Energy Division

A Division of the Kansas Corporation Commission, funded through the federal State Energy Program (SEP).

Other Programs and Incentives

Listed below are other state and federal incentives and programs that are available to Kansas homeowners/individuals and businesses to encourage investments in energy efficiency and alternative energy.

Incentives for Homeowners/Individuals

U.S. Department of Agriculture Rural Development's Direct Housing Loans

Contact: USDA Rural Development, Kansas Office, 785-271-2700.
This program provides low interest loans to rural homeowners for critical home improvements, which can include energy efficiency improvements such as weatherization, insulation, and new heating systems. Financing is usually limited to loans with 1% interest rates. Note: The "guaranteed" part of this program provides reduced interest rates for financing of new homes built to an approved energy-efficiency standard.

Federal Tax Credits for Consumer Energy Efficiency

Contact: Call 1-800-829-1040 or contact your local Internal Revenue Service office.
For 2017-2020, tax credits are available for geothermal heat pumps, small wind turbines, solar energy systems (solar water heaters and photovoltaic systems), and fuel cells in existing homes and new construction. See Energy Star website for more details.

Alternative Fuel Vehicle Refueling Property Credit

You may be eligible for a credit under Section 30C(c), if you purchased alternative fuel vehicle refueling property before January 1, 2017 and placed it in service in the year in which you claim the credit. For individuals (not for business purposes) the credit is limited to $1,000 for all qualified property at a location. Eligible alternative fuels are hydrogen, electricity, and other qualified alternative fuels as defined in Section 30C(c).

Tax Credits, Rebates and Savings

Follow the link to view incentives that may be applicable for the State of Kansas.

Kansas Housing Resources Corporation

Home weatherization assistance eligibility and application instruction.

Incentives for Businesses

Tax Credits, Rebates and Savings

Follow the link to view incentives that may be applicable for the State of Kansas.

Rural Energy for America Program Grant (REAP Grants)

Contact: USDA Rural Development, Kansas Office, 785-271-2736
This program, administered by USDA Rural Development, provides grants for small businesses in rural areas to perform energy audits, make energy efficiency improvements, and install renewable energy systems. These funds are awarded on a competitive basis, based on financial need and technical feasibility. Loans guaranteed by this program must be for no more that 50% of qualified project costs.

Facility Conservation and Improvement Program (FCIP)

Contact: Lynn Retz [This email address is being protected from spambots. You need JavaScript enabled to view it.]
This state program enables public agencies (state, municipalities, counties, and schools) to use energy-savings performance contracting to access financing for energy efficiency and conservation projects and streamlines procurement. Tax-exempt financing with a low interest rate makes projects more economical and reduces the pay-back period. Click here for more information on FCIP.

Idle Reduction Equipment Excise Tax Exemption

Contact: U.S. Internal Revenue Service (IRS), 1-800-829-4933, or local IRS office
Businesses that invest in qualified on-board idle-reduction devices and systems in heavy-duty trucks are exempt from the federal excise tax imposed on the retail sale of heavy-duty trucks and trailers. This tax exemption only applies to equipment sold after October 3, 2008.

Economic Revitalization and Reinvestment Act - Wind and Solar Bond Financing

Contact: Randi Tveitaraas Jack [This email address is being protected from spambots. You need JavaScript enabled to view it.], Kansas Department of Commerce, 785-296-7868.
This program allows for up to $5 million in bond financing per project for eligible wind and solar energy manufacturers. The bonds are paid off from the payroll withholding tax of the new jobs. 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.

Advanced Technology Vehicle Manufacturing Loan Program

Contact: The U.S. Department of Energy, 1-800-342-5363
The Advanced Technology Vehicle Manufacturing Loan Program (ATVM), administered by the Department of Energy, provides loans to manufacturers of automobiles and automobile parts to help cover the costs of re-equipping, expanding, and establishing manufacturing facilities that manufacture advanced technology vehicles.

Alternative-Fuel Tax Credit

Contact: Kansas Department of Revenue, 785-368-8222
Beginning in tax year 2013, this credit shall only be available to corporations that are subject to the Kansas corporate income tax, i.e. C corporations. This credit shall not be available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.

Business Energy Investment Tax Credit (ITC)

Contact: U.S. Internal Revenue Service (IRS), 1-800-829-4933, or local IRS office
The Consolidated Appropriations Act signed in December 2015 included several amendments to this credit which apply to solar technologies and PTC-eligible technologies. The expiration date for the technologies was extended, with a gradual step down of the credits between 2019 and 2022.

Renewable Electricity Production Tax Credit (PTC)

Contact: U.S. Internal Revenue Service (IRS), 1-800-829-4933, or local IRS office
Wind, geothermal, closed-loop biomass and solar systems are eligible for some tax credits.

Rural Energy for America Program Rural Energy for America Program Grants/Renewable Energy Systems/Energy Efficiency Improvement Program (REAP/RES/EEI)

Contact: USDA Rural Development, Kansas Office, 785-271-2736
This program, administered by USDA Rural Development, provides grants to agricultural producers and rural small businesses to perform energy audits, make energy efficiency improvements, and install renewable energy systems. These funds are awarded on a competitive basis, and are limited to a maximum of 25% of eligible project costs.

Certified Development Company Economic Development Loan Program

Contact: U.S. Small Business Administration, This email address is being protected from spambots. You need JavaScript enabled to view it. , 1-800-827-5722, for a listing of private-sector lenders in your area.
Also know as SBA 504 loans, these loans are administered by private-sector nonprofit organizations to allow small business owners to buy, build, or renovate commercial real estate. These loans can be used to purchase energy efficient machinery and equipment, or to conduct other energy efficiency renovations. Interest rates and terms of such loans are subject to market conditions.

U.S. Department of Energy Guaranteed Loan Program

Contact: U.S. Department of Energy, Loan Guarantee Program Office, 202-586-8336
This program provides loan guarantees to eligible commercial projects that utilize advanced renewable energy technologies. These loans are awarded on a competitive basis. Under the American Recovery and Reinvestment Act of 2009, $6 billion of loan guarantees will target renewable-energy power generation and transmission projects.

Business and Industry Guaranteed Loan (B&I) Program

Contact: USDA Rural Development, Kansas Office, 785-271-2736
For businesses looking to invest in programs that create jobs and stimulate rural economics, the Rural Development division of the Department of Agriculture (USDA) will guarantee up to 80% of a loan made by a commercial lender. This program is limited to investments that create jobs in rural areas and cities with populations under 50,000.

Intermediary Relending Program (IRP)

Contact: USDA Rural Development, Kansas Office, 785-271-2736
USDA Rural Development, through intermediaries, provides loans for businesses that are developing business facilities or community development projects. These funds are only available for use in rural areas, including cities with a population of less than 25,000.

Rural Business Enterprise Grant (RBEG) Program

Contact: USDA Rural Development, Kansas Office, 785-271-2736
USDA Rural Development—through public entities, nonprofit corporations, and federally recognized Indian tribal groups—provides financing to facilitate development of small and emerging private businesses. These funds are only available for use outside of cities with more than 50,000 people.

Waste Heat Utilization System Tax Credit

Contact: Kansas Department of Revenue, 785-296-3070
Systems designed to capture waste heat generated in the process of generating electricity and to use this heat to generate additional electricity or to produce renewable fuels are exempt from state property taxes for 10 years following the installation of such equipment. In addition, after December 31, 2006, businesses may amortize the cost of the waste heat system for deductions on their state income tax.

High Performance Incentive Program (HPIP)

Contact: Ed Bryan [This email address is being protected from spambots. You need JavaScript enabled to view it.], Kansas Department of Commerce, 785-296-7174
Companies that pay above-average wages and meet investment requirements for developing the skills of their workers are eligible to receive an investment tax credit equal to 10% of eligible investments that exceed $50,000. This investment tax credit cannot be taken in conjunction with the investment tax credit offer through the Enterprise Zone Incentives program.

Investment Tax Credits for Microturbines and Fuel Cells

Contact: 1-800-829-4933 or your local Internal Revenue Service office.
For microturbines, the credit is equal to 10 percent of expenditures, with no maximum credit limit stated (explicitly). The credit for microturbines is capped at $200 per kW of capacity. Eligible property includes microturbines up to two megawatts (MW) that have an electricity-only generation efficiency of 26 percent or higher. For fuel cells, the credit is equal to 30 percent of expenditures, with no maximum credit. However, the credit for fuel cells is capped at $1,500 per 0.5 kilowatt (kW) of capacity. Eligible property includes fuel cells with a minimum capacity of 0.5 kW that have an electricity-only generation efficiency of 30 percent or higher. (The credit for property placed in service before October 4, 2008, is capped at $500 per 0.5 kW.)

Combined Heat and Power Investment Tax Credit

Contact: U.S. Internal Revenue Service (IRS), 1-800-829-4933, or local IRS office
The credit is equal to 10% of expenditures, with no maximum limit stated. Eligible CHP property generally includes systems up to 50 MW in capacity that exceed 60% energy efficiency, subject to certain limitations and reductions for large systems. The efficiency requirement does not apply to CHP systems that use biomass for at least 90% of the system's energy source, but the credit may be reduced for less-efficient systems. This credit applies to eligible property placed in service after October 3, 2008.

Carbon Dioxide Capture/Sequestration Tax Deduction

Contact: Kansas Department of Revenue, 785-296-3070
Businesses are allowed to deduct from state income taxes the amortized costs of machinery and equipment used to capture and sequester carbon dioxide. The amortization deduction is equal to 55% of the costs of such machinery and equipment for the first taxable year, and 5% in subsequent years.

 

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