Department of Commerce

Administration

The Administration Division is comprised of the Office of the Secretary, as well as the Athletic Commission, Office of Rural Prosperity, Office of Broadband Development, and the Office of Innovation.

Office of Broadband Development

The Office of Broadband Development was established to lead state efforts in bridging the digital divide in Kansas. This office is responsible for federal funds and grants provided to state that are in relation to broadband. Its four priority areas are:

• Driving access to robust broadband infrastructure;
• Enabling Kansans to connect through digital adoption, literacy, and inclusion programs;
• Developing Kansas broadband infrastructure information services to inform investments and priorities; and
• Engaging stakeholders through local, regional, and statewide partnerships.

Office of Rural Prosperity

The Office of Rural Prosperity provides leadership and advocacy for rural Kansas in the areas of Housing, Child Care/Early Education, Community Development, Health care/Wellness, Broadband Infrastructure, and Rural Workforce. This office also includes the Rural Opportunity Zones (ROZ) program which was designed to stem outmigration and help to fill high demand jobs in rural Kansas communities. Currently, there are 95 counties designated as a ROZ who are able to offer tax relief and student loan repayment assistance to new full-time residents. The Department administers the student loan repayment assistance portion of this program.

Kansas Innovation & Technology Enterprise

The Kansas Innovation & Technology Enterprise provides critical programs and ecosystem building functions in support of innovation-based business creation, expansion, and attraction. This office includes small business research and development acceleration grants, as well as the Angel Investor Tax Credit program, which was designed to assist in the early stages of commercial development.

Athletic Commission

The Athletic Commission was created to promote and regulate the state’s combat sport industry through regulating and facilitating high-quality competitive sporting events, increasing the number of licenses issued to participants and officials by expanding the industry across the State, and ensuring that judges and referees are certified by the Association of Boxing Commissions to enhance the integrity and safety of all regulated sports in the State.

Public Broadcasting Council

The Kansas Public Broadcasting Council is charged with coordinating public broadcasting activities in the state. Historically, $500,000 in state Economic Development Initiative Fund (EDIF) dollars are allocated annually through a statutory formula to nine member stations. Stations are charged with ensuring every resident has access to public media.

Business Development

The Business Development Division is responsible for growing the Kansas economy through the creation and retention of jobs and increased capital investment. Financial incentives and programs administered by the Business Development Division include:

• Attracting Powerful Economic Expansion (APEX);
• High Performance Incentive Program (HPIP);
• Job Creation Fund (JCF);
• Kansas Industrial Training and Kansas Industrial Retraining (KIT/KIR);
• Minority and Women Business Development;
• Private Activity Bonds; and
• Promoting Employment Across Kansas (PEAK) Program.

APEX

This program provides economic development incentives for specific industries that agree to invest at least $1.0 billion within the State of Kansas. Qualified industries include advanced manufacturing; aerospace; distribution, logistics, and transportation; food and agriculture; or professional and technical services. APEX has an expiration date of December 31, 2023. Eligibility for APEX incentives for qualified firms include:

• Investment tax credits;
• Reimbursement of a percentage of total payroll;
• Reimbursement of a percentage of eligible training and education expenses;
• Reimbursement of a percentage of relocation incentives and expenses provided by a qualified firm to incentivize employees to relocate to Kansas; and
• Sales tax exemption for construction costs of the qualified business facilities.

Qualified suppliers are also eligible for APEX incentives. If a supplier makes more than $10.0 million of sales to the qualified firm within the taxable year for which benefits are being sought, suppliers are eligible for:

• Investment tax credit;
• Partial retention of employee withholding tax;
• Reimbursement of a percentage of eligible employee training and education expenses;
• Partial real property tax exemption for qualified business facilities; and
• Sales tax exemption for construction materials used in a qualified business facility.

High Performance Incentive Program

The Kansas High Performance Incentive Program (HPIP) is an incentive program that provides tax benefits to businesses that are willing to expand the scope of their capital investments, pay a higher than average wage, and make a significant impact in employee training. During FY 2023, 352 worksites were certified or re-certified for the HPIP program.

Job Creation Fund

The Job Creation Fund was created to promote job creation and economic development projects throughout Kansas. During FY 2023, 15 applications were received and approved. Eligibility for these projects are determined by:

• Major expansion of an existing Kansas commercial enterprise;
• Potential location in Kansas of the operations of a major employer;
• Award of a significant federal or private sector grant that has a financial matching requirement;
• Potential departure from Kansas or the substantial reduction of the operations of a major Kansas employer;
• Training or retraining activities for employees of Kansas companies;
• Potential closure or substantial reduction of the operations of a major state or federal institution;
• Projects in counties with at least a 10.0 percent population decline during the period from 2000 to 2010; and
• Other unique economic development projects.

Kansas Industrial Training and Kansas Industrial Retraining Programs

The KIT/KIR programs assist eligible employers in training workers for new jobs and retraining existing workers who would otherwise be displaced because of obsolete job skills or knowledge. Eligibility requires companies to:

• Retrain at least one existing position at an average wage that meets the median wage for the county in which the project is located;
• Show that the company is restructuring their business operations through one or more of the following:
  • Incorporation of existing technology;
  • Development and incorporation of new technology;
  • Diversification of production; or
  • Development and implementation of new production;
• Demonstrate that employees to be trained are likely to be displaced because of obsolete or inadequate job skills or knowledge; and
• Meet program guidelines that set forth limits on the number of times companies can access assistance.

Minority and Women Business Development

The Office of Minority and Women Business Development exists to assist small minority and women-owned businesses in their business development activities by providing resources to include technical, financial, business management, certification, and procurement information. In FY 2023, 106 companies were certified and 16 workshops were conducted.

Private Activity Bonds

Qualified private activity bonds are federally tax-exempt bonds. Kansas had a 2023 bond authority of $358.9 million to allocate for this purpose. The Department ensures these bonds are being used for a qualified purpose and that the State does not exceed the maximum capacity set forth by the federal government. The types of bonds qualifying for tax-exempt status are:

• Exempt facility bonds;
• Qualified mortgage bonds;
• Qualified veterans’ mortgage bonds;
• Qualified small issue bonds;
• Qualified student loan bonds’
• Qualified redevelopment bonds; and
• Qualified 501(c)(3) bonds.

Promoting Employment Across Kansas

This program is designed to encourage economic development and job creating by incentivizing companies to locate, relocate, expand, or retain their business facilities/operations and related jobs. During the benefit period, of up to 10 years, participating companies may retain or be refunded 95.0 percent of the state withholding tax of PEAK-eligible employees that receive wages equal to or greater than the county median wage where the Kansas business facility is located. In FY 2023, 41 applications were received and approved. 27 agreements were signed with a projection of creating 2,224 new jobs and over $132.6 million in additional annual payroll over a 5 to 10 year period.

Workforce Services

The Workforce Services Division links businesses, job candidates, and educational institutions to ensure that employers can find skilled workers and workers can find employment opportunities. Employment services are provided to employers and job candidates through the state’s 26 workforce centers, virtual services, and the mobile workforce centers.

Additionally, programs under Workforce Services include:

• Federal Bonding;
• Foreign Labor Certification;
• Jobs for Veterans Grant;
• Kansas Office of Registered Apprenticeship;
• Kansas Training and Retention Aligned with Industry Need;
• Migrant and Seasonal Farm Worker Services;
• My (Re)Employment;
• Older Kansans Employment Program;
• Pathway Home 2;
• Rapid Response Program;
• Reemployment Services and Eligibility Assessment;
• Retaining Employment and Talent After Injury/Illness Network;
• Senior Community Services Employment Program;
• Trade Adjustment Assistance Program; and
• Work Opportunity Tax Credit Program.

Community Development

The Community Development Division provides technical assistance, support, and professional staff to communities for community development-related opportunities. Its focus is to enhance the current assets of Kansas communities to help build vibrant communities that are attractive places for residents and businesses to live, work, and play.

Programs under Community Development include:

• Community Service Tax Credit Program;
• Individual Development Account Program;
• Kansas Community Empowerment;
• Kansas Creative Arts Industries Commission;
• Kansas Main Street;
• Neighborhood Stabilization Program; and
• Small Cities Community Development Block Grant.

International

The International Division works with Kansas companies to help them sell their products and services in international markets. The Division also works to recruit international businesses to establish facilities and create jobs in Kansas. In order to provide support to the state’s international trade community and introduce more companies to the benefits of exporting, the Division provides virtual outreach activities and provides support for companies traveling through programming.

Programs under the International Division include:

• State Trade Expansion Program;
• Kansas International Trade Show Assistance Program; and
• Kansas International Trade Marketing Assistance Program.

Tourism

The Tourism Division inspires travel to and throughout Kansas to maximize the positive impacts that tourism has on the State and local communities. Its primary function is to market the state’s travel and tourism opportunities to the general public through marketing opportunities such as travel publications, social media, photography, and print advertising.

Building a Stronger Economy Grants

In addition to the programs listed above, the Department of Commerce also oversees the BASE 2.0 grant program which includes infrastructure investments associated with economic development projects including the development of new business parks; development of infrastructure required to support business expansions; renovation of existing business parks to bring them to modern standards; and other projects that achieve the goal of expanding the state’s base of businesses and residents.

by Chardae Caine
Senior Fiscal Analyst
785-296-3183