House Status:
Senate Status:
Senate Status:
Minutes for HB2543 - Committee on Taxation
Short Title
Amending the definition of alternative fuel for the alternative-fueled motor vehicle property expenditure tax credit.
Minutes Content for Tue, Feb 18, 2020
Adam Siebers, Assistant Revisor stated HB2543 would change the definition of alternative fuel for the alternative-fuel tax credit to include fuel containing at least 15.0% ethanol or methanol, or 10.0% biodiesel. Currently this credit is available only for a qualified alternative-fueled motor vehicle or alternative-fuel fueling stations.
Proponents:
Randy Stookey, Renew Kansas Biofuels Association testified for HB2543 stating the bill amends the definition of alternative fuel in existing law. Alternative fuel includes at least 15% ethanol or methanol and 10% biodeisel. He noted with this amendment the law would be clarified to ensure the existing income tax credit applies to alternative fuel investments at fueling stations. The bill will promote further investment in the number and availability of alternative fuel pumps allowing the customer access to higher blends of ethanol and biodiesel fuel (Attachment 1).
Josh Roe, Kansas Corn Growers Association testified for HB2543 noting the bill clarifies what constitutes an alternative fuel for the existing tax credit to retailers who install alternative fueling stations. Mr. Roe provided a chart in his testimony showing the growth of biofuels in Kansas for 2019. The growth in E15 demand is not just in Kansas but nationwide with sales growing by more than 50% in 2019 (Attachment 2).
Bob Alderson testified on behalf of Casey's General Stores, testified for HB2543 that clarified the definition of alternative fuel applicable to the income tax credit provided for a qualified alternative-fueled motor vehicle or alternative-fuel fueling station. Mr. Alderson provided a list of equipment, its cost and the labor costs to install the equipment for a qualified alternative-fuel fueling station. Total current cost is approximately $84,000. He noted the taxpayer is entitled to a tax credit of 40% of total amount spent for each qualified alternative-fuel fueling station but not to exceed $100,000. for each fueling station (Attachment 3).
Kenlon Johannes, Kansas Soybean Association testified for HB2543 stating the bill amends the definition of alternative fuel to include 10% biodiesel or B10 as usually referred to in the marketplace. She noted based on 2018 production numbers, diodiesel added more than $120 million in revenue to the Kansas soybean corp. Providing an incentive for fuel retailers to build infrastructure to sell more homegrown fuel is an investment by the state (Attachment 4).
Written only testimony as a proponent for HB2543 was presented by:
Tom Palace, Petroleum Marketers and Convenience Store Association of Kansas, (Attachment 5).
Adam York, Kansas Grain Sorghum Producers Association, (Attachment 6).
Opponents:
Steve Christenberry, representing himself, testified against HB2543 stating he had three issues regarding the bill which is listed in his testimony. He noted the bill is designed to amend in providing tax credits to individuals who purchase alternative-fueled vehicles and businesses that establish an alternative-fuel fueling stations (Attachment 7).
Written only testimony as an opponent to HB2543 was presented by:
Tami Alexander, Metropolitan Energy Center, (Attachment 8).
Kent Eckles, Kansas Petroleum Council, (Attachment 9).
Hearing closed for HB2543.
