Kansas 2023-2024 Regular Session

Kansas House Bill HB2334

Introduced
2/7/23  
Refer
2/7/23  
Refer
2/15/23  
Refer
3/1/23  

Caption

Extending the deadline for project agreements under the attracting powerful economic expansion act, enhancing incentives for qualified suppliers and adding a new employee relocation reimbursement incentive for qualified suppliers, limiting the corporate income tax rate reduction provision to two rate reductions and permitting qualified firms and qualified suppliers to participate in other economic development programs for new projects.

Impact

This bill is expected to significantly impact Kansas state laws, particularly concerning corporate taxation and economic incentives. By reducing corporate income tax rates and facilitating a more favorable environment for large-scale business investments, the legislation is designed to attract major capital investments. Qualified firms making extensive capital investments in qualified business facilities will now see enhanced support from the state, which could lead to increased job creation and economic activity across the region.

Summary

House Bill 2334, the Attracting Powerful Economic Expansion Act, is legislation aimed at enhancing economic development in Kansas by incentivizing investments from businesses in specific sectors. The bill extends deadlines for project agreements and offers various benefits, including refundable tax credits of up to 10% for a period of ten years. It also increases the annual training reimbursement for employee education to a ceiling of $500,000 per year over five years. New provisions allow for additional relocation reimbursements of up to $250,000 for qualified suppliers relocating employees to Kansas, aimed at stimulating workforce growth in the state.

Contention

While proponents of HB2334 argue that these incentives will drive economic growth and job creation by making Kansas more attractive for major investments, there are concerns about potential downsides. Critics worry that the reliance on tax incentives might lead to an overly aggressive competition among states for businesses, potentially straining public resources. Furthermore, there is a lack of clarity on how these incentives would be monitored and whether they will effectively deliver the promised economic benefits without significant public cost.

Companion Bills

No companion bills found.

Previously Filed As

KS HB4010

Mississippi Flexible Tax Incentive Act; revise definition of "qualified economic development project" and "qualified project" under.

KS HB1861

Mississippi Flexible Tax Incentive Act; revise method of determining tax incentive for certain qualified economic development projects.

KS SB2001

Economic development; provide incentives for certain economic development projects.

KS HB2214

Modifies tax incentives for qualified companies to promote industrial manufacturing and infrastructure projects

KS HB1

Economic development; provide incentives for certain economic development projects.

KS HB4426

Revenue and taxation; income tax; income tax credit for qualified economic development expenditures; effective date.

KS S3116

Extends deadline for submission of temporary certificate of occupancy for certain qualified residential projects or mixed-use parking projects under Economic Redevelopment and Growth Grant program to June 30, 2032.

KS A4525

Extends deadline for submission of temporary certificate of occupancy for certain qualified residential projects or mixed-use parking projects under Economic Redevelopment and Growth Grant program to June 30, 2032.

KS SB1117

Income tax; modifying definition of qualified project for economic development and infrastructure expenditures credit. Effective date.

KS SB1117

Income tax; modifying definition of qualified project for economic development and infrastructure expenditures credit. Effective date.

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