ROZ Program Gaining Interest

By Jyll Phillips

In August 2011, the Lincoln County Board of Commissioners voted to participate in a new state program that may improve the economic climate of the county.
On April 11, 2011, Governor Sam Brownback signed into law the Rural Opportunity Zones (ROZs) program, designed to reverse dramatic population declines over the past decade in rural areas of Kansas. The program is a component of a broader plan to spur economic development and expand job growth in 50 counties across the state. The program took effect July 1, 2011.
The program offers two incentives:
Individuals who move to a ROZ county from outside the state may be eligible for a state income tax exemption for up to five years if they have not lived in Kansas during the past five years, and have not had a Kansas source of income exceeding $10,000 per year over the past five years. The state income tax exemption is effective Jan. 1, 2012.
Individuals may also be eligible for student loan forgiveness of 20 percent up to $3,000 per year with a maximum benefit of $15,000 if they graduated from an accredited post-secondary institution and move to a ROZ county after the program effective date of July 1, 2011, and after the county has opted to participate in the program.
This incentive is a county-state partnership, with the county making half the payment. Repayments will be made on an annual basis. The first repayment will occur at the end of 2012 and will be made directly to the lender.
All degrees and professions are eligible, and an individual is still eligible if he or she lives in a ROZ county but opens a business or works in a different county. Counties must have opted in by Jan. 1, 2012 to participate in this portion of the program.
As of Dec. 23, 2011, 44 counties had joined the student loan forgiveness program, including Lincoln county.
The Kansas Department of Commerce will oversee the student loan repayment portion of the program and coordinate marketing the ROZs program in conjunction with regional and local economic development organizations.
While Lincoln County's Economic Development organization doesn't have a marketing plan as of yet, board member Bill Wineinger said discussion about the program is on-going.
"I think it is a good program. Any incentive to keep our community thriving is a good thing," Wineinger said.
"We have already had one request for information," said Dawn Harlow, county clerk.
While the commissioners have committed a minimum amount of funds to the program, Commissioner Terry Finch said the board of commissioners will work with economic development to make application to the Windfarm Economic Benefits (W.E.B.) fund to help fund the program.
As of January, several inquiries through the state have been received in Lincoln County, and information has been sent to those individuals. One person has qualified for the tuition reimbursement program.