: www.kansascommerce.com

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