Commerce staff introduce AMK bill to incentivize aircraft, vehicle and advanced manufacturing

Rachel Willis of the Kansas Department of Commerce formally requested introduction of 25RS0178, described as the Aviation and Innovative Manufacturing in Kansas (AMK) bill, for referral to the House Commerce Committee. Deputy Secretary Joshua Jefferson detailed the bill’s structure later in his presentation, saying the proposal is intended to augment existing tools such as PEAK, HPIP, KIT and KIR and to target specific industries including aircraft assembly and vehicle manufacturing, component/subassembly makers, national headquarters, research and development facilities, sustainable aviation fuel production and hydrogen production.

Jefferson told the committee the bill would bundle project benefits such as a Kansas sales‑tax exemption for qualifying project purchases, training support and refundable capital‑investment tax credits, plus payroll‑tax benefits. He described firm eligibility and clawback requirements: a minimum capital investment of $250 million, at least 250 jobs within five years of the start of production, base wages equal to 100% or more of the county median wage, and project completion within five years; failure to meet investment or employment commitments would trigger proportional clawbacks.

Jefferson emphasized the bill is not being drafted for a single firm and that Commerce does not have one particular project identified as the AMK target. He said five projects in the department’s existing pipeline would potentially qualify for the program, with estimated project capital‑investment sizes ranging from about $550 million to about $4.5 billion and one candidate citing about 338 jobs in its proposal. Jefferson also noted competing proposals in other states and referenced Missouri House Bill 755 as an example of similar legislation elsewhere.

Committee members asked clarifying questions about project fit and program details. Senator Dietrich asked if MRO (maintenance, repair and overhaul) operations would qualify; Jefferson said qualification would depend on the project’s NAICS classification and whether the activity met the bill’s focus on new assembly or advanced manufacturing. Jefferson told the committee he would stand for questions and follow up as requested.

No formal vote occurred on the introduction; the bill was placed on the committee’s docket for consideration.