Bioscience Tax Investment Incentive Program

The Bioscience Tax Investment Incentive Program allows direct payments to a bioscience company in the amount of 50 percent of its Kansas net operating loss. Upon receipt of the completed BTIIP form and required materials, the KBA will determine whether it approves the application. If the KBA determines to proceed with the applicant, the KBA will request that the Kansas Department of Revenue certify that the company has filed for a net operating loss claim and the amount of net operating loss. The KBA may thereafter make the payment to the bioscience company. The Bioscience Tax Investment Incentive Program recipient awards have an aggregate limit of $1 million annually.

Program Goals

The program is intended as a tool to encourage the expansion and attraction of bioscience companies in Kansas.

Eligibility

  • Bioscience company in one of the following North American Industry Classification System codes: 325411, 325412, 325413, 325414, 325193, 325199, 325311, 32532, 334516, 339111, 339112, 339113, 334510, 334517, 339115, 621511, 621512, 541710, 541380, 541940, 622110
  • Claimed or is claiming a net operating loss on Kansas income tax return

Applications will not be considered if the bioscience business has:

  • Demonstrated positive net income in any of the two previous full years of ongoing operations as determined on its financial statements;
  • Demonstrated a ratio in excess of 110 percent of operating revenues divided by operating expenses in any of the two previous full years of operations as determined on its financial statements;
  • Directly or indirectly at least 50 percent of its shares owned or controlled by another corporation that has demonstrated positive net income in any of the two previous full years of ongoing operations as determined on its financial statements OR is part of a consolidated group of affiliated corporations, as filed for federal income tax purposes, that in the aggregate has demonstrated positive net income in any of the two previous full years of ongoing operations as determined on its combined financial statements;
  • Total employment in excess of 224 employees on a global basis; or,
  • Fewer than 75 percent of total employment in Kansas.

Key Evaluation Criteria

  • Proposed financial assistance will result in growth in permanent, full-time employment in the state.
  • Applicant’s principal product(s) or service(s) is (are) sufficiently innovative to provide a competitive advantage.
  • Applicant possesses scientific and technological viability.
  • Applicants seeking to participate in this program will also be required to own, have filed for, or have a license to use protected, proprietary intellectual property.
  • Applicant has been able to attract professional investment capital and has sufficient capital resources to operate over the next nine months.

BTIIP Application

“We have some very exciting life sciences companies in various stages of development here in our region, and with support from the Kansas Bioscience Authority, we have a much better opportunity to be successful and to grow and retain them here.”

- Sam Campbell, Co-founder, CritiTech