Modifies provisions relating to tax credits

4789S.04C
1
SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 864
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, 137.1018, 348.436, 348.491, and 348.493,
RSMo, are repealed and ten new sections enacted in lieu thereof,
to be known as sections 135.305, 135.686, 135.772, 135.775,
135.778, 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 otherwise due under
chapter 143, except sections 143.191 to 143.261, as a
production incentive to produce processed wood products in a
qualified wood-producing facility using Missouri forest
product residue. The tax credit to the wood energy producer
shall be five dollars per ton of processed material. The
credit may be claimed for a period of five years and is to
be a tax credit against the tax otherwise due. [No new tax
credits, provided for under sections 135.300 to 135.311,
shall be authorized after June 30, 2028.] In no event shall
the aggregate amount of all tax credits allowed under
sections 135.300 to 135.311 exceed six million dollars in
any given fiscal year. There shall be no tax credits
authorized under sections 135.300 to 135.311 unless an
appropriation is made for such tax credits.

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135.686. 1. This section shall be known and may be
cited as the "Meat Processing Facility Investment Tax Credit
Act".
2. As used in this section, the following terms mean:
(1) "Authority", the agricultural and small business
development authority established in chapter 348;
(2) "Meat processing facility", any commercial plant,
as defined under section 265.300, at which livestock are
slaughtered or at which meat or meat products are processed
for sale commercially and for human consumption;
(3) "Meat processing modernization or expansion",
constructing, improving, or acquiring buildings or
facilities, or acquiring equipment for meat processing
including the following, if used exclusively for meat
processing and if acquired and placed in service in this
state during tax years beginning on or after January 1,
2017[, but ending on or before December 31, 2028]:
(a) Building construction including livestock
handling, product intake, storage, and warehouse facilities;
(b) Building additions;
(c) Upgrades to utilities including water, electric,
heat, refrigeration, freezing, and waste facilities;
(d) Livestock intake and storage equipment;
(e) Processing and manufacturing equipment including
cutting equipment, mixers, grinders, sausage stuffers, meat
smokers, curing equipment, cooking equipment, pipes, motors,
pumps, and valves;
(f) Packaging and handling equipment including
sealing, bagging, boxing, labeling, conveying, and product
movement equipment;
(g) Warehouse equipment including storage and curing
racks;

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(h) Waste treatment and waste management equipment
including tanks, blowers, separators, dryers, digesters, and
equipment that uses waste to produce energy, fuel, or
industrial products;
(i) Computer software and hardware used for managing
the claimant's meat processing operation including software
and hardware related to logistics, inventory management,
production plant controls, and temperature monitoring
controls; and
(j) Construction or expansion of retail facilities or
the purchase or upgrade of retail equipment for the
commercial sale of meat products if the retail facility is
located at the same location as the meat processing facility;
(4) "Tax credit", a credit against the tax otherwise
due under chapter 143, excluding withholding tax imposed
under sections 143.191 to 143.265, or otherwise due under
chapter 147 or 148;
(5) "Taxpayer", any individual or entity who:
(a) Is subject to the tax imposed under chapter 143,
excluding withholding tax imposed under sections 143.191 to
143.265, or the tax imposed under chapter 147 or 148;
(b) In the case of an individual, is a resident of
this state as verified by a 911 address or, in the absence
of a 911 system, a physical address; and
(c) Owns a meat processing facility located in this
state and employs a combined total of fewer than five
hundred individuals in all meat processing facilities owned
by the individual or entity in this country;
(6) "Used exclusively", used to the exclusion of all
other uses except for use not exceeding five percent of
total use.
3. For all tax years beginning on or after January 1,
2017, [but ending on or before December 31, 2028,] a

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taxpayer shall be allowed a tax credit for meat processing
modernization or expansion related to the taxpayer's meat
processing facility. The tax credit amount shall be equal
to twenty-five percent of the amount the taxpayer paid in
the tax year for meat processing modernization or expansion.
4. The amount of the tax credit claimed shall not
exceed the amount of the taxpayer's state tax liability for
the tax year for which the credit is claimed. No tax credit
claimed under this section shall be refundable. The tax
credit shall be claimed in the tax year in which the meat
processing modernization or expansion expenses were paid,
but any amount of credit that the taxpayer is prohibited by
this section from claiming in a tax year may be carried
forward to any of the taxpayer's four subsequent tax years.
The total amount of tax credits that any taxpayer may claim
shall not exceed seventy-five thousand dollars per year. If
two or more persons own and operate the meat processing
facility, each person may claim a credit under this section
in proportion to such person's ownership interest; except
that, the aggregate amount of the credits claimed by all
persons who own and operate the meat processing facility
shall not exceed seventy-five thousand dollars per year.
The amount of tax credits authorized in this section in a
calendar year shall not exceed two million dollars. Tax
credits shall be issued on an as-received application basis
until the calendar year limit is reached. Any credits not
issued in any calendar year shall expire and shall not be
issued in any subsequent year.
5. To claim the tax credit allowed under this section,
the taxpayer shall submit to the authority an application
for the tax credit on a form provided by the authority and
any application fee imposed by the authority. The
application shall be filed with the authority at the end of

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each calendar year in which a meat processing modernization
or expansion project was completed and for which a tax
credit is claimed under this section. The application shall
include any certified documentation, proof of meat
processing modernization or expansion, and any other
information required by the authority. All required
information obtained by the authority shall be confidential
and not disclosed except by court order, subpoena, or as
otherwise provided by law. If the taxpayer and the meat
processing modernization or expansion meet all criteria
required by this section and approval is granted by the
authority, the authority shall issue a tax credit
certificate in the appropriate amount. Tax credit
certificates issued under this section may be assigned,
transferred, sold, or otherwise conveyed, and the new owner
of the tax credit certificate shall have the same rights in
the tax credit as the original taxpayer. If a tax credit
certificate is assigned, transferred, sold, or otherwise
conveyed, a notarized endorsement shall be filed with the
authority specifying the name and address of the new owner
of the tax credit certificate and the value of the tax
credit.
6. Any information provided under this section shall
be confidential information, to be shared with no one except
state and federal animal health officials, except as
provided in subsection 5 of this section.
7. The authority shall promulgate rules establishing a
process for verifying that a facility's modernization or
expansion for which tax credits were allowed under this
section has in fact expanded the facility's production
within three years of the issuance of the tax credit and if
not, the authority shall promulgate through rulemaking a

6
process by which the taxpayer shall repay the authority an
amount equal to that of the tax credit allowed.
8. The authority shall, at least annually, submit a
report to the Missouri general assembly reviewing the costs
and benefits of the program established under this section.
9. The authority may promulgate rules to implement the
provisions of this section. Any rule or portion of a rule,
as that term is defined in section 536.010, that is created
under the authority delegated in this section shall become
effective only if it complies with and is subject to all of
the provisions of chapter 536 and, if applicable, section
536.028. This section and chapter 536 are nonseverable and
if any of the powers vested with the general assembly
pursuant to chapter 536 to review, to delay the effective
date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking
authority and any rule proposed or adopted after August 28,
2016, shall be invalid and void.
10. This section shall not be subject to the Missouri
sunset act, sections 23.250 to 23.298.
135.772. 1. For the purposes of this section, the
following terms shall mean:
(1) "Department", the Missouri department of revenue;
(2) "Distributor", a person, firm, or corporation
doing business in this state that:
(a) Produces, refines, blends, compounds, or
manufactures motor fuel;
(b) Imports motor fuel into the state; or
(c) Is engaged in distribution of motor fuel;
(3) "Higher ethanol blend", a fuel capable of being
dispensed directly into motor vehicle fuel tanks for
consumption that is comprised of at least fifteen percent
but not more than eighty-five percent ethanol;

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(4) "Retail dealer", a person, firm, or corporation
doing business in this state that owns or operates a retail
service station in this state;
(5) "Retail service station", a location in this state
from which higher ethanol blend is sold to the general
public and is dispensed directly into motor vehicle fuel
tanks for consumption.
2. For all tax years beginning on or after January 1,
2023, a retail dealer that sells higher ethanol blend at
such retail dealer's retail service station or a distributor
that sells higher ethanol blend directly to the final user
located in this state shall be allowed a tax credit to be
taken against the retail dealer's or distributor's state
income tax liability. The amount of the credit shall equal
five cents per gallon of higher ethanol blend sold by the
retail dealer and dispensed through metered pumps at the
retail dealer's retail service station or by a distributor
directly to the final user located in this state during the
tax year for which the tax credit is claimed. For any
retail dealer or distributor with a tax year beginning prior
to January 1, 2023, but ending during the 2023 calendar
year, such retail dealer or distributor shall be allowed a
tax credit for the amount of higher ethanol blend sold
during the portion of such tax year that occurs during the
2023 calendar year. Tax credits authorized pursuant to this
section shall not be transferred, sold, or assigned. If the
amount of the tax credit exceeds the taxpayer's state tax
liability, the difference shall not be refundable but may be
carried forward to any of the five subsequent tax years.
The total amount of tax credits issued pursuant to this
section for any given fiscal year shall not exceed five
million dollars.

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3. In the event the total amount of tax credits
claimed under this section exceeds the amount of available
tax credits, the tax credits shall be apportioned among all
eligible retail dealers and distributors claiming a tax
credit by April fifteenth, or as directed by section
143.851, of the fiscal year in which the tax credit is
claimed.
4. The tax credit allowed by this section shall be
claimed by such taxpayer at the time such taxpayer files a
return and shall be applied against the income tax liability
imposed by chapter 143, excluding the withholding tax
imposed by sections 143.191 to 143.265, after reduction for
all other credits allowed thereon. The department may
require any documentation it deems necessary to implement
the provisions of this section.
5. The department shall promulgate rules to implement
the provisions of this section. Any rule or portion of a
rule, as that term is defined in section 536.010, that is
created under the authority delegated in this section shall
become effective only if it complies with and is subject to
all of the provisions of chapter 536 and, if applicable,
section 536.028. This section and chapter 536 are
nonseverable and if any of the powers vested with the
general assembly pursuant to chapter 536 to review, to delay
the effective date, or to disapprove and annul a rule are
subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after
January 2, 2023, shall be invalid and void.
[6. Under section 23.253 of the Missouri sunset act:
(1) The provisions of this section shall automatically
sunset on December 31, 2028, unless reauthorized by an act
of the general assembly; and

9
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset
twelve years after the effective date of the reauthorization
of this section; and
(3) This section shall terminate on September first of
the calendar year immediately 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:
(1) "Biodiesel blend", a blend of diesel fuel and
biodiesel fuel of at least five percent and not more than
twenty percent for on-road [and] or off-road diesel-fueled
vehicle use;
(2) "Biodiesel fuel", a renewable, biodegradable, mono
alkyl ester combustible liquid fuel that is derived from
agricultural and other plant oils or animal fats and that
meets the most recent version of the ASTM International
D6751 Standard Specification for Biodiesel Fuel Blend
Stock. A fuel shall be deemed to be biodiesel fuel if the
fuel consists of a pure B100 or B99 ratio. Biodiesel
produced from palm oil is not biodiesel fuel for the
purposes of this section unless the palm oil is contained
within waste oil and grease collected within the United
States;
(3) "B99", a blend of ninety-nine percent biodiesel
fuel that meets the most recent version of the ASTM
International D6751 Standard Specification for Biodiesel
Fuel Blend Stock with a minimum of one-tenth of one percent
and maximum of one percent diesel fuel that meets the most
recent version of the ASTM International D975 Standard
Specification for Diesel Fuel;
(4) "Department", the Missouri department of revenue;

10
(5) "Distributor", a person, firm, or corporation
doing business in this state that:
(a) Produces, refines, blends, compounds, or
manufactures motor fuel;
(b) Imports motor fuel into the state; or
(c) Is engaged in distribution of motor fuel;
(6) "Retail dealer", a person, firm, or corporation
doing business in this state that owns or operates a retail
service station in this state;
(7) "Retail service station", a location in this state
from which biodiesel blend is sold to the general public and
is dispensed directly into motor vehicle fuel tanks for
consumption at retail.
2. For all tax years beginning on or after January 1,
2023, a retail dealer that sells a biodiesel blend at a
retail service station or a distributor that sells a
biodiesel blend directly to the final user located in this
state shall be allowed a tax credit to be taken against the
retail dealer or distributor's state income tax liability.
For any retail dealer or distributor with a tax year
beginning prior to January 1, 2023, but ending during the
2023 calendar year, such retail dealer or distributor shall
be allowed a tax credit for the amount of biodiesel blend
sold during the portion of such tax year that occurs during
the 2023 calendar year. The amount of the credit shall be
equal to:
(1) Two cents per gallon of biodiesel blend of at
least five percent but not more than ten percent sold by the
retail dealer at a retail service station or by a
distributor directly to the final user located in this state
during the tax year for which the tax credit is claimed; and
(2) Five cents per gallon of biodiesel blend in excess
of ten percent but not more than twenty percent sold by the

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retail dealer at a retail service station or by a
distributor directly to the final user located in this state
during the tax year for which the tax credit is claimed.
3. Tax credits authorized under this section shall not
be transferred, sold, or assigned. If the amount of the tax
credit exceeds the taxpayer's state tax liability, the
difference shall be refundable. The total amount of tax
credits issued under this section for any given fiscal year
shall not exceed sixteen million dollars.
4. In the event the total amount of tax credits
claimed under this section exceeds the amount of available
tax credits, the tax credits shall be apportioned among all
eligible retail dealers and distributors claiming a tax
credit by April fifteenth, or as directed by section
143.851, of the fiscal year in which the tax credit is
claimed.
5. The tax credit allowed by this section shall be
claimed by such taxpayer at the time such taxpayer files a
return and shall be applied against the income tax liability
imposed by chapter 143, excluding the withholding tax
imposed by sections 143.191 to 143.265, after reduction for
all other credits allowed thereon. The department may
require any documentation it deems necessary to administer
the provisions of this section.
6. Notwithstanding the provisions of section 32.057 to
the contrary, the department may work with the division of
weights and measures within the department of agriculture to
validate that the biodiesel blend a retail dealer or
distributor claims for the tax credit authorized under this
section contains a sufficient percentage of biodiesel fuel.
7. In the event a taxpayer is denied part or all of a
tax credit to which the taxpayer has qualified pursuant to
any provision of law due to lack of available funds, and

12
such denial causes a balance-due notice to be generated by
the department of revenue or any other redeeming agency, a
taxpayer shall not be held liable for any penalty or
interest on such balance due, provided the balance is paid
or approved payment arrangements have been made within sixty
days from the notice of denial. Any payments not timely
made pursuant to this section shall be subject to penalty
and interest pursuant to this chapter.
8. The department shall promulgate rules to implement
and administer the provisions of this section. Any rule or
portion of a rule, as that term is defined in section
536.010, that is created pursuant to the authority delegated
in this section shall become effective only if it complies
with and is subject to all of the provisions of chapter 536
and, if applicable, section 536.028. This section and
chapter 536 are nonseverable and if any of the powers vested
with the general assembly pursuant to chapter 536 to review,
to delay the effective date, or to disapprove and annul a
rule are subsequently held unconstitutional, then the grant
of rulemaking authority and any rule proposed or adopted
after January 2, 2023, shall be invalid and void.
[8. Under section 23.253 of the Missouri sunset act:
(1) The provisions of the new program authorized under
this section shall automatically sunset on December 31,
2028, unless reauthorized by an act of the general assembly;
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset
twelve years after the effective date of the reauthorization
of this section; and
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset.
The termination of the program as described in this

13
subsection shall not be construed to preclude any qualified
taxpayer who claims any benefit under any program that is
sunset under this subsection from claiming such benefit for
all allowable activities related to such claim that were
completed before the program was sunset or to eliminate any
responsibility of the department to verify the continued
eligibility of qualified individuals receiving tax credits
and to enforce other requirements of law that applied before
the program was sunset.]
135.778. 1. For the purposes of this section, the
following terms shall mean:
(1) "Biodiesel fuel", a renewable, biodegradable, mono
alkyl ester combustible liquid fuel that is derived from
agricultural and other plant oils or animal fats and that
meets the most recent version of the ASTM International
D6751 Standard Specification for Biodiesel Fuel Blend
Stock. A fuel shall be deemed to be biodiesel fuel if the
fuel consists of a pure B100 or B99 ratio. Biodiesel
produced from palm oil is not biodiesel fuel for the
purposes of this section unless the palm oil is contained
within waste oil and grease collected within the United
States;
(2) "B99", a blend of ninety-nine percent biodiesel
fuel that meets the most recent version of the ASTM
International D6751 Standard Specification for Biodiesel
Fuel Blend Stock with a minimum of one-tenth of one percent
and maximum of one percent diesel fuel that meets the most
recent version of the ASTM International D975 Standard
Specification for Diesel Fuel;
(3) "Department", the Missouri department of revenue;
(4) "Missouri biodiesel producer", a person, firm, or
corporation doing business in this state that produces
biodiesel fuel in this state, is registered with the United

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States Environmental Protection Agency according to the
requirements of 40 CFR Part 79, and has begun construction
on such facility or has been selling biodiesel fuel produced
at such facility on or before January 2, 2023.
2. For all tax years beginning on or after January 1,
2023, a Missouri biodiesel producer shall be allowed a tax
credit to be taken against the producer's state income tax
liability. For any Missouri biodiesel producer with a tax
year beginning prior to January 1, 2023, but ending during
the 2023 calendar year, such Missouri biodiesel producer
shall be allowed a tax credit for the amount of biodiesel
fuel produced during the portion of such tax year that
occurs during the 2023 calendar year. The amount of the tax
credit shall be two cents per gallon of biodiesel fuel
produced by the Missouri biodiesel producer during the tax
year for which the tax credit is claimed.
3. Tax credits authorized under this section shall not
be transferred, sold, or assigned. If the amount of the tax
credit exceeds the taxpayer's state tax liability, the
difference shall be refundable. The total amount of tax
credits issued under this section for any given fiscal year
shall not exceed five million five hundred thousand dollars,
which shall be authorized on a first-come, first-served
basis.
4. The tax credit authorized under this section shall
be claimed by such taxpayer at the time such taxpayer files
a return and shall be applied against the income tax
liability imposed by chapter 143, excluding the withholding
tax imposed by sections 143.191 to 143.265, after reduction
for all other credits allowed thereon. The department may
require any documentation it deems necessary to administer
the provisions of this section.

15
5. The department shall promulgate rules to implement
and administer the provisions of this section. Any rule or
portion of a rule, as that term is defined in section
536.010, that is created pursuant to the authority delegated
in this section shall become effective only if it complies
with and is subject to all of the provisions of chapter 536
and, if applicable, section 536.028. This section and
chapter 536 are nonseverable and if any of the powers vested
with the general assembly pursuant to chapter 536 to review,
to delay the effective date, or to disapprove and annul a
rule are subsequently held unconstitutional, then the grant
of rulemaking authority and any rule proposed or adopted
after January 2, 2023, shall be invalid and void.
[6. Under section 23.253 of the Missouri sunset act:
(1) The provisions of the new program authorized under
this section shall automatically sunset on December 31,
2028, unless reauthorized by an act of the general assembly;
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset
twelve years after the effective date of the reauthorization
of this section; and
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset.
The termination of the program as described in this
subsection shall not be construed to preclude any qualified
taxpayer who claims any benefit under any program that is
sunset under this subsection from claiming such benefit for
all allowable activities related to such claim that were
completed before the program was sunset, or to eliminate any
responsibility of the department to verify the continued
eligibility of qualified individuals receiving tax credits

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and to enforce other requirements of law that applied before
the program was sunset.]
135.1210. 1. As used in this section, the following
terms mean:
(1) "Eligible customer", a person who uses any
railroad or railroad-related property, facilities, or
structures located wholly or partly within the state of
Missouri to directly or indirectly transport property,
commodities, or goods, or who is served by any railroad, or
who stores railcars on any railroad in Missouri;
(2) "Eligible taxpayer":
(a) Any short line railroad company located wholly or
partly in the state of Missouri that is classified by the
United States Surface Transportation Board as a Class II or
Class III railroad; or
(b) Any owner or lessee of a rail siding, industrial
spur, or industry track located on or adjacent to any
railroad in the state of Missouri;
and subject to the state income tax imposed under chapter
143, 147, or 148, excluding the withholding tax imposed
under sections 143.191 to 143.265, who made qualified
railroad track expenditures in Missouri or qualified new
rail infrastructure expenditures in Missouri during the tax
year for which a credit under this section is claimed;
(3) "Eligible vendor", a person who provides railroad-
related services directly to an eligible taxpayer;
(4) "Person", the same meaning as defined under
section 1.020;
(5) "Qualified amount", for any eligible taxpayer in a
given tax year, an amount equal to fifty percent of an
eligible taxpayer's qualified railroad track expenditures or

17
qualified new rail infrastructure expenditures, provided
that:
(a) For qualified railroad track expenditures, the
amount of tax credit shall not exceed an amount equal to the
product of five thousand dollars multiplied by the number of
miles of railroad track owned or leased in the state by a
Class II or Class III railroad as of the close of the tax
year; and
(b) For qualified new rail infrastructure
expenditures, the amount of tax credit shall not exceed one
million dollars for each new rail-served customer project of
an eligible taxpayer;
(6) "Qualified new rail infrastructure expenditures",
gross expenditures for new rail infrastructure by an
eligible taxpayer, which includes the construction of new
track infrastructure such as industrial leads, switches,
spurs, sidings, rail loading docks, and transloading
structures involved with servicing new customer locations or
expansions by any railroad located in Missouri;
(7) "Qualified railroad expenditures", gross
expenditures for maintenance, reconstruction, or replacement
of railroad infrastructure, including track, roadbed,
bridges, industrial leads and sidings, and track-related
structures owned or leased by a Class II or Class III
railroad located in Missouri. "Qualified railroad
expenditures" does not include expenditures used to generate
a federal tax credit or expenditures funded by a state or
federal grant;
(8) "Railroad-related services", includes, but is not
limited to, the following: transport of freight by rail;
loading and unloading of freight transported by rail;
railroad bridge services; railroad track construction;
provision of railroad track material or equipment;

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locomotive or freight train car leasing or rental; provision
of railroad financial services, including banking or
insurance; maintenance of a railroad's right-of-way,
including vegetation control; and freight train car repair,
rehabilitation, or remanufacturing repair services;
(9) "Tax credit", a credit against the tax otherwise
due under chapter 143, 147, or 148, excluding withholding
tax imposed under sections 143.191 to 143.265.
2. For all tax years beginning on or after January 1,
2027, an eligible taxpayer shall be allowed to claim a
nonrefundable tax credit for qualified railroad track
expenditures in Missouri or for qualified new rail
infrastructure expenditures in Missouri against the
taxpayer's state tax liability in an amount equal to the
taxpayer's qualified amount.
3. An eligible taxpayer who seeks to claim a tax
credit under this section shall submit a certificate of
eligibility to the Missouri department of economic
development after completion of the qualified railroad
expenditures or qualified new rail infrastructure
expenditures. The certificate shall include the number of
miles of railroad track owned or leased in this state and a
description of the amount of qualified railroad expenditures
or qualified new rail infrastructure expenditures
completed. The certificate shall be made on forms and in
the manner prescribed by the department and considered in
the order received.
4. If the department of economic development
determines that the taxpayer meets the requirements to claim
a tax credit under this section, the department may issue a
certificate of eligibility to the eligible taxpayer. The
certificate shall be numbered for identification and declare

19
its date of issuance and the amount of the tax credit
allowed under this section.
5. (1) The cumulative amount of tax credits under
this section authorized for qualified railroad track
expenditures in this state shall not exceed four million
five hundred thousand dollars per calendar year. If the
amount of tax credits claimed in a calendar year under this
section exceeds four million five hundred thousand dollars,
tax credits shall be allowed based on the order in which
they are claimed.
(2) The cumulative amount of tax credits under this
section authorized for qualified new rail infrastructure
expenditures in this state shall not exceed five million
dollars per calendar year. If the amount of tax credits
claimed in a calendar year under this section exceeds five
million dollars, tax credits shall be allowed based on the
order in which they are claimed.
6. Any unused portion of a tax credit allowed under
this section may be carried forward for up to five
subsequent tax years immediately following the tax year the
credit was allowed.
7. (1) Subject to the requirements of this
subsection, an eligible taxpayer who earns and is entitled
to the credit or to an unused portion of the credit allowed
by this section may transfer all or a portion of the unused
credit by written agreement to any eligible customer,
eligible vendor, or any taxpayer subject to tax imposed
under chapter 143, 147, or 148, excluding withholding tax
imposed under sections 143.191 to 143.265, at any time
during the year in which the credit is earned and the five
years following the year of the qualified expenditures. The
taxpayer originally allowed the tax credit and the
subsequent transferee shall jointly file a copy of the

20
written credit transfer agreement with the department of
revenue. The agreement shall include the name, address, and
taxpayer identification number of the parties to the
transfer; the amount of the credit being transferred; the
year the credit was originally allowed to the transferring
taxpayer; and the tax year or years for which the credit may
be claimed. In the event of such a transfer, the transferee
may claim the credit on the transferee's income tax return
originally filed during the calendar year in which the
transfer takes place and in the case of carryover of the
credit, on the transferee's returns for the number of years
of carryover available to the transferor at the time of the
transfer unless earlier exhausted.
(2) In the event that after the transfer the
department of revenue determines that the amount of credit
properly available under this section is less than the
amount claimed by the transferor of the credit or that the
credit is subject to recapture, the department shall assess
the amount of overstated or recaptured credit as taxes due
from the transferor and not the transferee. The assessment
shall be made in the manner provided for a deficiency in
taxes under state law.
8. The department of economic development shall
prepare an annual report for the general assembly outlining
tax credit transfers that take place each calendar year,
listing the qualified railroad expenditures and qualified
new rail infrastructure expenditures for each eligible
taxpayer and a statement summarizing the investments made by
the eligible taxpayer.
9. The department of economic development may
promulgate rules governing the allowance of the income tax
credit provided for in this section, including provisions
for the verification of the timeliness of a claim, the

21
process and documentation required for the department of
economic development to approve an income tax credit for
qualified railroad expenditures or qualified new rail
infrastructure expenditures, and any documentation that the
department of economic development requires in order to
determine that an eligible taxpayer, eligible customer, or
eligible vendor meets the requirements of this section. In
addition to other needed rules, the department of economic
development may promulgate rules prescribing, in the case of
S corporations, partnerships, trusts, or estates, a method
of attributing the credit under this section to the
shareholders, partners, or beneficiaries in proportion to
their share of the income from the S corporation,
partnership, trust, or estate.
10. The department of revenue and the department of
economic development shall promulgate all necessary rules
and regulations for the administration of this section
including, but not limited to, rules relating to the
verification of a taxpayer's qualified amount. Any rule or
portion of a rule, as that term is defined in section
536.010, that is created under the authority delegated in
this section shall become effective only if it complies with
and is subject to all of the provisions of chapter 536 and,
if applicable, section 536.028. This section and chapter
536 are nonseverable and if any of the powers vested with
the general assembly pursuant to chapter 536 to review, to
delay the effective date, or to disapprove and annul a rule
are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after
August 28, 2026, shall be invalid and void.
11. Under section 23.253 of the Missouri sunset act:
(1) The provisions of the new program authorized under
this section shall automatically sunset December thirty-

22
first six years after the effective date of this section,
unless reauthorized by an act of the general assembly;
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset
December thirty-first twelve years after the effective date
of the reauthorization of this section; and
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset.
135.1610. 1. As used in this section, the following
terms mean:
(1) "Eligible expenses", expenses incurred in the
construction or development of establishing or improving an
urban farm in an urban area. The term eligible expenses
shall not include any expense for labor or any expense
incurred to grow medical marijuana or industrial hemp;
(2) "Tax credit", a credit against the tax otherwise
due under chapter 143, excluding withholding tax imposed
under sections 143.191 to 143.265;
(3) "Taxpayer", any individual, partnership, or
corporation as described under section 143.441 or 143.471
that is subject to the tax imposed under chapter 143,
excluding withholding tax imposed under sections 143.191 to
143.265, or any charitable organization that is exempt from
federal income tax and whose Missouri unrelated business
taxable income, if any, would be subject to the state income
tax imposed under chapter 143;
(4) "Urban area", an urbanized area as defined by the
United States Census Bureau;
(5) "Urban farm", an agricultural plot or facility in
an urban area that produces agricultural food products used
solely for distribution to the public by sale or donation.
Urban farm shall include community-run gardens. Urban farm

23
shall not include personal farms or residential lots for
personal use.
2. For all tax years beginning on or after January 1,
2023, a taxpayer shall be allowed to claim a tax credit
against the taxpayer's state tax liability in an amount
equal to fifty percent of the taxpayer's eligible expenses
for establishing or improving an urban farm that focuses on
food production.
3. The amount of the tax credit claimed shall not
exceed the amount of the taxpayer's state tax liability in
the tax year for which the credit is claimed, and the
taxpayer shall not be allowed to claim a tax credit under
this section in excess of five thousand dollars for each
urban farm. The total amount of tax credits that may be
authorized for all taxpayers for eligible expenses incurred
on any given urban farm shall not exceed twenty-five
thousand dollars. Any issued tax credit that cannot be
claimed in the tax year in which the eligible expenses were
incurred may be carried over to the next three succeeding
tax years until the full credit is claimed.
4. The total amount of tax credits that may be
authorized under this section shall not exceed two hundred
thousand dollars in any calendar year.
5. Tax credits issued under the provisions of this
section shall not be transferred, sold, or assigned.
6. The Missouri agricultural and small business
development authority shall recapture the amount of tax
credits issued to any taxpayer who, after receiving such tax
credit, uses the urban farm for the personal benefit of the
taxpayer instead of for producing agricultural food products
used solely for distribution to the public by sale or
donation.

24
7. The Missouri agricultural and small business
development authority may promulgate rules to implement the
provisions of this section. Any rule or portion of a rule,
as that term is defined in section 536.010, that is created
under the authority delegated in this section shall become
effective only if it complies with and is subject to all of
the provisions of chapter 536 and, if applicable, section
536.028. This section and chapter 536 are nonseverable and
if any of the powers vested with the general assembly
pursuant to chapter 536 to review, to delay the effective
date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking
authority and any rule proposed or adopted after January 2,
2023, shall be invalid and void.
[8. Under section 23.253 of the Missouri sunset act:
(1) The program authorized under this section shall
automatically sunset on December 31, 2028, unless
reauthorized by an act of the general assembly;
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset on
December thirty-first twelve years after the effective date
of the reauthorization of this section;
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset;
and
(4) Nothing in this subsection shall prevent a
taxpayer from claiming a tax credit properly issued before
the program was sunset in a tax year after the program is
sunset.]
137.1018. 1. The commission shall ascertain the
statewide average rate of property taxes levied the
preceding year, based upon the total assessed valuation of

25
the railroad and street railway companies and the total
property taxes levied upon the railroad and street railway
companies. It shall determine total property taxes levied
from reports prescribed by the commission from the railroad
and street railway companies. Total taxes levied shall not
include revenues from the surtax on subclass three real
property.
2. The commission shall report its determination of
average property tax rate for the preceding year, together
with the taxable distributable assessed valuation of each
freight line company for the current year to the director no
later than October first of each year.
3. Taxes on property of such freight line companies
shall be collected at the state level by the director on
behalf of the counties and other local public taxing
entities and shall be distributed in accordance with
sections 137.1021 and 137.1024. The director shall tax such
property based upon the distributable assessed valuation
attributable to Missouri of each freight line company, using
the average tax rate for the preceding year of the railroad
and street railway companies certified by the commission.
Such tax shall be due and payable on or before December
thirty-first of the year levied and, if it becomes
delinquent, shall be subject to a penalty equal to that
specified in section 140.100.
4. (1) As used in this subsection, the following
terms mean:
(a) "Eligible expenses", expenses incurred in this
state to manufacture, maintain, or improve a freight line
company's qualified rolling stock;
(b) "Qualified rolling stock", any freight, stock,
refrigerator, or other railcars subject to the tax levied
under this section.

26
(2) For all taxable years beginning on or after
January 1, 2009, a freight line company shall, subject to
appropriation, be allowed a credit against the tax levied
under this section for the applicable tax year. The tax
credit amount shall be equal to the amount of eligible
expenses incurred during the calendar year immediately
preceding the tax year for which the credit under this
section is claimed. The amount of the tax credit issued
shall not exceed the freight line company's liability for
the tax levied under this section for the tax year for which
the credit is claimed.
(3) A freight line company may apply for the credit by
submitting to the commission an application in the form
prescribed by the state tax commission.
(4) Subject to appropriation, the state shall
reimburse, on an annual basis, any political subdivision of
this state for any decrease in revenue due to the provisions
of this subsection.
[5. Pursuant to section 23.253 of the Missouri sunset
act:
(1) The program authorized under subsection 4 of this
section shall expire on August 28, 2028; and
(2) Subsection 4 of this section shall terminate on
September 1, 2029.]
348.491. 1. This section shall be known and may be
cited as the "Specialty Agricultural Crops Act".
2. As used in this section, the following terms mean:
(1) "Authority", the Missouri agricultural and small
business development authority created in section 348.020;
(2) "Family farmer", a farmer who is a Missouri
resident and who has less than one hundred thousand dollars
in agricultural sales per year;

27
(3) "Lender", the same definition as in section
348.015;
(4) "Specialty crop", fruits and vegetables, tree
nuts, dried fruits, and horticulture and nursery crops
including, but not limited to, floriculture. Specialty crop
shall not include medical marijuana or industrial hemp.
3. The authority shall establish a specialty
agricultural crops loan program for family farmers for the
purchase of specialty crop seeds, seedlings, or trees; soil
amendments including compost; irrigation equipment; fencing;
row covers; trellising; season extension equipment;
refrigeration equipment; and equipment for planting and
harvesting.
4. To participate in the loan program, a family farmer
shall first obtain approval for a specialty agricultural
crops loan from a lender. Each family farmer shall be
eligible for only one specialty agricultural crops loan per
family.
5. The maximum amount of the specialty agricultural
crops loan for specialty crop producers shall be thirty-five
thousand dollars.
6. Eligible borrowers under the program:
(1) Shall use the proceeds of the specialty
agricultural crops loan to acquire the farming resources
described in subsection 3 of this section;
(2) Shall not finance more than ninety percent of the
anticipated cost of the purchase of such farming resources
through the specialty agricultural crops loan; and
(3) Shall not be charged interest by the lender for
the first year of the qualified specialty agricultural crops
loan.
7. Upon approval of the specialty agricultural crops
loan by a lender under subsection 4 of this section, the

28
loan shall be submitted for approval by the authority. The
authority shall promulgate rules establishing eligibility
under this section, taking into consideration:
(1) The eligible borrower's ability to repay the
specialty agricultural crops loan;
(2) The general economic conditions of the area in
which the farm is located;
(3) The prospect of a financial return for the family
farmer for the type of farming resource for which the
specialty agricultural crops loan is sought; and
(4) Such other factors as the authority may establish.
8. For eligible borrowers participating in the
program, the authority shall be responsible for reviewing
the purchase price of any farming resources to be purchased
by an eligible borrower under the program to determine
whether the price to be paid is appropriate for the type of
farming resources purchased. The authority may impose a one-
time loan review fee of one percent, which shall be
collected by the lender at the time of the loan and paid to
the authority.
9. Nothing in this section shall be construed to
preclude a family farmer from participating in any other
agricultural program.
10. Any rule or portion of a rule, as that term is
defined in section 536.010, that is created under the
authority delegated in this section shall become effective
only if it complies with and is subject to all of the
provisions of chapter 536 and, if applicable, section
536.028. This section and chapter 536 are nonseverable and
if any of the powers vested with the general assembly
pursuant to chapter 536 to review, to delay the effective
date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking

29
authority and any rule proposed or adopted after January 2,
2023, shall be invalid and void.
[11. Under section 23.253 of the Missouri sunset act:
(1) The provisions of the new program authorized under
this section shall automatically sunset on December 31,
2028, unless reauthorized by an act of the general assembly;
and
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset
twelve years after the effective date of the reauthorization
of this section; and
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset.]
348.493. 1. As used in this section, "state tax
liability" means any state tax liability incurred by a
taxpayer under the provisions of chapter 143, 147, or 148,
exclusive of the provisions relating to the withholding of
tax as provided for in sections 143.191 to 143.265 and
related provisions.
2. Any eligible lender under the specialty
agricultural crops loan program under section 348.491 shall
be entitled to receive a tax credit equal to one hundred
percent of the amount of interest waived by the lender under
section 348.491 on a qualifying loan for the first year of
the loan only. The tax credit shall be evidenced by a
certificate of tax credit issued by the Missouri
agricultural and small business development authority and
may be used to satisfy the state tax liability of the owner
of such certificate that becomes due in the tax year in
which the interest on a qualified loan is waived by the
lender under section 348.491. No lender shall receive a tax
credit under this section unless such lender presents a

30
certificate of tax credit to the department of revenue for
payment of such state tax liability. The amount of the tax
credits that may be issued to all eligible lenders claiming
tax credits authorized in this section in a fiscal year
shall not exceed three hundred thousand dollars.
3. The Missouri agricultural and small business
development authority shall be responsible for the
administration and issuance of the certificate of tax
credits authorized by this section. The authority shall
issue a certificate of tax credit at the request of any
lender. Each request shall include a true copy of the loan
documents, the name of the lender who is to receive a
certificate of tax credit, the type of state tax liability
against which the tax credit is to be used, and the amount
of the certificate of tax credit to be issued to the lender
based on the interest waived by the lender under section
348.491 on the loan for the first year.
4. The department of revenue shall accept a
certificate of tax credit in lieu of other payment in such
amount as is equal to the lesser of the amount of the tax or
the remaining unused amount of the credit as indicated on
the certificate of tax credit and shall indicate on the
certificate of tax credit the amount of tax thereby paid and
the date of such payment.
5. The following provisions shall apply to tax credits
authorized under this section:
(1) Tax credits claimed in a tax year may be claimed
on a quarterly basis and applied to the estimated quarterly
tax of the lender;
(2) Any amount of tax credit that exceeds the tax due,
including any estimated quarterly taxes paid by the lender
under subdivision (1) of this subsection that result in an
overpayment of taxes for a tax year, shall not be refunded

31
but may be carried over to any subsequent tax year, not to
exceed a total of three years for which a tax credit may be
taken for a qualified specialty agricultural crops loan;
(3) Notwithstanding any provision of law to the
contrary, a lender may assign, transfer, sell, or otherwise
convey tax credits authorized under this section, with the
new owner of the tax credit receiving the same rights in the
tax credit as the lender. For any tax credits assigned,
transferred, sold, or otherwise conveyed, a notarized
endorsement shall be filed by the lender with the authority
specifying the name and address of the new owner of the tax
credit and the value of such tax credit; and
(4) Notwithstanding any other provision of this
section to the contrary, any commercial bank may use tax
credits created under this section as provided in section
148.064 and receive a net tax credit against taxes actually
paid in the amount of the first year's interest on loans
made under this section. If such first year tax credits
reduce taxes due as provided in section 148.064 to zero, the
remaining tax credits may be carried over as otherwise
provided in this section and used as provided in section
148.064 in subsequent years.
[6. Under section 23.253 of the Missouri sunset act:
(1) The provisions of the new program authorized under
this section shall automatically sunset on December 31,
2028, unless reauthorized by an act of the general assembly;
and
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset
twelve years after the effective date of the reauthorization
of this section; and

32
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset.]
[348.436. The provisions of sections
348.430 to 348.436 shall expire December 31,
2028.]