The Kansas Film and Digital Media Production Development Act is designed to boost the film, video, and digital media production industry in Kansas by providing income tax credits and sales tax exemptions for eligible production companies. The act defines key terms such as "eligible production" and "qualified expenditures," and establishes criteria for project eligibility, which will be evaluated by the Secretary of Commerce. To qualify for the incentives, production companies must submit applications detailing their projects, financing, and employment of Kansas residents. The act also emphasizes promoting Kansas through productions, enhancing the state's visibility in the industry.

Additionally, the bill introduces a 30% income tax credit on qualified expenditures for certified productions from 2025 to 2034, with a maximum cumulative credit cap of $5,000,000 per tax year, reduced from a previous limit of $10,000,000. It includes provisions for tax exemptions related to educational institutions and nonprofit organizations, specifying that contractors must obtain exemption certificates for materials purchased for eligible projects. The bill outlines compliance requirements, penalties for misuse of exemptions, and mandates annual reporting on the impact of these tax incentives on the industry. Overall, the act aims to streamline tax exemptions while promoting economic growth and supporting local businesses.

Statutes affected:
As introduced: 79-3606
As Amended by Senate Committee: 79-3606