| 1 | 1 | | Session of 2025 |
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| 2 | 2 | | HOUSE BILL No. 2012 |
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| 3 | 3 | | By Committee on Taxation |
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| 4 | 4 | | Requested by Sandy Braden on behalf of POET |
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| 5 | 5 | | 1-15 |
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| 6 | 6 | | AN ACT concerning taxation; relating to income tax; providing a tax |
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| 7 | 7 | | credit for the sale and distribution of ethanol blends for motor vehicle |
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| 8 | 8 | | fuels. |
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| 9 | 9 | | Be it enacted by the Legislature of the State of Kansas: |
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| 10 | 10 | | Section 1. (a) For taxable years 2026 through 2031, there shall be |
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| 11 | 11 | | allowed a credit against the tax liability imposed under the Kansas income |
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| 12 | 12 | | tax act for a retail dealer that sells higher ethanol blend at such retail |
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| 13 | 13 | | dealer's retail service station or a distributor that sells higher ethanol blend |
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| 14 | 14 | | directly to the final user located in this state. The amount of the credit shall |
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| 15 | 15 | | equal $0.05 per gallon of higher ethanol blend sold by the retail dealer and |
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| 16 | 16 | | dispensed through metered pumps at the retail dealer's retail service station |
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| 17 | 17 | | or by a distributor directly to the final user located in this state during the |
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| 18 | 18 | | tax year for which the tax credit is claimed. |
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| 19 | 19 | | (b) Any unused credit amounts may be carried forward for up to five |
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| 20 | 20 | | taxable years immediately following the taxable year for which the credits |
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| 21 | 21 | | were allowed. The credit shall not be refundable. |
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| 22 | 22 | | (c) The total amount of tax credits issued pursuant to this section shall |
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| 23 | 23 | | not exceed $5,000,000 per tax year. |
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| 24 | 24 | | (d) As used in this section: |
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| 25 | 25 | | (1) "Distributor" means a person, firm or corporation doing business |
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| 26 | 26 | | in this state that: |
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| 27 | 27 | | (A) Produces, refines, blends, compounds or manufactures motor |
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| 28 | 28 | | fuel; |
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| 29 | 29 | | (B) imports motor fuel into the state; or |
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| 30 | 30 | | (C) is engaged in distribution of motor fuel. |
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| 31 | 31 | | (2) "Higher ethanol blend" means a fuel capable of being dispensed |
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| 32 | 32 | | directly into motor vehicle fuel tanks for consumption that is comprised of |
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| 33 | 33 | | at least 15% but not more than 85% ethanol. |
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| 34 | 34 | | (3) "Retail dealer" means a person, firm or corporation doing |
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| 35 | 35 | | business in this state that owns or operates a retail service station in this |
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| 36 | 36 | | state. |
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| 37 | 37 | | (4) "Retail service station" means a location in this state from which |
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| 38 | 38 | | higher ethanol blend is sold to the general public and is dispensed directly |
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| 39 | 39 | | into motor vehicle fuel tanks for consumption. |
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| 74 | 74 | | 35 HB 2012 2 |
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| 75 | 75 | | Sec. 2. This act shall take effect and be in force from and after its |
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| 76 | 76 | | publication in the statute book. |
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