Other Programs & Incentives

Listed below are additional state and federal incentives and programs that are available to Kansas residents to encourage investments in energy efficiency and alternative energy.

Click here for programs & incentives specifically aimed at businesses.

Energy Efficiency Incentives

Energy-efficiency Improvements to Existing Homes

Contact: Call 1-800-829-1040 or contact your local Internal Revenue Service office.
For 2009, Congress has reintroduced tax credits for energy-efficiency improvements to existing homes (they were previously offered during 2006 and 2007). These federal income tax credits are available for home improvements completed from January 1, 2009, to December 31, 2010, including insulation, energy-efficient windows and doors, energy-efficient biomass fueled stoves (not included in previous versions), and more. Homeowners can claim up to $1,500 in combined tax credits, including any tax credits that may have been claimed in 2006 and 2007. Previously, the tax credit was capped at $500, but it was increased $1,500 under a provision of the American Recovery and Reinvestment Act of 2009. Click here for information about qualified improvements.

U.S. Department of Agriculture Rural Development’s Home Ownership Program (502 direct and guarantee program)

Contact: Call Norman Reed, USDA Rural Development, Kansas Office, 785-271-2718.
This program provides very low interest loans (1%) to rural homeowners (with incomes that are 50% or less of the area’s median income) 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.

Alternative Energy Incentives

Plug-in Electric Vehicles Tax Credit

Contact: Call 1-800-829-1040 or contact your local Internal Revenue Service office.
Individuals who purchase plug-in electric hybrids after January 1, 2009, are eligible to receive a federal income tax credit. The amount of this tax credit ranges from $2,500 to $7,500, depending on the vehicle model, and is phased out after a manufacturer has sold 250,000 eligible vehicles. Note: This is a new program under the American Recovery and Reinvestment Act of 2009.

Alternative Motor Vehicle Tax Credit

Contact: Call 1-800-829-1040 or contact your local Internal Revenue Service office.
This federal tax credit is available to individuals purchasing hybrid-electric and advanced lean burn technology vehicles from January 1, 2006, through December 31, 2010. The amount of this tax credit depends on the vehicle model; the credit is phased out after a manufacturer has sold 60,000 eligible vehicles (e.g., new purchases of vehicles manufactured by Toyota, including Lexus, or Honda no longer qualify).

Alternative-Fuel Tax Credit

Contact: Kansas Department of Revenue [tac@kdor.state.ks.us], 785-368-8222.
Individuals purchasing qualified alternative-fueled vehicles after January 1, 1996, are eligible for state income tax credits, the amount of which differs depending on the weight of the vehicle and whether the vehicle was purchased before January 1, 2005. For vehicles purchased before July 1, 2007, a wide variety of alternative-fueled vehicles are eligible, but for vehicles purchased on or after July 1, 2007, only vehicles that run on biomass-derived fuels are eligible. Click here for details on eligible alternative-fueled vehicles.

Solar Water Heating Tax Credit

Contact: Call 1-800-829-1040 or contact your local Internal Revenue Service office.
This federal tax credit is available to homeowners who install qualified solar water heating systems between January 1, 2006, and December 31, 2016. The credit is equal to 30% of the costs, originally capped at $2,000, but cap has been removed for systems installed after January 1, 2009, under a provision of the American Recovery and Reinvestment Act of 2009.

Photovoltaic Electricity Tax Credit

Contact: Call 1-800-829-1040 or contact your local Internal Revenue Service office.
This federal tax credit is available to homeowners who install photovoltaic systems between January 1, 2006, and December 31, 2016. The credit is equal to 30% of the costs, originally capped at $2,000, but cap has been removed for systems installed after January 1, 2009, under a provision of the American Recovery and Reinvestment Act of 2009.

Small Wind Energy Systems Tax Credit

Contact: Call 1-800-829-1040 or contact your local Internal Revenue Service office.
Homeowners installing wind turbines from January 1, 2008, to December 31, 2016, are eligible for a tax credit equal to 30% of the turbine cost, up to $4,000 or $500 per each half kilowatt of installed nameplate capacity, whichever is less. For systems installed on or after January 1, 2009, the cap was removed under a provision of the American Recovery and Reinvestment Act of 2009.

Geothermal Heat Pump Tax Credit

Contact: U.S. Internal Revenue Service (IRS), 1-800-829-4933, or local IRS office
Homeowners who install geothermal heat pumps from October 3, 2008, to December 31, 2016, are eligible for a federal tax credit equal to 30% of the unit's cost. For qualified geothermal heat pumps installed before January 1, 2009, the maximum amount that can be claimed in tax credits is $2,000. Geothermal heat pumps installed on or after January 1, 2009, are not subject to this maximum limit under a provision of the American Recovery and Reinvestment Act of 2009.

Fuel Cell Tax Credit

Contact: Call 1-800-829-1040 or contact your local Internal Revenue Service office.
Homeowners installing fuel cells that have at least a half-kilowatt of capacity from January 1, 2006, to December 31, 2016, are eligible for a tax credit of 30% of cost (up to $1,500 per half kilowatt of capacity).

Click here for useful links related to tax credits.

Click here for programs & incentives specifically aimed at businesses.