The bill establishes a tax credit for retail dealers and distributors in Kansas who sell biodiesel and renewable diesel blends for motor vehicle fuels during the taxable years 2026 through 2031. Specifically, the credit amounts to $0.05 per gallon sold, applicable to biodiesel blends containing at least 10% biodiesel and renewable diesel blends of the same percentage. The total tax credits issued under this provision are capped at $5,000,000 per tax year, and any unused credits can be carried forward for up to five years. The bill also clarifies definitions for terms such as "biodiesel blend," "biodiesel fuel," "distributor," "renewable diesel," "renewable diesel blend," "retail dealer," and "retail service station."

Additionally, the bill specifies that the tax credit is non-refundable, meaning that it can only reduce tax liability and cannot result in a refund. The definitions provided ensure clarity regarding the types of fuels eligible for the credit and the entities that qualify for it. The act will take effect upon its publication in the statute book.