Development Incentives

The City of Abilene Offers a few different Economic Incentives for eligible businesses.

  1.  Ad Valorem Property Tax Abatements 
  2.  Neighborhood Revitalization Program (NRP)
  3.  Industrial Revenue Bonds (IRBs) 
  4.  Community Improvement Districts (CID) 

All Incentives with the exception of the NRP are subject to City Commission Approval.

If you are interested in learning more about development incentives with the City of Abilene, please contact Chuck Scott with the Dickinson County Economic Development Corporation at 785-200-3518.

Ad Valorem Tax Abatements

Kansas law allows a municipality to abate ad valorem property taxes related to new construction, expansion of buildings, or the purchase of land and installation of equipment for eligible businesses for up to ten years.

Neighborhood Revitalization Program

The Neighborhood Revitalization program is a tax rebate for qualifying properties on the incremental increase in property taxes after improvements valuing $25,000 or more have been made to a structure or property. Learn more about the Neighborhood Revitalization program.

Community Improvement Districts (CID)

Under State law and city policy, a CID may be formed by the city upon the petition of an owner or owners of property on which an eligible improvement project is planned. One of the allowed CID financing methods is the addition of a special CID sales tax on all taxable sales within the CID district. Proceeds from a CID sales tax must be used for eligible costs of CID improvements within the district. This is often referred to as the CID project. A CID sales tax may be up to 2% and have a term of up to 22 years.

Industrial Revenue Bonds (IRBs)

Sales Tax exemption:

Industrial Revenue Bonds (also known as Private Activity Bonds) may be issued by Kansas local governments in accordance with state law and city policy. The use of IRBs is a project financing method that does not present a financial risk to the city or county. Payment of principal and interest on IRBs is solely the responsibility of the project developer and IRBs may be used in conjunction with other private financing.

Under state law, the developer's purchase with IRB proceeds of certain, normally taxable materials, equipment and services for the project may be exempt from state and local sales tax. This is one of the major and most frequently used benefits of IRB financing. The city's role is to apply with the state for a sales tax exemption certificate for the project.

Property Tax Exemption

Under state law and city policy certain improvements constructed using IRB financing are eligible for property tax exemptions up to 100% for ten years. Local governments use a payment-in-lieu of taxes (PILOT) agreement when a partial property tax exemption is determined to be more appropriate for a project.

Resources

Resolution establishing IRBs (PDF)

Tax Abatement Policy (PDF)

Historic Preservation Tax Incentives