Alternative Fuel Vehicle and Refueling Station Personal Tax Credit

Summary

Senate Bill 45, passed during the1999 Session of the Kansas Legislature, was signed into law by the Governor on May 13, 1999. This bill allows taxpayers that purchase qualified alternative-fueled vehicles or alternative-fuel fueling stations to receive a credit on their state income taxes. For vehicles placed in service on or after January 1, 1996, and before January 1, 2005, the income tax credit amount must not exceed $3,000 for a vehicle with a weight of less than 10,000 lbs.; $5,000 for a heavy duty motor vehicle with a weight of greater than 10,000 lbs. but less than 26,000 lbs.; and $50,000 for motor vehicles having a weight of greater than 26,000 lbs. For vehicles placed in service on or after January 1, 2005, the income tax credit amount is equal to 40% of the incremental cost or conversion cost for each qualified alternative-fueled motor vehicle, but not to exceed $2,400 for each vehicle with a weight of less than 10,000 lbs.; $4,000 for a heavy duty motor vehicle with a gross vehicle weight of greater than 10,000 lbs. but less than 26,000 lbs.; and $40,000 for motor vehicles having a gross vehicle weight of greater than 26,000 lbs.; For alternative-fuel fueling stations placed in service on or after January 1, 1996, and before January 1, 2005, the bill allows an income tax credit amount equal to 50% of the total amount expended for each qualified alternative-fuel fueling station but not to exceed $200,000 for each fueling station. For alternative-fuel fueling station placed in service on or after January 1, 2005, the bill allows an income tax credit amount equal to 40% of the total amount expended for each qualified alternative-fuel fueling station, but not to exceed $160,000 for each fueling station. If no credit has been claimed, a credit in an amount not exceeding the lesser of 5% of the cost of the vehicle or $750 shall be allowed to a 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 under this subsection shall be allowed only to the first individual to take title to such motor vehicle, other than for resale. If the amount of the tax credit exceeds the taxpayer's income tax liability for the taxable year, the amount which exceeds the tax liability may be carried over for three years.