Expired, Repealed, and Archived Kansas Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Ethanol Production Incentive

Expired: 07/01/2018

Qualified ethanol producers are eligible for a production incentive payable from the Kansas Qualified Agricultural Ethyl Alcohol Producer Fund. An ethanol producer may collect $0.035 for each gallon sold to an alcohol blender that is in excess of the producer’s base sales, up to 15 million gallons, provided the producer was in production before July 1, 2001, and increases production capacity by five million gallons over the producer’s base sales. The same credit applies to a producer who began production on or after July 1, 2001, and before July 1, 2012, and who has sold at least five million gallons to an alcohol blender. A producer who begins production of cellulosic ethanol on or after July 1, 2012, and who sells at least five million gallons to a blender may receive $0.035 for each gallon sold, up to 15 million gallons. Producers must file for the incentive on a quarterly basis through the Kansas Department of Revenue. A producer may not collect the incentive for more than seven years. The incentive expires July 1, 2018. (Reference Kansas Statutes 79-34,160 through 79-34,164)

Biodiesel Production Incentive

Archived: 07/01/2016

A qualified Kansas biodiesel producer is eligible for a production incentive of $0.30 per gallon of biodiesel sold. The incentive is payable from the Kansas Qualified Biodiesel Fuel Producer Incentive Fund. Producers must file for the incentive on a quarterly basis through the Kansas Department of Revenue. The incentive expires on July 1, 2016. For more information, see the Kansas Department of Commerce Energy Incentives page. (Reference Kansas Statutes 79-34,155 through 79-34,159)

Biofuel Blending Equipment Tax Incentives

Expired: 01/01/2012

A Storage and Blending Equipment Credit is available for the purchase, construction, or installation of qualified equipment used for storing and blending petroleum-based fuel with biodiesel, ethanol, or other biofuel. The equipment must be installed at a fuel terminal, refinery, or biofuel production facility. The tax credit is equal to 10% of the qualified investment for the first $10,000,000 invested, and 5% of the investment in excess of $10,000,000. The credit may be taken in 10 equal annual installments beginning with the year in which the equipment is placed into service. Excess credits may be carried over into subsequent years for a maximum of 14 years after the first installment. To be eligible for the tax credit, the taxpayer must continue to operate the equipment for at least 10 years. The credit expires January 1, 2012.

Biofuel blenders may also be eligible for an income tax deduction based on the accelerated depreciation for storage and blending equipment. This deduction extends over a 10-year period and is equal to 55% of the depreciated value for the first year and 5% of the depreciated value for each of the nine subsequent years that the equipment remains in production.

(Reference Kansas Statutes 79-32,251 through 79-32,255)

Regional Biofuels Promotion Plan

Archived: 01/01/2012

Kansas has joined Indiana, Iowa, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:

• Produce commercially available cellulosic ethanol and other low carbon fuels in the region by 2012;
• Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
• Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
• By 2025, at least 50% of all transportation fuels consumed in the Midwest will be from regionally produced biofuels and other low carbon transportation fuels.

The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.

Cellulosic Ethanol Production Facility Tax Incentives

Expired: 01/01/2011

A Biomass-to-Energy Plant Tax Credit is available for the construction or expansion of a biomass-to-energy facility. A qualified biomass-to-energy facility includes any industrial process plant that produces at least 500,000 gallons of cellulosic alcohol fuel, liquid or gaseous fuel, or other source of energy in a quantity having a British thermal unit (BTU) value equal to, or greater than, 500,000 gallons of cellulosic alcohol fuel. Expansion of an existing biomass-to-energy facility means expansion of the facility’s production capacity by a minimum of 10%. The tax credit is equal to 10% of the qualified investment on the first $250,000,000 invested, and 5% of the investment in excess of $250,000,000. The credit may be taken in 10 equal annual installments beginning with the year in which the new or expanded facility is placed into service. Excess credits may be carried over into subsequent years for a maximum of 14 years after the first installment. The credit expires January 1, 2011. Individuals must apply to the Kansas Department of Revenue before making a qualified investment.

An income tax deduction based on the amortizable costs of a new or expanded biomass-to-energy facility over 10 years is also available. This amount of the deduction is equal to 55% of the amortizable costs of the new or existing facility for the first taxable year in which the facility is in production and 5% of the amortizable costs for each of the next nine taxable years.

(Reference Kansas Statutes 79-32,233 through 79-32,23)

Alternative Fuel Promotion

Archived: 05/01/2006

The legislature of Kansas urges the United States President and Congress to approve federal energy legislation that promotes the use of ethanol and biodiesel fuel. (Reference Senate Concurrent Resolution 1604, 2003)