Kansas PEAK — Promoting Employment Across Kansas
Kansas Department of Commerce
95% of new employee withholding
Keep your new hires' Kansas income tax
PEAK lets qualifying Kansas businesses retain up to 95% of state income tax withheld from new employees' paychecks — keeping those dollars in the company rather than sending them to the state. It's not a grant or tax credit on your own tax return; instead, the withholding tax your new employees would have paid to Kansas stays with you. Metropolitan businesses need to create at least 10 new jobs at or above county median wage; rural businesses only need 5 new jobs. Benefits last 7 years (10 years for large 100+ job projects).
- Funding type
- Tax Credit
- Level
- State
- Amount
- 95% of state income tax withheld from PEAK-eligible employees for 7 years (basic projects) or 10 years (100+ new jobs). Annual benefit scales with headcount and wages.
- Realistic amount
- A company adding 10 employees at $50,000/year in a metro county retains approximately $25,000–$35,000 in withholding ann…
- Deadline
- Rolling — applications accepted year-round. Must sign incentive agreement with Kansas Department of Commerce before hiring begins for PEAK-eligible positions.
- Status
- active
- States
- KS
- Payment model
- advance
Who qualifies
- For-profit business (or not-for-profit headquarters facility) with a qualifying NAICS code
- Business must be locating, relocating, or expanding operations in Kansas
- Must create at least 10 new full-time jobs in metropolitan Kansas counties, OR at least 5 new jobs in non-metropolitan counties, within 2 years of agreement signing
- New jobs must pay wages at or above the county median wage where operations are located
- Jobs must provide 'adequate' employer health insurance coverage with employer paying at least 50% of premium
- Must sign a formal incentive agreement with the Kansas Department of Commerce before creating PEAK-eligible positions
- Eligible NAICS sectors: manufacturing (NAICS 311-339), utilities, wholesale trade, transportation, information, finance, professional/scientific/technical services, and certain service sectors with majority out-of-state or Kansas manufacturer customers
Hard requirements
- Must be incorporated
- Location restriction: Kansas — business must operate in-state
- Requires creating at least 5 new jobs
What it covers
Eligible expenses
- Not expense-based — PEAK works by retaining payroll withholding tax on qualifying new employee wages
- No specific expense categories; benefit is tied to headcount and wages of PEAK-eligible employees
Ineligible expenses
- Wages above the PEAK eligibility threshold
- Benefits or non-wage compensation
- Existing employees (only NEW jobs qualify)
- Employees not covered by the incentive agreement
How to apply
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1
Contact Kansas Department of Commerce
Reach out to the Business Development team at Kansas Commerce (785-296-5298 or kansascommerce.gov) before hiring begins. Discuss your expansion plans and confirm NAICS eligibility.
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2
Sign incentive agreement
Work with Kansas Commerce to execute a PEAK incentive agreement specifying the number of PEAK-eligible jobs, wage commitments, and health insurance requirements. This must be signed before qualifying employees are hired.
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3
Hire and track PEAK-eligible employees
Create the new positions meeting wage and benefit thresholds. Maintain documentation of each PEAK employee's wages and employment status throughout the benefit period.
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4
Withhold and retain state income tax
Instead of remitting 100% of withheld Kansas income tax for PEAK employees to the state, retain 95%. File Form PR-PEAK annually with the Kansas Department of Revenue reporting PEAK employee withholding.
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5
File annual end-of-year report
Submit the PEAK end-of-year electronic report each January covering the prior year's PEAK employment and withholding data.
Sign the PEAK agreement before you announce hires. Retroactive enrollment is impossible. Rural projects (non-metro counties) only need 5 new jobs — a significant advantage for smaller manufacturers or distributors.
Deadline & timing
PEAK agreements must be signed BEFORE the qualifying jobs are created. Retroactive enrollment is not permitted. Contact Kansas Commerce early in the site-selection or expansion planning process.
Programs that stack well
- Kansas High Performance Incentive Program (HPIP) — Training and Education Tax Credit
- 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.