Kansas Policy Data

Summary

	Kansas has specific taxes for CNG and LNG and vehicle owners can either pay those taxes at the pump or apply for a decal and pay for motor fuel taxes on a mileage basis. Kansas offers an AFV tax credit for up to 40% of the incremental or conversion costs of qualified AFVs, or 5% of an OEM AFV. The state also offers tax credits against the building of AFV infrastructure. However, this tax credit does not apply to natural gas vehicles. 2012 changes to legislation regulated the tax credits to being available only to corporate tax payers. Kansas instituted an AFV or Flex-Fuel Vehicle standard in the state with E-85 being the preferred flex fuel, but other AFVs qualify as well.

Vehicles

Current Estimated Fleet-based NGVs in Kansas

~38

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 12 CNG / 1 LNG

Private NGV Fueling Stations - 8

Fuel Taxes

Kansas Motor Fuel Taxation Website

CNG - 24.0 ¢ / 126.67 CF = gallon - Reference

LNG -26.0 ¢ / Gallon - Defined as 6.06 lbs - Reference

Gasoline - 24.0 ¢ / Gallon - Reference

Diesel - 26.0 ¢ / Gallon - Reference
Additional Reference

NOTE: CNG and LNG fuel GGE definitions changed in April, 2014 - Effective July 1, 2014. Reference

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

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.

GVWR	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. 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. (Reference Kansas Statutes 79-32,201)

NOTE: 6/21/12 - Confirmed by email with Kathleen Smith (Kathleen.Smith@kdor.ks.gov) from the Kansas Department of Revenue, that the legislation changed in 2006 and that natural gas was removed from the definition of "Alternative Fuels" - thereby, this tax credit does not apply.

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for 40% of the total cost to install alternative fueling infrastructure after January 1, 2009. 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. (Reference Kansas Statutes 79-32,201)

LDC/Utility / Private Incentives

Natural Gas Vehicle Loans - Communication Federal Credit Union (CFCU)

CFCU offers loans to individuals and businesses that purchase new or converted compressed natural gas (CNG) vehicles. Conversion systems must be U.S. Environmental Protection Agency certified and installed by an insured and state licensed facility. New vehicle loans are available at amounts up to the manufacturer's suggested retail price plus the cost of the conversion. Pre-owned or CFCU member owned vehicles with a CNG fuel system or conversion installation are eligible for loans at up to 115% of the National Automobile Dealers Association suggested retail value. All financing is at CFCU standard auto loan rates. CFCU also offers loans for the cost of home fueling appliances. For more information, see the CFCU CNG Vehicle and Conversion Loans website.

NGV Rebate Pilot Program - Kansas Gas Service

Kansas Gas Service offers rebates for NGV purchases or conversions in the amount of $1,000 for a dedicated or bi-fuel vehicle. Vehicles must be purchased or converted after February 2, 2016, and each applicant is limited to three rebates per calendar year. Compressed natural gas 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 rebate application form, please see theCNG Rebate Program website.

Laws & Regs

Legislative Session Dates:	January 13 - May 30
Legislature Website:	http://www.kslegislature.org/li/

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, LNG, and propane is $0.23 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon. 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 Statutes 79-34,141; 79-3490; and 79-3491a through 79-3492e)

Proposed Bills

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2016 Session - Proposed Legislation

SB-99

Provides weight allowance for natural gas vehicle. Provides that a vehicle powered primarily by natural gas may exceed any weight limit, up to a maximum of 82,000 pounds based on the additional weight of the natural gas vehicles tank and fueling system as compared to a comparable diesel tank and fuel system. Reference - SB99 Bill History, Reference - SB99 Bill Text Status: Signed by Governor 4/6/16

2015 Session - Proposed Legislation

HB-2427

Amends motor fuel tax rates including increasing CNG to 29 cent and LNG to 31 cent. Effective July 1, 2015. The rates are the same that gasoline and diesel also would pay, respectively. Reference - HB2427 Bill History, Reference - HB2427 Bill Text

2014 Session - Proposed Legislation

HB-2057

Amends the tax on CNG and LNG so that the tax is based on 126.67 cubic feet or 5.66 lbs. for CNG and 6.06 lbs. for LNG. The rates are 24 cents for CNG and 26 cents for LNG.Reference - HB2057 Bill History, Reference - HB2057 Bill Text Changes to include NG treatment were made in 2014. Signed by Governor 4/17/14

SB-379

Amends the tax on CNG and LNG so that the tax is based on 126.67 cubic feet or 5.66 lbs. for CNG and 6.06 lbs. for LNG. The rates are 24 cents for CNG and 26 cents for LNG. Reference - SB379 Bill History, Reference - SB379 Bill TextAction: 2014-05-30 - Died in House Committee

2013 Session - Proposed Legislation

HB-2410

Modifies the current AFV tax credits available in state to also include natural gas vehicles, and also natural gas infrastructure. The vehicle credits are as follows: lessor of 40% or maximum credit of $2,400 for vehicles that have a GVWR of less than 10,000 lbs., $4,000 for vehicles with GVWR of 10,000 - 25,999 lbs., $40,000 for vehicles with GVWR of greater than 26,000 lbs. Current law also allows secondary purchasers of used AFVs to qualify for limited tax credit of 5% of the cost or $750 if no credit has previously been claimed. Infrastructure credit is worth 40% but not more than $100,000 for each fueling station. The section of law being amended says that these tax credits are only available to be applied against corporate income taxes for tax years 2013 and later. Reference - HB2410 Bill History, Reference - HB2410 Bill TextAction: 2014-05-30 - House Died in Committee

HB-2409

Somewhat similar to HB 2410. Adds CNG and LNG specifically while HB 2410 picks all the EPAct alternative fuels. The other main difference is that it increases the value of the fueling stations to $250,000 . Reference - HB2409 Bill History, Reference - HB2409 Bill TextAction: 2014-05-30 - House Died in Committee

HR-6015

Resolution calls for study on the viability and benefits of using compressed natural gas as transportation fuel. Reference - HR6015 Bill History, Reference - HR6015 Bill Text Action: 2013-06-20 - House Died on Calendar
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This state was last examined and updated in August, 2016.