Kansas · Investment · KS-HPIP-001
HPIP Investment Tax Credit
Publication revised September 24, 2026. Sourcebook page 114.
Credit amount / calculation
10% of qualified facility investment above $50,000 in most counties; $1 million threshold in five metro counties; 16-year carryforward; limited transferability.
Business fit and eligible activity
Qualifying manufacturers paying above-average wages can earn a strong confirm eligible property, location and taxpayer type.
Illustrative business benefit
A sawmill invests $2 million in qualifying production machinery. At 10%, the nominal credit is $200,000 before annual caps, tax-liability limits, carryforward rules, or negotiated adjustments. The company should isolate eligible machinery from buildings, vehicles, land, and other costs that the statute does not treat the same way. capital-investment credit. Qualified investment or approved project activity; Page
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.
Official sources
- Kansas Department of Revenue — HPIP (ksrevenue.gov)
Related programs
HPIP Training and Education Credit
2% of payroll, capped at $50,000 or tax liability
HPIP-certified firms with substantial training spending can claim an additional credit.
Research and Development Credit
10% of the difference between current research
Qualified Kansas research earns a relatively strong incremental credit.
Short Line Railroad Tax Credit
Credit based on qualified short-line track maintenance
Potentially relevant where a forest-products business owns qualifying short-line track or receives an eligible assigned credit.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.