Kansas Statutes 74-50,212. Qualified company; eligibility requirements; benefits; retention incentives
Terms Used In Kansas Statutes 74-50,212
- Act: means the provisions of Kan. See Kansas Statutes 74-50,211
- Code: means the internal revenue code of 1986. See Kansas Statutes 74-5059
- Contract: A legal written agreement that becomes binding when signed.
- County median wage: means the median wage paid to employees located in the county where the qualified company intends to employ new employees as reported by the department of labor in its annual report for the previous year. See Kansas Statutes 74-50,211
- department: means the department of commerce;
(4) "entrepreneur" means an individual creating a new business, service or product;
(5) "region" means multi-county areas as defined by the secretary of commerce;
(6) "regional business development fund" means an authorized and audited fund that is created by taxpayer contributions, interest income and investment income and is managed by the regional foundation board of directors for the purposes of economic and leadership development in the region;
(7) "regional foundation" means any organization in Kansas that demonstrates capacity to provide economic development services to regions as defined by this act, and: (A) Has obtained a ruling from the internal revenue service of the United States department of treasury that such organization is exempt from income taxation under the provisions of section 501(c)(3) or 501(c)(6) of the federal internal revenue code;
(B) has been designated as a certified development company by the United States small business administration;
(C) has been designated as an economic development district by the United States department of commerce's economic development administration;
(D) has been organized as a regional planning commission under Kan. See Kansas Statutes 74-50,154
- High-impact project: means a business development project for which the qualified company shall meet the requirements of subsection (c) of Kan. See Kansas Statutes 74-50,211
- metropolitan county: means the county of Douglas, Johnson, Leavenworth, Sedgwick, Shawnee or Wyandotte;
(d) "neighborhood revitalization organization" means any group organized for the purpose of encouraging economic development in a blighted area of a metropolitan county; and
(e) "nonmetropolitan county" means any county which is not a metropolitan county. See Kansas Statutes 74-5093
- NAICS: means the North American industry classification system. See Kansas Statutes 74-50,211
- New business: means a facility, plant, division, office, department, production line, production shift or other business operations of a company that was not doing business in Kansas prior to the submission of an application for benefits under this act and that provides documentation of such to the satisfaction of the secretary. See Kansas Statutes 74-50,211
- Non-metropolitan county: means any county that is not a metropolitan county. See Kansas Statutes 74-50,211
- Qualified company: means any for-profit corporation, partnership or other entity making available to its full-time employees adequate health insurance coverage and paying at least 50% of the premium for such health insurance, which meets the requirements of Kan. See Kansas Statutes 74-50,211
- Secretary: means the secretary of commerce. See Kansas Statutes 74-5059
- State: means the state of Kansas. See Kansas Statutes 74-5059
(a) In order to qualify for benefits under this act a qualified company shall:
(1) Relocate to Kansas an existing business facility, office, department or other operation doing business outside the state of Kansas and locate the jobs directly related to such relocated business facility, office, department or other operation in Kansas;
(2) locate a new business facility, office, department or other operation in Kansas and locate the jobs directly related to such business facility, office, department or other operation in Kansas; or
(3) expand an existing business facility, office, department or other operation located in the state of Kansas and locate the jobs directly related to such business facility, office, department or other operation in Kansas, except that no payroll withholding taxes shall be retained prior to January 1, 2012.
A qualified company may utilize or contract with a third-party employer to perform services whereby the third-party employer serves as the legal employer of the new employees providing services to the qualified company and such services are performed in Kansas and the third-party employer and the new employees are subject to the Kansas withholding and declaration of estimated tax act.
(b) Any qualified company, approved by the secretary for benefits pursuant to paragraph (a), that locates its business operation in a metropolitan county and will hire at least 10 new employees within two years from the date the qualified company enters into an agreement with the secretary pursuant to Kan. Stat. Ann. § 74-50,213, and amendments thereto, or any qualified company, approved by the secretary for benefits pursuant to paragraph (a), that locates its business operation in a non-metropolitan county and will hire at least five new employees within two years from the date the qualified company enters into an agreement with the secretary pursuant to Kan. Stat. Ann. § 74-50,213, and amendments thereto, shall: (1) Be eligible to retain 95% of the qualified company’s Kansas payroll withholding taxes for such new employees being paid the county median wage or higher for a period of up to:
(A) Five years if the median wage or average wage paid to the new employees is equal to at least 100% of the county median wage;
(B) six years if the median wage or average wage paid to the new employees is equal to at least 110% of the county median wage;
(C) seven years if the median wage or average wage paid to the new employees is equal to at least 120% of the county median wage; or
(2) be eligible to retain 95% of the qualified company’s Kansas payroll withholding taxes for such new employees being paid the county median wage or higher for a period of up to five years if the median wage or average wage paid to the new employees is equal to at least 100% of the NAICS code industry average wage.
(c) Any qualified company, approved by the secretary for benefits pursuant to paragraph (a), that engages in a high-impact project whereby the qualified company will hire at least 100 new employees within two years from the date the qualified company enters into an agreement with the secretary pursuant to Kan. Stat. Ann. § 74-50,213, and amendments thereto, shall be eligible to retain 95% of the qualified company’s Kansas payroll withholding taxes for such new employees being paid the county median wage or higher for a period of up to:
(1) Seven years if the median wage or average wage paid to the new employees is equal to at least 100% of the county median wage;
(2) eight years if the median wage or average wage paid to the new employees is equal to at least 110% of the county median wage;
(3) nine years if the median wage or average wage paid to the new employees is equal to at least 120% of the county median wage; or
(4) ten years if the median wage or average wage paid to the new employees is equal to at least 140% of the county median wage.
(d) In the event that a qualified company contracts with a third party as described in subsection (a), the third party shall remit payments equal to the amount of Kansas payroll withholding taxes the qualified company is eligible to retain under this section to the qualified company, and report such amount to the department of revenue as required pursuant to subsection (a) of Kan. Stat. Ann. § 74-50,214, and amendments thereto.
(e) Commencing January 1, 2013, and ending June 30, 2018, any company, which meets the criteria provided pursuant to the provisions of Kan. Stat. Ann. § 74-50,211, and amendments thereto, that retains the employees of an existing business unit located in Kansas and enters into an agreement with the secretary pursuant to Kan. Stat. Ann. § 74-50,213, and amendments thereto, shall be eligible to retain 95% of the qualified company’s Kansas payroll withholding taxes for such employees for a period of up to five years.
(f) (1) Commencing January 1, 2013, and ending June 30, 2018, pursuant to the provisions of subsection (e), the secretary of commerce, in the secretary’s sole determination, may provide the benefits of the promoting employment across Kansas act for situations where it is deemed necessary by the secretary that the state of Kansas provide incentives for a company or its operations currently located in Kansas to remain in Kansas so as to keep its retained jobs. The secretary shall establish and verify that a prospective company has competitive alternatives that it is seriously considering and that a company’s relocation may be imminent. Furthermore, the secretary shall assess:
(A) Whether the retention of the company or its operations is important to the economic vitality of the state;
(B) the area where such company or operations is located; or
(C) whether the retention of the company or its operations is important to a particular industry in the state due to any number of factors including, but not limited to, the quantity, quality or wages of the retained jobs involved.
(2) Effective January 1, 2013, and ending June 30, 2018, the secretary may use the promoting employment across Kansas act in conjunction with other economic development programs to develop a retention package.
(g) The provisions of this act as in effect prior to the effective date of this act shall apply to employers who have entered into agreements with the secretary prior to July 1, 2011. The provisions of this act shall apply to employers who enter into agreements with the secretary on and after July 1, 2011.
(h) In the event a qualified company entered into an agreement for benefits under this section prior to January 1, 2013, such qualified company may request the secretary to extend the benefit term of such agreement by a period of up to two additional years. If in the secretary’s discretion it is necessary to provide the qualified company with all benefits intended under such agreement, the extension may be granted.