Kansas High Performance Incentive Program (HPIP) — Training and Education Tax Credit
Kansas Department of Commerce / Kansas Department of Revenue
Up to $50,000/year
Credit on Kansas employee training above 2% of payroll
HPIP rewards Kansas businesses for investing in employee training. Companies that spend at least 2% of total payroll on employee education and training can claim a state income tax credit equal to training expenditures above that 2% threshold — up to $50,000 per year. The program requires certification by the Kansas Secretary of Commerce and targets manufacturers, high-technology firms, and service companies that sell predominantly to manufacturers or out-of-state customers. It stacks with the PEAK payroll withholding program.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- $50,000
- Realistic amount
- A manufacturer with $2 million in annual payroll spending $60,000 on training earns a credit on the $20,000 above the 2%…
- Deadline
- Rolling — certification through Kansas Department of Commerce, then credit claimed on annual Kansas income or privilege tax return (Schedule K-59).
- Status
- active
- States
- KS
- Payment model
- tax offset
Who qualifies
- For-profit business certified as a 'high performance business' by the Kansas Secretary of Commerce
- Must be in an eligible NAICS sector (manufacturing, utilities, wholesale, transportation, information, finance, professional/scientific, certain service sectors)
- Service-sector companies must have at least 51% of sales to Kansas manufacturers or out-of-state customers (or be a corporate/regional headquarters)
- Must pay above-average wages in their NAICS industry classification (or be sole company in their NAICS code, or pay 1.5× average covered employment wage)
- Must invest at least 2% of total annual payroll on employee training and education
- Credit applies only to training expenditures ABOVE the 2% payroll threshold
Hard requirements
- Must be incorporated
- Location restriction: Kansas — business and employees must be Kansas-based
What it covers
Eligible expenses
- Tuition for employee education programs at accredited institutions
- Fees for professional training courses and certifications
- Training vendor costs for workplace skills programs
- Conference registration when primarily for employee skill development
- Internal training program development costs (materials, facilitator fees)
Ineligible expenses
- Training costs below the 2% of payroll threshold (the floor — only above-threshold costs generate the credit)
- Non-training business expenses
- Personal development expenses unrelated to job functions
- Training for employees not based in Kansas
How to apply
-
1
Contact Kansas Department of Commerce for certification
Call Kansas Commerce at 785-296-5298 or visit kansascommerce.gov to initiate the HPIP certification process. Provide your NAICS code, wage data, and training investment history to demonstrate eligibility.
-
2
Receive certification from Kansas Secretary of Commerce
Kansas Commerce certifies your business as a 'high performance' employer meeting the wage and sector requirements. Keep the certification documentation for your tax records.
-
3
Track training and education expenditures
Document all employee training costs during the tax year: tuition, course fees, training vendor costs, conference registration related to skill development. Calculate 2% of total annual payroll (the threshold).
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4
Complete Schedule K-59 and claim credit
File Schedule K-59 with your Kansas income tax or privilege tax return. Calculate the credit: (training expenditures − 2% of payroll) = credit amount, capped at $50,000 or your tax liability.
The 2% payroll floor means smaller training budgets generate little or no credit. A $1M payroll company needs to spend $20,001+ on training to earn any credit — and the credit only covers the excess. HPIP stacks well with PEAK if you're already a PEAK-certified company.
Deadline & timing
Businesses must be certified by the Kansas Secretary of Commerce before claiming the credit. Contact Kansas Commerce at 785-296-5298 to initiate certification. Credit is then claimed via Schedule K-59 attached to the annual Kansas income or privilege tax return.
Programs that stack well
- Kansas PEAK — Promoting Employment Across Kansas
- Federal Work Opportunity Tax Credit
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.