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)

Jurisdiction: Kansas

Type: State Incentives

Amended: Jul 1, 2012

Technologies: Aftermarket Conversions, Biodiesel, Ethanol, Natural Gas, Propane (LPG)

See all Kansas Laws and Incentives.