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, adding machinery and equipment and creating 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'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 projecs.
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 for further details.
Businesses must generally be involved in one of 11 business activities, identified in the Economic Development Guidelines. 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 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 up to 100%.
