$100,000 in tax credits available to support county businesses

Tax credit offering will help provide business development loans in county 

The Belleville Telescope

The popularity of previous tax credit offerings in Republic County, coupled with a demand for loan funds from the Republic County revolving loan fund, has netted Republic County an additional $100,000 in tax credits to exchange for donations to loan to county businesses.

“Republic County Economic Development recently received word from NetWork Kansas that we have available $100,000 in tax credits to sell to raise funds for our Republic County Entrepreneurship (E)-Community revolving loan fund for small businesses,” says Luke Mahin, RCED director. Under the tax credit program, qualifying individuals and businesses can receive a 75 percent credit on their Kansas income tax in exchange for donations to the revolving loan fund. For example, an individual who donates $1,000 to the fund would receive a tax credit of $750. If the credit is more than the donor’s tax liability, they receive a refund. Six businesses received loans through the E-Community fund last year, Mahin said.

“Purchasing tax credits will help us immediately replenish our funding pool in 2015 for new revolving loan applicants rather than wait for funds to build up from revolving loan repayments,” he said. The Revolving Loan Committee currently has $171,925.99 available as of October 1, 2014. Without the addition of the E-Community Phase-II grant funds there would only be $46,925.99 available to county businesses. RCD revolving loans are repaid monthly by principal and interest payments made. Loan interest is 4%, with the 1st year being payments of interest only. Deadline to purchase tax credits is December 10. For more information call Mahin at (785) 374-3047.

Call 785-374-3047 today to reserve your tax credits today there are.

Kansas Entrepreneurship Tax Credits

Economic Sense, Targeted Delivery
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.

What Are The Individual Minimum and Maximum Annual Tax Credits Allowed?
The minimum allowable tax credit per year is $187.50, which translates into a minimum donation of $250. The maximum allowable credit per year is $50,000, which translates into an approximate maximum 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 credit is applied.

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

*If the donor is a corporation with an election in effect under Subchapter S of the Federal Internal Revenue Code or is a partnership, the credit provided by this section shall be claimed by the shareholders of these corporations or the partners must account for their proportionate shares of the income or loss of these corporations or partnerships.

Who Cannot Donate?
Banks are not eligible for the Entrepreneurship Tax Credit due to privilege tax limitations. Banks are eligible for the Rural Business Development Tax Credit (RBDTC), also a 75% tax credit, offered through seven regional foundations. Donors receive a 75% state income tax credit for their donation.

75% Tax Credit
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 tax liability. Donors also may be 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 online through the Kansas Department of Revenue.

Where Does The Money Go?
Donations to the Center provide matching loans and/or grants through local or regional nonprofit business support providers who are also NetWork Kansas resource partners. The funds are made available to businesses located in rural areas (cities with a population under 50,000) or in distressed areas of larger cities who are starting or expanding a business. NetWork Kansas resource partners include the seven regional foundations, economic development agencies and other non-profit organizations charged with assisting for-profit entrepreneurs and small businesses in Kansas.

How Do I Donate To The Fund?

If you have questions about Kansas Entrepreneurship Tax Credits, please contact Kristi Pedersen at: (316) 218-6352 or kdpedersen@fhsu.edu.

For more information about NetWork Kansas, please call (877) 521-8600 to speak with one of our referral coordinators or visit our website: www.networkkansas.com.

Donation checks should be payable to the Kansas Center for Entrepreneurship. Please mail them to RCED or drop off at the Belleville City Office for collection before December 10th, 2013:

Luke Mahin
Republic County Economic Development
P.O. Box 178
Belleville, Kansas 66935

Call (316) 218-6352 to verify that credits are still available for the current tax year.

Tax Credit Flier
K-31 Entrepreneurship Tax Credit Form