Qualified Agricultural Ethyl Alcohol Producer Incentive

The Kansas Qualified Agricultural Ethyl Alcohol Producer Fund enables qualified agricultural ethyl alcohol producers to apply to the Department of Revenue for a production incentive. Producers who were in production before July 1, 2001 may receive $0.05 for each gallon sold to an alcohol blender during 2002, 2003, and 2004. For a capacity increase by 5,000,000 gallons over base sales, $0.075 may be collected per gallon sold that is in excess of base sales (up to 15,000,000 gallons). Producers who started production after July 1, 2001 and who have sold at least 5,000,000 gallons may receive $0.075 for each gallon sold (up to 15,000,000 gallons). As of February 2004, six producers were participating in the program. Ethyl alcohol incentive application and report forms are available from the Kansas Department of Revenue.