Stay in touch:

BIOENERGY, BIOSCIENCE, ENERGY OR ALTERNATIVE


Print this page

Alternative-Fuel Fueling Station Tax Credit

A taxpayer that makes qualified expenditures for eligible alternative-fuel fueling stations shall be allowed a credit against the income tax imposed. For any qualified alternative-fuel fueling station placed in service on or after Jan. 1, 2009, an amount equal to 40 percent of the total amount expended but not to exceed $100,000 for each fueling station is allowed as a credit. 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)

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 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)

Biomass-to-Energy Plant

A taxpayer may be entitled to a deduction from Kansas adjusted gross income of the amortizable costs of a new facility or expansion of an existing biomass-to-energy plant. The deduction is equal to 55 percent of the amortized costs of the facility for the first taxable year and 5 percent for the next nine taxable years. This provision applies to all taxable years commencing after Dec. 31, 2005. (K.S.A. 79-32, 237)

For all taxable years commencing after Dec. 31, 2005, any new biomass-to-energy plant property or any expanded biomass-to-energy plant property is exempt from all property taxes levied from and after purchase or commencement of construction or installation of such property and for the 10 taxable years immediately following the taxable year in which construction or installation of such property is completed. (K.S.A. 79-229)

The Kansas Development Finance Authority is authorized to issue revenue bonds in amounts sufficient to pay the costs of construction or expansion.

Carbon Dioxide Capture/Sequestration Tax Deduction

A taxpayer is entitled to a deduction from Kansas adjusted gross income with respect to the amortizable costs of carbon dioxide capture, sequestration or utilization machinery and equipment over a period of 10 years. The amortization deduction shall be an amount equal to 55 percent 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 percent of the amortizable costs of such machinery and equipment for each of the next nine taxable years. (K.S.A. 79-32, 256)

The taxpayer can claim the deduction by filing a statement with the Secretary of Revenue of such election. The deduction is available in all taxable years commencing after Dec. 31, 2007.

For all taxable years commencing after Dec. 31, 2007, any carbon dioxide capture, sequestration or utilization property and any electric generation unit that captures and sequesters all carbon dioxide and other emissions is exempt from all property taxes levied from and after purchase or commencement of construction or installation of such property and for the five taxable years immediately following the taxable year in which construction or installation of such property is completed. (K.S.A. 79-233)

Coal Gasification Power Plant

For all taxable years commencing after Dec. 31, 2005, integrated coal gasification power plant property is exempt from all property taxes levied from and after purchase or commencement of construction or installation of such property and for the 12 taxable years immediately following the taxable year in which construction or installation of such property is completed. (K.S.A. 79-225)

The Kansas Development Finance Authority is authorized to issue revenue bonds in amounts sufficient to finance the construction of such a facility.

Nitrogen Fertilizer Plant

A taxpayer may be entitled to a deduction from Kansas adjusted gross income of the amortizable costs of a new integrated coal or coke gasification nitrogen fertilizer plant or expansion of an existing integrated coal or coke gasification nitrogen fertilizer plant. The deduction is equal to 55 percent of the amortizable costs of the new plant or expansion of an existing plant for the first taxable year and 5 percent for the next nine taxable years. The deduction applies to all taxable years commencing after Dec. 31, 2005. (K.S.A. 79-32, 232)

For all taxable years commencing after Dec. 31, 2005, any new integrated coal or coke gasification nitrogen fertilizer plant property or any expanded integrated coal or coke gasification nitrogen fertilizer plant property is exempt from all property taxes levied from and after purchase or commencement of construction or installation of such property and for the 10 taxable years immediately following taxable year in which the construction or installation of such property is completed. (K.S.A. 79-228)

The Kansas Development Finance Authority is authorized to issue revenue bonds in amounts sufficient to finance the construction or expansion.

Petroleum Refinery

A taxpayer may be entitled to a deduction from Kansas adjusted gross income of the amortizable costs of a new, expanded or restored refinery. The deduction is in an amount equal to 55 percent of the amortizable costs for the first taxable year of production and 5 percent for each of the following nine years. (K.S.A. 79-32, 221)

In order to qualify for these benefits, the facility must be a new refinery, expansion of an existing refinery (capacity increases at least 10 percent) or a restored refinery (a refinery that has been out of production five or more years).

For all taxable years commencing after Dec. 31, 2005, any new refinery property, any expanded refinery property, or any restored refinery property is exempt from all property taxes levied from and after purchase or commencement of construction or installation of such property and for the 10 taxable years immediately following the taxable year in which construction or installation of such property is completed. (K.S.A. 79-226)

The Kansas Development Finance Authority is authorized to issue revenue bonds in amounts sufficient to finance the construction of such a facility.

Renewable Energy Incentives

With an ever-increasing percentage of the state’s energy coming from renewable sources, Kansas offers an immediate advantage to companies committed to meeting corporate sustainability goals. From our investor-owned utilities to co-ops and municipal utilities across the state, our energy providers are incorporating wind energy as a key component of their energy portfolios.

Located in the heart of the nation’s Wind Corridor, Kansas also offers an ideal location for manufacturing wind turbine components and supplies. Our central location and outstanding transportation infrastructure provide convenient and economical access to the regions with the greatest wind energy activity. Kansas is ranked second in wind potential and is among the top five states for operating wind farms.

There are also thousands of megawatts of additional wind energy under development across the state. Kansas wind is very cost effective due to high productivity factors, and has therefore been attractive to out-of-state off-takers, which are purchasing over 45 percent of the wind energy produced in Kansas.

According to data in the 2016 Annual Wind Market Report, Kansas ranks in the Top 10 in a number of categories:

  • Fifth in cumulative investment in wind energy projects ($8.4 billion)
  • Fifth in wind industry employment (5,001-6,000)
  • Fifth in estimated annual lease payments to landowners by wind projects ($10-15 million)
  • Eighth in wind capacity in advanced development (874).
  • Fifth in wind power capacity installations (4,451 MW)
  • Fourth in wind power capacity additions during 2016 (687 MW), third 3rd in wind energy as percent of total state generation (29.6 percent)
  • Sixth in fastest growing states for wind generation (28.3 percent annual growth) and fourth in total generation from wind power (14.1 million MWh)

Kansas is committed to the growth of this industry through the development of additional wind farms, a strong supply chain and transmission capabilities to out-of-state markets.

In addition, Kansas has multiple operating ethanol facilities across the state. The state has numerous incentives to assist the development of renewable energy. State tax credits are available for projects that utilize waste heat to convert to energy or otherwise offset local power usage via renewable sources. Incentive payments, tax credits and other development incentives are available to producers, retail dealers and individuals that utilize alternative fuel sources.

Kansas has enacted a host of renewable energy policies, including a renewable energy goal, energy efficiency measures for state-owned property and net metering. To encourage the growth of alternative energy, the state offers a 10-year personal property tax exemption for projects generating electricity from renewable sources.

Waste Heat Utilization System

A waste heat utilization system includes 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.

A taxpayer shall be entitled to a deduction from Kansas adjusted gross income of the amortizable costs of a waste heat utilization system. Such deduction shall be equal to 55 percent of the amortizable costs of such system for the first taxable year and 5 fpercent for the next nine taxable years. The provisions of this section shall apply to all taxable years commencing after Dec. 31, 2006. (K.S.A. 79-32, 250)

For all taxable years commencing after Dec. 31, 2006, any waste heat utilization system property is exempt from all property taxes levied from and after purchase or commencement of construction or installation of such property and for the 10 taxable years immediately following the taxable year in which construction or installation of such property is completed. (K.S.A. 79-231)

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

Qualifying Pipeline

A taxpayer may be entitled to a deduction from Kansas adjusted gross income of the amortizable costs of a new qualifying pipeline. Such deduction is equal to 55 percent of the amortizable costs of the new qualifying pipeline for the first taxable year and 5 percent for the next nine taxable years. The deduction applies to all taxable years commencing after Dec. 31, 2005. (K.S.A. 79-32, 227)

For all taxable years commencing after Dec. 31, 2005, any new qualifying pipeline property is exempt from all property taxes levied from and after purchase or commencement of construction or installation of such property and for the 10 taxable years immediately following the taxable year in which construction or installation of such property is completed. (K.S.A. 79-227)

The Kansas Development Finance Authority is authorized to issue revenue bonds in amounts sufficient to finance the construction of such property.

Contact Us

Susan NeuPoth Cadoret Director, Business & Community Development Email (785) 296-7198 LinkedIn