Committee hears bill to create Aviation and Innovative Manufacturing program offering refundable credits and payroll retention

The House Commerce Committee heard testimony on HB 2308, the Aviation and Innovative Manufacturing in Kansas Act, a proposal to create a new state economic-development program that would offer refundable investment tax credits, retention of payroll withholding taxes, training reimbursements and sales-tax exemptions to attract electric- and hydrogen-powered vehicle producers, aircraft assemblers and related suppliers to Kansas.

Committee members, state economic-development staff and industry representatives described the bill as a narrowly targeted tool to compete for high-capital aerospace and advanced-vehicle projects and to expand in-state supply chains. Joshua Jefferson, deputy secretary at the Kansas Department of Commerce, said the measure “slightly enhances the state's traditional incentive programs” while adding strict eligibility, clawbacks and reporting requirements.

HB 2308 would establish the Aviation and Innovative Manufacturing in Kansas program, administered by the Secretary of Commerce. Key requirements described in committee testimony include a $250,000,000 minimum capital investment for projects that are aircraft assembly or…