Kansas would offer tax breaks for approved film productions

The secretary of commerce would approve income tax credits for production companies and their affiliates with approved certified projects. The credit would cover qualified production or postproduction costs for certified projects, including some Kansas-based companies with at least $25,000 in qualified costs. The secretary must approve the project and determine which costs qualify. The standard credit would be 30% of qualified costs, with possible additional credits and a 40% yearly project limit. Total credits would be capped at $10 million per tax year, with 10% reserved for Kansas-based production companies. Companies would need to submit required applications, records, tax filings and an accountant's report. The credit would apply to tax years 2025 through 2034, and unused amounts could generally be carried forward for up to 10 succeeding tax years.

The secretary of commerce could approve sales tax exemptions for certified production and postproduction purchases. The exemption would cover qualifying goods, services, equipment, sets, props and facilities used in Kansas for an approved project. A production company would have to apply before the project or principal photography begins and show financing, insurance and expected Kansas activities. The secretary could limit or prioritize exempt purchases, including favoring rural or economically depressed urban areas. Companies and contractors would have to keep records and could owe the tax if exempt materials were misused or not used for the project. The exemption would apply to qualifying costs for certified projects, but no exemption would apply to production or postproduction costs made on or after January 1, 2035.

The secretary of commerce would administer a film and digital media development program and report on it to legislative committees. The program would concern eligible Kansas productions and related Kansas businesses, including workforce development, infrastructure and marketing efforts. The secretary would consult with the Kansas creative arts industries commission. Project agreements could require Kansas promotions, regular records, audits, repayment of benefits and support for Kansas businesses. Annual reports would list approved incentives, applicants, certified projects, project status and reported industry effects. Reports would be due by January 31, 2026, and each January 31 through January 31, 2035, covering the prior year and information available by the report date.