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Tax & Incentive Profile
INFORMATION FOR BOTH KANSAS AND MISSOURI IS PRESENTED BELOW.
The state of Kansas has two workforce training programs to offset a company's training costs:
Companies creating new jobs may quality for Kansas Industrial Training (KIT) assistance. Eligibility for the program depends on the number of jobs created and the corresponding wages. The state of Kansas also has the Kansas Industrial Retraining (KIR) program to retain a Kansas company's existing workforce on new technology or production activites. Projects involving a Kansas Basic Industry -- which includes manufacturing, distribution or regional/national service facilities -- may qualify for these programs.
Both of these programs offer direct financial assistance to pay a negotiated portion of the costs to train a company's employees. Companies may apply the assistance toward items such as instructors' salaries; meals, travel and lodging (including out-of-state or international travel); video development; textbooks and training manuals; supplies and materials; temporary training facilities and curriculum planning and development.
Missouri New Jobs Training Program
The New Jobs Training Program (NJTP) provides education and training to workers employed in newly created jobs in Missouri. The new jobs may result from a new industry locating in Missouri or an existing industry expanding its workforce in the state. NJTP is administered through Missouri’s community college districts in cooperation with the Missouri Department of Economic Development through the Division of Workforce Development. In greater Kansas City, NJTP services are provided by the Metropolitan Community Colleges system.
The program provides assistance in reducing the cost associated with expanding a workforce or locating a new facility through these training services:
Training assistance can include skill assessment, pre-employment training, instructor salaries, curriculum design, and training materials.
Eligible businesses include manufacturing, processing, and assembling firms, as well as companies that conduct research and development, or that provide services in interstate commerce. Retail businesses do not qualify for the program.
Funds for training and project costs are generated by using tax credits from the employer’s regular withholding taxes that are paid for the employees in the created jobs. The amount paid is based on a percentage of the gross wages that have been paid to the employees. The tax withholding is equal to 2.5% of gross wages for the first 100 new jobs, and 1.5% for the remaining new jobs. To repay the training and certificate costs, the tax withholding credits are claimed for an average of 4-5 years.
Missouri Customized Training Program
The Missouri Customized Training Program (MCTP) helps Missouri employers with funding to offset the costs of training and retraining new and existing employees. The program can assist new and expanding employers with training workers in newly created jobs and help retrain existing employees to upgrade skills.
The program is administered by the Missouri Department of Economic Development's Division of Workforce Development. Local educational agencies implement the program locally.
Programs are customized to meet the specific needs of the company:
Eligible companies are those providing permanent, full-time employment to Missouri residents, paying high competitive wages and creating new jobs above their peak employment level in the past year or retraining existing employees as a result of a substantial new capital investment.
Applications should be submitted 30 days prior to the start of training or hiring. Some occupations and industries may not be eligible for this program and minimum wage rates apply.
Missouri Job Retention Training Program
The Job Retention Training Program (JRTP) provides education and retraining assistance for existing jobs to eligible employers who have retained a minimum of 100 employees for at least two consecutive calendar years and made a capital investment of at least $1 million. JRTP is administered through Missouri's community college districts in cooperation with the Missouri Department of Economic Development through the Division of Workforce Development. In greater Kansas City, JRTP services are provided by the Metropolitan Community Colleges system.
The program provides assistance in reducing the cost associated with retraining an existing workforce for the purpose of retaining jobs in the state of Missouri through training services:
Training assistance can include skill assessments, instructor costs, curriculum development, travel and a variety of other training-related services. On-the-job training expenses are restricted to no more than 50% of a project’s training costs. In addition, total expenses for equipment, supplies and travel cannot exceed 25% of a project’s training costs. Training may be provided by the company, a local educational agency or a training vendor.
Eligible businesses include manufacturing, processing, and assembling firms, as well as companies that conduct research and development, or that provide services in interstate or intrastate commerce. Retail businesses do not qualify for the program. In addition, the business must:
Other eligibility criteria may apply, such as types of jobs, type of industry and wage rates.
The community colleges, located in twelve districts in Missouri, in cooperation with the Missouri Department of Economic Development through the Division of Workforce Development, administer the program. Funds for training and project costs are generated by using tax credits from the employer’s regular withholding taxes that are paid for the employees in the retained jobs. The tax withholding is equal to 2.5% of gross wages for the first 100 jobs, and 1.5% for the remaining jobs in the project. The tax withholding credits for the project are claimed for an average of 4 to 5 years to pay for project costs.
DEFINING THE GREATER KC METRO AREA
Kansas City is a Missouri/Kansas bi-state metropolitan area. All statistical references made to Kansas City Metropolitan Statistical Area (MSA) include the counties of Bates, Caldwell, Cass, Clay, Clinton, Jackson, Lafayette, Platte and Ray in Missouri, and Franklin, Johnson, Leavenworth, Linn, Miami and Wyandotte counties in Kansas. The greater Kansas City area also includes the adjoining Lawrence, KS, St. Joseph, MO, and Topeka, KS MSAs, as well as the Atchison, KS, Chillicothe, MO, Ottawa, KS, and Warrensburg, MO areas.