Substitute for HB 2012 by Committee on Agriculture and Natural Resources - Establishing the ethanol grant program fund and transferring an amount of not to exceed $5,000,000 from the state general fund to the ethanol grant program fund each July 1 beginning in 2026.
Impact
The enactment of HB 2012 is expected to have notable implications for Kansas state tax law by introducing new credits that specifically target renewable fuel producers and retailers. The outline of a maximum total tax credit issuance of $5,000,000 per tax year suggests that while the initiative is significant, it remains limited in scale. The option for retail dealers and distributors to carry forward unused credits for up to five taxable years enhances its attractiveness, offering them greater flexibility in tax planning and benefits utilization.
Summary
House Bill 2012 introduces a significant financial incentive aimed at promoting the sale and distribution of higher ethanol blends in motor vehicle fuels. Specifically, the bill allows for a tax credit over the taxable years from 2026 to 2031 at a rate of $0.05 per gallon sold by retail dealers or distributors. This tax credit is designed to apply specifically to blends containing between 15% and 85% ethanol, thereby encouraging the use of renewable energy sources in fuel consumption. By incentivizing higher ethanol content, the bill aims to support state efforts towards cleaner energy and reduce reliance on fossil fuels.
Contention
Although the bill currently does not highlight any substantial contention within the legislative discussions or voting history, debates likely center around the allocation of tax credits and their impact on revenue. Supporters may argue that the bill could stimulate economic activity and promote agricultural interests through elevated demand for ethanol production. However, opponents might express concerns about the fiscal implications on state budgets and whether it effectively addresses environmental goals versus merely providing financial incentives without meaningful oversight.
Senate Substitute for HB 2302 by Committee on Agriculture and Natural Resources - Making appropriations for the state treasurer for fiscal year 2023 and fiscal year 2024, providing for a transfer of moneys from the state general fund to the state water plan fund for fiscal year 2024, establishing the water technical assistance fund and the water projects grant fund for water-related infrastructure projects.
Increasing the membership appointed by the governor on the council on travel and tourism and updating the house committee assignment required for house members from the committee on agriculture and natural resources to the committee on commerce, labor and economic development;reducing the required allocation of funds from the department of commerce's matching grant program for the promotion of tourism by public and nonprofit entities and removing the restriction on the percentage of such funds granted to a single entity.
Substitute for HB 2168 by Committee on Agriculture and Natural Resources - Amending the commercial industrial hemp act to reduce maximum license and registration fee amounts to $500.
Increasing the membership appointed by the governor on the council on travel and tourism and updating the house committee assignment required for house members from the committee on agriculture and natural resources to the committee on commerce, labor and economic development; reducing the required allocation of funds from the department of commerce's matching grant program for the promotion of tourism by public and nonprofit entities and removing the restriction on the percentage of such funds granted to a single entity.
Substitute for SB 155 by Committee on Ways and Means - Making and concerning appropriations for fiscal years 2023, 2024, 2025 and 2026 for various state agencies.
Establishing the prevention of maternal mortality grant program fund within the department of health and environment, providing for competitive grants to fund programs for the prevention of maternal mortality and severe maternal morbidity, establishing the prevention of maternal mortality grant program fund and making transfers to such fund.
Substitute for HB 2414 by Committee on Commerce, Labor and Economic Development - Developing postsecondary engineering programs, providing scholarships for engineering students at certain public and private institutions of higher education by establishing a matching grant program to be administered by the secretary of commerce and creating the engineering graduate incentive fund.
Creating the fixing instant revenue shock for taxpayers fund and the local extraordinary needs fund, establishing the joint committee on local extraordinary needs grants and abolishing the local ad valorem tax reduction fund.
Substitute for HB 2273 by Committee on Appropriations - Making and concerning certain supplemental appropriations for fiscal years 2024 and 2025 and appropriations for fiscal years 2025 and 2026 for various state agencies.