House Bill 2304 (“HB 2304”) was adopted by the Kansas Legislature during the 2025 session and became effective on July 1, 2025. HB 2304 requires reporting to the Kansas Department of Commerce (the “Department”) and Kansas Secretary of Commerce (the “Secretary”) information relating to economic development incentive programs that provide more than $50,000 in value in annual incentives.
Overview. HB 2304 applies to an expansive list of economic incentives. This list includes typical local incentives, such as industrial revenue bonds, community improvement districts, tax increment financing, and other similar local programs. In addition, HB 2304 also broadly includes other local assistance to a developer, including: “any other economic development incentive … including any grant, loan, lease, land acquisition, site preparation, utilities, facilities, streets or roadways, workforce development or workforce training.”
Content and Format of Reports. Page 4 of HB 2304 provides a detailed list of information that must be reported. HB 2304 provides that the reporting must be in digital format on a form to be provided by the Secretary (“…the secretary shall make an electronic form available for local governments to report such information in a simple online format and shall only require the submission of information in digital form.”) We are not aware that such form has been made available.
Timing – Incentives Existing before July 1, 2025. HB 2304 requires annual reporting commencing on or before July 1, 2026, for most local incentive programs.
Timing – Incentives Granted after July 1, 2025. In addition to annual reporting, HB 2304 requires providing the Department the required information within 45 days of executing an economic development incentive agreement. Compliance with HB 2304 is a “condition of commencing or providing any incentive” that is covered by HB 2304.
Potential State Fee. HB 2304 permits the Secretary to impose on the recipient of incentives an administrative fee of 1% of the total amount of the incentive, up to a maximum of $1,000.
Disclosure. This message is intended only to notify you of HB 2304 and is not intended to be comprehensive. HB 2304 should be reviewed in its entirety.
Posted: July 21, 2025