A coalition of agriculture and energy companies is pushing for a $5 million annual state tax credit to encourage gas station operators in Kansas to expand the distribution of E15 fuel made from corn or sorghum. The credit is seen as a way to benefit farmers, consumers, and the rural economy, while promoting the use of higher-blend, lower-cost fuel options. Although only a small percentage of fueling stations in Kansas currently offer E15, proponents of the tax break believe it could help increase access to the alternative fuel.
Critics of the proposal question the need for a specific tax break for fuel station operators and suggest a more general tax policy that benefits a wider range of businesses. However, supporters argue that the incentive is necessary to catch up with neighboring states that have already embraced similar strategies.
The proposed legislation would also extend the tax credit to biodiesel producers, further supporting alternative fuel options in Kansas. Both bills would cap the annual tax credit at $5 million per year and allow unused credits to be carried forward for up to five years. The impact of these incentives on farmers and the agricultural economy is seen as crucial during a time of depressed prices and incomes.
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