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," "production company," and "qualified expenditures," and establishes criteria for projects to qualify for these incentives. The Secretary of Commerce will oversee the program, evaluating applications based on their economic impact and compliance with the act. Production companies must apply before starting their projects, demonstrating financing, insurance, and a detailed project description, including anticipated expenditures and employment of Kansas residents. The act also encourages promoting Kansas through qualified promotions in productions.

Additionally, the bill amends existing tax laws to clarify sales tax exemptions for various nonprofit organizations and specific projects. It establishes that organizations recognized under section 501(c)(3) of the Internal Revenue Code can purchase necessary materials and services without incurring sales tax, provided they obtain an exemption certificate. The bill outlines the responsibilities of contractors working with these organizations, including maintaining records and invoices for audit purposes. It also specifies penalties for misuse of exemption certificates and includes provisions for sales tax refunds for exempt sales. Overall, the legislation aims to streamline tax exemptions while ensuring compliance with tax regulations and supporting the operations of nonprofit organizations and the film industry in Kansas.

Statutes affected:
As introduced: 79-3606