Targeted employment act

Kansas Targeted Employment Act

The Kansas Targeted Employment Act is a tax credit for businesses who employ individuals with identified intellectual or developmental disabilities, or outsources work to an eligible employer.

The Act was passed through HB 2703 Sec. 1-6, and sunsets in 2027.

Click here for the Kansas Targeted Employment Act Brochure

Click here for the K-69 Form

FAQ

What makes an employer eligible? Employers are eligible for the tax credit if they are a for-profit entity, are providing competitive, integrated employment (per WIOA), employs an individual with an indentified intellectual or developmental disability and complete a single tax form during tax season to claim the credit.

Is there a minimum amount of hours that must be worked? No, individuals can work part or full-time.

Do we need to offer benefits? Employers are required to offer the same benefits the offer to any other employee that works the same hours/position.

What if the person employed needs help? If the individual requires job coaching supports or services, they can still receive them during employment and be considered an eligible employee.

How much of a tax credit am I eligible for? Targeted Employment Businesses are eligible to receive 50% of total wages paid, per hour worked, to each employee, up to $15/hr ($7.50 credit).

Can we outsource work? Businesses that are outsourcing work to a non-profit employer that meets the definiation of competitive and integrated employer are eligible.

What years can I claim this tax credit? The tax credit became available in 2022, and sunsets in 2027. It is necessary to show the bill’s effectiveness through utilization to extend/codify the bill long term.

I have more questions, who do I contact? You can reach out to InterHab at 785-235-5103 for details about the Act, or call785-368-8222 to get help in filling out the tax form.