Kansas 2025-2026 Regular Session

Kansas House Bill HB2083 Compare Versions

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1	1	Session of 2025
2	2	HOUSE BILL No. 2083
3	3	By Committee on Taxation
4	4	Requested by Kimberly Gencur on behalf of the Advanced Power Alliance
5	5	1-23
6	6	AN ACT concerning property taxation; relating to exemptions; providing a
7	7	property tax exemption for new energy storage systems; excluding new
8	8	energy storage systems from the commercial and industrial machinery
9	9	and equipment exemption; amending K.S.A. 79-223 and K.S.A. 2024
10	10	Supp. 79-266 and repealing the existing sections.
11	11	Be it enacted by the Legislature of the State of Kansas:
12	12	Section 1. K.S.A. 79-223 is hereby amended to read as follows: 79-
13	13	223. (a) It is the purpose of this section to promote, stimulate, foster and
14	14	encourage new investments in commercial and industrial machinery and
15	15	equipment in the state of Kansas, to contribute to the economic recovery of
16	16	the state, to enhance business opportunities in the state, to encourage the
17	17	location of new businesses and industries in the state as well as the
18	18	retention and expansion of existing businesses and industries and to
19	19	promote the economic stability of the state by maintaining and providing
20	20	employment opportunities, thereby contributing to the general welfare of
21	21	the citizens of the state, by exempting from property taxation all newly
22	22	purchased or leased commercial and industrial machinery and equipment,
23	23	including machinery and equipment transferred into this state for the
24	24	purpose of expanding an existing business or for the creation of a new
25	25	business.
26	26	(b) The following described property, to the extent specified by this
27	27	section, shall be and is hereby exempt from all property or ad valorem
28	28	taxes levied under the laws of the state of Kansas:
29	29	First. Commercial and industrial machinery and equipment acquired by
30	30	qualified purchase or lease made or entered into after June 30, 2006, as the
31	31	result of a bona fide transaction not consummated for the purpose of
32	32	avoiding taxation.
33	33	Second. Commercial and industrial machinery and equipment
34	34	transported into this state after June 30, 2006, for the purpose of expanding
35	35	an existing business or creation of a new business.
36	36	(c) Any purchase, lease or transportation of commercial and industrial
37	37	machinery and equipment consummated for the purpose of avoiding
38	38	taxation shall subject the property to the penalty provisions of K.S.A. 79-
39	39	1422 and 79-1427a, and amendments thereto. The county appraiser shall
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74	74	35 HB 2083 2
75	75	not reclassify any property that is properly classified for property tax
76	76	purposes within subclass (5) of class 2 of section 1 of article 11 of the
77	77	constitution of the state of Kansas.
78	78	(d) As used in this section:
79	79	(1) "Acquired" shall not include the transfer of property pursuant to
80	80	an exchange for stock securities, or the transfer of assets from one going
81	81	concern to another due to a merger, reorganization or other consolidation;
82	82	(2) "commercial and industrial machinery and equipment" means
83	83	property classified for property tax purposes within subclass (5) of class 2
84	84	of section 1 of article 11 of the constitution of the state of Kansas, but shall
85	85	not include:
86	86	(A) Any electric generation facility or addition to an electric
87	87	generation facility that is used predominately to produce and generate
88	88	electricity utilizing renewable energy resources or technologies as defined
89	89	in K.S.A. 79-201, and amendments thereto; or
90	90	(B) on and after January 1, 2026, any new energy storage system as
91	91	defined in K.S.A. 2024 Supp. 79-266, and amendments thereto. This
92	92	exclusion shall not apply to an energy storage system that received any
93	93	necessary county approval prior to January 1, 2026;
94	94	(3) "qualified lease" means a lease of commercial and industrial
95	95	machinery and equipment for not less than 30 days for fair and valuable
96	96	consideration where such machinery and equipment is physically
97	97	transferred to the lessee to be used in the lessee's business or trade; and
98	98	(4) "qualified purchase" means a purchase of commercial and
99	99	industrial machinery and equipment for fair and valuable consideration
100	100	where such machinery and equipment is physically transferred to the
101	101	purchaser to be used in the purchaser's business or trade.
102	102	(e) The secretary of revenue is hereby authorized to adopt rules and
103	103	regulations to administer the provisions of this section.
104	104	Sec. 2. K.S.A. 2024 Supp. 79-266 is hereby amended to read as
105	105	follows: 79-266. (a) The following described property, to the extent herein
106	106	specified, shall be exempt from all property or ad valorem taxes levied
107	107	under the laws of the state of Kansas:
108	108	(1) Any new electric generation facility.
109	109	(2) Any new addition to a new or existing electric generation facility.
110	110	(3) Any new pollution control device constructed or installed on or
111	111	after January 1, 2025, at a new or existing electric generation facility.
112	112	(4) On and after January 1, 2026, any new energy storage system.
113	113	(b) The provisions of this section shall apply from and after
114	114	commencement of construction or installation of such property and for the
115	115	10 taxable years immediately following the taxable year in which
116	116	construction or installation of such property is completed.
117	117	(c) As used in this section:
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161	161	(1) "Existing electric generation facility" means an electric generation
162	162	facility described in K.S.A. 66-104(e) or 66-128(b)(2)(C), and
163	163	amendments thereto, that is in existence on December 31, 2024. "Existing
164	164	electric generation facility" does not include an electric generation facility
165	165	that converts wind, solar, biomass, landfill gas or any other renewable
166	166	source of energy to electricity.
167	167	(2) "New addition" means any real or tangible personal property
168	168	constructed or installed on or after January 1, 2025, for incorporation in
169	169	and use as part of a new or existing electric generation facility.
170	170	(3) "New electric generation facility" means an electric generation
171	171	facility described in K.S.A. 66-104(e) or 66-128(b)(2)(C), and
172	172	amendments thereto, and the commencement of construction of such
173	173	facility began on or after January 1, 2025. "New electric generation
174	174	facility" includes any electric generation facility that utilizes nuclear
175	175	energy for the generation of electricity. "New electric generation facility"
176	176	does not include any electric generation facility that converts wind, solar,
177	177	biomass, landfill gas or any other renewable source of energy to electricity.
178	178	(4) "Energy storage system" or "ESS" means commercial or utility-
179	179	scale electrochemical, mechanical, electrostatic or gravitational devices
180	180	that charge or collect energy from the electrical grid or a generation
181	181	facility, store or use that energy and then discharge stored energy at a
182	182	later time to provide electricity or other electrical grid services. For
183	183	purposes of this paragraph, a generation facility includes any existing or
184	184	new electric generation facilities or any electric generation facility that
185	185	utilizes renewable energy resources or technologies including wind, solar,
186	186	biomass, landfill gas or any other renewable source of energy.
187	187	(5) "New energy storage system" means an energy storage system
188	188	that the commencement of construction or installation of such property
189	189	began on or after January 1, 2026, but does not include an energy storage
190	190	system that received any necessary county approval prior to January 1,
191	191	2026.
192	192	(d) Except as otherwise specifically provided, the provisions of this
193	193	section shall apply to all taxable years commencing after December 31,
194	194	2024.
195	195	Sec. 3. K.S.A. 79-223 and K.S.A. 2024 Supp. 79-266 are hereby
196	196	repealed.
197	197	Sec. 4. This act shall take effect and be in force from and after its
198	198	publication in the statute book.
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