Renewable Fuel Retailer Tax Incentive

A licensed retail motor fuel dealer may receive a quarterly incentive from the Kansas Retail Dealer Incentive Fund for selling and dispensing renewable fuels, including biodiesel. The fund is to be created and sustained through transfers from the state general fund, except no transfers will be made after fiscal year 2023. A qualified motor fuel dealer is eligible for up to $0.065 for every gallon of renewable fuel sold and up to $0.03 for every gallon of biodiesel sold, if the required threshold percentage is met. If the threshold percentage is not met but the disparity equals 2% or less, the incentive is $0.045 cents per gallon, only for renewable fuel. The threshold is determined by calculating the percent of total gasoline sales that are renewable fuel or biodiesel. For renewable fuel, the threshold increased incrementally on an annual basis from 10% in 2009 to 25% beginning on January 1, 2024. For biodiesel, the threshold increases incrementally on an annual basis from 2% in 2009 to 25% in 2025. Renewable fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, other biomass, or produced from a biogas source.

All provisions expired on January 1, 2026.

(Reference Kansas Statutes 79-34,171 through 79-34,176)