The bill establishes a tax credit for the sale and distribution of higher ethanol blends for motor vehicle fuels in Kansas, applicable for taxable years 2026 through 2031. Retail dealers selling higher ethanol blends at their service stations or distributors selling directly to final users in the state will be eligible for a credit of $0.05 per gallon sold. The total amount of tax credits issued under this provision is capped at $5,000,000 per tax year, and any unused credits can be carried forward for up to five subsequent taxable years. Notably, the credit is non-refundable.

The bill defines key terms such as "distributor," "higher ethanol blend," "retail dealer," and "retail service station" to clarify eligibility and the nature of the fuels involved. The legislation aims to promote the use of ethanol blends in motor vehicle fuels, thereby supporting the state's agricultural and energy sectors. The act will take effect upon its publication in the statute book.