Kansas House Bill HB2038

Kansas 2025-2026 Regular Session

• Introduced: 1/21/25
• Refer: 1/21/25

Caption

Enacting the Kansas film and digital media industry production development act, providing a tax credit and sales tax exemption to incentivize film, video and digital media production in Kansas, establishing a program to be administered by the secretary of commerce for the purpose of developing such production in Kansas and requiring the secretary of commerce to issue reports to the legislature regarding the program.

Impact

The provisions of HB2038 allow for a tax credit equal to 30% of qualified production expenditures made in Kansas, with additional conditions potentially increasing the available credit for productions hiring Kansas residents or contributing to local film infrastructure. Furthermore, production companies are encouraged to undertake projects that incorporate Kansas promotional materials. This legislation is expected to have a significant impact on both the economic landscape of the state and on job creation within the local film industry.

Summary

House Bill 2038 establishes the Kansas Film and Digital Media Production Development Act, aimed at promoting the film, video, and digital media production industry within Kansas. The act articulates the provision of tax credits and sales tax exemptions to production companies that meet specified requirements. Through these incentives, the bill seeks to cultivate a vibrant local industry that not only generates employment but also boosts state revenues via increased production activities. The initiative is partly motivated by the desire to enhance Kansas's cultural footprint and to attract both local and external productions to the state.

Contention

Despite the potential benefits, there are concerns about the long-term sustainability of such tax incentives, especially since the funding cap for these credits is set at $10 million annually. Critics argue that while tax incentives can attract temporary projects, the investments may not yield lasting economic benefits for the state. Additionally, the measure could face scrutiny regarding the allocation of resources and potential favoritism towards larger production companies. As the bill progresses, stakeholders will likely engage in ongoing discussions about the implications and effectiveness of the proposed incentives.