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Minutes for HB2317 - Committee on Taxation
Short Title
Providing a tax credit for expenditures for placing a qualified alternative-fuel fueling station into service.
Minutes Content for Thu, Feb 25, 2021
Chairperson Smith opened the hearing for HB2317.
Adam Siebers, Assistant Revisor provided an overview for HB2317 stating the bill provides a tax credit for tax years 2021, 2022, and 2023 against the income, privilege or premium tax liability in an amount equal to 75% of the expenditures incurred in the placing into service a qualified alternative-fuel fueling station during the tax year. The amount of credit allowed shall not exceed $4.0 million in tax year 2021; $8.0 million for tax year 2022; and $12.0 million for tax year 2023. The credit is non-refundable; however, it can be carried forward for the next four succeeding tax years. (Attachment 1)
Kathleen Smith, Kansas Department of Revenue provided information on the fiscal note for HB2317 stating the bill would decrease the State General Fund revenues in FY2022, FY2023, and FY2024. The Department does not have data on the number of electric charging stations that would be placed into service in tax years 2021, 2022, and 2023 to make a precise estimate of the fiscal effect.
Proponents:
David Jankowsky, Founder and President, Francis Energy testified as a proponent for HB2317 stating Francis Energy is an Oklahoma based owner and operator of public access, direct-current fast chargers (DCFC) with a record of success and over 350 superchargers already installed across 115 locations. Oklahoma's 75% alternative fuel infrastructure tax credit is similar to HB2317 that enabled Francis Energy and other companies to develop a statewide network of DCFC in the state in less than two years. Oklahoma has a network of chargers located every 50 miles across the state including rural and tribal communities. HB2317 is an incentive to attract private capital to facilitate the build out of publicly accessible DCFC's and create a marketplace for the sale of electric vehicles. The total project cost to install an individual supercharge unit can easily exceed $100,000.00. (Attachment 2)
Mr. Jankowsky responded to questions from Committee members.
In response to a question regarding the last paragraph of the fiscal note for HB2317, Kathleen Smith stated the way the bill is written allows insurance companies to claim a credit against an insurance premium tax.
Dr. Joseph Haslag, Ph.D, Professor of Economics, University of Missouri testified via Webex as a proponent for HB2317 stating the economic impact for the investment will be applied to the construction of EV charging stations and the projected discounted gain of real gross domestic product is just less than $220 million over the next 20 years. Electric vehicle drivers will pay more in annual road tax and the projected discounted increase in state tax collections is $80.3 million over 20 years. As the tax bill expands in the State of Kansas, he is projecting Kansas will yield a little over $14 million in additional revenue. Together, Kansas will collect $94.07 million on a projected, discounted basis over 20 years. (Attachment 3)
Dr, Haslag responded to questions from Committee members.
Representative Scott Fetgatter, Oklahoma State Representative testified via Webex as a proponent for HB2317 stating he co-sponsored legislation similar to the bill to extend the alternative fuels tax credit that brought a number of benefits such as new business investment, job creation, and increases in tax revenue and in gross domestic product. The Oklahoma tax incentive is 75% for the cost of alternative fueling infrastructure and 45% tax incentive to purchase an alternative fuel vehicle. He stated it is important for legislators to understand the reality that electric vehicles are coming and will continue to grow over the next ten years and for Kansas and other states to join in the effort to create a comprehensive regional network of EV chargers. (Attachment 4)
Representative Fetgatter responded to questions from Committee members.
Becky Schwartz, Fuel True, Independent Fuel and Convenience Store testified as a proponent for HB2317 stating their members are starting to change their business models to incorporate alternative fueling options. She stated HB2145 passed out of the House Committee on Energy, Utilities & Telecommunications that allows facilities to charge by Kilowatt hour and is the first step for their members to be able to provide border to border coverage for electric cars. If HB2145 and HB2317 passes it will encourage more convenience stores to add the infrastructure for electric cars. (Attachment 5)
Ms. Schwartz responded to questions from Committee members.
Written only testimony as a proponent for HB2317 was submitted by the following:
Kelly Gilbert, Executive Director, Metropolitan Energy Center and Tami Alexander, Sr. Program Coordinator, Central Kansas Clean Cities (Attachment 6)
Doug Shepherd, Vice President of Management Consulting Services, Kansas Electric Cooperatives, Inc. (Attachment 7)
Chairperson Smith closed the hearing for HB2317.
