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 involved in electric and hydrogen-powered vehicle production and aircraft assembly. The bill introduces a refundable income tax credit for capital investments, retention of payroll withholding taxes, and sales tax exemptions for project construction and machinery. To qualify for these incentives, companies must create at least 250 new jobs with wages at or above the county median wage and make significant capital investments, with a minimum investment of $250 million within five years. The Secretary of Commerce will administer the program, ensuring compliance and eligibility through annual reviews.

Additionally, the bill amends existing tax exemption laws to clarify exemptions for various sales, particularly for healthcare, agriculture, and community services. It specifies that sales of certain medical supplies and equipment, as well as machinery used in farming and aquaculture, are exempt from sales tax. The legislation also introduces provisions for nonprofit organizations, allowing them to obtain sales tax exemptions for materials used in projects, with strict requirements for contractors regarding the use of exemption certificates. Overall, the bill seeks to enhance Kansas's competitiveness in the aviation and manufacturing sectors while supporting job creation and reducing the tax burden on essential services.

Statutes affected:
As introduced: 79-3606