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This film tax incentive is a modest step to enter the field, but is enough to get a look and consideration along with other states for future projects. The State loses nothing. Any approved project that comes in and contributes leaves more revenue than they take. Kansas needs tax incentives to compete because film and media are changing. Film, television, streaming services, series, gaming, and other high-tech media all need more content at favorable costs. Because technology allows production almost anywhere, production can shop around and go where it wants. Currently, projects and their financiers do not consider Kansas, because Kansas does not compete. 

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Film tax incentives makes Kansas competitive by:

• incentivizing national and local production,

• growing local resources and production capacity, and

• creating the environment to keep talent, expand programs, and grow and sustain the technological talent base.

 
Goals of this bill are:

• drawing in national production and facilitate local production,

• bringing in sustainable projects and sustainable jobs,

• increasing state revenue and local tourism, and 

• to build a skilled technical workforce to keep the next generation in Kansas.

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Details of the proposed bill include:

• Creates 30%-40% transferable tax credit, $5 million cap.

• Committee reduced original bill from $10 to $5 million.

• Movies, TV, gaming, post-production, VR projects, facilities are eligible to apply for tax credit.  No pornography is permitted, and obscenity laws must be followed. Content is part of the project review and approval.

• Department of Commerce reviews, approves or rejects. 

• The approved project spends in Kansas, use Kansas employees, buy goods and services in Kansas earn a tax credit of 30%, with additional opportunity to increase to 40%.

• When approved project completed, audit expenditures presented to Department of Commerce and credit is approved if it meets the requirements.

• $5 million annual credit cap.  $15 million must be spent on approved projects for the full $5 million credit to be used.

• Commerce may provide sales tax exemption (capped at $1 million) for approved project expenditures, prioritizing rural and economically depressed urban areas.

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• Why Kansas Needs the Film Tax Credit:

• Compete with other states for national business, while building new technology, facilities, gaming, and the skilled workforce in Kansas.

• The traditional coastal production centers are adapting and moving while streaming platforms and virtual production demand more production and content.

• Film, television, gaming and other VR production does not go where there is no tax credit.

• Grow an industry to keep our kids in Kansas who currently move to other states with film and media businesses.

• 39 States already have incentives; Missouri and all Kansas neighboring states have incentives.

Questions about the bill?

Contact: Stuart J. Little

Little Government Relations

stuartjlittle@mac.com

785-845-7265