This credit is only available to corporations that are subject to the Kansas corporate income tax (i.e., C corporations) and not available to individuals, partnerships, S corporations, limited liability companies, and other passthrough entities.
Carry Forward of Unused Credits: For tax year 2017 and all years after no new credit or carryforward is available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.
Motor vehicles purchased on or after JULY 1, 2007 must be powered by a fuel source that meets the new definition of alternative fuel which 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.” This definition excludes vehicles purchased on or after July 1, 2007 and fueled by methanol, natural gas, LP gas, hydrogen, coalderived liquid fuels and electricity from qualifying for the credit. Alternative-fueled vehicles purchased on or after July 1, 2007 that qualify for the credit include:
• E-85 Fuel - Mixtures containing 85% or more by volume (but not less than 70%) of denatured ethanol and other alcohols with gasoline or other fuels - E-85
• Fuels (other than alcohol) derived from and containing 85% or more biological materials (i.e., biodiesel) - B-100