Session of 2025
HOUSE BILL No. 2012
By Committee on Taxation
Requested by Sandy Braden on behalf of POET
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AN ACT concerning taxation; relating to income tax; providing a tax
credit for the sale and distribution of ethanol blends for motor vehicle
fuels.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) For taxable years 2026 through 2031, there shall be
allowed a credit against the tax liability imposed under the Kansas income
tax act for a retail dealer that sells higher ethanol blend at such retail
dealer's retail service station or a distributor that sells higher ethanol blend
directly to the final user located in this state. The amount of the credit shall
equal $0.05 per gallon of higher ethanol blend sold by the retail dealer and
dispensed through metered pumps at the retail dealer's retail service station
or by a distributor directly to the final user located in this state during the
tax year for which the tax credit is claimed.
(b) Any unused credit amounts may be carried forward for up to five
taxable years immediately following the taxable year for which the credits
were allowed. The credit shall not be refundable.
(c) The total amount of tax credits issued pursuant to this section shall
not exceed $5,000,000 per tax year.
(d) As used in this section:
(1) "Distributor" means a person, firm or corporation doing business
in this state that:
(A) Produces, refines, blends, compounds or manufactures motor
fuel;
(B) imports motor fuel into the state; or
(C) is engaged in distribution of motor fuel.
(2) "Higher ethanol blend" means a fuel capable of being dispensed
directly into motor vehicle fuel tanks for consumption that is comprised of
at least 15% but not more than 85% ethanol.
(3) "Retail dealer" means a person, firm or corporation doing
business in this state that owns or operates a retail service station in this
state.
(4) "Retail service station" means a location in this state from which
higher ethanol blend is sold to the general public and is dispensed directly
into motor vehicle fuel tanks for consumption.
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35 HB 2012 2
Sec. 2. This act shall take effect and be in force from and after its
publication in the statute book.
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