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Bill

Bill

SB 498

Providing income tax credits for the retail sale of higher ethanol blends of fuel and expenditures for lockable gun and ammunition storage and discontinuing income tax credits for qualified alternative-fueled motor vehicle property or fueling station expenditures, agritourism liability insurance, assistive technology contributions, declared disaster capital investment, environmental compliance, owners promoting employment across Kansas and swine facility improvement.

2025-2026 Regular Session

Kansas bill shifts tax incentives from electric vehicles to higher-ethanol fuel blends, eliminating EV credits while creating new retail ethanol fuel credits.

Died in House Committee
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WeVote Research Nonpartisan
Bill Summary · SB 498

Legislative bill overview

SB 498 would create a new income tax credit for retailers selling higher ethanol blend fuels (likely E15 or higher) while eliminating the existing income tax credit for alternative-fueled vehicles and alternative fueling station infrastructure. The bill represents a shift in Kansas tax incentive policy away from electric vehicles and other alternative fuels toward ethanol-based fuel products.

Why is this important

Tax credits directly affect consumer purchasing decisions and business investment by reducing out-of-pocket costs. This change would make ethanol fuel more price-competitive relative to electric vehicles and charging infrastructure, influencing Kansas's energy economy and potentially affecting state revenue. The shift also reflects changing priorities regarding fuel policy and agricultural interests (ethanol is corn-based).

Potential points of contention

  • Agricultural vs. environmental priorities: Ethanol credits benefit corn farmers and fuel retailers, while eliminating EV credits may disadvantage clean energy adoption and environmental goals some Kansans support
  • Cost-benefit analysis: Unclear whether ethanol blend incentives deliver equivalent economic or environmental returns compared to alternative fuel infrastructure investments
  • Revenue impact: Eliminating one tax credit while creating another may result in net revenue loss to the state, requiring justification during budget constraints
  • Consumer choice: Removing EV incentives while promoting ethanol may be seen as government picking winners rather than letting market forces determine fuel preferences

Compiled from official sources — confirm details with the bill’s official record.

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