Senate tax committee hears bill to create 5¢/gallon E15 retailer tax credit; proponents say it supports farmers and consumers

The Senate Tax Committee heard testimony on Senate Bill 498, which would discontinue an existing alternative-fuel income tax credit after tax year 2026 and add a five-year retailer credit worth 5¢ per gallon for sales of higher-ethanol blends (E15 or higher) dispensed through metered pumps. The bill would limit the new credit to tax years 2026 through 2031, make the credit nonrefundable, allow unused credits to carry forward (up to five years for the new credit), and cap total annual credits at $2,500,000.

Amelia, presenting the bill, told the committee the measure would amend KSA provisions to discontinue the current credit for expenditures on qualified alternative-fueled motor vehicles and fueling stations for tax years commencing after 12/31/2026 and would add the new retailer credit and related definitions. "The bill would also add a new…