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: 

1. be a for-profit company subject to state taxes; 
2. pay above-average wages (as compared to other similar firms in the same geographical area with matching NAICS codes); 
3. make a significant investment in eligible employee training; and 
4. 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