HCA Midwest, which is currently located in Kansas City, Mo., will receive $3 million in tax incentives from the state of Kansas when it moves its headquarters 4 miles west to Overland Park, Kan., this summer, reports the Kansas City Business Journal.
Since HCA Midwest's administrative headquarters will cross state lines from Missouri to Kansas, the health system could receive as much as $1.5 million in Promoting Employment Across Kansas tax credits, which allow companies to keep 95 percent of withholding tax for employees at that location. HCA Midwest would be eligible to receive as much as $300,000 annually for five years.
PEAK tax credits are given to companies who create at least 10 new jobs in Kansas. The headquarters move would create about 60 new jobs. While HCA Midwest employs nearly 10,000 people at its hospitals, the administrative headquarters move would only transition approximately 60 employees.
HCA Midwest would invest $10.88 million into its 25,000-square-foot headquarters, which makes it eligible for additional state tax incentives, according to the state's Commerce Department. HCA Midwest will receive more than $1.5 million "right of law" incentives, including $987,861 from Kansas' high-performance incentive program. This tax credit provides breaks for high-wage employers making any new capital investments.
HCA Midwest could not confirm the exact incentive amounts because the contracts have yet to be signed.