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Expired, Repealed, and Archived Kansas Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Biofuel Blending Equipment Tax Incentives

A Storage and Blending Equipment Credit is available for the purchase, construction, or installation of qualified equipment used for storing and blending petroleum-based fuel with biodiesel, ethanol, or other biofuel. The equipment must be installed at a fuel terminal, refinery, or biofuel production facility. The tax credit is equal to 10% of the qualified investment for the first $10,000,000 invested, and 5% of the investment in excess of $10,000,000. The credit may be taken in 10 equal annual installments beginning with the year in which the equipment is placed into service. Excess credits may be carried over into subsequent years for a maximum of 14 years after the first installment. To be eligible for the tax credit, the taxpayer must continue to operate the equipment for at least 10 years. The credit expires January 1, 2012.

Biofuel blenders may also be eligible for an income tax deduction based on the accelerated depreciation for storage and blending equipment. This deduction extends over a 10-year period and is equal to 55% of the depreciated value for the first year and 5% of the depreciated value for each of the nine subsequent years that the equipment remains in production.

(Reference Kansas Statutes 79-32,251 through 79-32,255)

Cellulosic Ethanol Production Facility Tax Incentives

A Biomass-to-Energy Plant Tax Credit is available for the construction or expansion of a biomass-to-energy facility. A qualified biomass-to-energy facility includes any industrial process plant that produces at least 500,000 gallons of cellulosic alcohol fuel, liquid or gaseous fuel, or other source of energy in a quantity having a British thermal unit (BTU) value equal to, or greater than, 500,000 gallons of cellulosic alcohol fuel. Expansion of an existing biomass-to-energy facility means expansion of the facility's production capacity by a minimum of 10%. The tax credit is equal to 10% of the qualified investment on the first $250,000,000 invested, and 5% of the investment in excess of $250,000,000. The credit may be taken in 10 equal annual installments beginning with the year in which the new or expanded facility is placed into service. Excess credits may be carried over into subsequent years for a maximum of 14 years after the first installment. The credit expires January 1, 2011. Individuals must apply to the Kansas Department of Revenue before making a qualified investment.

An income tax deduction based on the amortizable costs of a new or expanded biomass-to-energy facility over 10 years is also available. This amount of the deduction is equal to 55% of the amortizable costs of the new or existing facility for the first taxable year in which the facility is in production and 5% of the amortizable costs for each of the next nine taxable years.

(Reference Kansas Statutes 79-32,233 through 79-32,23)

Alternative Fuel Promotion

The legislature of Kansas urges the United States President and Congress to approve federal energy legislation that promotes the use of ethanol and biodiesel fuel. (Reference Senate Concurrent Resolution 1604, 2003)