U.S. Department of Energy - Energy Efficiency and Renewable Energy
Alternative Fuels and Advanced Vehicles Data Center
Kansas Incentives and Laws
Alternative Fuel Vehicle (AFV) Tax Credit
TThe state offers an income tax credit worth up to 40% of the incremental or conversion cost for qualified AFVs placed into service after January 1, 2005, 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 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 in an amount not to exceed the lesser of $750 or 5% of the cost of the AFV is available to a taxpayer who purchases 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. This tax credit must be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made. In the event the credit is more than the taxpayer's tax liability for that year, the remaining credit may be carried over for up to three years after the year in which the expenditures were made.
(Reference Kansas Statutes 79-32,201)
Point of Contact
Jim Ploger
Director of Renewable Energy & Energy Efficiency
Kansas Energy Office
Phone (785) 271-3349
Fax (785) 271-3268
j.ploger@kcc.ks.gov
http://www.ksrevenue.org/taxcredits-altfuel.htm