Kansas sellers could claim capped credits for biodiesel and renewable diesel

Retail dealers and distributors would be allowed to claim a Kansas income tax credit for qualifying fuel sales. Retail dealers would qualify for blends sold and dispensed through metered pumps at their Kansas service stations. Distributors would qualify for blends sold directly to final users in Kansas. The credit would equal five cents per gallon, and total credits could not exceed $5 million per tax year. The credit would not be refundable, but unused amounts could be carried forward for up to five following tax years. Qualifying blends would need to contain at least 10% biodiesel or renewable diesel. The credit would apply to sales during tax years 2026 through 2031.