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Energy Incentives: Full Descriptions
Below are full descriptions of the Department of Commerce's energy incentives. You can also download this page as a printable brochure.

Alternative Energy
Alternative-Fuel Fueling Station Tax Credit
Expenditures for qualified alternative-fuel fueling stations shall be allowed a credit against the income tax imposed against the owner of such facility. For any qualified alternative-fuel fueling station placed in service on or after January 1, 2005 and before January 1, 2009, an amount equal to 40 percent of the total amount expended but not to exceed $160,000 for each fueling station. For any qualified alternative-fuel fueling station placed in service on or after January 1, 2009, an amount equal to 40 percent of the total amount expended but not to exceed $100,000 for each fueling station. This fund is administered by the Kansas Department of Revenue.

Reference Kansas Statute 79-32,201

Contact Kathleen Smith at (785) 296-3070 or .


Alternative-Fueled Motor Vehicle Tax Credit
Expenditures for qualified alternative-fueled motor vehicles shall be allowed a credit against the income tax imposed against the owner of such vehicle. For any qualified alternative-fueled motor vehicle placed in service on or after January 1, 1996 and before January 1, 2005, an amount equal to 50 percent of the incremental cost or conversion cost for each qualified vehicle expended but not to exceed $50,000 (credits based on vehicle weight). For any qualified alternative-fueled motor vehicle placed in service on or after January 1, 2005, the credit is 40 percent of the incremental cost or conversion cost for each qualified vehicle expended but not to exceed $40,000 (credits based on vehicle weight). The credit for motor vehicles which are capable of operating on a blend of 85% ethanol and 15% gasoline shall be allowed for taxable years commencing after December 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 vehicle purchase and ending on December 31 of the next succeeding calendar year. This fund is administered by the Kansas Department of Revenue.

Reference Kansas Statute 79-32,201

Contact Kathleen Smith at (785) 296-3070 or .

Biodiesel Fuel Producer Incentive
$0.30 for each gallon sold by the producer. $50,000 per quarter is added to the fund, during fiscal year 2011, for distribution. If production exceeds the fund balance, a proration of the distribution is performed. Program sunsets July 1, 2016.

Reference Kansas Statues 79-34, 155-159

Contact Edie Martin at (785) 296-5327 or
.


Carbon Dioxide Capture/Sequestration Tax Deduction
A taxpayer shall be entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of carbon dioxide capture, sequestration or utilization machinery and equipment based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such machinery and equipment for the first taxable year in which such machinery and equipment are in operation and 5% of the amortizable costs of such machinery and equipment for each of the next nine taxable years.

The election of the taxpayer to claim the deduction allowed by subsection (a) shall be made by filing a statement of such election with the secretary of revenue in the manner and form and within the time prescribed by rules and regulations adopted by the secretary.

The provisions of this section shall apply to all taxable years commencing after December 31, 2007.

This fund is administered by the Kansas Department of Revenue.

Reference Kansas Statute 79-32,256

Contact Kathleen Smith at (785) 296-3070 or .

Ethyl Alcohol Production Incentive
$0.035 for each gallon sold by the producer. Producers who were in production prior to July 1, 2001 and who increased production capacity on or after July 1, 2001 by an amount of 5 million gallons qualify for the incentive for a maximum of 15 million gallons sold per year, for no more than seven (7) years. Producers who commenced production on or after July 1, 2001, but prior to July 1, 2012 and who sold at least 5 million gallons qualify for the incentive for a maximum of 15 million gallons sold per year, for no more than seven (7) years. Producers who commenced cellulosic alcohol on or after July 1, 2012 and who sold at least five million gallons qualify for the incentive for a maximum of 15 million gallons sold per year. This does not apply to producers who commence alcohol production from grain. $875,000 per quarter is added to the fund for distribution. If production exceeds the fund balance, a proration of the distribution is performed. Program sunsets July 1, 2018.

Reference Kansas Statutes 79-34,160-164

Contact Edie Martin at (785) 296-5327 or .


Kansas Retail Dealers Incentive Fund
Kansas Retail Dealers Incentive Fund was created for the payment of incentives to Kansas retail dealers who sell and dispense renewable fuels or biodiesel through a motor fuel pump. This incentive is currently not funded for fiscal years 2011 and 2012, pursuant to the 2010 Senate Bill 527. The provisions of the Kansas Retail Dealers Incentive Fund shall expire on January 1, 2026.

Reference Kansas Statutes 79-34,170-176

Contact Edie Martin at (785) 296-5327 or .

Waste Heat Utilization System
Waste heat utilization system means facilities and equipment for the recovery of waste heat generated in the process of generating electricity and the use of such heat to generate additional electricity or to produce fuels from renewable energy resources or technologies. Waste heat utilization system shall be exempt from all property taxes levied under the laws of the state of Kansas for 10 taxable years immediately following the taxable year in which construction or installation is complete.

Reference Kansas Statute 79-231

In addition to the property tax credit, a taxpayer shall be entitled to a deduction from Kansas adjusted gross income of the amortizable costs of a new facility. Such deduction shall be equal to 55 percent of the amortizable costs of the facility for the first taxable year, and 5 percent for the next nine taxable years. The provisions of this section shall apply to all taxable years commencing after December 31, 2006; administered by the Secretary of Revenue.

Reference Kansas Statute 79-32,250

Waste heat utilization systems at electric generation facilities shall be exempt from property taxes for the 10 taxable years following completion of construction or installation.

Reference Kansas Statute 79-231

Contact Kathleen Smith at (785) 296-3070 or .  

Waste heat utilization systems at electric generation facilities: The Kansas Development Finance Authority is authorized to issue revenue bonds in amounts sufficient to finance the construction of such a facility.

Reference Kansas Statute 74-8949d

Contact Rebecca Floyd at (785) 357-4445 Ext. 303 or .  




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Kansas Department of Commerce, 1000 S.W. Jackson St., Suite 100, Topeka, KS 66612-1354
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