The Kansas Film and Digital Media Production Development Act aims 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 bill outlines the application process for production companies seeking these tax incentives, requiring them to submit detailed project information to the Secretary of Commerce for evaluation. The act emphasizes the importance of utilizing Kansas-based vendors and hiring local crew members to foster economic growth within the state. It also establishes a framework for tax credits, including a cap of $10 million per tax year, with specific conditions for claiming these credits and annual reporting requirements on the impact of the incentives.

In addition to the provisions for the film and digital media industry, the bill amends existing tax laws to clarify and expand exemptions for sales of tangible personal property and services, particularly for nonprofit organizations. It specifies that certain purchases, such as construction machinery and tools, will not be exempt from taxation, while establishing a process for obtaining exemption certificates for contractors working with these organizations. The bill includes penalties for misuse of exemption certificates and outlines the responsibilities of contractors regarding the use of materials purchased under these exemptions. Overall, the legislation aims to streamline tax exemptions for various sectors while ensuring compliance and accountability in their application.

Statutes affected:
As introduced: 79-3606