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 bill outlines the responsibilities of the Secretary of Commerce in administering the program, requiring production companies to submit applications detailing their projects and anticipated economic impacts. The act emphasizes the importance of utilizing Kansas-based vendors and hiring local crew members to foster economic growth within the state. It also repeals the current section of K.S.A. 2024 Supp. 79-3606 and replaces it with the new provisions of the act.

Additionally, the bill introduces a 30% income tax credit on qualified expenditures for certified productions from 2025 to 2034, with a cap of $5,000,000 on the total credits allowed per tax year. It establishes a framework for the Secretary of Commerce to approve agreements with production companies, including compliance checks and conditions for waiving or terminating tax credits if requirements are not met. The bill also amends existing tax exemption laws related to sales of tangible personal property and services, particularly for nonprofit organizations and contractors, requiring them to obtain exemption certificates and maintain records for auditing purposes. Overall, the legislation aims to streamline tax exemptions while ensuring compliance and supporting local businesses and community services.

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