Industrial Revenue Bonds (IRBs)

Industrial Revenue Bonds (IRBs) are available to for-profit companies that are expanding, not-for-profit organizations that are developing new facilities, affordable housing projects associated with tax credits, and developers with projects in designated redevelopment areas.

For-profit companies may be considered for IRBs if they are investing capital to develop new facilities, add machinery and equipment, and create new jobs.

To qualify, companies must generate the majority of their revenue from outside of Sedgwick County, and wages for the new jobs must meet certain standards.

Doc, a Boeing B-29 SuperfortressDoc's Friends utilized IRBs for a sales tax exemption for a museum and education center for Doc, a Boeing B-29 Superfortress, manufactured in Wichita.

Sales Tax Exemption

IRBs include a potential sales tax exemption on construction materials. The exemption is available for projects seeking property tax abatements, as well as not-for-profit 501(C)3 organizations, and eligible low-income housing projects.

Property Tax Abatement

Companies investing to expand their facilities and employees may qualify for a potential tax abatement. The percentage of tax abatement is based on a variety of criteria and may be for a period of up to ten years, with a compliance review at the five-year mark. Please see the Economic Development Guidelines (PDF) for further details.

Businesses must generally be involved in one of 11 business activities, identified in the Economic Development Guidelines (PDF). Projects that provide additional community or workforce development benefits may be considered for additional incentives or a reduced threshold to qualify for incentives.

Bombardier Wichita Service CenterBombardier Wichita Service Center

Property tax abatement is calculated based on many factors. The recommended percentage of property tax abatement is a cumulative amount based on job creation, capital investment, and additional considerations. Below is the base table for calculating an exemption, as well as additional considerations that provide an additional abatement of up to 100%.

Abatement Percentage Calculations

New JobsAbatement Percent
5 to 2530%
26 to 5040%
More than 5050%

New Capital InvestmentAbatement Percent
Less than $1M to $5M40%
$5M to 10M50%
More than $10M60%

Additional Considerations

  • Regional Growth Plan sector 10%
  • Utilizing State, federal or utility incentives 10%
  • Sustainable Development/Alternative Energy use 15%
  • Investing in, or funding, entrepreneurship 25%
  • Talent attraction plan (must be documented) 25%
  • Locating in Redevelopment Area 25%
  • Community and Workforce Development Benefits 25%

Example: If a company is projecting it would create 10 new jobs, it would qualify for a 30% abatement. If it is also investing $4,000,000 in facilities and/or machinery and equipment, it would qualify for an additional 40%, totaling 70%. If the company is in a Regional Growth Plan sector, add another 10% (now 80% total). If the company is also utilizing State of Kansas incentives, add another 10% for a total of a 90% abatement.

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