Senate Bill 65, enacted on 15 April 2021, eliminates certain requirements from the High Performance Incentive Program (HPIP). Effective upon enactment, taxpayers no longer have to qualify for the Kansas Industrial Training (KIT) or Kansas Industrial Retraining (KIR) workforce training tax credits, or make required investments in employee training, to qualify for the HPIP. For projects placed in service on and after 1 January, 2021, a taxpayer may transfer up to 50% of HPIP tax credits to another taxpayer.
Taxpayers planning on investing or expanding in Kansas should review the potential benefits of the HPIP. The changes implemented by S.B. 65 make the HPIP certification process more accessible to companies considering locating or expanding in Kansas and to those with existing operations within Kansas. Most importantly, the changes allow for HPIP credit carryforwards to be utilized by taxpayers without the annual requirement of applying for and receiving approval for separate state training agreements such as the KIT and KIR.