An income tax credit is available for 40% of the total cost to install alternative fueling infrastructure after January 1, 2009. Qualified property must be directly related to the delivery of alternative fuel into the fuel tank of a motor vehicle propelled by such fuel. The tax credit may not exceed $100,000 per fueling station. Alternative fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, visit the Alternative Fuel Tax Credit page.

An income tax credit is available for 40% of the incremental or conversion cost for qualified AFVs, based on gross vehicle weight rating (GVWR), between $2,400 and $40,000. Qualified AFVs include vehicles that operate on a combustible liquid derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source.

Alternatively, a tax credit of 5% of the cost of the AFV, up to $750, is available for the purchase of an original equipment manufacturer AFV. This credit is allowed only to the first individual to take title of the vehicle. For motor vehicles capable of operating on E85, the individual claiming the credit must provide evidence of purchasing at least 500 gallons of E85 between the time the vehicle was purchased and December 31, of the following calendar year. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, visit the Alternative Fuel Tax Credit page.

Kansas Gas Service offers rebates for NGV purchases or conversions in the amount of $3,000 for a dedicated or bi-fuel vehicle. Compressed natural gas equipment must be certified by the U.S. EPA or California Air Resources Board. For more information, including the rebate application form, visit the CNG Rebate Program website.

Kansas Soybean Commission offers fleets and individuals based in Kansas, using diesel-powered equipment, rebates up to $2,000 ($200 for individuals) for using biodiesel blends above 10%. For more information, including the rebate application form, visit the Biodiesel Rebate Program webpage.

Missouri residents can claim an income tax credit for the cost of constructing a qualified alternative fueling station (including home EVSE). The credit is 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment or electric vehicle supply equipment (EVSE), up to $1,500 for individuals or $20,000 for businesses. Tax credits may be carried forward for two years and may be transferred or sold, but will be forfeited if a tax credit recipient stops dispensing alternative fuel or electricity for vehicle charging. This tax credit expires on January 1, 2018. For more information, see the Missouri Alternative Fuel Infrastructure Tax Credit website.

Missouri Soybean Merchandising Council and Missouri Soybean Association provide up to $200,000 for businesses, cooperatives and other entities looking to build new or retrofit existing biodiesel infrastructure, from blending and distribution to fleet and retail locations. Applicants may receive up to 25% of the required cash match for federal funding. For more information, including the application form, please see MOSoy’s Biodiesel Infrastructure Program website.