Topeka Senate Republican leaders on Friday introduced tax incentives that they said will increase bioscience and manufacturing jobs in Kansas without harming the state budget.
The “Kansas Works” plan would allow bioscience companies relocating to Kansas to pay no income tax if they forgo other state tax incentives.
For manufacturing companies, it would tax the income of new businesses only on sales within the state.
Senate President Steve Morris, R-Hugoton, said the measures came from recommendations of his tax working group that met earlier this year, and are modeled after proposals made in South Dakota, which has been landing financial services companies, and Iowa’s efforts to get insurance companies.
Morris said the proposals would reduce revenues to the state from $400,000 at first to $4 million. But Morris, Senate Vice President John Vratil, R-Leawood, and Majority Leader Jay Scott Emler, R-Lindsborg, said the loss would be offset by the benefit from increased jobs and economic activity.
The measures have been endorsed by 17 of the Senate’s 32 Republicans. Senate Democratic Leader Anthony Hensley of Topeka said he supports the proposal too.
Senate leaders said the bioscience measure would build on the Kansas Bioscience Authority’s mission to invest in research and development of start-up companies, and the Kansas University School of Pharmacy’s high national ranking.
The manufacturing piece of the plan, they said, would provide a powerful financial incentive for companies to build and hire in Kansas and ship products out of state.
The “Kansas Works” proposal is contained in two bills that will be considered next week by the Senate tax committee.