Bill > HB2161

This bill provides a tax credit for retail dealers and distributors who sell biodiesel and renewable diesel blends in Kansas from 2026 through 2031. The credit is $0.05 per gallon for biodiesel or renewable diesel blends of at least 10% that are sold through metered pumps at retail service stations or directly to end users. The bill defines specific terms like "biodiesel blend" (a fuel with at least 10% biodiesel derived from agricultural or animal sources) and "renewable diesel" (a hydrocarbon fuel derived from biomass). The tax credit has several important limitations: it cannot exceed $5 million per tax year, is not refundable, and unused credits can be carried forward for up to five subsequent tax years. Notably, the bill excludes biodiesel produced from palm oil, unless the palm oil is part of waste oil and grease collected in the United States. The credit aims to incentivize the use of alternative, more environmentally friendly fuel blends by providing a financial benefit to businesses that sell these products, with the goal of promoting cleaner energy options in the transportation sector.

Agriculture and Natural Resources

Taxation (H)

https://kslegislature.gov/li/b2025_26/measures/hb2161/