RDA Newsletter March 2022

Do you know ROZ?

We have been out visiting with area businesses and hear that almost everyone is needing employees. With our county unemployment rate being 1.9%, one program that you need to be aware of is the Kansas Rural Opportunity Zones (ROZ).

Rural Opportunity Zones were established as a tool for communities experiencing depopulation to incentivize NEW citizens to move to the region. Lyon County became eligible to participate as a ROZ county on June 24, 2021, and passed a resolution earlier this year that continues the county’s participation in this program in 2022.

The benefits of the ROZ program are that an employee may be eligible for student loan repayment assistance of up to $15,000 over 5 years and a 100% state income tax credit for up to 5 years. With our tight labor market, being able to offer a potential employee these benefits may be what you need to get them as a new employee.

Applications are open now and close on September 30, 2022. For more information on the ROZ program, to access the application, and further details on the eligibility requirements visit https://www.kansascommerce.gov/program/taxes-and-financing/rural-opportunity-zones-roz/ or call us here at the Chamber.

To be eligible for the state income tax credit the employee must have lived outside of Kansas for 5 or more years immediately prior to establishing domicile in Lyon County. Some of the other eligibility requirements are that an employee must also have no more than $10,000 in Kansas source income in each of the 5 years prior to establishing domicile, must establish domicile in Lyon County on or after May 27, 2021, must live in Lyon County the entire taxable year (January 1 to December 31), and must file state income taxes online at https:/www.kansas.gov/webfile/.

The student loan repayment assistance is up to 20% of the qualified loans with a maximum benefit of $3,000 once a year for 5 years totaling $15,000. To be eligible for student loan repayment assistance the employee must establish domicile in Lyon County on or after June 24, 2021. Some of the other eligibility requirements are that an employee must hold at least an Associate’s degree prior to moving to Lyon County, they must have an outstanding student loan balance related to a qualifying degree in the applicant’s name, they must have the ability to provide proof of residency at their current and previous address, they must be able to provide proof of their degree, they must be able to provide proof of their student loan balance with distribution dates, and they must have a local sponsor. The State covers 50% of the yearly repayment assistance and the employer must become the employee’s local sponsor and cover the other 50% of the yearly student loan repayment assistance at a maximum of $1,500 per year.