SS/SCS/SB 354 - This act modifies several provisions relating to tax credits.COMMITTEE APPROVAL OF TAX CREDITS
Current law prohibits the issuance or certification of new tax credits for a fiscal year unless the estimate of such credits has been reviewed and approved by a majority of the Senate Appropriations Committee and the House Budget Committee. This act repeals such provision. (Section 33.282)
This provision is identical to a provision contained in SCS/HCS/HB 849 (2021).
WOOD ENERGY TAX CREDIT
A tax credit for the production of certain wood-energy processed wood products expired on June 30, 2020. This act extends the tax credit until June 30, 2027. (Section 135.305)
This provision is identical to SB 127 (2021), HB 393 (2021), SB 674 (2020), and HB 2274 (2020), and to a provision contained in HCS/HB 601 (2021), HCS/HB 693 (2021), SS/SCS/HB 948 (2021), HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020), HCS/SS#2/SB 704 (2020), and SB 454 (2019).
MEAT PROCESSING FACILITIES TAX CREDIT
Current law authorizes the Meat Processing Facility Investment Tax Credit for the expansion or modernization of meat processing facilities, with such tax credit program to expire December 31, 2021. This act extends such tax credit until December 31, 2027.
This act also provides that the maximum amount of tax credits that may be issued to a meat processing facility may be increased by ten percent for meat processing facilities located in a county of the second, third, or fourth class. (Section 135.686)
This provision is substantially similar to SB 355 (2021) and to a provision contained in HCS/HB 601 (2021), SS/SCS/HB 948 (2021), and HCS/HB 1095 (2021).
FILM PRODUCTION TAX CREDIT
This act creates the "Show Missouri Film and Digital Media Act".
This act reauthorizes a tax credit for certain expenses related to the production of qualified film production projects in this state, as defined in the act. Tax credits for such expenses under previous law expired on November 28, 2013.
For all tax years beginning on or after January 1, 2021, this act authorizes a tax credit equal to 25% of qualifying in-state expenses, as defined in the act, and 10% of qualifying out-of-state expenses, as defined in the act, associated with the production of a qualified film production project. An additional 5% may be awarded for both qualifying in-state and out-of-state expenses if at least 50% of the qualified film production project is filmed in Missouri. A further additional 5% may be awarded for both qualifying in-state and out-of-state expenses if the Department of Economic Development determines that the script for such project positively markets a city or region of the state, the entire state, or a tourist attraction located in the state. The total dollar amount of tax credits awarded to a qualified film production project may be increased by ten percent if such project is located in a county of the second, third, or fourth class.
This provision shall sunset on December 31, 2027, unless reauthorized by the General Assembly. (Section 135.750)
This provision is substantially similar to SB 367 (2021), SB 366 (2020), HB 923 (2019), HB 1661 (2018), and HB 788 (2017), and to a provision contained in SS/SCS/HB 948 (2021).
ETHANOL FUEL TAX CREDIT
For all tax years beginning on or after January 1, 2022, this act authorizes a tax credit for retail dealers selling higher ethanol blend at the retail dealer's service station, as such terms are defined in the act. The credit shall be equal to five cents per gallon of higher ethanol blend sold and dispensed through metered pumps at the service station during the tax year. The tax credit shall be nontransferable and nonrefundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $4 million.
This provision shall sunset on December 31, 2027, unless reauthorized by the General Assembly. (Section 135.755)
This provision is identical to SCS/SB 140 (2021) and to a provision contained in SS/SCS/HB 948 (2021), and is substantially similar to a provision contained in HCS/SS/SCS/SB 4 (2021) and HCS/HB 601 (2021).
ROLLING STOCK TAX CREDIT
This act reauthorizes a tax credit for eligible expenses incurred in the manufacture, maintenance, or improvement of a freight line company's qualified rolling stock, which expired on August 28, 2020. Such credit shall be reauthorized until August 28, 2027. (Section 137.1018)
This provision is identical to SB 418 (2021) and is substantially similar to SB 1081 (2020) and to a provision contained in HCS/SCS/SB 616 (2020) and SB 454 (2019).
AGRICULTURAL PRODUCTION TAX CREDITS
Current law authorizes tax credits for contributions to the Missouri Agriculture and Small Business Development Authority and investments in new generation cooperatives for the purpose of development of agricultural business, with such tax credit programs to expire December 31, 2021. This act extends such tax credits until December 31, 2027. (Section 348.436)
This provision is identical to a provision contained in HCS/HB 601 (2021), HCS/HB 693 (2021), and SS/SCS/HB 948 (2021).
BIODIESEL FUEL TAX CREDIT
This act creates the Missouri Made Fuels Act.
Under the act, all diesel fuel sold or offered for sale in Missouri for use in internal combustion engines shall contain at least five percent biodiesel fuel oil by volume by April 1, 2023.
The minimum content levels shall only be effective if there is a sufficient supply of biodiesel available and the amount of biodiesel produced in this state from feedstock grown or produced in the United States is equal to at least eighty percent of the anticipated demand at the maximum mandated minimum content level.
The minimum biodiesel content levels shall not apply to certain equipment or purposes listed in the act.
Requirements for bills of lading or shipping manifests for diesel fuel and for biodiesel-blended products are listed in the act.
A violation of the act is a Class A misdemeanor.
This provision is substantially similar to SCS/SB 96 (2021) and to a provision contained in HCS/HB 601 (2021), and is similar to SCS/SB 568 (2020) and HCS/HB 1858 (2020).
For all tax years beginning on or after January 1, 2022, this act also authorizes a tax credit for retail dealers selling higher biodiesel blend at the retail dealer's service station, as such terms are defined in the act. The credit shall be equal to five cents per gallon of higher biodiesel blend sold and dispensed through metered pumps at the service station during the tax year. The tax credit shall be nontransferable and nonrefundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $4 million.
This provision shall sunset on December 31, 2027, unless reauthorized by the General Assembly. (Sections 414.152 and 414.600)
QUALIFIED RESEARCH EXPENSES
A tax credit for a portion of qualified research expenses, as defined in federal law, expired on December 31, 2004. This act reauthorizes such tax credit. Tax credits issued under the act shall not exceed ten million dollars in any year, provided that five million dollars of such tax credits shall be reserved for minority business enterprises, women's business enterprises, and small businesses, as defined in the act.
This provision shall sunset on December 31, 2030, unless reauthorized by the General Assembly. (Section 620.1039)
This provision is identical to SCS/SB 545 (2021) and is substantially similar to HCS/HB 690 (2021).
CAPITOL COMPLEX TAX CREDIT
This act creates the Capitol Complex Tax Credit Act.
The Capitol Complex Fund is authorized to receive any eligible monetary donation, as defined in the act, and shall be segregated into two accounts: a rehabilitation and renovation account, and a maintenance account. Ninety percent of the revenues deposited into the fund shall be placed in the rehabilitation and renovation account and seven and one-half percent of revenues deposited in the fund shall be placed in the maintenance account. The remaining two and one-half percent of the funds may be used for the purposes of fundraising, advertising, and administrative costs.
The choice of projects for which money is to be used, as well as the determination of the methods of carrying out the project and the procurement of goods and services, shall be made by the Commissioner of Administration. No moneys shall be released from the fund for any expense without the approval of the Commissioner of Administration.
For all taxable years beginning on or after January 1, 2021, any qualified donor, as defined in the act, shall be allowed a credit against any state income tax (except employer withheld taxes) or state taxes imposed on financial institutions for an amount equal to fifty percent of the monetary donation amount. Any amount of tax credit that exceeds the qualified donor's state income tax liability may be refunded or carried forward for the following four years.
For all taxable years beginning on or after January 1, 2021, a qualified donor shall be allowed a credit against any state income tax (except employer withheld taxes) or state taxes imposed on financial institutions for an amount equal to thirty percent of the value of the eligible artifact donation, as defined in the act. Any amount of tax credit that exceeds the donor's tax liability shall not be refunded for artifacts, but the credit may be carried forward for four subsequent years.
The Department of Economic Development shall not issue tax credits for donations to the Capitol Complex Fund in excess of $10 million per year in the aggregate. Donations received in excess of the cap shall be placed in line for tax credits the following year. Alternatively, a donor may donate without receiving the credit or may request that their donation is returned.
Tax credits issued for donations under this act are not subject to any fee. Tax credits issued under this act may be assigned, transferred, sold, or otherwise conveyed.
This provision shall sunset August 28, 2027, unless reauthorized by the General Assembly. (Section 620.3210)
This provision is identical to SB 36 (2021), SCS/SB 586 (2020), and HCS/HB 1713 (2020), and to a provision contained in SCS/HCS/HB 849 (2021), HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020), and HCS/SS#2/SB 704 (2020), and is substantially similar to SB 255 (2019) and to a provision contained in SB 545 (2018), HB 2691 (2018) and SCS/SB 6 (2017).
JOSH NORBERG