Both the Promoting Employment Across Kansas (PEAK) and the High Performance Incentive Program (HPIP) are flagship incentives administered by the Kansas Department of Commerce to attract and retain businesses, create jobs, and drive economic growth. They are often layered together (along with local tools like those from GO Topeka/JEDO in Shawnee County/Topeka) for comprehensive packages targeting manufacturing, logistics, food processing, financial services, and other sectors.Here's a side-by-side comparison based on the most current details (as of 2025–2026):
Key Differences Summary
Aspect | PEAK (Promoting Employment Across Kansas) | HPIP (High Performance Incentive Program) |
|---|---|---|
Primary Focus | Job creation (new jobs from relocation, expansion, or new facilities) | Capital investment + high wages + workforce training/skills development |
Enactment Year | 2009 | 1993 (amended most recently in 2021 for credit transfers) |
Main Benefit | Retain/refund 95% of Kansas payroll withholding taxes from qualified new employees | 10% nonrefundable corporate income tax credit on eligible capital investment (plus other perks) |
Benefit Duration | Up to 7 years (basic projects) or 10 years (high-impact: ≥100 new jobs in 2 years) | Tax credits carry forward up to 16 years (with requalification) |
Eligibility Thresholds | - Minimum new jobs in 2 years: 10 in metro areas (incl. Shawnee County/Topeka), 5 in non-metro - Wages at/above county median (or industry avg in some cases) - Benefits package required | - Capital investment min: $50,000 (non-metro) or $1 million (metro counties incl. Shawnee) - Pay above-average wages (vs. similar firms/NAICS in area) - Significant investment in employee training - Primarily manufacturers or those with ≥51% sales to KS manufacturers/out-of-state/govt |
Who Qualifies | - For-profit companies - New startups - Out-of-state/international businesses - Existing KS expansions - Non-profit national/international HQs | - For-profit companies subject to KS taxes - Emphasis on manufacturers and related businesses - Must demonstrate high-performance workforce commitment |
Additional Benefits | - None major beyond the withholding retention - Performance-based with clawbacks if targets unmet | - Sales tax exemption on purchases for the qualified capital project - Training tax credit (up to $50,000 in some cases) - Priority for other state programs |
Application Timing | Must apply before creating/hiring PEAK-eligible jobs (non-refundable $750 fee) | Apply in connection with qualifying capital investment/training project |
Economic Impact Focus | Strong on direct job creation and payroll growth (e.g., 2024 data: thousands of jobs, billions in payroll/investment) | Strong on investment in facilities/equipment and workforce quality (e.g., reduces capital costs via credits/exemptions) |
Typical Use Cases | Ideal for labor-intensive projects (e.g., distribution centers like Target/Home Depot in Commerce Park, expansions creating dozens/hundreds of jobs) | Ideal for capital-intensive projects (e.g., manufacturing expansions, equipment upgrades, training-heavy firms like food processing or advanced industries) |
Stackability | Frequently combined with HPIP, local incentives (e.g., JEDO grants in Topeka), KIT training funds, etc. | Frequently combined with PEAK, especially for projects involving both job growth and major investment |
- PEAK is job-centric — it rewards hiring and payroll growth by letting companies keep most of the state income tax withheld from new employees' paychecks. It's highly effective for companies scaling workforce quickly.
- HPIP is investment- and quality-centric — it rewards spending on capital (machinery, buildings) and training while paying competitive wages, reducing tax liability on profits and exempting sales tax on project purchases.
- PEAK: kansascommerce.gov/program/business-incentives-and-services/peak
- HPIP: kansascommerce.gov/program/business-incentives-and-services/hpip
Henry McClure
Time kills deals
785-383-9994
www.henrymcclure.live
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