Enacting the Kansas film and digital media industry production development act, providing a tax credit and sales tax exemption to incentivize film, video and digital media production in Kansas, establishing a program to be administered by the secretary of commerce for the purpose of developing such production in Kansas and requiring the secretary of commerce to issue reports to the legislature regarding the program.

HB 2038 creates tax incentives to attract film, video, and digital media productions to Kansas. It provides an income tax credit and sales tax exemption for productions meeting specific criteria, including $50,000 in qualified expenses and intended for commercial distribution (excluding news, local ads, or obscene content). The program, administered by the Secretary of Commerce, requires productions to be "Kansas-based" (with a physical presence for six months) and approved through a formal application process. The Secretary must report annually to the legislature on the program's implementation and impact.