Topeka/Shawnee County Local Incentives & Resources

Industrial Revenue Bonds (IRB)

Tax abatements granted through Industrial Revenue Bonds are generally not available to companies that are engaged in retail sales of goods or services within the local community. Because of the complexity of the financial and legal considerations related to revenue bonds, any company considering them is strongly encouraged to begin working with their bond attorney, underwriter or financial counselor early in the process and well before the project begins.

Industrial Revenue Bonds can be a cost-efficient method of financing up to 100% of a growing company's investment in facilities. They are securities issued by cities and counties to private investors and allow creditworthy companies to finance the cost of land, buildings and equipment, as well as the related costs of development and financing including engineering, architectural, legal and underwriting expenses.

Qualifying businesses located within the City of Topeka may receive ad valorem exemptions based upon the number of new jobs created (1% exemption for each job) up to 70 new jobs (70%), and upon average hourly wages (relative to Shawnee County average wages) up to a 30% additional exemption. Additional exemptions may be granted based on very substantial amounts of capital investment and the value of the investment to the City of Topeka. The total percent exemption based upon jobs and wages shall generally not exceed eighty percent (80%) of the new taxes to be assessed.

Interested companies should check with their financial/legal advisor(s). Additional information and an application can be obtained by email or phone from Kathy Moellenberndt or Jo Beilman, at 785-234-2644

Shawnee County Industrial Revenue Bonds

Additional information can be obtained by email or phone from Kathy Moellenberndt or Jo Beilman, 785-234-2644. For detailed information on this program click here.

Economic Development Exemption Program (EDX)

The Economic Development Exemption Program is limited by state law to companies that are engaged in; (1) the manufacture of articles of commerce, (2) conducting research and development, or, (3) the storage of goods or commodities sold or traded in interstate commerce.

Qualifying businesses located within the City of Topeka may receive ad valorem exemptions based upon the number of new jobs created (1% exemption for each job) up to 70 new jobs (70%), and upon average hourly wages (relative to Shawnee County average wages) up to a 30% additional exemption. Additional exemptions may be granted based on very substantial amounts of capital investment and the value of the investment to the City of Topeka. The total percent exemption based upon jobs and wages shall generally not exceed eighty percent (80%) of the new taxes to be assessed.

Applicants granted an exemption, are required to pay the taxes on the assessed valuation that existed prior to the construction of new facilities or the installation of new improvements, machinery or equipment. To receive any reduction in ad valorem taxes, the City of Topeka (Resolution #6876, Sec. 8-1) requires that "No exemption application will be considered after the start of construction for improvement on which the exemption is sought."

Additional information and an application can be obtained from Kathy Moellenberndt or Jo Beilman at 785-234-2644.

Shawnee County Economic Development Exemptions (EDX)

Additional information can be obtained by email or phone from Kathy Moellenberndt or Jo Beilman, 785-234-2644. For information regarding this program, click here.

Tax Increment Financing (TIF)

Tax Increment Financing (TIF) is a real estate redevelopment tool applicable to industrial, commercial, and residential projects. TIF uses the increases in real estate tax revenues and local sales tax revenues to retire the bonds sold to finance eligible redevelopment project costs (K.S.A. 12-1770 et seq.).

A special kind of TIF -- Sales Tax and Revenue (STAR) Bonds -- was created by the 2003 Kansas Legislature. STAR Bonds allow state sales tax revenue generated by the project to be used as an additional source of revenue to retire bonds issued to finance project costs. In metropolitan areas, STAR Bonds can be used only for projects with anticipated capital investment of $50 million and with at least $50 million in projected gross annual sales. STAR Bond projects in rural areas have no specific financial threshold, but must be of major regional or statewide significance. Communities must have the approval of the Secretary of Commerce to issue STAR Bonds.

Monies raised through TIF may be used for redevelopment project costs approved by the city, such as land acquisition, site preparations, infrastructure, and other related costs. TIF cannot be used for the construction of privately owned buildings.

Financing is available from the proceeds of bonds to be issued by the city. Such bonds are primarily secured by the incremental increase in property taxes within the redevelopment district as a result of the new construction or rehabilitation, but may under certain circumstances, also be general obligations of the city. The city may also use franchise fees and sales taxes generated with the redevelopment district to pay the bonds or finance the project costs.

TIF works for both privately owned land and publicly owned land to be sold for redevelopment. Advance developer commitment to the project is essential. TIF cannot be used speculatively to prepare a site for development.

Businesses have found that TIF offers several distinct advantages. Using TIF generally allows the financing of land acquisitions and other allowed costs with tax-free borrowing at generally lower interest costs. Also, TIF offers businesses the opportunity to purchase renovated sites at sub-market costs.

Topeka Workforce Center

The Topeka Workforce Center stands ready to assist new and existing companies in finding a quality workforce. There are a variety of ways available at no charge, in which the Topeka Workforce Center can assist businesses in identifying skilled employees:

Kansas Joblink:

Kansas Joblink (KJL) is an internet-based, no-fee job matching and workforce information service for employers and job seekers. Employers may currently view over 1,000 active job seeker resumes on our website in the Topeka area alone! Employers can also post job openings directly and receive daily e-mails about new resumes that meet the criteria of a job listing. Businesses may prefer to have Workforce Center staff manage their account, in which case we can enter the job information online and prescreen applicants before referrals are made. KJL is available online at www.kansasjoblink.com.

Employer Center:

Our Employer Center is located within the Topeka Workforce Center and is available to employers to recruit new employees, find information on state and local workforce development programs, and provide company information to prospective employees. The Employer Center is a new concept for workforce centers and was pioneered in Topeka. Several firms have utilized this space to recruit prospective employees while their facility is being built, while many others use the Center on an ongoing, regularly scheduled basis to recruit qualified staff. The Employer Center can be used together with Kansas JobLink and our applicant prescreening services to deliver a powerful set of recruitment and hiring tools for businesses.

Assessment Tools:

The Topeka Workforce Center offers several tools that can assess an individual's skills. These assesment tools can be used to measure the ability of job seekers to perform a particular job or task. This information can then be used along with a resume, interview, and references as a part of the hiring process. Assessments may be able to help companies match the right person to the right job. And that can reduce turnover and increase productivity.

Veterans Program:

The Veterans Program is designed to link employers with veterans seeking employment. A veterans representative works with employers to find veterans with military occupational skills that are relevant to employers' job requirements.

Tax Credits/Financial Incentives:

There are several tax credits and financial incentives available to companies adding additional employees to their workforces. For example, the Work Opportunity Tax Credit benefits companies hiring individuals from nine targeted groups of job seekers.

Topeka Workforce Center
Business Services
1430 SW Topeka Blvd.
Topeka, KS 66612-1853
(785) 235-5627

Neighborhood Revitalization Program

This incentive program was established to encourage improvements within the City of Topeka's Neighborhoods and Downtown district. The rebate is structured to allow an 80% property tax rebate for 10 years in designated areas in Topeka/Shawnee County. Read below for more information regarding this property tax rebate program.

How does the tax rebate work?
The tax rebate is a refund of the additional property taxes caused by a qualified improvement. The taxes relating to the assessed value on the property prior to the improvement are still payable.

What kind of improvements will increase the assessed value?
New construction, additions, and major rehabilitiations will increase the assessed value. Maintenance generally will not increase the assessed value, unless there are several major repairs completed at the same time.

Are there incentives for historic preservation projects?
The program offers an additional benefit to structures listed on the National, State, or Local Registers. Qualifying projects will received a 100% rebate for 15 years.

What is a qualified improvement?
Qualified improvements include any construction, rehabilitation or additions that increase the appraised valuation of the property by more than 10% for residential* and by more than 20% for commercial as determined by the County Appraiser's Office. A qualified improvement must: 1) be in the rebate area. 2) Conform with the City's Zoning Ordinance and Comprehensive Plan. 3) Conform with other applicable building codes, rules and regulations and secure a building permit. Application must be made within 60 days of issuance of a building permit.

What else should I know?
Improvements to the property must remain in good standing throughout the rebate period. You are required by law to claim the rebate as income on your federal income taxes.

* Residential improvements that do not qualify include new construction of renter-occupied single-family units and conversion of single family dwellings to two or more dwelling units.

The Neighborhood Revitalization program enables participating taxing entities (City of Topeka, Shawnee County, USD 501, USD 345, Washburn University, Public Library, MTTA, MTAA) to target areas within the city for property tax rebates. The purpose of the program is to stimulate investment in Topeka's "at-risk" and "intensive care" neighborhoods and Downtown. Up to an 80% rebate over 10 years may be given on the incremental increase in property taxes resulting from improvement made to a property in those targeted areas.

Small Business Administration Loans

Basic 7(a) Loan Program
7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. For a direct link and more information, go to SBA's website, sba.gov.

Certified Development Company (504) Loan Program
The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDCs nationwide. Each CDC covers a specific geographic area.

Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.

For a direct link and more information, go to SBA's website sba.gov

Downtown Topeka, Inc. - Grant Program

Downtown Topeka, Inc. administers the Downtown Redevelopment Grant Incentive Program which provides incentive grants to help businesses with infrastructure improvements to properties in downtown Topeka, including facades. With funds allocated by the City of Topeka, this program is designed to reestablish downtown as a family oriented, economically sound, culturally vital and visually attractive regional destination. The incentive program includes components for business recruitment, dining and entertainment, retail and residential.

Grants will be made to applicants on a "first-come, first-served" basis according to the date and time of the application until the funds are exhausted. The amount of funds available may be amended during the duration of this program. Click here for detailed information about DTI's incentive program.

Disadvantage Business Enterprise

Disadvantaged Business Enterprise (DBE) programs are funded by the one-half cent economic development sales tax. This support from the taxpayers of Topeka-Shawnee County has helped to create new jobs and new businesses for people who are socially and economically disadvantaged in the community. (DBE programs and services are available to virtually any small Topeka business. The DBE programs focus on minorities, women, and small-business entrepreneurs.) A key DBE economic development goal is to nurture and support successful job creation for all Topeka and Shawnee County citizens.

The DBE office in the Small Biz One Stop Shop provides entrepreneurial training, financial counseling, and ongoing support services for small, minority-and woman-owned businesses:

• First Step FastTrac entrepreneurial training program
• Seminars
• Mentors/Tutors/Coaches
• First Connection Opportunity Fund micro loan program
• Professional Incubator Programs

Small, Women, & Minority Business Certification Program

GO Topeka , through the Kansas Department of Commerce, also assists socially and economically disadvantaged businesses become certified to do business with large companies or government entities.

For assistance through GO Topeka contact: Clark Trammell , 785-231-6000. Click here for more information about the state certification program.