Legislation introduced in the Kansas legislature on Jan. 15 aims to create a 5-cent-per-gallon tax credit to support the sale of higher ethanol blends, such as E15. Lawmakers are also being asked to consider a similar incentive for biobased diesel.
The bill, HB 2012, would apply to the retail sale of fuel blends containing between 15% and 85% ethanol and be capped at $5 million per year. The credit would be in place from 2026 through 2031.
The legislation was addressed during a Jan. 27 hearing before the Kanas House Committee on Taxation. During that event, representatives of Growth Energy, Kansas Sorghum Producers, Kansas Farm Bureau, Western Plains Energy LLC, ICM Inc., Renew Kansas biofuels, POET Biofuels, Kansas Corn Growers Association, Clean Fuels Alliance America, Kansas Soybean Association and several others testified in support of the bill.
In his comments, Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley explained the tax credit would help retailers invest in additional infrastructure to offer higher ethanol blends. It would also increase consumer choice, help consumers save on fuel costs, and support the state’s ethanol producers and farmers, he added.
Jeffery Earl, director of state government affairs at Clean Fuels Alliance America, also testified on the bill, encouraging lawmakers to include provisions for biodiesel and renewable diesel incentives in HB 2012, as proposed by the Kansas Soybean Association.
The companion bill proposed by KSA would implement a 5-cent-per-gallon tax incentive to support the sales of fuel containing more than 10% biodiesel or renewable diesel. The proposed biobased diesel credit would also be in place for 2026 through 2031 and be capped at $5 million per year.
Additional information is available on the Kanas Legislature website.
