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SECOND REGULAR SESSION
HOUSE BILL NO. 1632
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE HALEY .
5593H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 135.775, RSMo, and to enact in lieu thereof one new section relating to
biodiesel blend fuel tax credits.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 135.775, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 135.775, to read as follows:
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 of f-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:
EXPLANA TION — 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.
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.
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) T wo 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. T ax 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 dif ference 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 apportioned among all eligible retail
46 dealers and distributors claiming a tax credit by April fifteenth, or as directed by section
47 143.851, of the fiscal year in which the tax credit is claimed.
48 5. The tax credit allowed by this section shall be claimed by such taxpayer at the time
49 such taxpayer files a return and shall be applied against the income tax liability imposed by
50 chapter 143, excluding the withholding tax imposed by sections 143.191 to 143.265, after
51 reduction for all other credits allowed thereon. The department may require any
52 documentation it deems necessary to administer the provisions of this section.
53 6. Notwithstanding the provisions of section 32.057 to the contrary , the department
54 may work with the division of weights and measures within the department of agriculture to
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55 validate that the biodiesel blend a retail dealer or distributor claims for the tax credit
56 authorized under this section contains a suf ficient percentage of biodiesel fuel.
57 7. The department shall promulgate rules to implement and administer the provisions
58 of this section. Any rule or portion of a rule, as that term is defined in section 536.010, that is
59 created pursuant to the authority delegated in this section shall become ef fective only if it
60 complies with and is subject to all of the provisions of chapter 536 and, if applicable, section
61 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with
62 the general assembly pursuant to chapter 536 to review , to delay the ef fective date, or to
63 disapprove and annul a rule are subsequently held unconstitutional, then the grant of
64 rulemaking authority and any rule proposed or adopted after January 2, 2023, shall be invalid
65 and void.
66 8. Under section 23.253 of the Missouri sunset act:
67 (1) The provisions of the new program authorized under this section shall
68 automatically sunset on December 31, 2028, unless reauthorized by an act of the general
69 assembly;
70 (2) If such program is reauthorized, the program authorized under this section shall
71 automatically sunset twelve years after the ef fective date of the reauthorization of this section;
72 and
73 (3) This section shall terminate on September first of the calendar year immediately
74 following the calendar year in which the program authorized under this section is sunset. The
75 termination of the program as described in this subsection shall not be construed to preclude
76 any qualified taxpayer who claims any benefit under any program that is sunset under this
77 subsection from claiming such benefit for all allowable activities related to such claim that
78 were completed before the program was sunset or to eliminate any responsibility of the
79 department to verify the continued eligibility of qualified individuals receiving tax credits and
80 to enforce other requirements of law that applied before the program was sunset.
✔
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