The proposed "Aviation and Innovative Manufacturing in Kansas Act" aims to stimulate economic growth in Kansas by offering tax incentives and benefits to businesses in key sectors, particularly those involved in electric and hydrogen-powered vehicle production, aircraft assembly, and related activities. 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. It establishes the "Kansas First Fund" to support these initiatives and creates a new employee training and education fund. 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 capital investment of at least $250 million.

Additionally, the bill outlines the responsibilities of the Secretary of Commerce and the Secretary of Revenue in certifying qualified companies and ensuring compliance with the act's provisions. It includes a framework for companies to claim benefits related to procurement from registered Kansas companies, with specific eligibility criteria and a cap on the total amount awarded. The bill also amends existing tax laws to clarify exemptions for certain sales and services, particularly in healthcare, agriculture, and community services, while ensuring accountability and compliance for contractors and organizations involved in these projects. Overall, the legislation seeks to enhance economic activity and support vulnerable populations through targeted tax exemptions and incentives.

Statutes affected:
As introduced: 79-3606