HPIP and PEAK: what to check before you apply.

What HPIP does

The High Performance Incentive Program gives a 10% income tax credit on eligible capital investment at a qualified facility. In the five metro counties, Douglas, Johnson, Sedgwick, Shawnee and Wyandotte, the investment must be at least $1 million; elsewhere the threshold is $50,000. The credit can be carried forward for 16 years, provided the facility keeps requalifying.

HPIP also offers a training tax credit of up to $50,000 and a sales tax exemption on the eligible capital investment for the facility. Since 2021, certified companies may transfer credits under certain conditions.

Who qualifies for HPIP

According to Kansas Commerce, a company must be a for-profit business subject to state taxes and must:

• Pay wages above the average wage standard for similar firms in the same area, by NAICS code
• Be a manufacturer, or show that most sales go to Kansas manufacturers, out-of-state businesses or government agencies
• Or be the headquarters or back-office operation of a national or multinational company
• Pay the certification fee: $1,000 for first certification, $500 to recertify, per worksite

What PEAK does

Promoting Employment Across Kansas lets a qualifying company keep, or be refunded, 95% of the state withholding tax on new jobs that pay at or above the county median wage, for a term of up to 10 years. The basic term runs five to seven years depending on how far wages exceed the county median; terms up to 10 years are for high impact projects of 100 or more jobs.

In the metro counties, which include Sedgwick, the company must create at least ten PEAK jobs within two years; in non-metro counties the minimum is five. It must also offer adequate health insurance to full-time employees within 180 days of hire and pay at least half of the premium.

The order of steps

This is where companies lose the benefit. The PEAK application, with its $750 non-refundable fee, must reach Commerce before you hire the new employees, and within 180 days of telling Commerce you have decided to expand. Applications received late can see the benefit reduced.

For HPIP, Commerce accepts applications year round, but the investment and the facility have to meet the program rules. Confirm timing with the Commerce program manager before you sign a purchase order or a lease.

• Talk to Commerce before you announce, hire or invest
• Model the project with and without the incentive
• Apply, then hire and invest on the schedule in the agreement
• Report every year so the benefit is kept

Records a CFO prepares first

Commerce reviews wages, job counts and investment every year. These are the records we set up before an application, so the annual review is a report and not a scramble.

• Current headcount and median hourly wage, by worksite
• A five-year hiring projection with wages
• The capital investment budget, with quotes and dates
• Health insurance plan details and the employer share
• A cash forecast with and without the incentive

Sources

• Kansas Department of Commerce: High Performance Incentive Program
• Kansas Department of Commerce: PEAK Guidelines 2026 (PDF)

Figures checked against the sources above in October 2026. Rules change; confirm with your CPA or the agency before you act. This guide is general information, not tax or legal advice.