Substitute for HB 2012 by Committee on Agriculture and Natural Resources - Establishing the ethanol grant program fund and transferring an amount of not to exceed $5,000,000 from the state general fund to the ethanol grant program fund each July 1 beginning in 2026.

HB 2012 provides a $0.05 per gallon tax credit for retail fuel dealers and distributors selling ethanol blends containing 15% to 85% ethanol at Kansas retail service stations or directly to end users. The credit applies to tax years 2026 through 2031, with a yearly cap of $5 million total across all businesses. Unused credits can be carried forward for up to five years, but the credit cannot be refunded. This bill directly affects businesses selling ethanol-blended fuels in Kansas, including gas stations and fuel distributors.