Alternative-Fueled Motor Vehicle Tax Credit

A taxpayer who makes qualified expenditures for eligible alternative-fueled motor vehicles shall be allowed a credit against the income tax imposed. For any qualified alternative-fueled motor vehicle placed in service on or after Jan. 1, 2005, the credit is equal to 40 percent of the incremental cost or conversion cost for each qualified vehicle expended but not to exceed $2,400 (credits based on vehicle weight).

The credit for motor vehicles which are capable of operating on a blend of 85 percent ethanol and 15 percent gasoline are allowed for taxable years commencing after Dec. 31, 1999, only if the individual claiming the credit furnishes evidence of the purchase of 500 gallons of ethanol and gasoline blend during the period of time beginning with the vehicle purchase and ending on Dec. 31 of the next succeeding calendar year. 

Beginning in tax year 2013, this credit shall only be available to corporations subject to the Kansas corporate income tax, i.e. C-Corporations. This credit shall not be available to individuals, partnerships, S-Corporations, limited liability companies or other pass through entities. (Schedule K-62, K.S.A. 79-32, 201)

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