Kansas 2025-2026 Regular Session

Kansas House Bill HB2038

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.

Latest HB2038 Activity

Companion Bills

No companion bills found.

Previously Filed As

KS SB91

KS HB2182

KS HB2097

Enacting the Kansas film and digital media industry production development act, providing a tax credit, sales tax exemption and loans and grants 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, requiring the secretary of commerce to issue reports on the economic impact, providing sales tax exemptions for purchases by a certain community theaters and purchases and sales made by the friends of cedar crest association and establishing an income, privilege and premium tax credit for employers that employ members of the Kansas army and air national guard and establishing an income tax credit for employees that are members thereof.

KS HB2788

Requiring cities and counties to report local economic development incentive program information to the secretary of commerce and providing that such information be posted on the department of commerce economic development incentive program database, requiring certain changes to that database regarding the presentation of search results, providing for a summary report by the secretary of commerce on certain economic development incentive program data and requiring the secretary of administration to include on the Kansas taxpayer transparency act website certain information concerning grants.

KS HB2098

Providing a deduction from sales or compensating use tax when selling and buying different motor vehicles within 120 days, providing an exemption for certain purchases by disabled veterans of the armed forces of the United States, excluding manufacturers' coupons from the sales or selling price for sales tax purposes, providing sales tax exemptions for custom meat processing services and purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, providing sales tax exemptions for certain purchases by doorstep inc., exploration place, inc., Kansas children's discovery center, inc. and the Kansas fairgrounds foundation and providing for a sales tax exemption for sales of property and services used in the provision of communications services.

KS SB34

Expanding the use of bond proceeds under the Kansas rural housing incentive district act, the transferability of income, privilege and premium tax credits issued under the Kansas housing investor tax credit act and enacting the Kansas urban housing incentive district act.

KS SB225

Establishing the KanCare bridge to a healthy Kansas program to expand Medicaid eligibility.

KS HB2415

Establishing the KanCare bridge to a healthy Kansas program to expand Medicaid eligibility.

KS HB2414

Substitute for HB 2414 by Committee on Commerce, Labor and Economic Development - Developing postsecondary engineering programs, providing scholarships for engineering students at certain public and private institutions of higher education by establishing a matching grant program to be administered by the secretary of commerce and creating the engineering graduate incentive fund.

KS SB248

Providing sales tax exemptions for certain food and food ingredients and for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf and repealing the state rate reduction for sales of certain food and food ingredients.

Similar Bills

KS HB2097

KS HB2234

Increasing and changing the measure of the cost threshold when state construction projects require a negotiating committee and the selection of professional services from a list of qualified firms.

KS SB52

KS SB91

KS HB2182

KS HB2744

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.

KS HB2308

Enacting the aviation and innovative manufacturing in Kansas act to attract businesses establishing a headquarters or engaged in aircraft assembly, electric or hydrogen-powered motor vehicle production, and other specified industries to Kansas by offering companies meeting certain employment and investment requirements an investment tax credit, retention of a percentage of total payroll tax, reimbursement of eligible employee training and education expenses and a sales tax exemption for construction costs.

KS HB2471

Establishing the transformation of passenger and freight vehicle industry 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.