The proposed 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 bill allows a credit of $0.05 per gallon for biodiesel or renewable diesel blends sold at retail service stations or directly to final users within the state. 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 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 blends must contain at least 10% biodiesel for use in diesel-fueled vehicles and outlines the standards that biodiesel and renewable diesel must meet. The act will take effect upon publication in the statute book.