Vetoed by Governor Laura Kelly

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that establishes the Kansas film and digital media industry production development act.

Highlights:

• Specifies that the intention of the Media Production Act is to incentivize productions taking place in Kansas and develop a digital media production industry (Sec. 1).

• Defines based in Kansas as a production company that is subject to income tax liability in Kansas and is present in the state for at least six months (Sec. 2).

• Specifies that an eligible project can apply to the following types of media (Sec. 2):

• Feature Film;

• Documentary Series;

• Television Commercial Advertisements;

• Video Games; or

• Music Videos.

• Defines high impact production as a production having at least $5 million in total expenditures and ⅓ of the expenditures are approved by the Secretary of Commerce (Sec. 2).

• Requires the program to be administered by the secretary and creative arts industries commission to best allocate resources for production and develop a film industry (Sec. 3).

• Requires the following to be submitted when a production company is seeking an income tax credit or sales tax exemption (Sec. 3):

• Application of approval to complete the production;

• A certificate of general liability insurance that amounts to a minimum of $1 million and includes workers compensation;

• An outline that shows the project has adequate financing;

• A statement about the economic impact of the project in the state; and

• A description that details the project and its timeline

• Requires a tax credit to be applied against the production company’s income tax liability for tax years 2024 through 2033 (Sec. 4).

• Requires tax credit claims to be filed with the secretary of revenue and include all proper certifications and equal 30% of production and post production expenses (Sec. 4).

• Requires an annual report about tax incentives and related to topics to be submitted starting in 2025 and ending January 31, 2034 (Sec. 5).

• Defines compensation as payments in the form of contract labor where federal tax forms must be given to the person that is paid a wage (Sec. 7).

• Requires qualified taxpayers from December 31, 2024 to January 1, 2030 to be allowed credit against income or premium tax liabilities (Sec. 9).

• Amends previous legislation to detail specific goods and services that are exempt from the tax and tax credits outlined (Sec. 11).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report and pass a bill that establishes the Kansas film and digital media industry production development act.

Highlights:

• Specifies that the intention of the Media Production Act is to incentivize productions taking place in Kansas and develop a digital media production industry (Sec. 1).

• Defines based in Kansas as a production company that is subject to income tax liability in Kansas and is present in the state for at least six months (Sec. 2).

• Specifies that an eligible project can apply to the following types of media (Sec. 2):

• Feature Film;

• Documentary Series;

• Television Commercial Advertisements;

• Video Games; or

• Music Videos.

• Defines high impact production as a production having at least $5 million in total expenditures and ⅓ of the expenditures are approved by the Secretary of Commerce (Sec. 2).

• Requires the program to be administered by the secretary and creative arts industries commission to best allocate resources for production and develop a film industry (Sec. 3).

• Requires the following to be submitted when a production company is seeking an income tax credit or sales tax exemption (Sec. 3):

• Application of approval to complete the production;

• A certificate of general liability insurance that amounts to a minimum of $1 million and includes workers compensation;

• An outline that shows the project has adequate financing;

• A statement about the economic impact of the project in the state; and

• A description that details the project and its timeline

• Requires a tax credit to be applied against the production company’s income tax liability for tax years 2024 through 2033 (Sec. 4).

• Requires tax credit claims to be filed with the secretary of revenue and include all proper certifications and equal 30% of production and post production expenses (Sec. 4).

• Requires an annual report about tax incentives and related to topics to be submitted starting in 2025 and ending January 31, 2034 (Sec. 5).

• Defines compensation as payments in the form of contract labor where federal tax forms must be given to the person that is paid a wage (Sec. 7).

• Requires qualified taxpayers from December 31, 2024 to January 1, 2030 to be allowed credit against income or premium tax liabilities (Sec. 9).

• Amends previous legislation to detail specific goods and services that are exempt from the tax and tax credits outlined (Sec. 11).

Full Bill Text