Kansas Laws and Incentives
Listed below are the summaries of all current Kansas laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:
Kansas' National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Kansas Department of Transportation (KSDOT) to submit an EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office by August 1, 2022, describing how the state intends to distribute NEVI funds. Plans must be established according to NEVI guidance.
For more information about Kansas’ NEVI planning process, see the KSDOT Charge Up Kansas website. For more information about Kansas’ NEVI plan, see the Joint Office’s State Plans for EV Charging website.
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:
|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 to 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)
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. 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. The threshold is determined by calculating the percent of total gasoline sales that are renewable fuel or biodiesel. For renewable fuel, the threshold increases 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.
(Reference Kansas Statutes 79-34,171 through 79-34,176)
Biofuel Blending Equipment Tax Exemption
Qualified equipment used for storing and blending petroleum-based fuel with biodiesel, ethanol, or other biofuel is exempt from state property taxes. The exemption begins at the time of installation at a fuel terminal, refinery, or biofuel production plant, and ends 10 taxable years following the year of installation. Equipment used only for denaturing ethyl alcohol is not eligible.
(Reference Kansas Statutes 79-232 and 79-32,251)
Biofuel Production Facility Tax Exemption
Any newly constructed or expanded biomass-to-energy facility is exempt from state property taxes for up to 10 taxable years immediately following the taxable year in which construction or installation is completed. A biomass-to-energy facility includes any industrial process plant that uses biomass to produce at least 500,000 gallons of cellulosic alcohol fuel, liquid or gaseous fuel, or other source of energy in a quantity with energy content at least equal to that of 500,000 gallons of cellulosic alcohol fuel. Expansion of an existing biomass-to-energy facility is defined as expansion of the facility’s production capacity by a minimum of 10%.
(Reference Kansas Statutes 79-229 and 79-32,233)
Cellulosic Ethanol Production Financing
The Kansas Development Finance Authority may issue revenue bonds to cover the costs of construction or expansion of a biomass-to-energy facility. A qualifying biomass-to-energy facility includes any industrial process plant that uses biomass to produce at least 500,000 gallons of cellulosic alcohol fuel, liquid or gaseous fuel, or other source of energy in a quantity with energy content at least equal to that of 500,000 gallons of cellulosic alcohol fuel. Expansion of an existing biomass-to-energy facility is defined as expansion of the facility’s production capacity by a minimum of 10%.
(Reference Kansas Statutes 74-8949b and 79-32,233)
Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption
Any diesel 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 be able to provide written proof of the technology’s weight and that the idle reduction technology is fully functional at all times. 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)
Electric Vehicle (EV) Charging Station Rebate and Time-Of-Use (TOU) Rate – Evergy
Evergy offers residential customers a $250 rebate for the purchase of a Level 2 EV Charger. Evergy offers an additional $250 rebate when customers sign up for an EV TOU rate. To receive the additional rebate, Kansas Central region customers must enroll in either the EV Plan or the TOU Plan rate, and Kansas Metro region customers must enroll in the TOU Plan rate. For more information, including TOU rate option details, see the Evergy EV Charging Rebate website.
Flex Fuel Grant Program - Kansas Corn Commission (KCC)
KCC offers fuel retailers grants to cover the cost of upgrading refueling stations to accommodate flex fuel dispensers. The maximum grants are available in the following amounts:
|Ethanol Blend Offered||Maximum Grant||Eligible Equipment|
|E15||$2,500 per pump; up to $50,000 per location||Dispensers and hanging hardware, and signage and marketing materials|
|Multiple blends (e.g., E15, E30) and E85||$25,000 per blender pump; up to $75,000 per location||Dispensers (minimum UL 87A E25) and hanging hardware|
Biodiesel Rebates - Kansas Soybean Commission
Kansas residents are eligible for a rebate from the Kansas Soybean Commission of up to $2,000 for fleets or $200 for individuals, for using biodiesel blends above 10% and 5% in diesel-powered vehicles, respectively. Fleets may be eligible for an additional rebate of $1 per gallon, up to $2,000, for annual biodiesel purchases. For more information, including how to apply, see the Metropolitan Energy Center Biodiesel Rebate website.
Natural Gas Vehicle (NGV) Rebate Pilot Program - Kansas Gas Service
Kansas Gas Service offers customers a rebate of $3,000 for the purchase or conversion of a dedicated NGV 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. Rebates are available on a first-come, first-served basis. Additional terms and conditions apply. For more information, including the online rebate application form, please see the NGV Program website.
Electric Vehicle (EV) Infrastructure Support
Kansas utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.
Laws and Regulations
Public Utility Definition
A corporation or individual that resells electricity supplied by a public utility for use in electric vehicle charging stations is not subject to regulation as a public utility.
(Reference Kansas Statutes 66-104)
Study of Electric Vehicle (EV) Charging Station Rates
The Legislative Coordinating Council authorized a study on Kansas utilities retail electricity rates. The study must explore EV charging station rate design, EV charging station service deregulation, and the benefits of improving consumer access to EVs and EV charging station infrastructure. The study was submitted to the Kansas Corporation Commission in two parts on January 8, 2020, and July 1, 2020.
(Reference 66-1287, 2019)
Electric Vehicle (EV) and Hybrid Electric Vehicle (HEV) Fees
Beginning January 1, 2020, the annual registration fee for EVs is $100 and $50 for plug-in hybrid electric vehicles and HEVs.
(Reference Kansas Statutes 8-143)
Flexible Fuel Vehicle (FFV) Acquisition Requirements
State agencies must purchase FFVs unless the desired vehicle model is not available with an E85-capable engine or the incremental cost of the FFV exceeds $250. When leasing motor vehicles, state agencies must lease FFVs unless no such vehicles are available for lease. Certain restrictions apply.
(Reference Kansas Statutes 75-4617)
Biofuels Use Requirement
State-owned diesel-powered vehicles and equipment must use a biodiesel blend that contains at least 2% biodiesel (B2), where available, as long as the price of the biodiesel blend is not more than $0.10 per gallon as compared to the price of diesel fuel. Individuals operating state-owned motor vehicles must purchase fuel blends containing at least 10% ethanol (E10), as long as these fuel blends are not more than $0.10 per gallon as compared to the price per gallon of regular gasoline fuel.
(Reference Kansas Statutes 75-3744a)
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|
E85 Tax Rate and Definition
The minimum motor vehicle fuel tax rate on E85 is $0.17 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon. E85 is defined as an alternative fuel that is a blend of denatured ethanol and hydrocarbon and typically contains 85% ethanol by volume, but must contain at least 70% ethanol by volume, and complies with ASTM Standard D5798-99.
(Reference Kansas Statutes 79-3401 and 79-34,141)
Ethanol Blend Dispenser Requirement
A retail motor fuel dispenser that dispenses fuel containing more than 10% ethanol by volume must be labeled with the capital letter “E” followed by the numerical value representing the volume percentage of ethanol, such as E85, and end with the word “ethanol” as specified in Kansas Department of Agriculture guidelines.
(Reference Kansas Administrative Regulations 99-25-10)
Biodiesel and Renewable Fuel Definitions
Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from vegetable oils or animal fats and meets the specifications adopted by rules and regulations of the Kansas Department of Agriculture pursuant to current law. The Kansas specification must meet the ASTM D6751-07 specification for biodiesel fuel (B100) blend stock for distillate fuels, but may be more stringent regarding biodiesel quality and usability. Renewable fuels are defined as combustible liquids derived from grain starch, oil seed, animal fats, or other biomass; or produced from a biogas source, including any non-fossilized, decaying, organic matter capable of powering spark ignition machinery.
(Reference Kansas Statutes 79-34,155 and 79-34,170)
Low-Speed Vehicle Access to Roadways
Low-speed vehicles may only travel on roadways with a posted speed limit of up to 40 miles per hour (mph). A low-speed vehicle is any four-wheeled electric vehicle whose top speed is at least 20 mph but not more than 25 mph and is manufactured in compliance federal standards for low-speed vehicles as referenced in Title 49 of the Code of Federal Regulations, section 571.500. Additional conditions apply.