Economic Development: Determining Which Economic Development Tools are Most Important and Effective in Promoting Job Creation and Economic Growth in Kansas, Part 1

Source: Kansas Legislature, Legislative Division of Post Audit, Performance Audit Report Highlights, September 2013

… Based on the best information we could compile, companies participating in Promoting Employment Across Kansas (PEAK) have generated an estimated 5,200 jobs in exchange for $21 million in forgone withholding taxes through December 2012.
– We estimated that participating companies have generated 5,200 jobs—about half were relocated from outside the state while the other half were newly created within the state.
– Withholding tax incentives for PEAK companies have grown rapidly each year from $2.7 million in 2010 to an estimated $12.5 million in 2012.
– In addition to creating or relocating jobs, participating companies also projected they would invest $1.4 billion in capital improvements when they initially qualified, but actual information was not available

Findings Related to the Benefits of the HPIP Program
– The Department of Revenue reported that High Performance Incentive Program (HPIP) companies made $310 million in capital investments and created or retained 6,900 jobs in exchange for $21 million in tax credits in tax year 2010.
– Participating HPIP companies reported making $310 million in capital investments, creating about 1,100 jobs, and retaining 5,800 jobs in 2010.
– They claimed $19 million in capital investment tax credits and $2 million in training tax credits in 2010…