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Bill > SB498


KS SB498

KS SB498
Providing an income tax credit for the retail sale of higher ethanol blends of fuel and discontinuing the income tax credit for qualified alternative-fueled motor vehicle property or fueling station expenditures.


summary

Introduced
02/06/2026
In Committee
02/16/2026
Crossed Over
Passed
Dead

Introduced Session

Potential new amendment
2025-2026 Regular Session

Bill Summary

AN ACT concerning taxation; relating to income tax; providing a tax credit for the retail sale of higher ethanol blends of fuel; discontinuing the tax credit for qualified alternative-fueled motor vehicle property or fueling station expenditures; amending K.S.A. 79-32,201 and repealing the existing section.

AI Summary

This bill establishes a new income tax credit for retail dealers who sell higher ethanol blends of fuel, such as E15 (15% ethanol and 85% gasoline) or any blend with a higher percentage of ethanol, at their retail service stations, offering a credit of $0.05 per gallon sold. This new credit, which begins in tax year 2026 and runs through 2031, is subject to an annual cap of $2.5 million and allows unused credit amounts to be carried forward for up to five years, though it is not refundable. In conjunction with this new credit, the bill discontinues the existing income tax credit for expenditures on qualified alternative-fueled motor vehicles and fueling stations, which were originally intended to encourage the adoption of vehicles and infrastructure for alternative fuels, with the existing credits for these items expiring at the end of tax year 2026, although any unused credit carryovers from before that date will still be honored.

Committee Categories

Budget and Finance

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Assessment and Taxation (Senate)

Last Action

Senate Committee Report recommending bill be passed by Committee on Assessment and Taxation (on 02/16/2026)

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