MO HB1661

Repeals section 135.305 and enacts three new sections (135.305, 135.315, and 135.1590) relating to agricultural tax credits.

Missouri wood energy producers receive a $5 per ton tax credit for processed wood products made from Missouri forest residue, claimable for five years, with aggregate credits capped at $3.5 million annually for tax years 2014-2019.

Taxpayers using processed biomass engineered fiber fuel (made from three or more biomass inputs with at least 7,500 BTUs per pound) receive declining tax credits ranging from 30% of purchase price in year one down to 5% in year six, with a $5 million annual cap.

Qualified milk producers receive a tax credit against state income tax, with individual credits capped at $25,000 per year and total credits capped at $5 million annually, distributed equally among all grade A dairies.

All three tax credit programs include sunset provisions: biomass credits sunset six years after enactment (or twelve years if reauthorized), and milk producer credits sunset three years after enactment (or one year if reauthorized).