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SENATE BILL No. 82
AN A CT concerning taxation; relating to income tax; providing a tax credit for
expenditures for lockable gun and ammunition storage; providing a tax credit for the
retail sale of higher ethanol blends of fuel; discontinuing the tax credit for qualified
alternative-fueled motor vehicle property or fueling station expenditures; repealing
unused tax credits relating to agritourism liability insurance, assistive technology
contributions, declared disaster capital investment, owners promoting employment
across Kansas and swine facility improvement; providing for credits for payment of
employee's child care related expenses and certain employer contributions to expand
community child care availability for the child day care services assistance tax credit;
amending K.S.A. 65-7107 and 79-32,201 and K.S.A. 2025 Supp. 79-32,190 and
repealing the existing sections; also repealing K.S.A. 79-32,204, 79-32,262 and 79-
32,266 and K.S.A. 2025 Supp. 32-1438.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) For tax years 2026 through 2028, there shall be
allowed a credit against the tax liability of a resident individual
imposed under the Kansas income tax act in an amount equal to 25% of
the expenditures made by the individual during such tax year to
purchase lockable gun and ammunition storage that is designed
primarily for gun and ammunition storage . The amount of such credit
allowed each tax year shall not exceed $250 for any taxpayer.
(b) If the amount of the credit allowed by subsection (a) exceeds
the taxpayer's income tax liability imposed under the Kansas income
tax act for the tax year in which the credit is allowed, the amount of
credit that exceeds such tax liability may be carried forward for
deduction from the taxpayer's income tax liability in the next
succeeding tax year or years until the total amount of the credit has
been deducted from tax liability.
Sec. 2. On and after January 1, 2027, K.S.A. 65-7107 is hereby
amended to read as follows: 65-7107. (a) Appropriate state agencies are
hereby directed to amend their the state plans of such agencies to
protect the benefits of those families and individuals receiving such
benefits by adding language consistent with the following: Any funds
in an individual development account, including accrued interest, shall
be disregarded when determining eligibility to receive the amount of
any public assistance or benefits.
(b) A program contributor shall be allowed a credit against state
income tax imposed under the Kansas income tax act in an amount
equal to 25% of the contribution amount.
(c) The institute shall verify all tax credit claims by contributors.
The administration of the community-based organization, with the
cooperation of the participating financial institutions, shall submit the
names of contributors and the total amount each contributor contributes
to the individual development account reserve fund for the calendar
year. The institute shall determine the date by which such information
shall be submitted to the institute by the local administrator. The
institute shall submit verification of qualified tax credits pursuant to
K.S.A. 65-7101 through 65-7107, and amendments thereto, to the
department of revenue.
(d) The total tax credits authorized pursuant to this section shall
not exceed $6,250 in any fiscal year.
(e) The provisions of this section shall be applicable to all taxable
years commencing after December 31, 2002.
(f) For tax year 2013 and all tax years thereafter, the income tax
credit provided by this section shall only be available to taxpayers
subject to the income tax on corporations imposed pursuant to
subsection (c) of K.S.A. 79-32,110, and amendments thereto, and shall
be applied only against such taxpayer's corporate income tax liability.
Sec. 3. On and after January 1, 2027, K.S.A. 2025 Supp. 79-
32,190 is hereby amended to read as follows: 79-32,190. (a) Any
taxpayer that pays for or provides expenses related to the provision of
SENATE BILL No. 82—page 2
child day care services, including the provision of the service of
locating such services, to its for the taxpayer's employees or that
provides facilities and necessary equipment for child day care services
shall be allowed a credit against the privilege or income tax imposed by
articles 11 and 32 of chapter 79 of the Kansas Statutes Annotated, and
amendments thereto, as follows for the following expenses:
(1) (A) Paying for child care for employees;
(B) establishing or expanding a child care program that is
primarily used by employees;
(C) paying for referral services that connect employees to child
care providers; and
(D) providing for collaborative child care investment with other
employers.
(2) Subject to the limits set forth in subsection (d), the taxpayer
shall be allowed a credit of 30%75% of the total amount expended
pursuant to the expenses provided in paragraph (1) in the state during
the taxable year by a taxpayer for child day care services purchased to
provide care for the dependent children of the taxpayer's employees or
for the provision of the service of locating such services for such
children;
(2) (A) in the taxable year in which a facility providing child day
care services in the state for use primarily by the dependent children of
the taxpayer's employees is established, 50% of the total amount
expended during such year by a taxpayer in the establishment and
operation of such facility;
(B) in the taxable years other than the taxable year to which
paragraph (2)(A) applies, 30% of the amount equal to the total amount
expended during the taxable year by a taxpayer for the operation of a
facility described in paragraph (2)(A) less the amount of moneys
received by the taxpayer for use of such facility for child day care
services;
(3) (A) in the taxable year in which a facility providing child day
care services in the state for use primarily by the dependent children of
the taxpayers' employees is established in conjunction with one or more
other taxpayers, 50% of the total amount expended during such year by
a taxpayer in the establishment and operation of such facility;
(B) in the taxable years other than the taxable year to which
paragraph (3)(A) applies, 30% of the amount equal to the total amount
expended during the taxable year by a taxpayer for the operation of a
facility described in paragraph (3)(A) less the amount of moneys
received by the taxpayer for use of such facility for child day care
services; and
(4) for all taxable years commencing after December 31, 2020,
50% of the amount equal to the total amount expended during the
taxable year by a taxpayer as payments to an organization providing
access to available child day care services for the taxpayer's employees.
(b) Any employer that financially contributes to a third party that
expands the availability of community child care shall be allowed a
credit against the privilege or income tax imposed by articles 11 and
32 of chapter 79 of the Kansas Statutes Annotated, and amendments
thereto, in an amount for expenses as follows:
(1) (A) Establishing or expanding a child care program, including
support to establish or maintain licensing;
(B) enabling a program to purchase learning materials or play
equipment;
(C) compensating professional development for child care staff;
(D) providing child care tuition assistance for families in need;
and
(E) providing referral services that connect families to child care
SENATE BILL No. 82—page 3
providers.
(2) Subject to the limits set forth in subsection (d), the taxpayer
shall be allowed a credit of:
(A) 75% of the total amount expended pursuant to paragraph (1)
if the recipient accepts and serves children and families receiving a
child care subsidy; or
(B) 50% of the total amount expended pursuant to paragraph (1)
if the recipient does not accept or serve children and families receiving
a child care subsidy.
(c) No credit shall be allowed under this section unless the child
day care facility or provider is licensed pursuant to Kansas law.
(c)(d) The credit allowed by subsection (a)(1), (2)(B) and (3)(B)
subsections (a) and (b) shall not exceed $30,000 $100,000 for any
taxpayer during any taxable year. The credit allowed by subsection (a)
(2)(A), (3)(A) and (4) shall not exceed $45,000 for any taxpayer during
any taxable year. For tax year 202 7, and all tax years thereafter, if the
amount of the credit which exceeds the tax liability for a taxable year
shall be refunded to of the taxpayer, the amount which exceeds the tax
liability may be carried over for deduction from the taxpayer's income
tax liability in the next succeeding taxable year or years until the total
amount of the tax credit has been deducted from tax liability, except
that no such tax credit shall be carried over for deduction after the
third taxable year succeeding the taxable year in which the credit was
first allowed . If the taxpayer is a corporation having an election in
effect under subchapter S of the federal internal revenue code or a
partnership, the credit provided by this section shall be claimed by the
shareholders of such corporation or the partners of such partnership in
the same manner as such shareholders or partners account for their
proportionate shares of the income or loss of the corporation or
partnership.
(d)(e) The aggregate amount of credits claimed under this act for
any fiscal year shall not exceed $3,000,000.
(e) For tax years 2013 through 2020, the income tax credit
provided by this section shall only be available to taxpayers subject to
the income tax on corporations imposed pursuant to K.S.A. 79-
32,110(c), and amendments thereto, and shall be applied only against
such taxpayer's corporate income tax liability.
(f) As used in this section, "community child care" means a for-
profit or not-for-profit provider of child care services that is open at
least nine hours per day and located within 45 miles of the employer
that is seeking the credit or such employer's offices.
Sec. 4. K.S.A. 79-32,201 is hereby amended to read as follows:
79-32,201. (a) Any taxpayer who makes expenditures for a qualified
alternative-fueled motor vehicle or alternative-fuel fueling station shall
be allowed a credit against the income tax imposed by article 32 of
chapter 79 of the Kansas Statutes Annotated, as follows:
(1) For any qualified alternative-fueled motor vehicle placed in
service on or after January 1, 1996, and before January 1, 2005, an
amount equal to 50% of the incremental cost or conversion cost for
each qualified alternative-fueled motor vehicle but not to exceed
$3,000 for each such motor vehicle with a gross vehicle weight of less
than 10,000 lbs.; $5,000 for a heavy duty motor vehicle with a gross
vehicle weight of greater than 10,000 lbs. but less than 26,000 lbs.; and
$50,000 for motor vehicles having a gross vehicle weight of greater
than 26,000 lbs.;
(2) For any qualified alternative-fueled motor vehicle placed in
service on or after January 1, 2005, and before January 1, 2027, an
amount equal to 40% of the incremental cost or conversion cost for
each qualified alternative-fueled motor vehicle, but not to exceed
SENATE BILL No. 82—page 4
$2,400 for each such motor vehicle with a gross vehicle weight of less
than 10,000 lbs.; $4,000 for a heavy duty motor vehicle with a gross
vehicle weight of greater than 10,000 lbs. but less than 26,000 lbs.; and
$40,000 for motor vehicles having a gross vehicle weight of greater
than 26,000 lbs.;
(3) for any qualified alternative-fuel fueling station placed in
service on or after January 1, 1996, and before January 1, 2005, an
amount equal to 50% of the total amount expended for each qualified
alternative-fuel fueling station but not to exceed $200,000 for each
fueling station;
(4) for any qualified alternative-fuel fueling station placed in
service on or after January 1, 2005, and before January 1, 2009, an
amount equal to 40% of the total amount expended for each qualified
alternative-fuel fueling station, but not to exceed $160,000 for each
fueling station; and
(5)(2) for any qualified alternative-fuel fueling station placed in
service on or after January 1, 2009, and before January 1, 2027, an
amount equal to 40% of the total amount expended for each qualified
alternative-fuel fueling station, but not to exceed $100,000 for each
fueling station.
(b) If no credit has been claimed pursuant to subsection (a), a
credit in an amount not exceeding the lesser of 5% of the cost of the
vehicle or $750 shall be allowed to a taxpayer who purchases a motor
vehicle equipped by the vehicle manufacturer with an alternative fuel
system and who is unable or elects not to determine the exact basis
attributable to such property. The credit under this subsection shall be
allowed only to the first individual to take title to such motor vehicle,
other than for resale. The credit under this subsection for motor
vehicles which are capable of operating on a blend of 85% ethanol and
15% gasoline shall be allowed for taxable years commencing after
December 31, 1999, and before January 1, 2027, only if the individual
claiming the credit furnishes evidence of the purchase, during the
period of time beginning with the date of purchase of such vehicle and
ending on December 31 of the next succeeding calendar year, of 500
gallons of such ethanol and gasoline blend as may be required or is
satisfactory to the secretary of revenue.
(c) The tax credit under subsection (a)(1) through (a)(4) or (b)
shall be deducted from the taxpayer's income tax liability for the
taxable year in which the expenditures are made by the taxpayer. If the
amount of the tax credit exceeds the taxpayer's income tax liability for
the taxable year, the amount which exceeds the tax liability may be
carried over for deduction from the taxpayer's income tax liability in
the next succeeding taxable year or years until the total amount of the
tax credit has been deducted from tax liability, except that no such tax
credit shall be carried over for deduction after the third taxable year
succeeding the taxable year in which the expenditures are made.
(d) The tax credit under subsection (a)(5) (a)(2) shall be deducted
from the taxpayer's income tax liability for the taxable year in which
the expenditures are made by the taxpayer. If the amount of the tax
credit exceeds the taxpayer's income tax liability for the taxable year,
the amount which exceeds the tax liability may be carried over for
deduction from the taxpayer's income tax liability in the next
succeeding taxable year or years until the total amount of the tax credit
has been deducted from tax liability, except that no such tax credit shall
be carried over for deduction after the fourth taxable year in which the
expenditures are made.
(e) As used in this section subsections (a) through (g):
(1) "Alternative fuel" means a combustible liquid derived from
grain starch, oil seed, animal fat or other biomass; or produced from
SENATE BILL No. 82—page 5
biogas source, including any nonfossilized, decaying, organic matter.
(2) "Qualified alternative-fueled motor vehicle" means a motor
vehicle that operates on an alternative fuel, meets or exceeds the clean
fuel vehicle standards in the federal clean air act amendments of 1990,
Title II and meets one of the following categories:
(A) Bi-fuel motor vehicle: A motor vehicle with two separate fuel
systems designed to run on either an alternative fuel or conventional
fuel, using only one fuel at a time;
(B) dedicated motor vehicle: A motor vehicle with an engine
designed to operate on a single alternative fuel only; or
(C) flexible fuel motor vehicle: A motor vehicle that may operate
on a blend of an alternative fuel with a conventional fuel, such as E-85
(85% ethanol and 15% gasoline) or M-85 (85% methanol and 15%
gasoline), as long as such motor vehicle is capable of operating on at
least an 85% alternative fuel blend.
(3) "Qualified alternative-fuel fueling station" means the property
which is directly related to the delivery of alternative fuel into the fuel
tank of a motor vehicle propelled by such fuel, including the
compression equipment, storage vessels and dispensers for such fuel at
the point where such fuel is delivered but only if such property is
primarily used to deliver such fuel for use in a qualified alternative-
fueled motor vehicle.
(4) "Incremental cost" means the cost that results from subtracting
the manufacturer's list price of the motor vehicle operating on
conventional gasoline or diesel fuel from the manufacturer's list price
of the same model motor vehicle designed to operate on an alternative
fuel.
(5) "Conversion cost" means the cost that results from modifying
a motor vehicle which is propelled by gasoline or diesel to be propelled
by an alternative fuel.
(6) "Taxpayer" means any person who owns and operates a
qualified alternative-fueled vehicle licensed in the state of Kansas or
who makes an expenditure for a qualified alternative-fuel fueling
station.
(7) "Person" means every natural person, association, partnership,
limited liability company, limited partnership or corporation.
(f) Except as otherwise more specifically provided, the provisions
of this section shall apply to all taxable years commencing after
December 31, 1995.No tax credits shall be allowed pursuant to
subsections (a) through (g) for tax years commencing after December
31, 2026, except that for taxpayers who have excess unused credit
pursuant to a credit initially claimed under subsections (a) through (g)
for a tax year commencing before January 1, 2027, the credit carry
over provisions of subsections (c) and (d) still apply.
(g) For tax year 2013 and all tax years thereafter, the income tax
credit provided by this section subsections (a) through (g) shall only be
available to taxpayers subject to the income tax on corporations
imposed pursuant to subsection (c) of K.S.A. 79-32,110 (c), and
amendments thereto, and shall be applied only against such taxpayer's
corporate income tax liability.
(h) (1) For taxable years 2026 through 2028, there shall be
allowed a credit against the tax liability imposed under the Kansas
income tax act for a retail dealer that sells higher ethanol blend at
such retail dealer's retail service station. The amount of the credit shall
equal $0.05 per gallon of higher ethanol blend sold by the retail dealer
on a retail basis and dispensed through metered pumps at the retail
dealer's retail service station during the tax year for which the tax
credit is claimed.
(2) Any unused credit amounts may be carried forward for up to
SENATE BILL No. 82—page 6
three taxable years immediately following the taxable year for which
the credits were allowed. The credit shall not be refundable.
(3) The total amount of tax credits issued pursuant to this
subsection shall not exceed $2,500,000 per tax year. In the event that
the total amount of tax credits claimed under this subsection exceeds
the maximum amount of tax credits available for the tax year, the
maximum total amount of tax credits for the tax year of $2,500,000
shall be apportioned or divided among all eligible retail dealers that
claimed the tax credit on or before April 15 following the close of the
taxable year. In an apportionment, each such eligible retail dealer's
share of the tax credit shall be in the proportion that the number of
gallons of higher ethanol blend sold and reported to the department by
such retail dealer bears to the total of all gallons of higher ethanol
blend sold and reported to the department by all eligible retail dealers
claiming the tax credit on or before the deadline.
(4) As part of any claim for tax credits pursuant to this subsection,
the retail dealer shall include an annual report to the department on a
form prescribed by the department. The report shall include the
following information:
(A) The name and address of the retail dealer;
(B) the total number of gallons of higher ethanol blend sold by the
retail dealer on a retail basis and dispensed through metered pumps at
the retail service station or stations owned or operated by the retail
dealer during the tax year for which the tax credit is claimed; and
(C) any other documentation or information required by the
department.
(5) As used in this subsection:
(A) "Department" means the department of revenue.
(B) "Higher ethanol blend" means ethanol blended fuel E15, as
defined in 40 C.F .R. § 1090.80, as in effect on July 1, 2026, or any
higher percent ethanol blend.
(C) "Retail dealer" means a person, firm or corporation doing
business in this state that owns or operates a retail service station in
this state.
(D) "Retail service station" means a location in this state from
which higher ethanol blend is sold to the general public and is
dispensed directly into motor vehicle fuel tanks for consumption.
Sec. 5. K.S.A. 79-32,201 is hereby repealed.
Sec. 6. On and after January 1, 2027, K.S.A. 65-7107, 79-32,204,
79-32,262 and 79-32,266 and K.S.A. 2025 Supp. 32-1438 and 79-
32,190 are hereby repealed.
SENATE BILL No. 82—page 7
Sec. 7. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
__________________________
SENATE adopted
Conference Committee Report ________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.
Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED _____________________________
_________________________
Governor.