The Aviation and Innovative Manufacturing in Kansas Act aims to boost economic development in Kansas by offering tax incentives and benefits to businesses in targeted industries, particularly those involved in electric and hydrogen-powered vehicle production, aircraft assembly, and related sectors. The bill establishes a framework for eligible companies to receive refundable income, privilege, and premium tax credits based on their capital investments, along with payroll withholding tax retention and sales tax exemptions for project construction and equipment. To qualify, companies must create at least 250 new jobs with wages at or above the county median, invest a minimum of $250 million in specific projects, and commit to retaining these employees for ten years. The act also introduces the Kansas First Award for local procurement and establishes a fund for employee training and education.

Additionally, the bill outlines the application process for companies seeking these incentives, requiring detailed project descriptions and binding agreements with the Secretary of Commerce. It includes provisions for the repayment of benefits if agreements are breached and mandates that repayments be submitted to the Secretary for deposit into the state general fund. The act emphasizes compliance through annual reviews and specifies conditions under which benefits may be revoked, such as failing to meet investment or employment commitments. Furthermore, the bill amends existing tax exemption laws to clarify exemptions for sales related to healthcare, agriculture, and community services, while also defining terms related to manufacturing and processing operations. Overall, the legislation seeks to enhance Kansas's competitiveness in aviation and innovative manufacturing while supporting local job creation and economic growth.

Statutes affected:
As introduced: 79-3606