This bill amends K.S.A. 79-32,201 to introduce a new tax credit for retail dealers selling higher ethanol blends of fuel, specifically E15 or any higher ethanol blend, at their service stations. The credit is set at $0.05 per gallon sold and is applicable for taxable years 2026 through 2031, with a cap of $2,500,000 on the total credits issued per tax year. Retail dealers can carry forward any unused credit amounts for up to five years, but the credit is non-refundable. Additionally, the bill requires retail dealers to submit an annual report detailing the gallons of higher ethanol blend sold to claim the credit.

In contrast, the bill also eliminates the existing tax credit for expenditures related to qualified alternative-fueled motor vehicles and fueling stations, which had provided various percentages of credit based on the vehicle's weight and the type of fueling station. The previous credits for alternative-fueled vehicles placed in service before 2027 and for fueling stations are repealed, streamlining the focus towards promoting higher ethanol blends instead. The bill will take effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32