In this section
Tax & Incentive Profile
INFORMATION FOR BOTH KANSAS AND MISSOURI IS PRESENTED BELOW.
Wind and Solar Energy Bond Financing Program
The state of Kansas is allowed to issue up to $5 million in bond financing for eligible wind and solar energy manufacturers locating in Kansas. The bonds are paid off from the payroll withholding of the new jobs created. To qualify, a project must create at least 200 new jobs within five years, pay at least a $32,500 average salary and generate a minimum capital investment of $30 million.
Legislation enacted in May 2009 established net metering for customers of investor-owned utilities in Kansas. The rules allow residential systems up to 25 kilowatts and non-residential systems up to 200 kilowatts to offset onsite electricity consumption.
Renewables Portfolio Standard
Legislation enacted in May 2009 established a renewables portfolio standard (RPS) for Kansas which requires the state's investor owned utilities and certain cooperative utilities to generate or purchase a certain amount of their electricity from eligible renewable resources. Kansas' standard is based on generation capacity (kilowatts).
The required generation capacity can be produced by wind, solar thermal, photovoltaics (PV), dedicated crops grown for energy production, cellulosic agricultural residues, plant residues, methane from landfills or wastewater treatment, clean and untreated wood products, existing hydropower that has a nameplate rating of 10 megawatts or less, fuel cells using hydrogen produced by an eligible renewable resource.
The compliance schedule sets the following minimums:
Biodiesel Fuel Producer Incentive
The state of Kansas offers to pay $.30 for each gallon of biodiesel sold by the producer. $50,000 per quarter is added to the fund, during fiscal year 2011, for distribution. If production exceeds the fund balance, a proration of the distribution is performed. The program is scheduled to sunset July 1, 2016.
Carbon Dioxide Capture/Sequestration Tax Deduction
The Kansas Department of Revenue will administer funds to taxpayers to assist with costs associated with the carbon dioxide capture, sequestration or utilization machinery. The taxpayer is entitled to a deduction from Kansas adjusted gross income with respect to the amortization of the amortizable costs of their measures for a 10-year period. The amortization deduction will be an amount equal to 55% of the amortizable costs of the equipment for the first taxable year the machinery operates in and 5% of the amortizable costs of the equipment for the following nine (9) years.
Legislation enacted in January 2008 requires all electric utilities--investor-owned utilities, municipal utilities and electric cooperatives -- to offer net metering to customers with systems up to 100 kilowatts in capacity that generate electricity using wind energy, solar-thermal energy, hydroelectric energy, photovoltaics, fuel cells using hydrogen produced by one of the aforementioned resources, and other sources of energy certified as renewable by the Missouri Department of Natural Resources.
Systems must be intended primarily to offset part or all of a customer's own electricity requirements, and must be located on a premises owned, operated, leased or otherwise controlled by the customer.
Renewables Portfolio Standard
In November 2008, Missouri enacted a mandatory, renewable electricity standard of 15% by 2021 for investor-owned utilities. The standard also contains a solar electricity carve-out of 2% of each interim portfolio requirement meaning that by 2021, 0.3% of retail electricity sales must be derived from solar electricity.
The definition of eligible renewables includes electricity produced using solar photovoltaics; solar thermal; wind; small hydropower; biogas from landfills and wastewater treatment plans; various form of biomass; fuel cells using hydrogen from renewable resources; and other resources approved by the Missouri Department of Natural Resources.
The standard sets the following minimum benchmarks for electric utilites on their annual electricity sales:
DEFINING THE GREATER KC METRO AREA
Kansas City is a Missouri/Kansas bi-state metropolitan area. All statistical references made to Kansas City Metropolitan Statistical Area (MSA) include the counties of Cass, Clay, Clinton, Jackson, Lafayette, Platte and Ray in Missouri, and Johnson, Leavenworth, Miami and Wyandotte counties in Kansas. The greater Kansas City area also includes the adjoining Lawrence, KS, St. Joseph, MO, and Topeka, KS MSAs, as well as the Atchison, KS, Chillicothe, MO, Ottawa, KS, and Warrensburg, MO areas.