Finance and Tax Incentives精品分析.docVIP

1-iv. FINANCE Companies looking to expand in or to Kansas and start-up companies are all looking for ways to finance their growth. Financial help can be through banks only, banking combined with other resources, or just through non-banking resources. Banks SCKEDD’s area, in 2005, had a total of 143 banks with 352 offices and $11,232,000,000 in deposits. Over 61% of those deposits are located in Sedgwick County. It is also home to two of the largest banks in Banking Combined with Other Resources Funding from banks is often used as part of a total project. Other resources of funds include: Industrial Revenue Bonds can be used to finance 100% of the cost of land, building, and equipment with the only equity requirement being the cost of the bond issuance. They can also be used to remodel or expand existing facilities. All property financed through IRB’s is exempt under Kansas law (K.S.A. 79-201a) from ad valorem property taxation for 10 years. Issuers (cities/counties) can require that all, or a portion of the abated tapes be made available to local taxing jurisdictions in payments in lieu of taxes. The IRB issuers can also provide property tax abatements as an incentive for a company to locate within the issuer’s jurisdiction. Community Development Block Grants can be used as a gap financing measure in all of SCKEDD’s area except the city of Wichita, which is an entitlement city. The block grant has an economic development portion than can be used to provide infrastructure for a business or to provide direct financial assistance to a business. In both cases, the application for assistance is made by the local unit of government. The applications are submitted in any of twelve rounds each year. The jobs saved or created must have a benefiting percentage to people of low-to moderate income of 51% or higher. The maximum economic development block grant award is $35,000 per job created or retained, and has a maximum of $750,000 per request. A business may no