The veteran act failed to decide which members would be on stage for the concert on 10 April.
They said on their website the "memory of those times" would not be served by a reunion of the original line-up.
Other inductees who will be honoured in New York include Nirvana, Peter Gabriel and Linda Ronstadt.
Musical acts are eligible to be elevated to the Hall of Fame 25 years after their first release.
Kiss, famous for their elaborate stage make-up and costumes, first formed in 1973, including current band members Gene Simmons and Paul Stanley.
Originals Ace Frehley and Peter Criss subsequently quit the group, which continued with different musicians.
Their statement continued: "To bring this to a quick end, we have decided not to play in any line-up, and we will focus our attention on celebrating our induction into the Rock and Roll Hall Of Fame.
"This is understandably an emotional situation where there is no way to please everyone."
Speaking to US rock DJ Eddie Trunk, Frehley claimed Simmons and Stanley had rejected a reunion with their original bandmates.
"It's very frustrating. It's what the fans wanted, it's what the Rock and Roll Hall of Fame wanted, and it's not gonna happen," he said.
The band's statement denied that they had ever scotched a reunion with Frehley and Criss,
This would have marked the original quartet's first performance together in more than 13 years, at the end of a reunion which lasted from 1996-2000.
Frehley and Criss have not confirmed if they will attend the ceremony.
Rock band Kiss have pulled out of their performance at the Rock and Roll Hall of Fame induction in a disagreement over their line-up.