Tax Credit for Aviation in Kansas

KS – The Kansas state legislature announced that in April, Governor Laura Kelly signed HB 2239 which created one tax credit for aviation employees and two tax credits for aviation businesses. The credits are intended to encourage both in-state and out-of-state workers to join the industry and bolster the development of the aerospace workforce in the state.

One provision in the new law permits employees with less than $5,000 in income tax liability to carry the credit forward for up to five years, yielding a total credit of up to $25,000 over the five-year period. It also provides incentives for employers to offer tuition reimbursement to employees who advance their education in STEM programs, with a tax credit of up to 50% of the total reimbursements paid out to qualified programs for up to four years of the worker’s employment with the company. The new tax credits will take effect on July 1, 2022.