High Performance Incentive Program (HPIP)

HPIP — High Performance Incentive Program

Provides financial incentives to Kansas employers that couple capital expansion with high wage growth and job creation.

Eligibility · United States · US-KS

The High Performance Incentive Program (HPIP) is a Kansas Department of Commerce tax incentive that rewards for-profit employers making significant capital investments at Kansas facilities while paying wages that exceed regional average standards. The program delivers a 10% income tax credit on eligible capital investment, a sales tax exemption on the same qualified investment, and a training tax credit of up to $50,000 per certification period. Unused credits carry forward for 16 years, and under 2021 Senate Bill 65, credits may be transferred to another entity or individual under certain conditions. Application fees are $750 for initial certification, $250 for recertification, and $0 for carry-forward-only filings.

To qualify, a company must be a for-profit entity subject to Kansas state taxes, must demonstrate that employee wages exceed the applicable NAICS/region average wage standard (updated annually, currently covering measurement periods July 2025 – June 2026), and must meet one of three structural tests: it is a manufacturer; most of its sales go to Kansas manufacturers, out-of-state buyers, or government agencies; or it operates a national or multi-national headquarters or back-office function. Minimum capital investment thresholds are $50,000 at a general facility or $1 million in the five metro counties of Johnson, Sedgwick, Shawnee, Douglas, and Wyandotte. Wage standard tables are published by NAICS division and county region, with separate schedules for worksites under and over 500 employees.

HPIP accepts applications year-round with no fixed deadline. The PDF application and full guidelines are available at the Kansas Department of Commerce website. The HPIP program manager is Richard Martinez, reachable at (785) 207-1660 or Richard.Martinez@ks.gov. Manufacturers and multi-state companies establishing or expanding Kansas facilities are the primary fit. Applicants should confirm current wage standards with the department before submitting to ensure the proposed wage level clears the threshold for their NAICS code and county region.