FIRSTREGULARSESSION
HOUSEBILLNO.642
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEDIEHL.
1744H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections135.305,135.686,135.772,135.775,135.778,135.1610,137.1018,
348.436,348.491,and348.493,RSMo,andtoenactinlieuthereofninenewsections
relatingtoagriculturaltaxcredits.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections135.305,135.686,135.772,135.775,135.778,135.1610,
2137.1018,348.436,348.491,and348.493,RSMo,arerepealedandninenewsectionsenacted
3inlieuthereof,tobeknownassections135.305,135.686,135.772,135.775,135.778,
4135.1610,137.1018,348.491,and348.493,toreadasfollows:
135.305.AMissouriwoodenergyproducershallbeeligibleforataxcreditontaxes
2otherwisedueunderchapter143,exceptsections143.191to143.261,asaproduction
3incentivetoproduceprocessedwoodproductsinaqualifiedwood-producingfacilityusing
4Missouriforestproductresidue.Thetaxcredittothewoodenergyproducershallbefive
5dollarspertonofprocessedmaterial.Thecreditmaybeclaimedforaperiodoffiveyears
6andistobeataxcreditagainstthetaxotherwisedue.[Nonewtaxcredits,providedforunder
7sections135.300to135.311,shallbeauthorizedafterJune30,2028.] Innoeventshallthe
8aggregateamountofalltaxcreditsallowedundersections135.300to135.311exceedsix
9milliondollarsinanygivenfiscalyear.Thereshallbenotaxcreditsauthorizedunder
10sections135.300to135.311unlessanappropriationismadeforsuchtaxcredits.
135.686.1.Thissectionshallbeknownandmaybecitedasthe"MeatProcessing
2FacilityInvestmentTaxCreditAct".
3 2.Asusedinthissection,thefollowingtermsmean:
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 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
13December31,2028]:
14 (a)Buildingconstructionincludinglivestockhandling,productintake,storage,and
15warehousefacilities;
16 (b)Buildingadditions;
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;
HB642 2 41 (b)Inthecaseofanindividual,isaresidentofthisstateasverifiedbya911address
42or,intheabsenceofa911system,aphysicaladdress;and
43 (c)Ownsameatprocessingfacilitylocatedinthisstateandemploysacombinedtotal
44offewerthanfivehundredindividualsinallmeatprocessingfacilitiesownedbythe
45individualorentityinthiscountry;
46 (6)"Usedexclusively",usedtotheexclusionofallotherusesexceptforusenot
47exceedingfivepercentoftotaluse.
48 3.ForalltaxyearsbeginningonorafterJanuary1,2017,[butendingonorbefore
49December31,2028,] ataxpayershallbeallowedataxcreditformeatprocessing
50modernizationorexpansionrelatedtothetaxpayer'smeatprocessingfacility.Thetaxcredit
51amountshallbeequaltotwenty-fivepercentoftheamountthetaxpayerpaidinthetaxyear
52formeatprocessingmodernizationorexpansion.
53 4.Theamountofthetaxcreditclaimedshallnotexceedtheamountofthetaxpayer's
54statetaxliabilityforthetaxyearforwhichthecreditisclaimed.Notaxcreditclaimedunder
55thissectionshallberefundable.Thetaxcreditshallbeclaimedinthetaxyearinwhichthe
56meatprocessingmodernizationorexpansionexpenseswerepaid,butanyamountofcredit
57thatthetaxpayerisprohibitedbythissectionfromclaiminginataxyearmaybecarried
58forwardtoanyofthetaxpayer'sfoursubsequenttaxyears.Thetotalamountoftaxcredits
59thatanytaxpayermayclaimshallnotexceedseventy-fivethousanddollarsperyear.Iftwoor
60morepersonsownandoperatethemeatprocessingfacility,eachpersonmayclaimacredit
61underthissectioninproportiontosuchperson'sownershipinterest;exceptthat,theaggregate
62amountofthecreditsclaimedbyallpersonswhoownandoperatethemeatprocessing
63facilityshallnotexceedseventy-fivethousanddollarsperyear.Theamountoftaxcredits
64authorizedinthissectioninacalendaryearshallnotexceedtwomilliondollars.Taxcredits
65shallbeissuedonanas-receivedapplicationbasisuntilthecalendaryearlimitisreached.
66Anycreditsnotissuedinanycalendaryearshallexpireandshallnotbeissuedinany
67subsequentyear.
68 5.Toclaimthetaxcreditallowedunderthissection,thetaxpayershallsubmittothe
69authorityanapplicationforthetaxcreditonaformprovidedbytheauthorityandany
70applicationfeeimposedbytheauthority.Theapplicationshallbefiledwiththeauthorityat
71theendofeachcalendaryearinwhichameatprocessingmodernizationorexpansionproject
72wascompletedandforwhichataxcreditisclaimedunderthissection.Theapplicationshall
73includeanycertifieddocumentation,proofofmeatprocessingmodernizationorexpansion,
74andanyotherinformationrequiredbytheauthority.Allrequiredinformationobtainedbythe
75authorityshallbeconfidentialandnotdisclosedexceptbycourtorder,subpoena,oras
76otherwiseprovidedbylaw.Ifthetaxpayerandthemeatprocessingmodernizationor
77expansionmeetallcriteriarequiredbythissectionandapprovalisgrantedbytheauthority,
HB642 3 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
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.
135.772.1.Forthepurposesofthissection,thefollowingtermsshallmean:
2 (1)"Department",theMissouridepartmentofrevenue;
3 (2)"Distributor",aperson,firm,orcorporationdoingbusinessinthisstatethat:
4 (a)Produces,refines,blends,compounds,ormanufacturesmotorfuel;
5 (b)Importsmotorfuelintothestate;or
6 (c)Isengagedindistributionofmotorfuel;
7 (3)"Higherethanolblend",afuelcapableofbeingdispenseddirectlyintomotor
8vehiclefueltanksforconsumptionthatiscomprisedofatleastfifteenpercentbutnotmore
9thaneighty-fivepercentethanol;
10 (4)"Retaildealer",aperson,firm,orcorporationdoingbusinessinthisstatethat
11ownsoroperatesaretailservicestationinthisstate;
HB642 4 12 (5)"Retailservicestation",alocationinthisstatefromwhichhigherethanolblendis
13soldtothegeneralpublicandisdispenseddirectlyintomotorvehiclefueltanksfor
14consumption.
15 2.ForalltaxyearsbeginningonorafterJanuary1,2023,aretaildealerthatsells
16higherethanolblendatsuchretaildealer'sretailservicestationoradistributorthatsells
17higherethanolblenddirectlytothefinaluserlocatedinthisstateshallbeallowedataxcredit
18tobetakenagainsttheretaildealer'sordistributor'sstateincometaxliability.Theamountof
19thecreditshallequalfivecentspergallonofhigherethanolblendsoldbytheretaildealerand
20dispensedthroughmeteredpumpsattheretaildealer'sretailservicestationorbyadistributor
21directlytothefinaluserlocatedinthisstateduringthetaxyearforwhichthetaxcreditis
22claimed.ForanyretaildealerordistributorwithataxyearbeginningpriortoJanuary1,
232023,butendingduringthe2023calendaryear,suchretaildealerordistributorshallbe
24allowedataxcreditfortheamountofhigherethanolblendsoldduringtheportionofsuchtax
25yearthatoccursduringthe2023calendaryear.Taxcreditsauthorizedpursuanttothissection
26shallnotbetransferred,sold,orassigned.Iftheamountofthetaxcreditexceedsthe
27taxpayer'sstatetaxliability,thedifferenceshallnotberefundablebutmaybecarriedforward
28toanyofthefivesubsequenttaxyears.Thetotalamountoftaxcreditsissuedpursuanttothis
29sectionforanygivenfiscalyearshallnotexceedfivemilliondollars.
30 3.Intheeventthetotalamountoftaxcreditsclaimedunderthissectionexceedsthe
31amountofavailabletaxcredits,thetaxcreditsshallbeapportionedamongalleligibleretail
32dealersanddistributorsclaimingataxcreditbyAprilfifteenth,orasdirectedbysection
33143.851,ofthefiscalyearinwhichthetaxcreditisclaimed.
34 4.Thetaxcreditallowedbythissectionshallbeclaimedbysuchtaxpayeratthetime
35suchtaxpayerfilesareturnandshallbeappliedagainsttheincometaxliabilityimposedby
36chapter143,excludingthewithholdingtaximposedbysections143.191to143.265,after
37reductionforallothercreditsallowedthereon.Thedepartmentmayrequireany
38documentationitdeemsnecessarytoimplementtheprovisionsofthissection.
39 5.Thedepartmentshallpromulgaterulestoimplementtheprovisionsofthissection.
40Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatiscreatedunder
41theauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplieswithandis
42subjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.Thissection
43andchapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
44pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannula
45rulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandany
46ruleproposedoradoptedafterJanuary2,2023,shallbeinvalidandvoid.
47 [6.Undersection23.253oftheMissourisunsetact:
HB642 5 48 (1)TheprovisionsofthissectionshallautomaticallysunsetonDecember31,2028,
49unlessreauthorizedbyanactofthegeneralassembly;and
50 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
51automaticallysunsettwelveyearsaftertheeffectivedateofthereauthorizationofthissection;
52and
53 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
54followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset.]
135.775.1.Asusedinthissection,thefollowingtermsmean:
2 (1)"Biodieselblend",ablendofdieselfuelandbiodieselfuelofatleastfivepercent
3andnotmorethantwentypercentforon-roadandoff-roaddiesel-fueledvehicleuse;
4 (2)"Biodieselfuel",arenewable,biodegradable,monoalkylestercombustibleliquid
5fuelthatisderivedfromagriculturalandotherplantoilsoranimalfatsandthatmeetsthe
6mostrecentversionoftheASTMInternationalD6751StandardSpecificationforBiodiesel
7FuelBlendStock.Afuelshallbedeemedtobebiodieselfuelifthefuelconsistsofapure
8B100orB99ratio.Biodieselproducedfrompalmoilisnotbiodieselfuelforthepurposesof
9thissectionunlessthepalmoiliscontainedwithinwasteoilandgreasecollectedwithinthe
10UnitedStates;
11 (3)"B99",ablendofninety-ninepercentbiodieselfuelthatmeetsthemostrecent
12versionoftheASTMInternationalD6751StandardSpecificationforBiodieselFuelBlend
13Stockwithaminimumofone-tenthofonepercentandmaximumofonepercentdieselfuel
14thatmeetsthemostrecentversionoftheASTMInternationalD975StandardSpecification
15forDieselFuel;
16 (4)"Department",theMissouridepartmentofrevenue;
17 (5)"Distributor",aperson,firm,orcorporationdoingbusinessinthisstatethat:
18 (a)Produces,refines,blends,compounds,ormanufacturesmotorfuel;
19 (b)Importsmotorfuelintothestate;or
20 (c)Isengagedindistributionofmotorfuel;
21 (6)"Retaildealer",aperson,firm,orcorporationdoingbusinessinthisstatethat
22ownsoroperatesaretailservicestationinthisstate;
23 (7)"Retailservicestation",alocationinthisstatefromwhichbiodieselblendissold
24tothegeneralpublicandisdispenseddirectlyintomotorvehiclefueltanksforconsumption
25atretail.
26 2.ForalltaxyearsbeginningonorafterJanuary1,2023,aretaildealerthatsellsa
27biodieselblendataretailservicestationoradistributorthatsellsabiodieselblenddirectlyto
28thefinaluserlocatedinthisstateshallbeallowedataxcredittobetakenagainsttheretail
29dealerordistributor'sstateincometaxliability.Foranyretaildealerordistributorwithatax
30yearbeginningpriortoJanuary1,2023,butendingduringthe2023calendaryear,suchretail
HB642 6 31dealerordistributorshallbeallowedataxcreditfortheamountofbiodieselblendsoldduring
32theportionofsuchtaxyearthatoccursduringthe2023calendaryear.Theamountofthe
33creditshallbeequalto:
34 (1)Twocentspergallonofbiodieselblendofatleastfivepercentbutnotmorethan
35tenpercentsoldbytheretaildealerataretailservicestationorbyadistributordirectlytothe
36finaluserlocatedinthisstateduringthetaxyearforwhichthetaxcreditisclaimed;and
37 (2)Fivecentspergallonofbiodieselblendinexcessoftenpercentbutnotmorethan
38twentypercentsoldbytheretaildealerataretailservicestationorbyadistributordirectlyto
39thefinaluserlocatedinthisstateduringthetaxyearforwhichthetaxcreditisclaimed.
40 3.Taxcreditsauthorizedunderthissectionshallnotbetransferred,sold,orassigned.
41Iftheamountofthetaxcreditexceedsthetaxpayer'sstatetaxliability,thedifferenceshallbe
42refundable.Thetotalamountoftaxcreditsissuedunderthissectionforanygivenfiscalyear
43shallnotexceedsixteenmilliondollars.
44 4.Intheeventthetotalamountoftaxcreditsclaimedunderthissectionexceedsthe
45amountofavailabletaxcredits,thetaxcreditsshallbeapportionedamongalleligibleretail
46dealersanddistributorsclaimingataxcreditbyAprilfifteenth,orasdirectedbysection
47143.851,ofthefiscalyearinwhichthetaxcreditisclaimed.
48 5.Thetaxcreditallowedbythissectionshallbeclaimedbysuchtaxpayeratthetime
49suchtaxpayerfilesareturnandshallbeappliedagainsttheincometaxliabilityimposedby
50chapter143,excludingthewithholdingtaximposedbysections143.191to143.265,after
51reductionforallothercreditsallowedthereon.Thedepartmentmayrequireany
52documentationitdeemsnecessarytoadministertheprovisionsofthissection.
53 6.Notwithstandingtheprovisionsofsection32.057tothecontrary,thedepartment
54mayworkwiththedivisionofweightsandmeasureswithinthedepartmentofagricultureto
55validatethatthebiodieselblendaretaildealerordistributorclaimsforthetaxcredit
56authorizedunderthissectioncontainsasufficientpercentageofbiodieselfuel.
57 7.Thedepartmentshallpromulgaterulestoimplementandadministertheprovisions
58ofthissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
59createdpursuanttotheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
60complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section
61536.028.Thissectionandchapter536arenonseverableandifanyofthepowersvestedwith
62thegeneralassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto
63disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
64rulemakingauthorityandanyruleproposedoradoptedafterJanuary2,2023,shallbeinvalid
65andvoid.
66 [8.Undersection23.253oftheMissourisunsetact:
HB642 7 67 (1)Theprovisionsofthenewprogramauthorizedunderthissectionshall
68automaticallysunsetonDecember31,2028,unlessreauthorizedbyanactofthegeneral
69assembly;
70 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
71automaticallysunsettwelveyearsaftertheeffectivedateofthereauthorizationofthissection;
72and
73 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
74followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset.The
75terminationoftheprogramasdescribedinthissubsectionshallnotbeconstruedtopreclude
76anyqualifiedtaxpayerwhoclaimsanybenefitunderanyprogramthatissunsetunderthis
77subsectionfromclaimingsuchbenefitforallallowableactivitiesrelatedtosuchclaimthat
78werecompletedbeforetheprogramwassunsetortoeliminateanyresponsibilityofthe
79departmenttoverifythecontinuedeligibilityofqualifiedindividualsreceivingtaxcreditsand
80toenforceotherrequirementsoflawthatappliedbeforetheprogramwassunset.]
135.778.1.Forthepurposesofthissection,thefollowingtermsshallmean:
2 (1)"Biodieselfuel",arenewable,biodegradable,monoalkylestercombustibleliquid
3fuelthatisderivedfromagriculturalandotherplantoilsoranimalfatsandthatmeetsthe
4mostrecentversionoftheASTMInternationalD6751StandardSpecificationforBiodiesel
5FuelBlendStock.Afuelshallbedeemedtobebiodieselfuelifthefuelconsistsofapure
6B100orB99ratio.Biodieselproducedfrompalmoilisnotbiodieselfuelforthepurposesof
7thissectionunlessthepalmoiliscontainedwithinwasteoilandgreasecollectedwithinthe
8UnitedStates;
9 (2)"B99",ablendofninety-ninepercentbiodieselfuelthatmeetsthemostrecent
10versionoftheASTMInternationalD6751StandardSpecificationforBiodieselFuelBlend
11Stockwithaminimumofone-tenthofonepercentandmaximumofonepercentdieselfuel
12thatmeetsthemostrecentversionoftheASTMInternationalD975StandardSpecification
13forDieselFuel;
14 (3)"Department",theMissouridepartmentofrevenue;
15 (4)"Missouribiodieselproducer",aperson,firm,orcorporationdoingbusinessin
16thisstatethatproducesbiodieselfuelinthisstate,isregisteredwiththeUnitedStates
17EnvironmentalProtectionAgencyaccordingtotherequirementsof40CFRPart79,andhas
18begunconstructiononsuchfacilityorhasbeensellingbiodieselfuelproducedatsuchfacility
19onorbeforeJanuary2,2023.
20 2.ForalltaxyearsbeginningonorafterJanuary1,2023,aMissouribiodiesel
21producershallbeallowedataxcredittobetakenagainsttheproducer'sstateincometax
22liability.ForanyMissouribiodieselproducerwithataxyearbeginningpriortoJanuary1,
232023,butendingduringthe2023calendaryear,suchMissouribiodieselproducershallbe
HB642 8 24allowedataxcreditfortheamountofbiodieselfuelproducedduringtheportionofsuchtax
25yearthatoccursduringthe2023calendaryear.Theamountofthetaxcreditshallbetwo
26centspergallonofbiodieselfuelproducedbytheMissouribiodieselproducerduringthetax
27yearforwhichthetaxcreditisclaimed.
28 3.Taxcreditsauthorizedunderthissectionshallnotbetransferred,sold,orassigned.
29Iftheamountofthetaxcreditexceedsthetaxpayer'sstatetaxliability,thedifferenceshallbe
30refundable.Thetotalamountoftaxcreditsissuedunderthissectionforanygivenfiscalyear
31shallnotexceedfivemillionfivehundredthousanddollars,whichshallbeauthorizedona
32first-come,first-servedbasis.
33 4.Thetaxcreditauthorizedunderthissectionshallbeclaimedbysuchtaxpayerat
34thetimesuchtaxpayerfilesareturnandshallbeappliedagainsttheincometaxliability
35imposedbychapter143,excludingthewithholdingtaximposedbysections143.191to
36143.265,afterreductionforallothercreditsallowedthereon.Thedepartmentmayrequire
37anydocumentationitdeemsnecessarytoadministertheprovisionsofthissection.
38 5.Thedepartmentshallpromulgaterulestoimplementandadministertheprovisions
39ofthissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
40createdpursuanttotheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
41complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section
42536.028.Thissectionandchapter536arenonseverableandifanyofthepowersvestedwith
43thegeneralassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto
44disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
45rulemakingauthorityandanyruleproposedoradoptedafterJanuary2,2023,shallbeinvalid
46andvoid.
47 [6.Undersection23.253oftheMissourisunsetact:
48 (1)Theprovisionsofthenewprogramauthorizedunderthissectionshall
49automaticallysunsetonDecember31,2028,unlessreauthorizedbyanactofthegeneral
50assembly;
51 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
52automaticallysunsettwelveyearsaftertheeffectivedateofthereauthorizationofthissection;
53and
54 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
55followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset.The
56terminationoftheprogramasdescribedinthissubsectionshallnotbeconstruedtopreclude
57anyqualifiedtaxpayerwhoclaimsanybenefitunderanyprogramthatissunsetunderthis
58subsectionfromclaimingsuchbenefitforallallowableactivitiesrelatedtosuchclaimthat
59werecompletedbeforetheprogramwassunset,ortoeliminateanyresponsibilityofthe
HB642 9 60departmenttoverifythecontinuedeligibilityofqualifiedindividualsreceivingtaxcreditsand
61toenforceotherrequirementsoflawthatappliedbeforetheprogramwassunset.]
135.1610.1.Asusedinthissection,thefollowingtermsmean:
2 (1)"Eligibleexpenses",expensesincurredintheconstructionordevelopmentof
3establishingorimprovinganurbanfarminanurbanarea.Thetermeligibleexpensesshall
4notincludeanyexpenseforlabororanyexpenseincurredtogrowmedicalmarijuanaor
5industrialhemp;
6 (2)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,excluding
7withholdingtaximposedundersections143.191to143.265;
8 (3)"Taxpayer",anyindividual,partnership,orcorporationasdescribedundersection
9143.441or143.471thatissubjecttothetaximposedunderchapter143,excluding
10withholdingtaximposedundersections143.191to143.265,oranycharitableorganization
11thatisexemptfromfederalincometaxandwhoseMissouriunrelatedbusinesstaxable
12income,ifany,wouldbesubjecttothestateincometaximposedunderchapter143;
13 (4)"Urbanarea",anurbanizedareaasdefinedbytheUnitedStatesCensusBureau;
14 (5)"Urbanfarm",anagriculturalplotorfacilityinanurbanareathatproduces
15agriculturalfoodproductsusedsolelyfordistributiontothepublicbysaleordonation.
16Urbanfarmshallincludecommunity-rungardens.Urbanfarmshallnotincludepersonal
17farmsorresidentiallotsforpersonaluse.
18 2.ForalltaxyearsbeginningonorafterJanuary1,2023,ataxpayershallbeallowed
19toclaimataxcreditagainstthetaxpayer'sstatetaxliabilityinanamountequaltofiftypercent
20ofthetaxpayer'seligibleexpensesforestablishingorimprovinganurbanfarmthatfocuseson
21foodproduction.
22 3.Theamountofthetaxcreditclaimedshallnotexceedtheamountofthetaxpayer's
23statetaxliabilityinthetaxyearforwhichthecreditisclaimed,andthetaxpayershallnotbe
24allowedtoclaimataxcreditunderthissectioninexcessoffivethousanddollarsforeach
25urbanfarm.Thetotalamountoftaxcreditsthatmaybeauthorizedforalltaxpayersfor
26eligibleexpensesincurredonanygivenurbanfarmshallnotexceedtwenty-fivethousand
27dollars.Anyissuedtaxcreditthatcannotbeclaimedinthetaxyearinwhichtheeligible
28expenseswereincurredmaybecarriedovertothenextthreesucceedingtaxyearsuntilthe
29fullcreditisclaimed.
30 4.Thetotalamountoftaxcreditsthatmaybeauthorizedunderthissectionshallnot
31exceedtwohundredthousanddollarsinanycalendaryear.
32 5.Taxcreditsissuedundertheprovisionsofthissectionshallnotbetransferred,sold,
33orassigned.
34 6.TheMissouriagriculturalandsmallbusinessdevelopmentauthorityshallrecapture
35theamountoftaxcreditsissuedtoanytaxpayerwho,afterreceivingsuchtaxcredit,usesthe
HB642 10 36urbanfarmforthepersonalbenefitofthetaxpayerinsteadofforproducingagriculturalfood
37productsusedsolelyfordistributiontothepublicbysaleordonation.
38 7.TheMissouriagriculturalandsmallbusinessdevelopmentauthoritymay
39promulgaterulestoimplementtheprovisionsofthissection.Anyruleorportionofarule,as
40thattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
41sectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsof
42chapter536and,ifapplicable,section536.028.Thissectionandchapter536are
43nonseverableandifanyofthepowersvestedwiththegeneralassemblypursuanttochapter
44536toreview,todelaytheeffectivedate,ortodisapproveandannularulearesubsequently
45heldunconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
46adoptedafterJanuary2,2023,shallbeinvalidandvoid.
47 [8.Undersection23.253oftheMissourisunsetact:
48 (1)Theprogramauthorizedunderthissectionshallautomaticallysunseton
49December31,2028,unlessreauthorizedbyanactofthegeneralassembly;
50 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
51automaticallysunsetonDecemberthirty-firsttwelveyearsaftertheeffectivedateofthe
52reauthorizationofthissection;
53 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
54followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset;and
55 (4)Nothinginthissubsectionshallpreventataxpayerfromclaimingataxcredit
56properlyissuedbeforetheprogramwassunsetinataxyearaftertheprogramissunset.]
137.1018.1.Thecommissionshallascertainthestatewideaveragerateofproperty
2taxesleviedtheprecedingyear,baseduponthetotalassessedvaluationoftherailroadand
3streetrailwaycompaniesandthetotalpropertytaxesleviedupontherailroadandstreet
4railwaycompanies.Itshalldeterminetotalpropertytaxesleviedfromreportsprescribedby
5thecommissionfromtherailroadandstreetrailwaycompanies.Totaltaxesleviedshallnot
6includerevenuesfromthesurtaxonsubclassthreerealproperty.
7 2.Thecommissionshallreportitsdeterminationofaveragepropertytaxrateforthe
8precedingyear,togetherwiththetaxabledistributableassessedvaluationofeachfreightline
9companyforthecurrentyeartothedirectornolaterthanOctoberfirstofeachyear.
10 3.Taxesonpropertyofsuchfreightlinecompaniesshallbecollectedatthestatelevel
11bythedirectoronbehalfofthecountiesandotherlocalpublictaxingentitiesandshallbe
12distributedinaccordancewithsections137.1021and137.1024.Thedirectorshalltaxsuch
13propertybaseduponthedistributableassessedvaluationattributabletoMissouriofeach
14freightlinecompany,usingtheaveragetaxratefortheprecedingyearoftherailroadand
15streetrailwaycompaniescertifiedbythecommission.Suchtaxshallbedueandpayableon
HB642 11 16orbeforeDecemberthirty-firstoftheyearleviedand,ifitbecomesdelinquent,shallbe
17subjecttoapenaltyequaltothatspecifiedinsection140.100.
18 4.(1)Asusedinthissubsection,thefollowingtermsmean:
19 (a)"Eligibleexpenses",expensesincurredinthisstatetomanufacture,maintain,or
20improveafreightlinecompany'squalifiedrollingstock;
21 (b)"Qualifiedrollingstock",anyfreight,stock,refrigerator,orotherrailcarssubject
22tothetaxleviedunderthissection.
23 (2)ForalltaxableyearsbeginningonorafterJanuary1,2009,afreightlinecompany
24shall,subjecttoappropriation,beallowedacreditagainstthetaxleviedunderthissectionfor
25theapplicabletaxyear.Thetaxcreditamountshallbeequaltotheamountofeligible
26expensesincurredduringthecalendaryearimmediatelyprecedingthetaxyearforwhichthe
27creditunderthissectionisclaimed.Theamountofthetaxcreditissuedshallnotexceedthe
28freightlinecompany'sliabilityforthetaxleviedunderthissectionforthetaxyearforwhich
29thecreditisclaimed.
30 (3)Afreightlinecompanymayapplyforthecreditbysubmittingtothecommission
31anapplicationintheformprescribedbythestatetaxcommission.
32 (4)Subjecttoappropriation,thestateshallreimburse,onanannualbasis,any
33politicalsubdivisionofthisstateforanydecreaseinrevenueduetotheprovisionsofthis
34subsection.
35 [5.Pursuanttosection23.253oftheMissourisunsetact:
36 (1)Theprogramauthorizedundersubsection4ofthissectionshallexpireonAugust
3728,2028;and
38 (2)Subsection4ofthissectionshallterminateonSeptember1,2029.]
348.491.1.Thissectionshallbeknownandmaybecitedasthe"Specialty
2AgriculturalCropsAct".
3 2.Asusedinthissection,thefollowingtermsmean:
4 (1)"Authority",theMissouriagriculturalandsmallbusinessdevelopmentauthority
5createdinsection348.020;
6 (2)"Familyfarmer",afarmerwhoisaMissouriresidentandwhohaslessthanone
7hundredthousanddollarsinagriculturalsalesperyear;
8 (3)"Lender",thesamedefinitionasinsection348.015;
9 (4)"Specialtycrop",fruitsandvegetables,treenuts,driedfruits,andhorticultureand
10nurserycropsincluding,butnotlimitedto,floriculture.Specialtycropshallnotinclude
11medicalmarijuanaorindustrialhemp.
12 3.Theauthorityshallestablishaspecialtyagriculturalcropsloanprogramforfamily
13farmersforthepurchaseofspecialtycropseeds,seedlings,ortrees;soilamendments
HB642 12 14includingcompost;irrigationequipment;fencing;rowcovers;trellising;seasonextension
15equipment;refrigerationequipment;andequipmentforplantingandharvesting.
16 4.Toparticipateintheloanprogram,afamilyfarmershallfirstobtainapprovalfora
17specialtyagriculturalcropsloanfromalender.Eachfamilyfarmershallbeeligibleforonly
18onespecialtyagriculturalcropsloanperfamily.
19 5.Themaximumamountofthespecialtyagriculturalcropsloanforspecialtycrop
20producersshallbethirty-fivethousanddollars.
21 6.Eligibleborrowersundertheprogram:
22 (1)Shallusetheproceedsofthespecialtyagriculturalcropsloantoacquirethe
23farmingresourcesdescribedinsubsection3ofthissection;
24 (2)Shallnotfinancemorethanninetypercentoftheanticipatedcostofthepurchase
25ofsuchfarmingresourcesthroughthespecialtyagriculturalcropsloan;and
26 (3)Shallnotbechargedinterestbythelenderforthefirstyearofthequalified
27specialtyagriculturalcropsloan.
28 7.Uponapprovalofthespecialtyagriculturalcropsloanbyalenderundersubsection
294ofthissection,theloanshallbesubmittedforapprovalbytheauthority.Theauthorityshall
30promulgaterulesestablishingeligibilityunderthissection,takingintoconsideration:
31 (1)Theeligibleborrower'sabilitytorepaythespecialtyagriculturalcropsloan;
32 (2)Thegeneraleconomicconditionsoftheareainwhichthefarmislocated;
33 (3)Theprospectofafinancialreturnforthefamilyfarmerforthetypeoffarming
34resourceforwhichthespecialtyagriculturalcropsloanissought;and
35 (4)Suchotherfactorsastheauthoritymayestablish.
36 8.Foreligibleborrowersparticipatingintheprogram,theauthorityshallbe
37responsibleforreviewingthepurchasepriceofanyfarmingresourcestobepurchasedbyan
38eligibleborrowerundertheprogramtodeterminewhetherthepricetobepaidisappropriate
39forthetypeoffarmingresourcespurchased.Theauthoritymayimposeaone-timeloan
40reviewfeeofonepercent,whichshallbecollectedbythelenderatthetimeoftheloanand
41paidtotheauthority.
42 9.Nothinginthissectionshallbeconstruedtoprecludeafamilyfarmerfrom
43participatinginanyotheragriculturalprogram.
44 10.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
45createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplies
46withandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.
47Thissectionandchapter536arenonseverableandifanyofthepowersvestedwiththe
48generalassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto
49disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
HB642 13 50rulemakingauthorityandanyruleproposedoradoptedafterJanuary2,2023,shallbeinvalid
51andvoid.
52 [11.Undersection23.253oftheMissourisunsetact:
53 (1)Theprovisionsofthenewprogramauthorizedunderthissectionshall
54automaticallysunsetonDecember31,2028,unlessreauthorizedbyanactofthegeneral
55assembly;and
56 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
57automaticallysunsettwelveyearsaftertheeffectivedateofthereauthorizationofthissection;
58and
59 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
60followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset.]
348.493.1.Asusedinthissection,"statetaxliability"meansanystatetaxliability
2incurredbyataxpayerundertheprovisionsofchapter143,147,or148,exclusiveofthe
3provisionsrelatingtothewithholdingoftaxasprovidedforinsections143.191to143.265
4andrelatedprovisions.
5 2.Anyeligiblelenderunderthespecialtyagriculturalcropsloanprogramunder
6section348.491shallbeentitledtoreceiveataxcreditequaltoonehundredpercentofthe
7amountofinterestwaivedbythelenderundersection348.491onaqualifyingloanforthe
8firstyearoftheloanonly.Thetaxcreditshallbeevidencedbyacertificateoftaxcredit
9issuedbytheMissouriagriculturalandsmallbusinessdevelopmentauthorityandmaybe
10usedtosatisfythestatetaxliabilityoftheownerofsuchcertificatethatbecomesdueinthe
11taxyearinwhichtheinterestonaqualifiedloaniswaivedbythelenderundersection
12348.491.Nolendershallreceiveataxcreditunderthissectionunlesssuchlenderpresentsa
13certificateoftaxcredittothedepartmentofrevenueforpaymentofsuchstatetaxliability.
14Theamountofthetaxcreditsthatmaybeissuedtoalleligiblelendersclaimingtaxcredits
15authorizedinthissectioninafiscalyearshallnotexceedthreehundredthousanddollars.
16 3.TheMissouriagriculturalandsmallbusinessdevelopmentauthorityshallbe
17responsiblefortheadministrationandissuanceofthecertificateoftaxcreditsauthorizedby
18thissection.Theauthorityshallissueacertificateoftaxcreditattherequestofanylender.
19Eachrequestshallincludeatruecopyoftheloandocuments,thenameofthelenderwhoisto
20receiveacertificateoftaxcredit,thetypeofstatetaxliabilityagainstwhichthetaxcreditisto
21beused,andtheamountofthecertificateoftaxcredittobeissuedtothelenderbasedonthe
22interestwaivedbythelenderundersection348.491ontheloanforthefirstyear.
23 4.Thedepartmentofrevenueshallacceptacertificateoftaxcreditinlieuofother
24paymentinsuchamountasisequaltothelesseroftheamountofthetaxortheremaining
25unusedamountofthecreditasindicatedonthecertificateoftaxcreditandshallindicateon
26thecertificateoftaxcredittheamountoftaxtherebypaidandthedateofsuchpayment.
HB642 14 27 5.Thefollowingprovisionsshallapplytotaxcreditsauthorizedunderthissection:
28 (1)Taxcreditsclaimedinataxyearmaybeclaimedonaquarterlybasisandapplied
29totheestimatedquarterlytaxofthelender;
30 (2)Anyamountoftaxcreditthatexceedsthetaxdue,includinganyestimated
31quarterlytaxespaidbythelenderundersubdivision(1)ofthissubsectionthatresultinan
32overpaymentoftaxesforataxyear,shallnotberefundedbutmaybecarriedovertoany
33subsequenttaxyear,nottoexceedatotalofthreeyearsforwhichataxcreditmaybetaken
34foraqualifiedspecialtyagriculturalcropsloan;
35 (3)Notwithstandinganyprovisionoflawtothecontrary,alendermayassign,
36transfer,sell,orotherwiseconveytaxcreditsauthorizedunderthissection,withthenew
37ownerofthetaxcreditreceivingthesamerightsinthetaxcreditasthelender.Foranytax
38creditsassigned,transferred,sold,orotherwiseconveyed,anotarizedendorsementshallbe
39filedbythelenderwiththeauthorityspecifyingthenameandaddressofthenewownerofthe
40taxcreditandthevalueofsuchtaxcredit;and
41 (4)Notwithstandinganyotherprovisionofthissectiontothecontrary,any
42commercialbankmayusetaxcreditscreatedunderthissectionasprovidedinsection
43148.064andreceiveanettaxcreditagainsttaxesactuallypaidintheamountofthefirstyear's
44interestonloansmadeunderthissection.Ifsuchfirstyeartaxcreditsreducetaxesdueas
45providedinsection148.064tozero,theremainingtaxcreditsmaybecarriedoveras
46otherwiseprovidedinthissectionandusedasprovidedinsection148.064insubsequent
47years.
48 [6.Undersection23.253oftheMissourisunsetact:
49 (1)Theprovisionsofthenewprogramauthorizedunderthissectionshall
50automaticallysunsetonDecember31,2028,unlessreauthorizedbyanactofthegeneral
51assembly;and
52 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
53automaticallysunsettwelveyearsaftertheeffectivedateofthereauthorizationofthissection;
54and
55 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
56followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset.]
[348.436.Theprovisionsofsections348.430to348.436shallexpire
2 December31,2028.]
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HB642 15