Authorizes tax credits for the production and sale of biodiesel fuel
Impact
The bill stipulates that tax credits for retail dealers will be granted for sales of biodiesel blends between five and twenty percent, providing two cents per gallon for blends between five and ten percent, and five cents for blends exceeding ten percent. Additionally, Missouri biodiesel producers will receive a tax credit of two cents per gallon produced, with varying amounts based on the origin of the feedstock used. The total yearly tax credits authorized will not exceed four million dollars, with unclaimed credits being refundable if they exceed tax liabilities. This tax credit program is intended to foster the growth of a renewable energy market within the state.
Summary
Senate Bill 805 introduces new tax credits aimed at promoting the use and production of biodiesel fuel in Missouri. It amends Chapter 135 of the Revised Statutes of Missouri by adding two new sections, 135.775 and 135.778. Under these provisions, retail dealers selling biodiesel blends and Missouri biodiesel producers are eligible for tax credits that can alleviate their state income tax liabilities based on the volume of biodiesel sold or produced. This initiative is seen as a step towards incentivizing the production and consumption of renewable fuel sources, contributing to environmental sustainability.
Contention
There are potential points of contention regarding the bill, notably centered around the definitions and regulations governing what is classified as biodiesel fuel. The bill specifies limitations on biodiesel produced from palm oil, potentially impacting producers reliant on this feedstock. Furthermore, the sunset provision included within the bill mandates that these tax credits will expire on December 31, 2028, unless reauthorized, which could lead to uncertainty for producers and dealers relying on these incentives for future planning. Some stakeholders fear that the financial support for biodiesel production may not compensate for the practical challenges ahead in establishing a robust infrastructure for biodiesel in the state.
A bill for an act relating to fuel taxation by extending tax credits for E-85 and E-15 gasoline, and biodiesel, and extending sales tax refunds for biodiesel production.(See HF 1053.)
A bill for an act relating to fuel taxation by extending tax credits for E-15 gasoline, and modifying the sales tax refund for biodiesel production.(Formerly HSB 237.)