HOUSE BILL NO. 2713 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE DIEHL.
6031H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 135.305, 135.686, 135.772, 135.775, 135.778, 135.1610, 137.1018, 348.436, 348.491, and 348.493, RSMo, and to enact in lieu thereof ten new sections relating to tax credits.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 135.305, 135.686, 135.772, 135.775, 135.778, 135.1610, 2 137.1018, 348.436, 348.491, and 348.493, RSMo, are repealed and ten new sections enacted 3 in lieu thereof, to be known as sections 135.305, 135.686, 135.772, 135.775, 135.778, 4 135.1210, 135.1610, 137.1018, 348.491, and 348.493, to read as follows: 135.305. A Missouri wood energy producer shall be eligible for a tax credit on taxes 2 otherwise due under chapter 143, except sections 143.191 to 143.261, as a production 3 incentive to produce processed wood products in a qualified wood-producing facility using 4 Missouri forest product residue. The tax credit to the wood energy producer shall be five 5 dollars per ton of processed material. The credit may be claimed for a period of five years 6 and is to be a tax credit against the tax otherwise due. [No new tax credits, provided for under 7 sections 135.300 to 135.311, shall be authorized after June 30, 2028.] In no event shall the 8 aggregate amount of all tax credits allowed under sections 135.300 to 135.311 exceed six 9 million dollars in any given fiscal year. There shall be no tax credits authorized under 10 sections 135.300 to 135.311 unless an appropriation is made for such tax credits. 135.686. 1. This section shall be known and may be cited as the "Meat Processing 2 Facility Investment Tax Credit Act". 3 2. As used in this section, the following terms mean:
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2713 2
4 (1) "Authority", the agricultural and small business development authority 5 established in chapter 348; 6 (2) "Meat processing facility", any commercial plant, as defined under section 7 265.300, at which livestock are slaughtered or at which meat or meat products are processed 8 for sale commercially and for human consumption; 9 (3) "Meat processing modernization or expansion", constructing, improving, or 10 acquiring buildings or facilities, or acquiring equipment for meat processing including the 11 following, if used exclusively for meat processing and if acquired and placed in service in this 12 state during tax years beginning on or after January 1, 2017[, but ending on or before 13 December 31, 2028]: 14 (a) Building construction including livestock handling, product intake, storage, and 15 warehouse facilities; 16 (b) Building additions; 17 (c) Upgrades to utilities including water, electric, heat, refrigeration, freezing, and 18 waste facilities; 19 (d) Livestock intake and storage equipment; 20 (e) Processing and manufacturing equipment including cutting equipment, mixers, 21 grinders, sausage stuffers, meat smokers, curing equipment, cooking equipment, pipes, 22 motors, pumps, and valves; 23 (f) Packaging and handling equipment including sealing, bagging, boxing, labeling, 24 conveying, and product movement equipment; 25 (g) Warehouse equipment including storage and curing racks; 26 (h) Waste treatment and waste management equipment including tanks, blowers, 27 separators, dryers, digesters, and equipment that uses waste to produce energy, fuel, or 28 industrial products; 29 (i) Computer software and hardware used for managing the claimant's meat 30 processing operation including software and hardware related to logistics, inventory 31 management, production plant controls, and temperature monitoring controls; and 32 (j) Construction or expansion of retail facilities or the purchase or upgrade of retail 33 equipment for the commercial sale of meat products if the retail facility is located at the same 34 location as the meat processing facility; 35 (4) "Tax credit", a credit against the tax otherwise due under chapter 143, excluding 36 withholding tax imposed under sections 143.191 to 143.265, or otherwise due under [chapter] 37 chapters 147 and 148; 38 (5) "Taxpayer", any individual or entity who: HB 2713 3
39 (a) Is subject to the tax imposed under chapter 143, excluding withholding tax 40 imposed under sections 143.191 to 143.265, or the tax imposed under [chapter] chapters 147 41 and 148; 42 (b) In the case of an individual, is a resident of this state as verified by a 911 address 43 or, in the absence of a 911 system, a physical address; and 44 (c) Owns a meat processing facility located in this state and employs a combined total 45 of fewer than five hundred individuals in all meat processing facilities owned by the 46 individual or entity in this country; 47 (6) "Used exclusively", used to the exclusion of all other uses except for use not 48 exceeding five percent of total use. 49 3. For all tax years beginning on or after January 1, 2017, [but ending on or before 50 December 31, 2028,] a taxpayer shall be allowed a tax credit for meat processing 51 modernization or expansion related to the taxpayer's meat processing facility. The tax credit 52 amount shall be equal to twenty-five percent of the amount the taxpayer paid in the tax year 53 for meat processing modernization or expansion. 54 4. The amount of the tax credit claimed shall not exceed the amount of the taxpayer's 55 state tax liability for the tax year for which the credit is claimed. No tax credit claimed under 56 this section shall be refundable. The tax credit shall be claimed in the tax year in which the 57 meat processing modernization or expansion expenses were paid, but any amount of credit 58 that the taxpayer is prohibited by this section from claiming in a tax year may be carried 59 forward to any of the taxpayer's four subsequent tax years. The total amount of tax credits 60 that any taxpayer may claim shall not exceed seventy-five thousand dollars per year. If two or 61 more persons own and operate the meat processing facility, each person may claim a credit 62 under this section in proportion to such person's ownership interest; except that, the aggregate 63 amount of the credits claimed by all persons who own and operate the meat processing 64 facility shall not exceed seventy-five thousand dollars per year. The amount of tax credits 65 authorized in this section in a calendar year shall not exceed two million dollars. Tax credits 66 shall be issued on an as-received application basis until the calendar year limit is reached. 67 Any credits not issued in any calendar year shall expire and shall not be issued in any 68 subsequent year. 69 5. To claim the tax credit allowed under this section, the taxpayer shall submit to the 70 authority an application for the tax credit on a form provided by the authority and any 71 application fee imposed by the authority. The application shall be filed with the authority at 72 the end of each calendar year in which a meat processing modernization or expansion project 73 was completed and for which a tax credit is claimed under this section. The application shall 74 include any certified documentation, proof of meat processing modernization or expansion, 75 and any other information required by the authority. All required information obtained by the HB 2713 4
76 authority shall be confidential and not disclosed except by court order, subpoena, or as 77 otherwise provided by law. If the taxpayer and the meat processing modernization or 78 expansion meet all criteria required by this section and approval is granted by the authority, 79 the authority shall issue a tax credit certificate in the appropriate amount. Tax credit 80 certificates issued under this section may be assigned, transferred, sold, or otherwise 81 conveyed, and the new owner of the tax credit certificate shall have the same rights in the tax 82 credit as the original taxpayer. If a tax credit certificate is assigned, transferred, sold, or 83 otherwise conveyed, a notarized endorsement shall be filed with the authority specifying the 84 name and address of the new owner of the tax credit certificate and the value of the tax credit. 85 6. Any information provided under this section shall be confidential information, to 86 be shared with no one except state and federal animal health officials, except as provided in 87 subsection 5 of this section. 88 7. The authority shall promulgate rules establishing a process for verifying that a 89 facility's modernization or expansion for which tax credits were allowed under this section 90 has in fact expanded the facility's production within three years of the issuance of the tax 91 credit and if not, the authority shall promulgate through rulemaking a process by which the 92 taxpayer shall repay the authority an amount equal to that of the tax credit allowed. 93 8. The authority shall, at least annually, submit a report to the Missouri general 94 assembly reviewing the costs and benefits of the program established under this section. 95 9. The authority may promulgate rules to implement the provisions of this section. 96 Any rule or portion of a rule, as that term is defined in section 536.010, that is created under 97 the authority delegated in this section shall become effective only if it complies with and is 98 subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section 99 and chapter 536 are nonseverable and if any of the powers vested with the general assembly 100 pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a 101 rule are subsequently held unconstitutional, then the grant of rulemaking authority and any 102 rule proposed or adopted after August 28, 2016, shall be invalid and void. 103 10. This section shall not be subject to the Missouri sunset act, sections 23.250 to 104 23.298. 135.772. 1. For the purposes of this section, the following terms shall mean: 2 (1) "Department", the Missouri department of revenue; 3 (2) "Distributor", a person, firm, or corporation doing business in this state that: 4 (a) Produces, refines, blends, compounds, or manufactures motor fuel; 5 (b) Imports motor fuel into the state; or 6 (c) Is engaged in distribution of motor fuel; HB 2713 5
7 (3) "Higher ethanol blend", a fuel capable of being dispensed directly into motor 8 vehicle fuel tanks for consumption that is comprised of at least fifteen percent but not more 9 than eighty-five percent ethanol; 10 (4) "Retail dealer", a person, firm, or corporation doing business in this state that 11 owns or operates a retail service station in this state; 12 (5) "Retail service station", a location in this state from which higher ethanol blend is 13 sold to the general public and is dispensed directly into motor vehicle fuel tanks for 14 consumption. 15 2. For all tax years beginning on or after January 1, 2023, a retail dealer that sells 16 higher ethanol blend at such retail dealer's retail service station or a distributor that sells 17 higher ethanol blend directly to the final user located in this state shall be allowed a tax credit 18 to be taken against the retail dealer's or distributor's state income tax liability. The amount of 19 the credit shall equal five cents per gallon of higher ethanol blend sold by the retail dealer and 20 dispensed through metered pumps at the retail dealer's retail service station or by a distributor 21 directly to the final user located in this state during the tax year for which the tax credit is 22 claimed. For any retail dealer or distributor with a tax year beginning prior to January 1, 23 2023, but ending during the 2023 calendar year, such retail dealer or distributor shall be 24 allowed a tax credit for the amount of higher ethanol blend sold during the portion of such tax 25 year that occurs during the 2023 calendar year. Tax credits authorized pursuant to this section 26 shall not be transferred, sold, or assigned. If the amount of the tax credit exceeds the 27 taxpayer's state tax liability, the difference shall not be refundable but may be carried forward 28 to any of the five subsequent tax years. The total amount of tax credits issued pursuant to this 29 section for any given fiscal year shall not exceed five million dollars. 30 3. In the event the total amount of tax credits claimed under this section exceeds the 31 amount of available tax credits, the tax credits shall be apportioned among all eligible retail 32 dealers and distributors claiming a tax credit by April fifteenth, or as directed by section 33 143.851, of the fiscal year in which the tax credit is claimed. 34 4. The tax credit allowed by this section shall be claimed by such taxpayer at the time 35 such taxpayer files a return and shall be applied against the income tax liability imposed by 36 chapter 143, excluding the withholding tax imposed by sections 143.191 to 143.265, after 37 reduction for all other credits allowed thereon. The department may require any 38 documentation it deems necessary to implement the provisions of this section. 39 5. The department shall promulgate rules to implement the provisions of this section. 40 Any rule or portion of a rule, as that term is defined in section 536.010, that is created under 41 the authority delegated in this section shall become effective only if it complies with and is 42 subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section 43 and chapter 536 are nonseverable and if any of the powers vested with the general assembly HB 2713 6
44 pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a 45 rule are subsequently held unconstitutional, then the grant of rulemaking authority and any 46 rule proposed or adopted after January 2, 2023, shall be invalid and void. 47 [6. Under section 23.253 of the Missouri sunset act: 48 (1) The provisions of this section shall automatically sunset on December 31, 2028, 49 unless reauthorized by an act of the general assembly; and 50 (2) If such program is reauthorized, the program authorized under this section shall 51 automatically sunset twelve years after the effective date of the reauthorization of this section; 52 and 53 (3) This section shall terminate on September first of the calendar year immediately 54 following the calendar year in which the program authorized under this section is sunset.] 135.775. 1. As used in this section, the following terms mean: 2 (1) "Biodiesel blend", a blend of diesel fuel and biodiesel fuel of at least five percent 3 and not more than twenty percent for on-road [and] or off-road diesel-fueled vehicle use; 4 (2) "Biodiesel fuel", a renewable, biodegradable, mono alkyl ester combustible liquid 5 fuel that is derived from agricultural and other plant oils or animal fats and that meets the 6 most recent version of the ASTM International D6751 Standard Specification for Biodiesel 7 Fuel Blend Stock. A fuel shall be deemed to be biodiesel fuel if the fuel consists of a pure 8 B100 or B99 ratio. Biodiesel produced from palm oil is not biodiesel fuel for the purposes of 9 this section unless the palm oil is contained within waste oil and grease collected within the 10 United States; 11 (3) "B99", a blend of ninety-nine percent biodiesel fuel that meets the most recent 12 version of the ASTM International D6751 Standard Specification for Biodiesel Fuel Blend 13 Stock with a minimum of one-tenth of one percent and maximum of one percent diesel fuel 14 that meets the most recent version of the ASTM International D975 Standard Specification 15 for Diesel Fuel; 16 (4) "Department", the Missouri department of revenue; 17 (5) "Distributor", a person, firm, or corporation doing business in this state that: 18 (a) Produces, refines, blends, compounds, or manufactures motor fuel; 19 (b) Imports motor fuel into the state; or 20 (c) Is engaged in distribution of motor fuel; 21 (6) "Retail dealer", a person, firm, or corporation doing business in this state that 22 owns or operates a retail service station in this state; 23 (7) "Retail service station", a location in this state from which biodiesel blend is sold 24 to the general public and is dispensed directly into motor vehicle fuel tanks for consumption 25 at retail. HB 2713 7
26 2. For all tax years beginning on or after January 1, 2023, a retail dealer that sells a 27 biodiesel blend at a retail service station or a distributor that sells a biodiesel blend directly to 28 the final user located in this state shall be allowed a tax credit to be taken against the retail 29 dealer or distributor's state income tax liability. For any retail dealer or distributor with a tax 30 year beginning prior to January 1, 2023, but ending during the 2023 calendar year, such retail 31 dealer or distributor shall be allowed a tax credit for the amount of biodiesel blend sold during 32 the portion of such tax year that occurs during the 2023 calendar year. The amount of the 33 credit shall be equal to: 34 (1) Two cents per gallon of biodiesel blend of at least five percent but not more than 35 ten percent sold by the retail dealer at a retail service station or by a distributor directly to the 36 final user located in this state during the tax year for which the tax credit is claimed; and 37 (2) Five cents per gallon of biodiesel blend in excess of ten percent but not more than 38 twenty percent sold by the retail dealer at a retail service station or by a distributor directly to 39 the final user located in this state during the tax year for which the tax credit is claimed. 40 3. Tax credits authorized under this section shall not be transferred, sold, or assigned. 41 If the amount of the tax credit exceeds the taxpayer's state tax liability, the difference shall be 42 refundable. The total amount of tax credits issued under this section for any given fiscal year 43 shall not exceed sixteen million dollars. 44 4. In the event the total amount of tax credits claimed under this section exceeds the 45 amount of available tax credits, the tax credits shall be apportion