Alternative-fuel Tax Credit
Income Taxpayer-Effective for all taxable years beginning after Dec. 31, 1995.
Beginning in tax year 2013, this credit shall only be available to corporations that are subject to the Kansas corporate income tax, i.e. C corporations. This credit shall not be available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.
Any person, association, partnership, limited liability company, limited partnership, or corporation who owns and operates a qualified alternative-fueled motor vehicle licensed in the State of Kansas or who makes an expenditures for a qualified alternative-fuel fueling station during the tax year qualifies for an income tax credit.
QUALIFICATIONS
The taxpayer must:
- make expenditures for a qualified alternative-fueled motor vehicle; or,
- make expenditures for a qualified alternative-fuel fueling station.
Credit Amount
For any qualified alternative-fueled motor vehicle placed in service on or after Jan. 1, 1996, and before Jan. 1, 2005, the credit is 50 percent of the incremental cost or conversion cost for each qualified alternative-fueled motor vehicle, up to a maximum of $3,000 per qualified vehicle with a gross weight of less than 10,000 lbs.; $5,000 for a heavy duty motor vehicle with a gross vehicle weight of greater than 10,000 lbs. but less than 26,000 lbs.; and $50,000 for motor vehicles having a gross vehicle weight of greater than 26,000 lbs.
For any qualified alternative-fueled motor vehicle placed in service on or after Jan. 1, 2005, the credit is 40 percent of the incremental cost or conversion cost for each qualified alternative-fueled motor vehicle, up to $2,400 per qualified vehicle with a gross vehicle weight of less than 10,000 lbs.; $4,000 for a heavy duty motor vehicle with a gross vehicles weight of greater than 10,000 lbs. but less than 26,000 lbs.; and $40,000 for motor vehicles having a gross vehicle weight of greater than 26,000 lbs.
For any qualified alternative-fuel fueling station placed in service on or after Jan. 1, 1996, and before Jan. 1, 2005, the credit is 50 percent of the total amount expended for each qualified alternative-fuel fueling station but not to exceed $200,000 for each fueling station.
For any qualified alternative-fuel fueling station placed in service on or after Jan. 1, 2005, and before Jan. 1, 2009, the credit is 40 percent of the total amount expended for each qualified alternative-fuel fueling station, up to $160,000 for each fueling station.
For any qualified alternitive-fuel fueling station placed in service on or after Jan. 1, 2009, an amount equal to 40 percent of the total amount expended for each qualified alternative-fuel feuling station, but not to exceed $100,000 for each fueling station.
If no credit is claimed for any of the above, a credit will be allowed in an amount not to exceed the lesser of five percent of the cost of the vehicle or $750 to any taxpayer who purchases a motor vehicle equipped by the vehicle manufacturer with an alternative fuel system and who is unable or elects not to determine the exact basis attributable to such property.
The credit for motor vehicles which are capable of operating on a blend of 85 percent ethanol and 15 percent gasoline shall be allowed for taxable years commencing after Dec. 31, 1999, only if the individual claiming the credit furnishes evidence of the purchase, during the period of time beginning with the date of purchase of the vehicle and ending on Dec. 31 of the next succeeding calendar year, of 500 gallons of ethanol and gasoline blend as may be required.
LIMITATION OF CREDIT
The amount of credit which exceeds the tax liability may be carried forward to the next three tax years or until used whichever is earlier.
For those alternative-fuel fueling stations placed in service on or after Jan. 1, 2009, the amount of credit which exceeds the tax liability may be carried forward to the next four tax years or until used, whichever is earlier.
Procedures to Claim the Credit
You may download Schedule K-62 to claim the alternative-fuel tax credit. This schedule must be completed and submitted with the income tax return. You may also call the Kansas Department of Revenue voicemail system at 785-296-4937 to request Schedule K-62. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.
Alternative-Fuel Definitions
Taxpayer
Taxpayer means any person who owns and operates a qualified alternative-fueled vehicle licensed in the state of Kansas or who makes an expenditure for a qualified alternative fuel fueling station.
Incremental Cost
Incremental cost means the cost that results from subtracting the manufacturer’s list price of the motor vehicle operating on conventional gasoline or diesel fuel from the manufacturer’s list price of the same model motor vehicle designed to operate on an alternative fuel.
Conversion cost
Conversion cost means the cost that results from modifying a motor vehicle which is propelled by gasoline or diesel to be propelled by an alternative fuel.
Alternative Fuel
Prior to July 1, 2007, alternative fuels include:
- Methanol, denatured ethanol and other alcohols (100 percent)
- E-85 Fuels-mixtures containing 85 percent or more by volume (but not less than 70 percent) of methanol, denatured ethanol and other alcohols with gasoline or other fuels
- Natural gas (compressed or liquid)
- Liquefied Petroleum Gas
- Hydrogen
- Coal-Derived Liquid Fuels
- Fuels (other than alcohol) derived from biological materials (such as biodiesel)
- Electricity (including electricity from solar energy)
- Any other fuel determined by the U.S. Department of Energy that is substantially not petroleum and yields substantial energy security and environmental benefits.
On and after July 1, 2007, alternative fuel means a combustible liquid derived from grain starch, oil seed, animal fat or other biomass; or produced from biogas source, including any nonfossilized, decaying, organic matter.