The bill establishes a tax credit for the sale and distribution of biodiesel and renewable diesel blends for motor vehicle fuels in Kansas, applicable for taxable years 2026 through 2031. Retail dealers and distributors who sell these blends will receive a credit of $0.05 per gallon sold, provided the sales occur at a retail service station or directly to the final user in the state. The total amount of tax credits issued per tax year is capped at $5,000,000, and any unused credits can be carried forward for up to five years. Notably, the credit is non-refundable.

The bill defines key terms related to biodiesel and renewable diesel, including "biodiesel blend," "biodiesel fuel," "distributor," "renewable diesel," and "retail dealer." It specifies that biodiesel must consist of at least 10% biodiesel for it to qualify, and outlines the standards that must be met for the fuels to be considered eligible. The act will take effect upon publication in the statute book.