27 Apr Renew Kansas Biofuels Association Applauds Governor Laura Kelly’s Signature on E15 Tax Credit
Renew Kansas Biofuels Association applauds Kansas Governor Laura Kelly’s signature on Senate Bill 82, which among other things, creates income tax credits for the sale of higher ethanol blends of fuels.
“We appreciate the bipartisan support from the legislature to advance this multi-year-effort to provide an incentive for higher ethanol blends and Governor Kelly’s signature to make it law,” Renew Kansas Biofuels Association President and CEO Ron Seeber said. “This is a meaningful step toward expanding access to E15 and higher blends across Kansas, giving drivers more affordable options at the pump while strengthening demand for Kansas-grown corn and sorghum. It’s a practical approach benefitting consumers, fuel retailers and Kansas agriculture.”
The incentive, shepherded through the state legislative process by Renew Kansas, seeks to incentivize fuel retailers to offer E15 and higher blends to help overcome certain infrastructure and structural market barriers to E15 fuel. The bill passed the Kansas Senate 36-2 and the House of Representatives 76-45.
The tax credit is $0.05 for each gallon of E15, or higher-ethanol blend fuel, sold at retail and can be carried forward for up to three years. The total amount of tax credits available to claim are capped at $2.5 million per tax year. In the event the amount claimed pursuant to the credit exceeds $2.5 million in any tax year, the amount of credit awarded to retailers would be apportioned to all retailers claiming the credit in proportion to their share of the total amount of all higher-ethanol blend fuel sold.