The proposed "Aviation and Innovative Manufacturing in Kansas Act" aims to stimulate economic development in Kansas by offering tax incentives to businesses involved in electric motor vehicle production, hydrogen-powered vehicle production, aircraft assembly, and related activities. Key features of the bill include a refundable income, privilege, and premium tax credit for significant capital investments, retention of payroll withholding taxes, and sales tax exemptions for project construction and machinery. The act establishes the Kansas First Fund to support these initiatives and sets eligibility criteria for companies, which must include hiring at least 250 new employees and making a minimum capital investment of $250 million within five years. Companies must also submit applications detailing their projects and agree to maintain employment levels for a decade.

Additionally, the bill introduces various tax credits and exemptions, including a sales tax exemption for construction-related expenses and a new employee training fund to reimburse companies for training costs. It emphasizes compliance and accountability, mandating annual reviews by the Secretary of Commerce to ensure adherence to the requirements. The bill also amends existing tax exemption laws to clarify exemptions applicable to sales and services, particularly in healthcare, agriculture, and manufacturing sectors. Overall, the legislation seeks to refine the tax exemption process while promoting substantial business investments and job creation in Kansas.

Statutes affected:
As introduced: 79-3606