Kansas leaders in Topeka plan to give $304 million in taxpayer-funded incentives to a semiconductor company in Wichita to build a large new factory.

Gov. Laura Kelly announced the state has an agreement with Integra Technologies for a 10-year package of tax breaks and reimbursement of expenses. State officials say the new plant would cover 1 million square feet and have 2,000 employees. State and Integra officials said yesterday, however, that the $1.8 billion project won’t go forward without funds the U.S. government has promised for rebuilding the nation’s chip-making capacity. The law also requires Kansas to drop its corporate income tax rates by half a percentage point for each mega-deal. If the Integra project goes forward, the top rate would decline to 6% from 7%, saving all corporations roughly $100 million a year. While the project has bipartisan support, some lawmakers are critical of promising such big taxpayer-funded incentives to a single firm. The U.S. is trying to reverse a loss of capacity for making semiconductors and Congress last year approved $52 billion in grants and incentives.