The Kansas tax subsidy law that gave millions to Panasonic and Integra projects is ending

By Suzanne Hogan,

Published July 21, 2023 at 2:36 PM CDT

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Cranes surround an electric vehicle battery plant that's under construction in De Soto. — Construction crews continue building the Panasonic electrical vehicle battery plant in De Soto. The $4 billion factory is expected to begin operation in early 2025.

Since the beginning of last year, a Kansas tax subsidy law known as APEX has allowed the state to use incentives to lure big companies like Panasonic and Integra. But the law may not be extended any longer, putting big development deals in jeopardy.

In February of last year, Kansas Governor Laura Kelly signed APEX (Attracting Powerful Economic Expansion) into law. It allows for tax incentives to be given to for-profit companies when they select Kansas as the site of their billion-dollar megaprojects.

Through APEX, Kansas was able to secure a $4 billion Panasonic electric vehicle battery plant in De Soto and a $1.8 billion Integra semiconductor plant in Wichita. But now, it's unclear if the Kansas legislature will extend the law past its expiration date, putting the prospects of future development deals in limbo.

Dylan Lysen of the Kansas News Service says some influential conservative lawmakers are worried the state is giving away too much money for these projects.

"[These are] tax dollars that could be going to other things, and Kansas is always fighting over how to spend their money," said Lysen.

Dylan Lysen, political reporter with the Kansas News Service