Kansas 2025-2026 Regular Session

Kansas House Bill HB2161

Introduced
1/30/25  

Caption

Providing an income tax credit for the sale and distribution of biodiesel and renewable diesel blends for motor vehicle fuels.

Summary

House Bill 2161, introduced by the Committee on Taxation at the request of the Kansas Soybean Association, establishes an income tax credit for retail dealers and distributors involved in the sale of biodiesel and renewable diesel blends from taxable years 2026 to 2031. The bill allows these dealers and distributors to claim a tax credit of $0.05 per gallon sold, aimed at promoting the use of cleaner fuel options and benefiting local agricultural producers. This initiative aligns with environmental goals by encouraging the adoption of renewable fuel sources to decrease reliance on traditional fossil fuels. The bill clearly defines terms such as 'biodiesel blend' and 'renewable diesel', ensuring a legislative framework is set for the types of fuel eligible for tax credits. It specifies that biodiesel must contain at least 10% biodiesel for it to qualify, and outlines various qualifications that both retail dealers and distributors must meet. Through this structure, the bill intends to promote a structured approach to increasing the sale and distribution of biodiesel in Kansas, providing a direct financial incentive to those who comply. Notably, the bill caps the total amount of tax credits at $5 million per tax year, which has raised some concerns regarding the sustainability and availability of the tax credit for smaller dealers who may not have the throughput to fully utilize the available credits. Stakeholders from the agricultural sector are expected to benefit significantly from this initiative, given that the use of biodiesel can bolster demand for soybean production in the state. On the flip side, discussions around the bill implicate considerations regarding the long-term fiscal impact of such tax credits on the state budget, and whether this initiative will indeed lead to a significant increase in biodiesel sales and usage. However, proponents argue that the potential environmental benefits and bolstering of local agriculture justify the financial outlay, promoting a cleaner energy future for Kansas.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2763

Providing an income tax credit for the sale and distribution of ethanol blends for motor vehicle fuels.

KS SB454

Providing a sales tax exemption for purchases of property and services by nonprofit organizations distributing food pursuant to a food distribution program on a charitable basis.

KS HB2106

Providing a sales tax exemption for sales of property and services used in the provision of communications services and a deduction from sales or compensating use tax when selling and buying different motor vehicles within 90 days.

KS HB2111

Establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund, altering the calculation for STAR bond districts and discontinuing the food sales income tax credit.

KS HB2062

Discontinuing the excise tax on rental and leased motor vehicles and imposing property tax on such vehicles.

KS HB2098

Providing a deduction from sales or compensating use tax when selling and buying different motor vehicles within 120 days, providing an exemption for certain purchases by disabled veterans of the armed forces of the United States, excluding manufacturers' coupons from the sales or selling price for sales tax purposes, providing sales tax exemptions for custom meat processing services and purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, providing sales tax exemptions for certain purchases by doorstep inc., exploration place, inc., Kansas children's discovery center, inc. and the Kansas fairgrounds foundation and providing for a sales tax exemption for sales of property and services used in the provision of communications services.

KS HB2586

Increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the normal rate of privilege tax, increasing the household and dependent care expenses income tax credit amount, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction, providing for an annual sales tax holiday for certain sales of school supplies, computers and clothing, providing sales tax exemptions for children's diapers and feminine hygiene products and reducing the state rate of tax on sales of food and food ingredients to 0% on April 1, 2024.

KS HB2435

Decreasing the sales and use tax rate, establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.

KS SB57

Establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.

KS SB169

House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

Similar Bills

CT SB00118

An Act Concerning Connecticut Qualified Biodiesel Producer Grants.

CT SB01291

An Act Concerning Grants For Qualified Renewable Diesel Producers And Distributors.

CT SB00777

An Act Concerning The Biodiesel Blend Requirement For Heating Oil.

HI SR108

Encouraging The Department Of Agriculture And Hawaii State Energy Office To Increase The State's Usage Of Biodiesel And To Fund Programs That Support The Development Of The Biodiesel Industry.

HI SCR126

Encouraging The Department Of Agriculture And Hawaii State Energy Office To Increase The State's Usage Of Biodiesel And To Fund Programs That Support The Development Of The Biodiesel Industry.

TX HB3835

Relating to the use of certain alternative fuels by state agency motor vehicles.

IN HB1080

Biofuel tax credits.

MO SB805

Authorizes tax credits for the production and sale of biodiesel fuel