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Minutes for HB2499 - Committee on Taxation
Short Title
Providing a tax credit for expenditures for placing into service a qualified alternative-fuel fueling station.
Minutes Content for Tue, Feb 11, 2020
Adam Siebers provided an overview on HB2499 stating the bill is an income tax credit for alternative fuel fueling stations for tax years 2020 and 2021. He stated that as the bill is currently drafted it would allow an income tax credit of 75 percent of an eligible taxpayer's expenditures for placing into service a qualified alternative-fueling station which is a defined term under the bill as a metered for fee public access recharging system for motor vehicles propelled in whole or in part by electricity. The total amount of tax credits would be capped at $15.0 million for each tax year. The tax credit would be non-transferable and non-refundable and can be carried forward for up to five tax years.
The Committee reviewed the fiscal note for HB2499.
Proponents:
David Jankowsky, Francis Energy, LLC testified as a proponent for HB2499 stating they are owners and operators of high speed charging public infrastructure for electric vehicles. Francis Energy contends that Kansas and other states across the region should incentivize private capital to install a statewide network direct current, fast charging (DCFC) charging by supporting HB2499 (Attachment 4).
Daniel Lofland with the Oklahoma Electric Cooperative testified as a proponent for HB2499 discussing the construction of a statewide electric vehicle charging station network. The development of a statewide EV charging network is critical for all EV buyers but also as the benefits of electric vehicle adoption flows to electric cooperatives and also becomes a benefit to all consumers with this state (Attachment 5).
Doug Shepherd, Kansas Electric Cooperatives testified as a proponent for HB2499 noting the bill creates a limited duration tax credit for the installation of electric vehicle charging stations. He noted the public chargers serve two purposes which are to complete an EV charging network throughout the state and second encourage quicker adoption of electric vehicles. He stated in summary this is a good benefit for the state in providing a network that will allow travelers to cross the state, a win for electric utilities to grow sales and reduce costs, and for potential electric vehicle owners. (Attachment 6).
Jonathan Lucas, Towanda, Kansas testified as a proponent for HB2499 stating he has a perspective on owning electric vehicles stating in the beginning he was able to drive 60 miles and the car he owns now can travel 240 miles before plugging in. He provided a map showing the penetration in Kansas of the DCFCs ability drivers have to stop at a fast charger and charge up for about 30 minutes. He noted a large portion of the state does not have fast chargers which covers most of Highway 400 outside of the Wichita area (Attachment 7).
Written only testimony as a proponent to HB2499 was presented by:
Representative Scott Fetgatter, Oklahoma House of Representatives (Attachment 8).
Laura Maag Lutz, Evergy Electric (Attachment 9).
Neutral:
Dr. Joe Haslag, Economics Professor at the University of Missouri-Columbia testified as neutral to HB2499 stating he was commissioned by Francis Energy to conduct a national study to understand the dynamics of how the market is playing out but also provide quantitative evidence due to very little data available. The projected view of the size of the market is huge and within ten years 50 percent of all vehicles will be electric vehicles. He noted the Department of Transportation predicts by 2030 there will be 15 million electric vehicles operating across the country. There are the following three things that govern this which are 1) issue of the price of the vehicles; 2) battery range is increasing from 60 miles to 300 miles and higher; and 3) the issue that needs to be addressed is the coordination failure of re-charging stations and short re-charging periods comparable to refueling for a internal-combustion engine (Attachment 10).
Jeff McClanahan, Kansas Corporation Commission testified as neutral to HB2499 stating previously there was a comment made or question regarding who provides electricity for the EV charging stations which would be the certificated electric public utility that serves the area. Kansas is divided geographically and utilities are certificated for specific geographic areas in which they serve which includes cooperatives, municipalities and the investment owned utilities. It is illegal for anyone other than the certificated electric public utility to provide retail electric service. He stated HB2585 is scheduled for a hearing in House Energy, Utilities, and Telecommunication Committee on February 13, 2020. The bill has a proposed amendment to make it legal for third -parties to buy retail electricity from a utility and resell the electricity which under the provision of HB2499 would no longer be illegal (Attachment 11).
Opponents:
Elizabeth Patton, Americans for Prosperity-Kansas testified as an opponent to HB2499 provided information showing a current list of public charging stations that are currently available in Kansas. This bill is expensive subsidies and corporate favoritism that will benefit households and companies who do not need these subsidies at the expense of everyone else (Attachment 12).
Written only testimony as an opponent to HB2499 was presented by:
J. Kent Eckles, Americans for Prosperity Kansas (Attachment 13).
Airika Walker, American Fuel & Petrochemical Manufactures (Attachment 14).
Michael Austin, Kansas Policy Institute (Attachment 15)
Hearing closed for HB2499.
