| 1 | 1 | | Session of 2025 |
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| 2 | 2 | | HOUSE BILL No. 2161 |
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| 3 | 3 | | By Committee on Taxation |
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| 4 | 4 | | Requested by Gary Reser on behalf of Kansas Soybean Association |
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| 5 | 5 | | 1-30 |
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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 biodiesel and renewable diesel |
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| 8 | 8 | | blends for motor vehicle 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 a biodiesel blend or renewable diesel |
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| 13 | 13 | | blend at such retail dealer's retail service station or a distributor that sells a |
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| 14 | 14 | | biodiesel blend or renewable diesel blend directly to the final user located |
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| 15 | 15 | | in this state. The amount of the credit shall equal $0.05 per gallon of a |
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| 16 | 16 | | biodiesel blend or renewable diesel blend sold by the retail dealer and |
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| 17 | 17 | | dispensed through metered pumps at the retail dealer's retail service station |
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| 18 | 18 | | or by a distributor directly to the final user located in this state during the |
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| 19 | 19 | | tax year for which the tax credit is claimed. |
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| 20 | 20 | | (b) Any unused credit amounts may be carried forward for up to five |
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| 21 | 21 | | taxable years immediately following the taxable year for which the credits |
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| 22 | 22 | | were allowed. The credit shall not be refundable. |
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| 23 | 23 | | (c) The total amount of tax credits issued pursuant to this section shall |
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| 24 | 24 | | not exceed $5,000,000 per tax year. |
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| 25 | 25 | | (d) As used in this section: |
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| 26 | 26 | | (1) "Biodiesel blend" means a blend of diesel fuel and biodiesel fuel |
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| 27 | 27 | | of at least 10% for on-road or off-road diesel fueled vehicle use, including |
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| 28 | 28 | | farm tractors and railroad trains. |
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| 29 | 29 | | (2) "Biodiesel fuel" means a renewable, biodegradable, mono alkyl |
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| 30 | 30 | | ester combustible liquid fuel that is derived from agricultural and other |
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| 31 | 31 | | plant oils or animal fats and that meets the most recent version of the |
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| 32 | 32 | | American society of testing and materials (ASTM) international D6751 |
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| 33 | 33 | | standard specification for biodiesel fuel blend stock. A fuel shall be |
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| 34 | 34 | | deemed to be biodiesel fuel if the fuel consists of a pure B100 or B99 |
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| 35 | 35 | | ratio. Biodiesel produced from palm oil is not biodiesel fuel for the |
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| 36 | 36 | | purposes of this section unless the palm oil is contained within waste oil |
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| 37 | 37 | | and grease collected within the United States. |
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| 38 | 38 | | (3) "Distributor" means a person, firm or corporation doing business |
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| 39 | 39 | | in this state that: |
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| 74 | 74 | | 35 HB 2161 2 |
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| 75 | 75 | | (A) Produces, refines, blends, compounds or manufactures motor |
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| 76 | 76 | | fuel; |
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| 77 | 77 | | (B) imports motor fuel into the state; or |
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| 78 | 78 | | (C) is engaged in distribution of motor fuel. |
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| 79 | 79 | | (4) "Renewable diesel" means a hydrocarbon fuel derived from |
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| 80 | 80 | | biomass meeting the requirements of ASTM standards D975 or D396. |
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| 81 | 81 | | Fuels that have been co-processed shall not apply. |
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| 82 | 82 | | (5) "Renewable diesel blend" means a blend of renewable diesel of at |
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| 83 | 83 | | least 10% for on-road or off-road diesel fueled vehicle use, including farm |
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| 84 | 84 | | tractors and railroad trains. |
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| 85 | 85 | | (6) "Retail dealer" means a person, firm or corporation doing |
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| 86 | 86 | | business in this state that owns or operates a retail service station in this |
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| 87 | 87 | | state. |
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| 88 | 88 | | (7) "Retail service station" means a location in this state from which |
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| 89 | 89 | | higher biodiesel or renewable diesel blend is sold to the general public and |
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| 90 | 90 | | is dispensed directly into motor vehicle fuel tanks for consumption. |
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| 91 | 91 | | Sec. 2. This act shall take effect and be in force from and after its |
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| 92 | 92 | | publication in the statute book. |
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