Natural Gas Laws and Incentives in Kansas
The list below contains summaries of all Kansas laws and incentives related to natural gas.
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 table below. Qualified AFVs include vehicles that operate on a combustible liquid derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source.
|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. This credit is allowed only to the first individual to take title of the vehicle. 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 page. (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 a motor vehicle propelled by such fuel. 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, or 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 page. (Reference Kansas Statutes 79-32,201)
Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption
Any vehicle or combination of vehicles equipped with idle reduction technology may exceed the state's gross and axle weight limits by up to 400 pounds (lbs.) to compensate for the additional weight of the idle reduction technology. Upon request, vehicle operators must provide proof that the idle reduction technology is fully functional. A vehicle primarily powered by natural gas may exceed the state's gross vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 lbs. (Reference Kansas Statutes 8-1908, 8-1909, and 8-1917)
Natural Gas Vehicle (NGV) Rebate Pilot Program - Kansas Gas Service
Kansas Gas Service offers rebates for NGV purchases or conversions in the amount of $3,000 for a dedicated or bi-fuel vehicle. Each applicant is limited to three rebates per calendar year. Compressed natural gas (CNG) equipment must be certified by the U.S. Environmental Protection Agency or California Air Resources Board. Kansas Gas Service will distribute rebates on a first-come, first-served basis, until program funds are exhausted. Additional terms and conditions apply. For more information, including the online rebate application form, please see the CNG Rebate Program website.
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 Statutes79-3490 through 79-3492e and 79-34,141)
More Laws and Incentives
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