Propane Laws and Incentives in Kansas

The list below contains summaries of all Kansas laws and incentives related to propane.

State Incentives

Alternative Fuel Vehicle (AFV) Tax Credit

An income tax credit is available for 40% of the incremental or conversion cost for qualified AFVs, based on gross vehicle weight rating (GVWR) as outlined in the following table:

GVWR	Tax Credit
Less than 10,000 pounds (lbs.)	Up to $2,400
10,000 to 26,000 lbs.	Up to $4,000
Over 26,000 lbs.	Up to $40,000

Alternatively, a tax credit of 5% of the cost of the AFV, up to $750, is available for the purchase of an original equipment manufacturer AFV. Qualified AFVs include vehicles that operate on a combustible liquid derived from grain starch, oil seed, animal fat, other biomass, or produced from a biogas source. Only the first individual to take title of the vehicle may receive this credit. For motor vehicles capable of operating on E85, the individual claiming the credit must provide evidence of purchasing at least 500 gallons of E85 between the time the vehicle was purchased and December 31, of the following calendar year. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, see the Alternative Fuel Tax Credit website.

(Reference Kansas Statutes 79-32,201)

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for 40% of the total cost to install alternative fueling infrastructure. Qualified property must be directly related to the delivery of alternative fuel into the fuel tank of an alternative fuel vehicle. The tax credit may not exceed $100,000 per fueling station. Alternative fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, other biomass, or produced from a biogas source. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, see the Alternative Fuel Tax Credit website.

(Reference Kansas Statutes 79-32,201)

Laws and Regulations

Natural Gas and Propane Fuel Tax

Any individual using or selling compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (propane) as a motor fuel must report fuel use and remit taxes due to the Kansas Department of Revenue on a monthly basis. The minimum tax imposed on CNG is $0.24 per gasoline gallon equivalent (GGE), LNG is $0.26 per GGE, and propane is $0.23 per gallon. The state imposes a tax rate of $0.24 per gallon on conventional motor fuel.

Alternatively, CNG, LNG, and propane vehicle users may apply for special permit decals to pay motor fuel taxes on a mileage basis. The number of gallons used on Kansas highways is determined based on the following miles per gallon (mpg) estimates:

Gross Vehicle Weight Rating	MPG
6,000 pounds (lbs.) or less	12 mpg
6,001 to12,000 lbs.	10 mpg
12,001 to 24,000 lbs.	7 mpg
24,001 to 42,000 lbs.	6 mpg
42,001 to 66,000 lbs.	4 mpg
Over 66,000 lbs.	3 mpg

(Reference Kansas Statutes 79-34,141; 79-3490; and 79-3491a through 79-3492e)

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