SB 4 - This act modifies several provisions relating to agricultural tax relief.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 December 31, 2028. (Section 135.305)
This provision is substantially similar to SB 677 (2022), HB 1862 (2022), SB 127 (2021), HB 393 (2021), SB 674 (2020), and HB 2274 (2020), and to a provision in CCS/SS/SCS/HCS/HB 1720 (2022), SB 644 (2022), SCS/SB 705 (2022), SCS/SB 750 (2022), SB 986 (2022), SS/SCS/SB 354 (2021), 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
The Meat Processing Facility Investment Tax Credit for the expansion or modernization of meat processing facilities expired on December 31, 2021. This act extends such tax credit until December 31, 2028.
This act also modifies the definition of "taxpayer" to require that a taxpayer shall own a meat processing facility located in this state and employs a combined total of fewer than 500 individuals in all meat processing facilities owned by the individual in the United States.
Current law limits the total amount of tax credits that may be authorized in a calendar for the Meat Processing Facilities tax credit and the Qualified Beef tax credit to $2 million. This act allows $2 million in tax credits for the Meat Processing Facilities tax credit without regard for the amount of Qualified Beef tax credits issued. (Section 135.686)
This provision is substantially similar to HB 2126 (2022), SB 355 (2021), and to a provision in CCS/SS/SCS/HCS/HB 1720 (2022), SCS/SB 705 (2022), SCS/SB 750 (2022), SB 986 (2022), SB 644 (2022), SS/SCS/SB 354 (2021), HCS/HB 601 (2021), SS/SCS/HB 948 (2021), and HCS/HB 1095 (2021).
ETHANOL FUEL TAX CREDIT
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit for retail dealers selling higher ethanol blend at the retail dealer's service station and distributors selling higher ethanol blend directly to the final user located in this state, 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 $5 million.
This act shall sunset on December 31, 2028, unless reauthorized by the General Assembly. (Section 135.755)
This provision is substantially similar to SB 707 (2022), HCS/HB 1695 (2022), and SCS/SB 140 (2021), and to a provision in CCS/SS/SCS/HCS/HB 1720 (2022), SCS/SB 705 (2022), SCS/SB 750 (2022), SS/SCS/SB 354 (2021), SS/SCS/HB 948 (2021), HCS/SS/SCS/SB 4 (2021), and HCS/HB 601 (2021).
BIODIESEL RETAIL SALE TAX CREDIT
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit for retail dealers selling biodiesel blend at the retail dealer's service station and distributors selling biodiesel blend directly to the final user located in this state, as such terms are defined in the act. The credit shall be equal to two cents per gallon of biodiesel blend of between 5-10%, and five cents per gallon of biodiesel blend of between 10-20% sold and dispensed at the service station during the tax year.
Tax credits authorized by the act shall not be transferable but shall be refundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $16 million. If the amount of tax credits claimed during the fiscal year exceed such amount, the tax credits shall be equally apportioned among the retail dealers claiming the credit by April 15 of such year.
This provision shall sunset on December 31, 2028, unless reauthorized by the General Assembly. (Section 135.775)
This provision is substantially similar to a provision in CCS/SS/SCS/HCS/HB 1720 (2022), SCS/SB 705 (2022), SCS/SB 750 (2022), SB 805 (2022), HCS/HB 1875 (2022), and CCS/SB 37 (2021), and is similar to a provision contained in SS/SCS/SB 354 (2021).
BIODIESEL PRODUCTION TAX CREDIT
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit for Missouri biodiesel producers in the amount of two cents per gallon of biodiesel fuel produced by such producer. To qualify for a tax credit, a biodiesel producer shall be a facility that produces biodiesel fuel, is registered with the U.S. Environmental Protection Agency as required by federal law, has begun construction or has been selling biodiesel fuel on or before the effective date of this act.
Tax credits authorized by the act shall not be transferable but shall be refundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $4 million. If the amount of tax credits claimed during the fiscal year exceed such amount, the tax credits shall be equally apportioned among the biodiesel producers claiming the credit by April 15 of such year.
This provision shall sunset on December 31, 2028, unless reauthorized by the General Assembly. (Section 135.778)
This provision is substantially similar to a provision in CCS/SS/SCS/HCS/HB 1720 (2022), SCS/SB 705 (2022), SCS/SB 750 (2022), SB 805 (2022) and HCS/HB 1875 (2022).
URBAN FARMS TAX CREDIT
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit in an amount equal to fifty percent of a taxpayer's expenses incurred in the construction or development of establishing or improving an urban farm in an urban area, as such terms are defined in the act.
The tax credit shall not exceed $5,000 for any single urban farm and shall not be transferable or refundable, but may be carried forward for three years. The total amount of tax credits that may be authorized for all taxpayers for any given urban farm shall not exceed $25,000. The total amount of tax credits authorized under this act during a calendar year shall not exceed $200,000.
The Missouri Agriculture and Small Business Authority shall recapture the amount of tax credits issued to a taxpayer who, after receiving the tax credit, uses the urban farm for the personal benefit of the taxpayer instead of for producing agricultural food products used solely for distribution to the public by sale or donation.
This provision shall sunset after six years unless reauthorized by the General Assembly. (Section 135.1610)
This provision is substantially similar to SB 717 (2022), HB 1570 (2022), HB 2020 (2022), SCS/SB 82 (2021), HB 652 (2021), HB 720 (2021), and HCS/HB 1586 (2020), and to a provision in CCS/SS/SCS/HCS/HB 1720 (2022), SCS/SB 705 (2022), SCS/SB 750 (2022), HB 1919 (2022), CCS/SS/SB 22 (2021), and CCS/HCS/SB 365 (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 December 31, 2028. (Section 137.1018)
This provision is substantially similar to SB 1063 (2022), HB 2647 (2022), SB 418 (2021), and SB 1081 (2020), and to a provision in CCS/SS/SCS/HCS/HB 1720 (2022), SS/SCS/SB 354 (2021), HCS/SCS/SB 616 (2020), and SB 454 (2019).
FARM MACHINERY SALES TAX EXEMPTION
The act modifies a sales tax exemption for certain farm machinery and equipment by providing that the term "farm machinery and equipment" shall include utility vehicles, as defined in the act, that are used for any agricultural purposes. (Section 144.030)
This provision is identical to SB 1152 (2022) and to a provision in CCS/SS/SCS/HCS/HB 1720 (2022) and SS#2/SCS/SB 649 (2022), and is substantially similar to HB 2599 (2022).
AGRICULTURAL PRODUCTION TAX CREDITS
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 expired on December 31, 2021. This act extends such tax credits until December 31, 2028. (Section 348.436)
SPECIALTY AGRICULTURAL CROPS
This act establishes the "Specialty Agricultural Crops Act".
Under the act, the Missouri Agricultural and Small Business Development Authority (MASBDA) shall establish a specialty agricultural crops loan program for family farmers for purposes listed in the act.
To participate in the loan program, a family farmer, as defined in the act, shall first obtain approval for a specialty agricultural crops loan from a lender. Each family farmer shall be eligible for only one loan per family, and the maximum amount of the loan shall be $35,000.
Eligible borrowers shall follow conditions set forth in the act. Once a loan is approved by a lender, the loan shall be submitted to MASBDA for approval. Any eligible lender under the loan program shall be entitled to receive a tax credit equal to 100% of the amount of interest waived by the lender on a qualifying loan for the first year of the loan only.
MASBDA shall be responsible for the administration and issuance of the certificate of tax credits.
These provisions shall sunset after six years, unless reauthorized by the General Assembly. (Sections 348.491 and 348.493)
These provisions are substantially similar to SB 1157 (2022), HB 2720 (2022), and HB 2762 (2022), and to provisions in CCS/SS/SCS/HCS/HB 1720 (2022).
FAMILY FARMS ACT
In current law, "small farmer" is defined in the Family Farms Act as a farmer who is a Missouri resident and who has less than $250,000 in gross sales per year. This act changes the amount of gross sales to less than $500,000 per year.
The act repeals a provision that each small farmer is eligible for only one family farm livestock loan per family and for only one type of livestock.
Additionally, the maximum amount of the family farm livestock loan for each type of livestock under the act is as follows:
• Beef cattle: $150,000
• Dairy cattle: $150,000
• Swine: $70,000; and
• Sheep & goats: $60,000
This provision is identical to SB 817 (2022), HB 1596 (2022), SB 490 (2021), and HB 645 (2021), and to provisions in CCS/SS/SCS/HCS/HB 1720 (2022), SCS/SB 705 (2022), SCS/SB 750 (2022), HCS/HB 601 (2021), and is similar to SB 868 (2020) and HB 2041 (2020). (Section 348.500)
This act contains an emergency clause.
JOSH NORBERG