KS
Kansas House Bill HB2744

Kansas 2023-2024 Regular Session

Kansas House Bill HB2744

Introduced
2/7/24  
Refer
2/7/24  

Caption

Establishing the transformation of passenger and freight vehicle industry act program to attract businesses engaged in electric motor vehicle and hydrogen-powered vehicle production by offering qualified companies that meet certain requirements an investment tax credit, retention of a percentage of total payroll tax, reimbursement of a percentage of eligible employee training and education expenses and a sales tax exemption for construction costs of the qualified company's qualified business facility.

Impact

If enacted, HB2744 is expected to substantially influence state laws related to economic incentives and business taxation. The legislation is set to broaden the opportunities for qualified companies to establish or expand operations in Kansas, thereby enhancing job availability in the electric and hydrogen vehicle sectors. As these investments are linked to specific job creation metrics, the bill could potentially lead to a shift in employment dynamics within the state's economic framework, particularly in areas focused on advanced manufacturing and technology.

Summary

House Bill 2744, known as the Transformation of Passenger and Freight Vehicle Industry Act, aims to foster economic development in the state by attracting businesses involved in the production of electric and hydrogen-powered vehicles. The bill proposes various incentives, such as a refundable income and premium tax credit for qualified companies making significant investments in Kansas. For eligible projects that require a capital investment of at least $250 million and create a minimum of 250 new jobs, companies can claim a tax credit of up to 10% per taxable year, which is designed to stimulate job growth and investment in facilities supporting this industry.

Contention

While the act presents a robust package of incentives aimed at sustainable vehicle manufacturing, some stakeholders express concerns about its implications. Critics argue that strict requirements for job creation and investment levels may disproportionately benefit larger corporations, potentially sidelining smaller businesses and local enterprises. Additionally, there are worries regarding the adequacy of oversight to ensure that the promised jobs and investments are realized by the qualified firms, suggesting that the state must establish clear mechanisms for accountability to protect public interests.

Latest HB2744 Activity

Companion Bills

No companion bills found.

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