Session of 1999
HOUSE BILL No. 2226
By Representative J. Peterson
2-2
9 AN ACT relating to alternative-fueled motor vehicles; concerning certain
10 incentives; amending K.S.A. 75-37,116, 75-37,117, 75-37,119 and 79-
11 32,201 and repealing the existing sections.
12
13 Be it enacted by the Legislature of the State of Kansas:
14 Section 1. K.S.A. 75-37,116 is hereby amended to read as follows:
15 75-37,116. As used in K.S.A. 75-37,116 through 75-37,119, and amend-
16 ments thereto:
17 (a) "Alternative fuel" has the meaning provided by 42 U.S.C. 13211.
18 (b) "Alternative-fueled motor vehicle" means a motor vehicle that
19 operates on an alternative fuel and that, meets or exceeds the clean fuel
20 vehicle standards in the federal clean air act amendments of 1990, Title
21 II and meets one of the following categories:
22 (1) Bi-fuel motor vehicle: A motor vehicle with two separate fuel sys-
23 tems designed to run on either an alternative fuel or conventional fuel,
24 using only one fuel at a time;
25 (2) dedicated motor vehicle: A motor vehicle with an engine designed
26 to operate on a single alternative fuel only; or
27 (3) flexible fuel motor vehicle: A motor vehicle that may operate on a
28 blend of an alternative fuel with a conventional fuel, such as E-85 (85%
29 ethanol and 15% gasoline) or M-85 (85% methanol and 15% gasoline),
30 as long as such motor vehicle is capable of operating on at least an 85%
31 alternative fuel blend.
32 (c) "Alternative fuel fueling station" means the property which is di-
33 rectly related to the delivery of alternative fuel into the fuel tank of a
34 motor vehicle propelled by such fuel, including the compression equip-
35 ment and, storage vessels and dispensers for such fuel at the point where
36 such fuel is delivered, but only if such property is primarily used to deliver
37 such fuel for use in a qualified alternative-fueled motor vehicle.
38 (d) "Government agency" means a county, a city, a school district or
39 another governmental unit, including a public transit agency.
40 (e) "Government fleet" means a fleet of 10 or more motor vehicles
41 owned and operated by a government agency.
42 (f) "Incremental cost" means the cost that results from subtracting
43 the manufacturer's list price of the motor vehicle operating on conven-
44 tional gasoline or diesel fuel from the manufacturer's list price of the same
45 model motor vehicle designed to operate on an alternate alternative fuel.
46 (g) "Conversion cost" means the cost that results from modifying a
47 motor vehicle which is propelled by gasoline or diesel to be propelled by
48 an alternative fuel.
49 (g) (h) "Secretary" means the secretary of administration.
50 Sec. 2. K.S.A. 75-37,117 is hereby amended to read as follows: 75-
51 37,117. (a) There is hereby established the alternative fuels loan program
52 for the purpose of making loans to government agencies which own and
53 operate motor vehicles to encourage and assist them to:
54 (1) Purchase new alternative-motor fueled alternative-fueled motor
55 vehicles;
56 (2) convert existing motor vehicles which operate on gasoline and
57 diesel fuel to operate on alternative fuels; and
58 (3) construct motor vehicle fueling facilities to serve alternative-fu-
59 eled motor vehicles.
60 (b) The alternative-fuels loan program shall be administered by the
61 secretary. The secretary shall adopt rules and regulations establishing pro-
62 cedures, criteria and conditions for making loans from the alternative-
63 fuels government fleet loan fund and such other rules and regulations as
64 necessary to operate the alternative-fuels loan program.
65 Sec. 3. K.S.A. 75-37,119 is hereby amended to read as follows: 75-
66 37,119. (a) In accordance with the provisions of this section, the secretary
67 is hereby authorized to enter into loan agreements with government agen-
68 cies for the purposes stated in K.S.A. 75-37,117, and amendments thereto,
69 and to loan moneys in the alternative-fuels government fleet loan fund in
70 accordance with such agreements.
71 (b) Loans made from the alternative-fuels government fleet loan fund
72 may only be for the following amounts:
73 (1) For the incremental cost of purchasing a new alternative-fueled
74 motor vehicle:
75 (A) A maximum of $2,000 $3,000 per motor vehicle for motor vehicles
76 having a gross vehicle weight of 10,000 lbs. or less; (B) a maximum of
77 $5,000 per motor vehicle for motor vehicles having a gross vehicle weight
78 of more than 10,000 lbs. but less than 26,000 lbs.; and (C) a maximum of
79 $50,000 for motor vehicles having a gross vehicle weight of 26,000 lbs. or
80 more;
81 (2) for the conversion of a new or used motor vehicle designed to
82 operate on conventional gasoline or diesel fuel to operate on an alternative
83 fuel:
84 (A) A maximum of $2,000 $3,000 per motor vehicle for motor vehicles
85 having a gross vehicle weight of 10,000 lbs. or less; (B) a maximum of
86 $5,000 per motor vehicle for motor vehicles having a gross weight of more
87 than 10,000 lbs. but less than 26,000 lbs.; and (C) a maximum of $50,000
88 for motor vehicles having a gross vehicle weight of 26,000 lbs. or more;
89 and
90 (3) a maximum of $100,000 $200,000 for the construction of each
91 alternative-fuel fueling stations station;
92 (c) No government agency shall be entitled to receive an aggregate
93 amount of more than $100,000 in loans for new alternative-fueled motor
94 vehicle purchases or motor vehicle conversions in any fiscal year, nor shall
95 any government agency be entitled to receive an aggregate amount of
96 more than $100,000 $200,000 in loans for construction of alternative-fuel
97 fueling stations in any fiscal year.
98 (d) Government agencies receiving loans from the alternative-fuels
99 government fleet loan fund shall, as a condition of receiving and using
100 the loans:
101 (1) Agree to use the alternative fuel for which any alternative-fueled
102 motor vehicle which is purchased or converted using loan proceeds;
103 (2) agree to notify the secretary in writing if a motor vehicle converted
104 using loan proceeds becomes inoperable through mechanical failure or
105 accident and to pursue a remedy outlined in rules and regulations;
106 (3) provide reasonable data requested by the secretary on the per-
107 formance of alternative-fueled motor vehicles purchased or converted
108 with loan proceeds;
109 (4) submit alternative-fueled motor vehicles purchased or converted
110 with loan proceeds to reasonable inspections by the secretary as required
111 by rules and regulations; and
112 (5) make alternative-fuel fueling stations constructed with loan pro-
113 ceeds available to other government alternative-fueled fleets and, within
114 the capacity of the fueling facility, to public alternative-fueled motor ve-
115 hicle operators.
116 (e) Each loan agreement entered into under this section shall fix the
117 terms of repayment and shall provide for interest payable on the loan.
118 Such interest may be at fixed or variable rates. Such terms of repayment
119 shall be fixed to require a loan repayment schedule not to exceed four
120 years. When developing repayment schedules for loans, the secretary shall
121 consider the projected savings to the government agency resulting from
122 the use of an alternative fuel.
123 (f) The secretary shall develop uniform application forms to be used
124 for all loans.
125 (g) The secretary shall evaluate the plans developed by the applicant
126 government agency for converting its fleet to operate on alternative fuels
127 and shall give preference in making loans to those government agencies
128 which are prepared to make substantial investments of their own funds
129 in converting their fleets to operate on alternative fuels and which are
130 prepared to work cooperatively with the state, other government agencies
131 and private sector persons in developing an alternative-fuels fueling in-
132 frastructure in the state.
133 (h) The secretary may utilize the collection procedures provided in
134 K.S.A. 75-6201 et seq., and amendments thereto, to collect delinquent
135 loan payments by deducting the delinquent amount from payments from
136 state agencies to the government agency that is delinquent in its loan
137 repayment.
138 Sec. 4. K.S.A. 79-32,201 is hereby amended to read as follows: 79-
139 32,201. (a) Any taxpayer who makes expenditures for a qualified alter-
140 native-fueled motor vehicle property or alternative-fuel fueling station
141 shall be allowed a credit against the income tax imposed by article 32 of
142 chapter 79 of the Kansas Statutes Annotated, as follows:
143 (1) For any qualified alternative-fueled motor vehicle property placed
144 in service on or after January 1, 1996, and before January 1, 1999 2005,
145 an amount equal to 50% of the total amount expended incremental cost
146 or conversion cost for each qualified alternative-fueled motor vehicle
147 property but not to exceed $2,500 $3,000 for each such motor vehicle
148 with a gross vehicle weight of less than 10,000 lbs.; $5,000 for a heavy
149 duty motor vehicle with a gross vehicle weight of greater than 10,000 lbs.
150 but less than 26,000 lbs.; and $50,000 for motor vehicles having a gross
151 vehicle weight of greater than 26,000 lbs.;
152 (2) for any qualified alternative-fueled motor vehicle property placed
153 in service on or after January 1, 1999 2005, an amount equal to 40% of
154 the total amount expended incremental cost or conversion cost for each
155 qualified alternative-fueled motor vehicle property, but not to exceed
156 $2,000 $2,400 for each such motor vehicle with a gross vehicle weight of
157 less than 10,000 lbs.; $4,000 for a heavy duty motor vehicle with a gross
158 vehicle weight of greater than 10,000 lbs. but less than 26,000 lbs.; and
159 $40,000 for motor vehicles having a gross vehicle weight of greater than
160 26,000 lbs.;
161 (3) for any qualified alternative-fuel fueling station placed in service
162 on or after January 1, 1996, and before January 1, 2005, an amount equal
163 to 50% of the total amount expended for each qualified alternative-fuel
164 fueling station but not to exceed $200,000 for each fueling station;
165 (4) for any qualified alternative-fuel fueling station placed in service
166 on or after January 1, 2005, an amount equal to 40% of the total amount
167 expended for each qualified alternative-fuel fueling station, but not to
168 exceed $160,000 for each fueling station.
169 (b) If no credit has been claimed pursuant to subsection (a), a credit
170 in an amount not exceeding the lesser of 5% of the cost of the vehicle or
171 $750 shall be allowed to a taxpayer who purchases a motor vehicle
172 equipped by the vehicle manufacturer with qualified alternative-fueled
173 motor vehicle property an alternative fuel system and who is unable or
174 elects not to determine the exact basis attributable to such property. The
175 credit under this subsection shall be allowed only to the first individual
176 to take title to such motor vehicle, other than for resale.
177 (c) The tax credit under subsection (a) or (b) shall be deducted from
178 the taxpayer's income tax liability for the taxable year in which the ex-
179 penditures are made by the taxpayer. If the amount of the tax credit
180 exceeds the taxpayer's income tax liability for the taxable year, the amount
181 which exceeds the tax liability may be carried over for deduction from
182 the taxpayer's income tax liability in the next succeeding taxable year or
183 years until the total amount of the tax credit has been deducted from tax
184 liability, except that no such tax credit shall be carried over for deduction
185 after the third taxable year succeeding the taxable year in which the ex-
186 penditures are made.
187 (d) As used in this section:
188 (1) "Alternative fuel" has the meaning provided by 42 U.S.C. 13211.
189 (2) "Qualified alternative-fueled motor vehicle property" means:
190 (A) Equipment installed to modify a motor vehicle which is propelled
191 by gasoline so that the vehicle may be propelled by an alternative fuel;
192 (B) a motor vehicle originally equipped to be propelled only by an
193 alternative fuel, but only to the extent of the portion of the basis of such
194 motor vehicle which is attributable to the storage of such fuel, the delivery
195 to the engine of such motor vehicle of such fuel and the exhaust of gases
196 from combustion of such fuel; or
197 (C) property which is directly related to the delivery of an alternative
198 fuel into the fuel tank of a motor vehicle propelled by such fuel, including
199 compression equipment and storage tanks for such fuel at the point where
200 such fuel is so delivered but only if such property is not used to deliver
201 such fuel into any other type of storage tank or receptacle and such fuel
202 is not used for any purpose other than to propel a motor vehicle.
203 (2) "Qualified alternative-fueled motor vehicle" means a motor ve-
204 hicle that operates on an alternative fuel, meets or exceeds the clean fuel
205 vehicle standards in the federal clean air act amendments of 1990, Title
206 II and meets one of the following categories:
207 (A) Bi-fuel motor vehicle: A motor vehicle with two separate fuel sys-
208 tems designed to run on either an alternative fuel or conventional fuel,
209 using only one fuel at a time;
210 (B) dedicated motor vehicle: A motor vehicle with an engine designed
211 to operate on a single alternative fuel only; or
212 (C) flexible fuel motor vehicle: A motor vehicle that may operate on
213 a blend of an alternative fuel with a conventional fuel, such as E-85 (85%
214 ethanol and 15% gasoline) or M-85 (85% methanol and 15% gasoline),
215 as long as such motor vehicle is capable of operating on at least an 85%
216 alternative fuel blend.
217 (3) "Qualified alternative-fuel fueling station" means the property
218 which is directly related to the delivery of alternative fuel into the fuel
219 tank of a motor vehicle propelled by such fuel, including the compression
220 equipment, storage vessels and dispensers for such fuel at the point where
221 such fuel is delivered but only if such property is primarily used to deliver
222 such fuel for use in a qualified alternative-fueled motor vehicle.
223 (4) "Incremental cost" means the cost that results from subtracting
224 the manufacturer's list price of the motor vehicle operating on conven-
225 tional gasoline or diesel fuel from the manufacturer's list price of the same
226 model motor vehicle designed to operate on an alternative fuel.
227 (5) "Conversion cost" means the cost that results from modifying a
228 motor vehicle which is propelled by gasoline or diesel to be propelled by
229 an alternative fuel.
230 (3) (6) "Taxpayer" means any person who owns and operates a fleet
231 of 10 or more motor vehicles and the average fuel consumption for such
232 fleet of motor vehicles is equal to or greater than 2,000 gallons per year
233 qualified alternative-fueled vehicle licensed in the state of Kansas or who
234 makes an expenditure for a qualified alternative-fuel fueling station.
235 (4) (7) "Person" means every natural person, association, partnership,
236 limited liability company, limited partnership or corporation.
237 (e) The provisions of this section shall apply to all taxable years com-
238 mencing after December 31, 1995.
239 (f) The provisions of this section shall become effective on and after
240 January 1, 1996.
241 Sec. 5. K.S.A. 75-37,116, 75-37,117, 75-37,119 and 79-32,201 are
242 hereby repealed.
243 Sec. 6. This act shall take effect and be in force from and after its
244 publication in the statute book.