SECONDREGULARSESSION
HOUSEBILLNO.2126
101STGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEFRANCIS.
4512H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection135.686,RSMo,andtoenactinlieuthereofonenewsectionrelatingtoa
taxcreditfortheexpansionofmeatprocessingfacilities.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section135.686,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection135.686,toreadasfollows:
135.686.1.Thissectionshallbeknownandmaybecitedasthe"MeatProcessing
2FacilityInvestmentTaxCreditAct".
3 2.Asusedinthissection,thefollowingtermsmean:
4 (1)"Authority",theagriculturalandsmallbusinessdevelopmentauthority
5establishedinchapter348;
6 (2)"Meatprocessingfacility",anycommercialplant,asdefinedundersection
7265.300,atwhichlivestockareslaughteredoratwhichmeatormeatproductsareprocessed
8forsalecommerciallyandforhumanconsumption;
9 (3)"Meatprocessingmodernizationorexpansion",constructing,improving,or
10acquiringbuildingsorfacilities,oracquiringequipmentformeatprocessingincludingthe
11following,ifusedexclusivelyformeatprocessingandifacquiredandplacedinserviceinthis
12stateduringtaxyearsbeginningonorafterJanuary1,2017,butendingonorbefore
13December31,[2021] 2028:
14 (a)Buildingconstructionincludinglivestockhandling,productintake,storage,and
15warehousefacilities;
16 (b)Buildingadditions;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (c)Upgradestoutilitiesincludingwater,electric,heat,refrigeration,freezing,and
18wastefacilities;
19 (d)Livestockintakeandstorageequipment;
20 (e)Processingandmanufacturingequipmentincludingcuttingequipment,mixers,
21grinders,sausagestuffers,meatsmokers,curingequipment,cookingequipment,pipes,
22motors,pumps,andvalves;
23 (f)Packagingandhandlingequipmentincludingsealing,bagging,boxing,labeling,
24conveying,andproductmovementequipment;
25 (g)Warehouseequipmentincludingstorageandcuringracks;
26 (h)Wastetreatmentandwastemanagementequipmentincludingtanks,blowers,
27separators,dryers,digesters,andequipmentthatuseswastetoproduceenergy,fuel,or
28industrialproducts;
29 (i)Computersoftwareandhardwareusedformanagingtheclaimant'smeat
30processingoperationincludingsoftwareandhardwarerelatedtologistics,inventory
31management,productionplantcontrols,andtemperaturemonitoringcontrols;and
32 (j)Constructionorexpansionofretailfacilitiesorthepurchaseorupgradeofretail
33equipmentforthecommercialsaleofmeatproductsiftheretailfacilityislocatedatthesame
34locationasthemeatprocessingfacility;
35 (4)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,excluding
36withholdingtaximposedundersections143.191to143.265,orotherwisedueunderchapter
37147;
38 (5)"Taxpayer",anyindividualorentitywho:
39 (a)Issubjecttothetaximposedunderchapter143,excludingwithholdingtax
40imposedundersections143.191to143.265,orthetaximposedunderchapter147;
41 (b)Inthecaseofanindividual,isaresidentofthisstateasverifiedbya911address
42or,intheabsenceofa911system,aphysicaladdress;and
43 (c)Ownsameatprocessingfacilitylocatedinthisstateandemploysacombined
44totaloffewerthanfivehundredindividualsinallmeatprocessingfacilitiesownedby
45theindividualorentityinthiscountry;
46 (6)"Usedexclusively",usedtotheexclusionofallotherusesexceptforusenot
47exceedingfivepercentoftotaluse.
48 3.ForalltaxyearsbeginningonorafterJanuary1,2017,butendingonorbefore
49December31,[2021] 2028, ataxpayershallbeallowedataxcreditformeatprocessing
50modernizationorexpansionrelatedtothetaxpayer'smeatprocessingfacility.Thetaxcredit
51amountshallbeequaltotwenty-fivepercentoftheamountthetaxpayerpaidinthetaxyear
52formeatprocessingmodernizationorexpansion.
HB2126 2 53 4.Theamountofthetaxcreditclaimedshallnotexceedtheamountofthetaxpayer's
54statetaxliabilityforthetaxyearforwhichthecreditisclaimed.Notaxcreditclaimedunder
55thissectionshallberefundable.Thetaxcreditshallbeclaimedinthetaxyearinwhichthe
56meatprocessingmodernizationorexpansionexpenseswerepaid,butanyamountofcredit
57thatthetaxpayerisprohibitedbythissectionfromclaiminginataxyearmaybecarried
58forwardtoanyofthetaxpayer'sfoursubsequenttaxyears.Thetotalamountoftaxcredits
59thatanytaxpayermayclaimshallnotexceedseventy-fivethousanddollarsperyear.Iftwoor
60morepersonsownandoperatethemeatprocessingfacility,eachpersonmayclaimacredit
61underthissectioninproportionto[hisorher]suchperson'sownershipinterest;exceptthat,
62theaggregateamountofthecreditsclaimedbyallpersonswhoownandoperatethemeat
63processingfacilityshallnotexceedseventy-fivethousanddollarsperyear.Theamountoftax
64creditsauthorizedinthissection[andsection135.679] inacalendaryearshallnotexceedtwo
65milliondollars.Taxcreditsshallbeissuedonanas-receivedapplicationbasisuntilthe
66calendaryearlimitisreached.Anycreditsnotissuedinanycalendaryearshallexpireand
67shallnotbeissuedinanysubsequentyear.
68 5.Toclaimthetaxcreditallowedunderthissection,thetaxpayershallsubmittothe
69authorityanapplicationforthetaxcreditonaformprovidedbytheauthorityandany
70applicationfeeimposedbytheauthority.Theapplicationshallbefiledwiththeauthorityat
71theendofeachcalendaryearinwhichameatprocessingmodernizationorexpansionproject
72wascompletedandforwhichataxcreditisclaimedunderthissection.Theapplicationshall
73includeanycertifieddocumentation,proofofmeatprocessingmodernizationorexpansion,
74andanyotherinformationrequiredbytheauthority.Allrequiredinformationobtainedbythe
75authorityshallbeconfidentialandnotdisclosedexceptbycourtorder,subpoena,oras
76otherwiseprovidedbylaw.Ifthetaxpayerandthemeatprocessingmodernizationor
77expansionmeetallcriteriarequiredbythissectionandapprovalisgrantedbytheauthority,
78theauthorityshallissueataxcreditcertificateintheappropriateamount.Taxcredit
79certificatesissuedunderthissectionmaybeassigned,transferred,sold,orotherwise
80conveyed,andthenewownerofthetaxcreditcertificateshallhavethesamerightsinthetax
81creditastheoriginaltaxpayer.Ifataxcreditcertificateisassigned,transferred,sold,or
82otherwiseconveyed,anotarizedendorsementshallbefiledwiththeauthorityspecifyingthe
83nameandaddressofthenewownerofthetaxcreditcertificateandthevalueofthetaxcredit.
84 6.Anyinformationprovidedunderthissectionshallbeconfidentialinformation,to
85besharedwithnooneexceptstateandfederalanimalhealthofficials,exceptasprovidedin
86subsection5ofthissection.
87 7.Theauthorityshallpromulgaterulesestablishingaprocessforverifyingthata
88facility'smodernizationorexpansionforwhichtaxcreditswereallowedunderthissection
89hasinfactexpandedthefacility'sproductionwithinthreeyearsoftheissuanceofthetax
HB2126 3 90creditandifnot,theauthorityshallpromulgatethroughrulemakingaprocessbywhichthe
91taxpayershallrepaytheauthorityanamountequaltothatofthetaxcreditallowed.
92 8.Theauthorityshall,atleastannually,submitareporttotheMissourigeneral
93assemblyreviewingthecostsandbenefitsoftheprogramestablishedunderthissection.
94 9.Theauthoritymaypromulgaterulestoimplementtheprovisionsofthissection.
95Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatiscreatedunder
96theauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandis
97subjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissection
98andchapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
99pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannula
100rulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandany
101ruleproposedoradoptedafterAugust28,2016,shallbeinvalidandvoid.
102 10.ThissectionshallnotbesubjecttotheMissourisunsetact,sections23.250to
10323.298.
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