Kansas aviation tax credits add 'critical component' for industry recruiting as workforce challenges persist

October 10, 2023

Kansas aviation companies will soon have new tax credits at their disposal to assist with workforce development.Legislation outlined in Kansas House Bill 2239 creates two aviation tax credits for employers in the sector and one credit for aviation employees. The bill becomes law July 1 but will be retroactive to any qualifying hires made in 2022.“The aviation tax credits passed in HB 2239 are a critical component in our efforts to compete with other states to recruit and train workers in one of our state’s largest industries,” said John Rolfe, President and CEO of the Wichita Chamber, in a news release about the tax credits.Employers in the aviation sector are eligible to receive an income tax credit of up to $15,000 per year, per employee for workers hired between 2022 and 2026. The non-refundable tax credit equals 10 percent of wages paid to new employees for each of their first five years of employment. The total amount is capped at $75,000 per employee.Another tax credit will be available to assist companies with tuition reimbursement costs for employees who complete a qualifying training or certificate program within one year of their hire date. That credit would reimburse up to 50 percent of the tuition cost an employer pays employees. Employers could claim this credit for up to four years if the person remains employed at the company.Meanwhile, individuals who are hired for a full-time aviation-sector job will be able to claim a $5,000 state income tax credit in 2022 through 2026 for a total of $25,000. If a person’s state tax liability is less than $5,000 in any of those years, the remaining tax credit balance can be carried forward and used in the four subsequent years after the initial tax credit program.The passage of HB 2239 marks a successful completion of a multi-year lobbying effort from various organizations, such as the Wichita Regional Chamber of Commerce and the Greater Wichita Partnership, to make tax credits available to aid aviation-sector recruiting.More information about the aviation tax credits is available on the Kansas Legislature’s website or on this website landing page.About us: As the Heartland’s leading employer services company, Syndeo partners with local business owners to help them minimize risk, improve efficiency and maximize profitability allowing them the freedom to focus on growth and fulfilling their mission. Syndeo fulfills its mission by taking on all of the HR responsibilities for our clients’ workforce, including employee relations, benefits, risk management and payroll. Winner of the 2020, 2021 and 2022 Best of HR Services Award through ClearlyRated for providing superior client service. See our ClearlyRated profile here.

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