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Entrepreneurship Tax Credits Available in Shawnee County

Shawnee County Extension is working with several local partners to submit an application to NetWork Kansas to identify parts of Shawnee County as an e-Community (entrepreneurial community). As an e-Community, the local Leadership Team and Financial Review Board are able to make loans available to entrepreneurs looking to start or expand their business in the targeted areas.

Partners in this effort include representatives from:

  • Washburn Small Business Development Center;
  • Glacial Hills Resource Conservation & Development;
  • CPA firms CBIZ and Cummins and Coffman;
  • Youth Entrepreneurs;
  • Business owners/entrepreneurs;
  • Silver Lake Bank;
  • SCORE;
  • K-State Research & Extension and more.

The Shawnee County e-Community will include "all of Shawnee County excluding Topeka, except for distressed areas of the City." Specifically, we are seeking to strengthen business in rural, incorporated areas of the county and distressed areas including North Topeka, Oakland, and Highland Park by providing access to start-up capital and connections to community resources. Additional areas of the county may be added as pilot opportunities develop in the future.

NetWork Kansas was created as a key component of the Kansas Economic Growth Act of 2004 to lead collaborative efforts between education, research and outreach services - as well as public sector organizations - in order to serve potential and existing entrepreneurs statewide. An integral part of this effort is providing seed capital to entrepreneurs and small business owners in rural and distressed areas of Kansas. The Kansas Center for Entrepreneurship Tax Credit was created to stimulate this effort.

75% Tax Credit Donors receive a 75% state (Kansas) income tax credit for their donation. A tax credit is a dollar-for-dollar credit against state income tax liability. This means that for every $1,000 donated, donors will receive $750 credit directly off of their state income liability. Donors are also eligible to receive a federal and state tax deduction and should consult with their individual tax specialist to determine the amount of any deductions. A K-31 Form is required with the individual tax form and is available through the Kansas Department of Revenue.

What Are the Individual Minimum and Maximum Annual Tax Credits Allowed? The minimum allowable tex credit per year is $187.50, which translates into a donation of $250. The maximum allowable credit per year is $50,000, which translates into an approximate donation of $66,667. If the amount of the tax credit exceeds the contributor's liability in the taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is applied.

Who Can Donate? Individual and corporations can donate to the Kansas Center for Entrepreneurship.

Who Cannot Donate? Banks are not eligible for the Entrepreneurship Tax Credit due to privilege tax limitations.

How to Support the Shawnee County e-Community for a 2016 Tax Credit? The Leadership Team is seeking donations totaling a $166,667 and need to have a verbal commitment by late July. All donations are due by December 12 to the Leadership team so they can be forwarded to NetWork Kansas.

Jeff Lacina takes on a dual role at the New Heartland Park Topeka

Jason Meyers Completes Certification