The Aviation and Innovative Manufacturing in Kansas Act aims to boost economic development in Kansas by offering tax incentives and benefits to businesses in key industries, particularly those focused on electric and hydrogen-powered vehicles, aircraft assembly, and related sectors. The act introduces a framework for eligible companies to receive refundable income, privilege, and premium tax credits based on their capital investments, retention of payroll withholding taxes, and sales tax exemptions for project construction and machinery. It also establishes the Kansas First Award for procurement from Kansas companies and creates the Kansas First Fund to support these initiatives.

To qualify for these incentives, companies must create at least 250 new jobs with wages at or above the county median wage and make a minimum capital investment of $250 million for certain projects. The bill outlines an application process requiring detailed project descriptions and binding agreements with the Secretary of Commerce, including provisions for repayment of benefits if terms are breached. Additionally, the bill amends existing tax exemption laws to clarify exemptions related to agricultural, healthcare, and community services, while also introducing new provisions for nonprofit organizations and their contractors, ensuring compliance and accountability in the use of tax-exempt purchases.

Statutes affected:
As Introduced: 79-3606
As introduced: 79-3606