The Kansas Film and Digital Media Production Development Act is designed to enhance the film, video, and digital media production industry in Kansas by providing income tax credits and sales tax exemptions for eligible productions, which include feature films, documentaries, and video games that incur at least $50,000 in qualified expenses. The act outlines the application process for production companies, requiring them to submit documentation to the Secretary of Commerce for project approval, emphasizing the use of Kansas-based vendors and hiring local residents. For tax years 2025 through 2034, production companies can receive a 30% income tax credit on qualified expenditures, with a cap of $10 million on total credits awarded annually.

Additionally, the bill amends existing tax laws to clarify and expand exemptions for sales of tangible personal property and services, particularly for nonprofit organizations and contractors working on specific projects. It specifies that certain purchases, such as construction machinery for charitable organizations, are not exempt from sales tax unless proper exemption certificates are obtained. The legislation also establishes penalties for misuse of these exemptions and outlines the responsibilities of contractors and organizations in maintaining compliance. Overall, the bill aims to streamline tax exemption processes while ensuring accountability and promoting local economic growth.

Statutes affected:
As introduced: 79-3606