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EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
[TRULY AGREED TO AND FINALLY PASSED]
SENATE SUBSTITUTE FOR
SENATE BILL NO. 913
103RD GENERAL ASSEMBLY
2026
5521S.02T
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 eleven 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, 1
135.778, 135.1610, 137.1018, 348.436, 348.491, and 348.493, 2
RSMo, are repealed and eleven new sections enacted in lieu 3
thereof, to be known as sections 135.305, 135.686, 135.772, 4
135.775, 135.778, 135.1210, 135.1610, 137.1018, 348.436, 5
348.491, and 348.493, to read as follows:6
135.305. A Missouri wood energy producer shall be 1
eligible for a tax credit on taxes otherwise due under 2
chapter 143, except sections 143.191 to 143.261, as a 3
production incentive to produce processed wood products in a 4
qualified wood-producing facility using Missouri forest 5
product residue. The tax credit to the wood energy producer 6
shall be five dollars per ton of processed material. The 7
credit may be claimed for a period of five years and is to 8
be a tax credit against the tax otherwise due. No new tax 9
credits, provided for under sections 135.300 to 135.311, 10
shall be authorized after June 30, [2028] 2033. In no event 11
shall the aggregate amount of all tax credits allowed under 12
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sections 135.300 to 135.311 exceed six million dollars in 13
any given fiscal year. There shall be no tax credits 14
authorized under sections 135.300 to 135.311 unless an 15
appropriation is made for such tax credits. 16
135.686. 1. This section shall be known and may be 1
cited as the "Meat Processing Facility Investment Tax Credit 2
Act". 3
2. As used in this section, the following terms mean: 4
(1) "Authority", the agricultural and small business 5
development authority established in chapter 348; 6
(2) "Meat processing facility", any commercial plant, 7
as defined under section 265.300, at which livestock are 8
slaughtered or at which meat or meat products are processed 9
for sale commercially and for human consumption; 10
(3) "Meat processing modernization or expansion", 11
constructing, improving, or acquiring buildings or 12
facilities, or acquiring equipment for meat processing 13
including the following, if used exclusively for meat 14
processing and if acquired and placed in service in this 15
state during tax years beginning on or after January 1, 16
2017, but ending on or before December 31, [2028] 2033: 17
(a) Building construction including livestock 18
handling, product intake, storage, and warehouse facilities; 19
(b) Building additions; 20
(c) Upgrades to utilities including water, electric, 21
heat, refrigeration, freezing, and waste facilities; 22
(d) Livestock intake and storage equipment; 23
(e) Processing and manufacturing equipment including 24
cutting equipment, mixers, grinders, sausage stuffers, meat 25
smokers, curing equipment, cooking equipment, pipes, motors, 26
pumps, and valves; 27
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(f) Packaging and handling equipment including 28
sealing, bagging, boxing, labeling, conveying, and product 29
movement equipment; 30
(g) Warehouse equipment including storage and curing 31
racks; 32
(h) Waste treatment and waste management equipment 33
including tanks, blowers, separators, dryers, digesters, and 34
equipment that uses waste to produce energy, fuel, or 35
industrial products; 36
(i) Computer software and hardware used for managing 37
the claimant's meat processing operation including software 38
and hardware related to logistics, inventory management, 39
production plant controls, and temperature monitoring 40
controls; and 41
(j) Construction or expansion of retail facilities or 42
the purchase or upgrade of retail equipment for the 43
commercial sale of meat products if the retail facility is 44
located at the same location as the meat processing facility; 45
(4) "Tax credit", a credit against the tax otherwise 46
due under chapter 143, excluding withholding tax imposed 47
under sections 143.191 to 143.265, or otherwise due under 48
[chapter] chapters 147 and 148; 49
(5) "Taxpayer", any individual or entity who: 50
(a) Is subject to the tax imposed under chapter 143, 51
excluding withholding tax imposed under sections 143.191 to 52
143.265, or the tax imposed under [chapter] chapters 147 and 53
148; 54
(b) In the case of an individual, is a resident of 55
this state as verified by a 911 address or, in the absence 56
of a 911 system, a physical address; and 57
(c) Owns a meat processing facility located in this 58
state and employs a combined total of fewer than five 59
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hundred individuals in all meat processing facilities owned 60
by the individual or entity in this country; 61
(6) "Used exclusively", used to the exclusion of all 62
other uses except for use not exceeding five percent of 63
total use. 64
3. For all tax years beginning on or after January 1, 65
2017, but ending on or before December 31, [2028] 2033, a 66
taxpayer shall be allowed a tax credit for meat processing 67
modernization or expansion related to the taxpayer's meat 68
processing facility. The tax credit amount shall be equal 69
to twenty-five percent of the amount the taxpayer paid in 70
the tax year for meat processing modernization or expansion. 71
4. The amount of the tax credit claimed shall not 72
exceed the amount of the taxpayer's state tax liability for 73
the tax year for which the credit is claimed. No tax credit 74
claimed under this section shall be refundable. The tax 75
credit shall be claimed in the tax year in which the meat 76
processing modernization or expansion expenses were paid, 77
but any amount of credit that the taxpayer is prohibited by 78
this section from claiming in a tax year may be carried 79
forward to any of the taxpayer's four subsequent tax years. 80
The total amount of tax credits that any taxpayer may claim 81
shall not exceed seventy-five thousand dollars per year. If 82
two or more persons own and operate the meat processing 83
facility, each person may claim a credit under this section 84
in proportion to such person's ownership interest; except 85
that, the aggregate amount of the credits claimed by all 86
persons who own and operate the meat processing facility 87
shall not exceed seventy-five thousand dollars per year. 88
The amount of tax credits authorized in this section in a 89
calendar year shall not exceed two million dollars. Tax 90
credits shall be issued on an as-received application basis 91
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until the calendar year limit is reached. Any credits not 92
issued in any calendar year shall expire and shall not be 93
issued in any subsequent year. 94
5. To claim the tax credit allowed under this section, 95
the taxpayer shall submit to the authority an application 96
for the tax credit on a form provided by the authority and 97
any application fee imposed by the authority. The 98
application shall be filed with the authority at the end of 99
each calendar year in which a meat processing modernization 100
or expansion project was completed and for which a tax 101
credit is claimed under this section. The application shall 102
include any certified documentation, proof of meat 103
processing modernization or expansion, and any other 104
information required by the authority. All required 105
information obtained by the authority shall be confidential 106
and not disclosed except by court order, subpoena, or as 107
otherwise provided by law. If the taxpayer and the meat 108
processing modernization or expansion meet all criteria 109
required by this section and approval is granted by the 110
authority, the authority shall issue a tax credit 111
certificate in the appropriate amount. Tax credit 112
certificates issued under this section may be assigned, 113
transferred, sold, or otherwise conveyed, and the new owner 114
of the tax credit certificate shall have the same rights in 115
the tax credit as the original taxpayer. If a tax credit 116
certificate is assigned, transferred, sold, or otherwise 117
conveyed, a notarized endorsement shall be filed with the 118
authority specifying the name and address of the new owner 119
of the tax credit certificate and the value of the tax 120
credit. 121
6. Any information provided under this section shall 122
be confidential information, to be shared with no one except 123
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state and federal animal health officials, except as 124
provided in subsection 5 of this section. 125
7. The authority shall promulgate rules establishing a 126
process for verifying that a facility's modernization or 127
expansion for which tax credits were allowed under this 128
section has in fact expanded the facility's production 129
within three years of the issuance of the tax credit and if 130
not, the authority shall promulgate through rulemaking a 131
process by which the taxpayer shall repay the authority an 132
amount equal to that of the tax credit allowed. 133
8. The authority shall, at least annually, submit a 134
report to the Missouri general assembly reviewing the costs 135
and benefits of the program established under this section. 136
9. The authority may promulgate rules to implement the 137
provisions of this section. Any rule or portion of a rule, 138
as that term is defined in section 536.010, that is created 139
under the authority delegated in this section shall become 140
effective only if it complies with and is subject to all of 141
the provisions of chapter 536 and, if applicable, section 142
536.028. This section and chapter 536 are nonseverable and 143
if any of the powers vested with the general assembly 144
pursuant to chapter 536 to review, to delay the effective 145
date, or to disapprove and annul a rule are subsequently 146
held unconstitutional, then the grant of rulemaking 147
authority and any rule proposed or adopted after August 28, 148
2016, shall be invalid and void. 149
10. This section shall not be subject to the Missouri 150
sunset act, sections 23.250 to 23.298. 151
135.772. 1. For the purposes of this section, the 1
following terms shall mean: 2
(1) "Department", the Missouri department of revenue; 3
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(2) "Distributor", a person, firm, or corporation 4
doing business in this state that: 5
(a) Produces, refines, blends, compounds, or 6
manufactures motor fuel; 7
(b) Imports motor fuel into the state; or 8
(c) Is engaged in distribution of motor fuel; 9
(3) "Higher ethanol blend", a fuel capable of being 10
dispensed directly into motor vehicle fuel tanks for 11
consumption that is comprised of at least fifteen percent 12
but not more than eighty-five percent ethanol; 13
(4) "Retail dealer", a person, firm, or corporation 14
doing business in this state that owns or operates a retail 15
service station in this state; 16
(5) "Retail service station", a location in this state 17
from which higher ethanol blend is sold to the general 18
public and is dispensed directly into motor vehicle fuel 19
tanks for consumption. 20
2. For all tax years beginning on or after January 1, 21
2023, a retail dealer that sells higher ethanol blend at 22
such retail dealer's retail service station or a distributor 23
that sells higher ethanol blend directly to the final user 24
located in this state shall be allowed a tax credit to be 25
taken against the retail dealer's or distributor's state 26
income tax liability. The amount of the credit shall equal 27
five cents per gallon of higher ethanol blend sold by the 28
retail dealer and dispensed through metered pumps at the 29
retail dealer's retail service station or by a distributor 30
directly to the final user located in this state during the 31
tax year for which the tax credit is claimed. For any 32
retail dealer or distributor with a tax year beginning prior 33
to January 1, 2023, but ending during the 2023 calendar 34
year, such retail dealer or distributor shall be allowed a 35
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tax credit for the amount of higher ethanol blend sold 36
during the portion of such tax year that occurs during the 37
2023 calendar year. Tax credits authorized pursuant to this 38
section shall not be transferred, sold, or assigned. If the 39
amount of the tax credit exceeds the taxpayer's state tax 40
liability, the difference shall not be refundable but may be 41
carried forward to any of the five subsequent tax years. 42
The total amount of tax credits issued pursuant to this 43
section for any given fiscal year shall not exceed five 44
million dollars. 45
3. In the event the total amount of tax credits 46
claimed under this section exceeds the amount of available 47
tax credits, the tax credits shall be apportioned among all 48
eligible retail dealers and distributors claiming a tax 49
credit by April fifteenth, or as directed by section 50
143.851, of the fiscal year in which the tax credit is 51
claimed. 52
4. The tax credit allowed by this section shall be 53
claimed by such taxpayer at the time such taxpayer files a 54
return and shall be applied against the income tax liability 55
imposed by chapter 143, excluding the withholding tax 56
imposed by sections 143.191 to 143.265, after reduction for 57
all other credits allowed thereon. The department may 58
require any documentation it deems necessary to implement 59
the provisions of this section. 60
5. The department shall promulgate rules to implement 61
the provisions of this section. Any rule or portion of a 62
rule, as that term is defined in section 536.010, that is 63
created under the authority delegated in this section shall 64
become effective only if it complies with and is subject to 65
all of the provisions of chapter 536 and, if applicable, 66
section 536.028. This section and chapter 536 are 67
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nonseverable and if any of the powers vested with the 68
general assembly pursuant to chapter 536 to review, to delay 69
the effective date, or to disapprove and annul a rule are 70
subsequently held unconstitutional, then the grant of 71
rulemaking authority and any rule proposed or adopted after 72
January 2, 2023, shall be invalid and void. 73
6. Under section 23.253 of the Missouri sunset act: 74
(1) The provisions of this section shall automatically 75
sunset on December 31, [2028] 2033, unless reauthorized by 76
an act of the general assembly; and 77
(2) If such program is reauthorized, the program 78
authorized under this section shall automatically sunset 79
twelve years after the effective date of the reauthorization 80
of this section; and 81
(3) This section shall terminate on September first of 82
the calendar year immediately following the calendar year in 83
which the program authorized under this section is sunset. 84
135.775. 1. As used in this section, the following 1
terms mean: 2
(1) "Biodiesel blend", a blend of diesel fuel and 3
biodiesel fuel of at least five percent and not more than 4
twenty percent for on-road [and] or off-road diesel-fueled 5
vehicle use; 6
(2) "Biodiesel fuel", a renewable, biodegradable, mono 7
alkyl ester combustible liquid fuel that is derived from 8
agricultural and other plant oils or animal fats and that 9
meets the most recent version of the ASTM International 10
D6751 Standard Specification for Biodiesel Fuel Blend 11
Stock. A fuel shall be deemed to be biodiesel fuel if the 12
fuel consists of a pure B100 or B99 ratio. Biodiesel 13
produced from palm oil is not biodiesel fuel for the 14
purposes of this section unless the palm oil is contained 15
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within waste oil and grease collected within the United 16
States; 17
(3) "B99", a blend of ninety-nine percent biodiesel 18
fuel that meets the most recent version of the ASTM 19
International D6751 Standard Specification for Biodiesel 20
Fuel Blend Stock with a minimum of one-tenth of one percent 21
and maximum of one percent diesel fuel that meets the most 22
recent version of the ASTM International D975 Standard 23
Specification for Diesel Fuel; 24
(4) "Department", the Missouri department of revenue; 25
(5) "Distributor", a person, firm, or corporation 26
doing business in this state that: 27
(a) Produces, refines, blends, compounds, or 28
manufactures motor fuel; 29
(b) Imports motor fuel into the state; or 30
(c) Is engaged in distribution of motor fuel; 31
(6) "Retail dealer", a person, firm, or corporation 32
doing business in this state that owns or operates a retail 33
service station in this state; 34
(7) "Retail service station", a location in this state 35
from which biodiesel blend is sold to the general public and 36
is dispensed directly into motor vehicle fuel tanks for 37
consumption at retail. 38
2. For all tax years beginning on or after January 1, 39
2023, a retail dealer that sells a biodiesel blend at a 40
retail service station or a distributor that sells a 41
biodiesel blend directly to the final user located in this 42
state shall be allowed a tax credit to be taken against the 43
retail dealer or distributor's state income tax liability. 44
For any retail dealer or distributor with a tax year 45
beginning prior to January 1, 2023, but ending during the 46
2023 calendar year, such retail dealer or distributor shall 47
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be allowed a tax credit for the amount of biodiesel blend 48
sold during the portion of such tax year that occurs during 49
the 2023 calendar year. The amount of the credit shall be 50
equal to: 51
(1) Two cents per gallon of biodiesel blend of at 52
least five percent but not more than ten percent sold by the 53
retail dealer at a retail service station or by a 54
distributor directly to the final user located in this state 55
during the tax year for which the tax credit is claimed; and 56
(2) Five cents per gallon of biodiesel blend in excess 57
of ten percent but not more than twenty percent sold by the 58
retail dealer at a retail service station or by a 59
distributor directly to the final user located in this state 60
during the tax year for which the tax credit is claimed. 61
3. Tax credits authorized under this section shall not 62
be transferred, sold, or assigned. If the amount of the tax 63
credit exceeds the taxpayer's state tax liability, the 64
difference shall be refundable. The total amount of tax 65
credits issued under this section for any given fiscal year 66
shall not exceed sixteen million dollars. 67
4. In the event the total amount of tax credits 68
claimed under this section exceeds the amount of available 69
tax credits, the tax credits shall be apportioned among all 70
eligible retail dealers and distributors claiming a tax 71
credit by April fifteenth, or as directed by section 72
143.851, of the fiscal year in which the tax credit is 73
claimed. 74
5. The tax credit allowed by this section shall be 75
claimed by such taxpayer at the time such taxpayer files a 76
return and shall be applied against the income tax liability 77
imposed by chapter 143, excluding the withholding tax 78
imposed by sections 143.191 to 143.265, after reduction for 79
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all other credits allowed thereon. The department may 80
require any documentation it deems necessary to administer 81
the provisions of this section. 82
6. Notwithstanding the provisions of section 32.057 to 83
the contrary, the department may work with the division of 84
weights and measures within the department of agriculture to 85
validate that the biodiesel blend a retail dealer or 86
distributor claims for the tax credit authorized under this 87
section contains a sufficient percentage of biodiesel fuel. 88
7. In the event a taxpayer is denied part or all of a 89
tax credit to which the taxpayer is qualified pursuant to 90
any provision of law due to lack of available funds, and 91
such denial causes a balance-due notice to be generated by 92
the department of revenue or any other redeeming agency, a 93
taxpayer shall not be held liable for any penalty or 94
interest on such balance due, provided the balance is paid 95
or approved payment arrangements have been made within sixty 96
days from the notice of denial. Any payments not timely 97
made pursuant to this section shall be subject to penalty 98
and interest pursuant to this chapter. 99
8. The department shall promulgate rules to implement 100
and administer the provisions of this section. Any rule or 101
portion of a rule, as that term is defined in section 102
536.010, that is created pursuant to the authority delegated 103
in this section shall become effective only if it complies 104
with and is subject to all of the provisions of chapter 536 105
and, if applicable, section 536.028. This section and 106
chapter 536 are nonseverable and if any of the powers vested 107
with the general assembly pursuant to chapter 536 to review, 108
to delay the effective date, or to disapprove and annul a 109
rule are subsequently held unconstitutional, then the grant 110
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of rulemaking authority and any rule proposed or adopted 111
after January 2, 2023, shall be invalid and void. 112
[8.] 9. Under section 23.253 of the Missouri sunset 113
act: 114
(1) The provisions of the new program authorized under 115
this section shall automatically sunset on December 31, 116
[2028] 2033, unless reauthorized by an act of the general 117
assembly; 118
(2) If such program is reauthorized, the program 119
authorized under this section shall automatically sunset 120
twelve years after the effective date of the reauthorization 121
of this section; and 122
(3) This section shall terminate on September first of 123
the calendar year immediately following the calendar year in 124
which the program authorized under this section is sunset. 125
The termination of the program as described in this 126
subsection shall not be construed to preclude any qualified 127
taxpayer who claims any benefit under any program that is 128
sunset under this subsection from claiming such benefit for 129
all allowable activities related to such claim that were 130
completed before the program was sunset or to eliminate any 131
responsibility of the department to verify the continued 132
eligibility of qualified individuals receiving tax credits 133
and to enforce other requirements of law that applied before 134
the program was sunset. 135
135.778. 1. For the purposes of this section, the 1
following terms shall mean: 2
(1) "Biodiesel fuel", a renewable, biodegradable, mono 3
alkyl ester combustible liquid fuel that is derived from 4
agricultural and other plant oils or animal fats and that 5
meets the most recent version of the ASTM International 6
D6751 Standard Specification for Biodiesel Fuel Blend 7
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Stock. A fuel shall be deemed to be biodiesel fuel if the 8
fuel consists of a pure B100 or B99 ratio. Biodiesel 9
produced from palm oil is not biodiesel fuel for the 10
purposes of this section unless the palm oil is contained 11
within waste oil and grease collected within the United 12
States; 13
(2) "B99", a blend of ninety-nine percent biodiesel 14
fuel that meets the most recent version of the ASTM 15
International D6751 Standard Specification for Biodiesel 16
Fuel Blend Stock with a minimum of one-tenth of one percent 17
and maximum of one percent diesel fuel that meets the most 18
recent version of the ASTM International D975 Standard 19
Specification for Diesel Fuel; 20
(3) "Department", the Missouri department of revenue; 21
(4) "Missouri biodiesel producer", a person, firm, or 22
corporation doing business in this state that produces 23
biodiesel fuel in this state, is registered with the United 24
States Environmental Protection Agency according to the 25
requirements of 40 CFR Part 79, and has begun construction 26
on such facility or has been selling biodiesel fuel produced 27
at such facility on or before January 2, 2023. 28
2. For all tax years beginning on or after January 1, 29
2023, a Missouri biodiesel producer shall be allowed a tax 30
credit to be taken against the producer's state income tax 31
liability. For any Missouri biodiesel producer with a tax 32
year beginning prior to January 1, 2023, but ending during 33
the 2023 calendar year, such Missouri biodiesel producer 34
shall be allowed a tax credit for the amount of biodiesel 35
fuel produced during the portion of such tax year that 36
occurs during the 2023 calendar year. The amount of the tax 37
credit shall be two cents per gallon of biodiesel fuel 38
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produced by the Missouri biodiesel producer during the tax 39
year for which the tax credit is claimed. 40
3. Tax credits authorized under this section shall not 41
be transferred, sold, or assigned. If the amount of the tax 42
credit exceeds the taxpayer's state tax liability, the 43
difference shall be refundable. The total amount of tax 44
credits issued under this section for any given fiscal year 45
shall not exceed five million five hundred thousand dollars, 46
which shall be authorized on a first-come, first-served 47
basis. 48
4. The tax credit authorized under this section shall 49
be claimed by such taxpayer at the time such taxpayer files 50
a return and shall be applied against the income tax 51
liability imposed by chapter 143, excluding the withholding 52
tax imposed by sections 143.191 to 143.265, after reduction 53
for all other credits allowed thereon. The department may 54
require any documentation it deems necessary to administer 55
the provisions of this section. 56
5. The department shall promulgate rules to implement 57
and administer the provisions of this section. Any rule or 58
portion of a rule, as that term is defined in section 59
536.010, that is created pursuant to the authority delegated 60
in this section shall become effective only if it complies 61
with and is subject to all of the provisions of chapter 536 62
and, if applicable, section 536.028. This section and 63
chapter 536 are nonseverable and if any of the powers vested 64
with the general assembly pursuant to chapter 536 to review, 65
to delay the effective date, or to disapprove and annul a 66
rule are subsequently held unconstitutional, then the grant 67
of rulemaking authority and any rule proposed or adopted 68
after January 2, 2023, shall be invalid and void. 69
6. Under section 23.253 of the Missouri sunset act: 70
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(1) The provisions of the new program authorized under 71
this section shall automatically sunset on December 31, 72
[2028] 2033, unless reauthorized by an act of the general 73
assembly; 74
(2) If such program is reauthorized, the program 75
authorized under this section shall automatically sunset 76
twelve years after the effective date of the reauthorization 77
of this section; and 78
(3) This section shall terminate on September first of 79
the calendar year immediately following the calendar year in 80
which the program authorized under this section is sunset. 81
The termination of the program as described in this 82
subsection shall not be construed to preclude any qualified 83
taxpayer who claims any benefit under any program that is 84
sunset under this subsection from claiming such benefit for 85
all allowable activities related to such claim that were 86
completed before the program was sunset, or to eliminate any 87
responsibility of the department to verify the continued 88
eligibility of qualified individuals receiving tax credits 89
and to enforce other requirements of law that applied before 90
the program was sunset. 91
135.1210. 1. As used in this section, the following 1
terms mean: 2
(1) "Eligible customer", a person who uses any 3
railroad or railroad-related property, facilities, or 4
structures located wholly or partly within the state of 5
Missouri to directly or indirectly transport property, 6
commodities, or goods, or who is served by any railroad, or 7
who stores railcars on any railroad in Missouri; 8
(2) "Eligible taxpayer": 9
(a) Any short line railroad company located wholly or 10
partly in the state of Missouri that is classified by the 11
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United States Surface Transportation Board as a Class II or 12
Class III railroad; or 13
(b) Any owner or lessee of a rail siding, industrial 14
spur, or industry track located on or adjacent to any 15
railroad in the state of Missouri; 16
and subject to the state income tax imposed under chapter 17
143, 147, or 148, excluding the withholding tax imposed 18
under sections 143.191 to 143.265, who made qualified 19
railroad track expenditures in Missouri or qualified new 20
rail infrastructure expenditures in Missouri during the tax 21
year for which a credit under this section is claimed; 22
(3) "Eligible vendor", a person who provides railroad- 23
related services directly to an eligible taxpayer; 24
(4) "Person", the same meaning as defined under 25
section 1.020; 26
(5) "Qualified amount", for any eligible taxpayer in a 27
given tax year, an amount equal to fifty percent of an 28
eligible taxpayer's qualified railroad track expenditures or 29
qualified new rail infrastructure expenditures, provided 30
that: 31
(a) For qualified railroad track expenditures, the 32
amount of tax credit shall not exceed an amount equal to the 33
product of five thousand dollars multiplied by the number of 34
miles of railroad track owned or leased in the state by a 35
Class II or Class III railroad as of the close of the tax 36
year; and 37
(b) For qualified new rail infrastructure 38
expenditures, the amount of tax credit shall not exceed one 39
million dollars for each new rail-served customer project of 40
an eligible taxpayer; 41
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(6) "Qualified new rail infrastructure expenditures", 42
gross expenditures for new rail infrastructure by an 43
eligible taxpayer, which includes the construction of new 44
track infrastructure such as industrial leads, switches, 45
spurs, sidings, rail loading docks, and transloading 46
structures involved with servicing new customer locations or 47
expansions by any railroad located in Missouri; 48
(7) "Qualified railroad expenditures", gross 49
expenditures for maintenance, reconstruction, or replacement 50
of railroad infrastructure, including track, roadbed, 51
bridges, industrial leads and sidings, and track-related 52
structures owned or leased by a Class II or Class III 53
railroad located in Missouri. "Qualified railroad 54
expenditures" does not include expenditures used to generate 55
a federal tax credit or expenditures funded by a state or 56
federal grant; 57
(8) "Railroad-related services", includes, but is not 58
limited to, the following: transport of freight by rail; 59
loading and unloading of freight transported by rail; 60
railroad bridge services; railroad track construction; 61
provision of railroad track material or equipment; 62
locomotive or freight train car leasing or rental; provision 63
of railroad financial services, including banking or 64
insurance; maintenance of a railroad's right-of-way, 65
including vegetation control; and freight train car repair, 66
rehabilitation, or remanufacturing repair services; 67
(9) "Tax credit", a credit against the tax otherwise 68
due under chapter 143, 147, or 148, excluding withholding 69
tax imposed under sections 143.191 to 143.265. 70
2. For all tax years beginning on or after January 1, 71
2027, an eligible taxpayer shall be allowed to claim a 72
nonrefundable tax credit for qualified railroad track 73
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expenditures in Missouri or for qualified new rail 74
infrastructure expenditures in Missouri against the 75
taxpayer's state tax liability in an amount equal to the 76
taxpayer's qualified amount. 77
3. An eligible taxpayer who seeks to claim a tax 78
credit under this section shall submit a certificate of 79
eligibility to the Missouri department of economic 80
development after completion of the qualified railroad 81
expenditures or qualified new rail infrastructure 82
expenditures. The certificate shall include the number of 83
miles of railroad track owned or leased in this state and a 84
description of the amount of qualified railroad expenditures 85
or qualified new rail infrastructure expenditures 86
completed. The certificate shall be made on forms and in 87
the manner prescribed by the department and considered in 88
the order received. 89
4. If the department of economic development 90
determines that the taxpayer meets the requirements to claim 91
a tax credit under this section, the department may issue a 92
certificate of eligibility to the eligible taxpayer. The 93
certificate shall be numbered for identification and declare 94
its date of issuance and the amount of the tax credit 95
allowed under this section. 96
5. (1) The cumulative amount of tax credits under 97
this section authorized for qualified railroad track 98
expenditures in this state shall not exceed four million 99
five hundred thousand dollars per calendar year. If the 100
amount of tax credits claimed in a calendar year under this 101
section exceeds four million five hundred thousand dollars, 102
tax credits shall be allowed based on the order in which 103
they are claimed. 104
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(2) The cumulative amount of tax credits under this 105
section authorized for qualified new rail infrastructure 106
expenditures in this state shall not exceed five million 107
dollars per calendar year. If the amount of tax credits 108
claimed in a calendar year under this section exceeds five 109
million dollars, tax credits shall be allowed based on the 110
order in which they are claimed. 111
6. Any unused portion of a tax credit allowed under 112
this section may be carried forward for up to five 113
subsequent tax years immediately following the tax year the 114
credit was allowed. 115
7. (1) Subject to the requirements of this 116
subsection, an eligible taxpayer who earns and is entitled 117
to the credit or to an unused portion of the credit allowed 118
by this section may transfer all or a portion of the unused 119
credit by written agreement to any eligible customer, 120
eligible vendor, or any taxpayer subject to tax imposed 121
under chapter 143, 147, or 148, excluding withholding tax 122
imposed under sections 143.191 to 143.265, at any time 123
during the year in which the credit is earned and the five 124
years following the year of the qualified expenditures. The 125
taxpayer originally allowed the tax credit and the 126
subsequent transferee shall jointly file a copy of the 127
written credit transfer agreement with the department of 128
revenue. The agreement shall include the name, address, and 129
taxpayer identification number of the parties to the 130
transfer; the amount of the credit being transferred; the 131
year the credit was originally allowed to the transferring 132
taxpayer; and the tax year or years for which the credit may 133
be claimed. In the event of such a transfer, the transferee 134
may claim the credit on the transferee's income tax return 135
originally filed during the calendar year in which the 136
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transfer takes place and in the case of carryover of the 137
credit, on the transferee's returns for the number of years 138
of carryover available to the transferor at the time of the 139
transfer unless earlier exhausted. 140
(2) In the event that after the transfer the 141
department of revenue determines that the amount of credit 142
properly available under this section is less than the 143
amount claimed by the transferor of the credit or that the 144
credit is subject to recapture, the department shall assess 145
the amount of overstated or recaptured credit as taxes due 146
from the transferor and not the transferee. The assessment 147
shall be made in the manner provided for a deficiency in 148
taxes under state law. 149
8. The department of economic development shall 150
prepare an annual report for the general assembly outlining 151
tax credit transfers that take place each calendar year, 152
listing the qualified railroad expenditures and qualified 153
new rail infrastructure expenditures for each eligible 154
taxpayer and a statement summarizing the investments made by 155
the eligible taxpayer. 156
9. The department of economic development may 157
promulgate rules governing the allowance of the income tax 158
credit provided for in this section, including provisions 159
for the verification of the timeliness of a claim, the 160
process and documentation required for the department of 161
economic development to approve an income tax credit for 162
qualified railroad expenditures or qualified new rail 163
infrastructure expenditures, and any documentation that the 164
department of economic development requires in order to 165
determine that an eligible taxpayer, eligible customer, or 166
eligible vendor meets the requirements of this section. In 167
addition to other needed rules, the department of economic 168
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development may promulgate rules prescribing, in the case of 169
S corporations, partnerships, trusts, or estates, a method 170
of attributing the credit under this section to the 171
shareholders, partners, or beneficiaries in proportion to 172
their share of the income from the S corporation, 173
partnership, trust, or estate. 174
10. The department of revenue and the department of 175
economic development shall promulgate all necessary rules 176
and regulations for the administration of this section 177
including, but not limited to, rules relating to the 178
verification of a taxpayer's qualified amount. Any rule or 179
portion of a rule, as that term is defined in section 180
536.010, that is created under the authority delegated in 181
this section shall become effective only if it complies with 182
and is subject to all of the provisions of chapter 536 and, 183
if applicable, section 536.028. This section and chapter 184
536 are nonseverable and if any of the powers vested with 185
the general assembly pursuant to chapter 536 to review, to 186
delay the effective date, or to disapprove and annul a rule 187
are subsequently held unconstitutional, then the grant of 188
rulemaking authority and any rule proposed or adopted after 189
August 28, 2026, shall be invalid and void. 190
11. Under section 23.253 of the Missouri sunset act: 191
(1) The provisions of the new program authorized under 192
this section shall automatically sunset December thirty- 193
first six years after the effective date of this section, 194
unless reauthorized by an act of the general assembly; 195
(2) If such program is reauthorized, the program 196
authorized under this section shall automatically sunset 197
December thirty-first twelve years after the effective date 198
of the reauthorization of this section; and 199
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(3) This section shall terminate on September first of 200
the calendar year immediately following the calendar year in 201
which the program authorized under this section is sunset. 202
135.1610. 1. As used in this section, the following 1
terms mean: 2
(1) "Eligible expenses", expenses incurred in the 3
construction or development of establishing or improving an 4
urban farm in an urban area. The term eligible expenses 5
shall not include any expense for labor or any expense 6
incurred to grow medical marijuana or industrial hemp; 7
(2) "Tax credit", a credit against the tax otherwise 8
due under chapter 143, excluding withholding tax imposed 9
under sections 143.191 to 143.265; 10
(3) "Taxpayer", any individual, partnership, or 11
corporation as described under section 143.441 or 143.471 12
that is subject to the tax imposed under chapter 143, 13
excluding withholding tax imposed under sections 143.191 to 14
143.265, or any charitable organization that is exempt from 15
federal income tax and whose Missouri unrelated business 16
taxable income, if any, would be subject to the state income 17
tax imposed under chapter 143; 18
(4) "Urban area", an urbanized area as defined by the 19
United States Census Bureau; 20
(5) "Urban farm", an agricultural plot or facility in 21
an urban area that produces agricultural food products used 22
solely for distribution to the public by sale or donation. 23
Urban farm shall include community-run gardens. Urban farm 24
shall not include personal farms or residential lots for 25
personal use. 26
2. For all tax years beginning on or after January 1, 27
2023, a taxpayer shall be allowed to claim a tax credit 28
against the taxpayer's state tax liability in an amount 29
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equal to fifty percent of the taxpayer's eligible expenses 30
for establishing or improving an urban farm that focuses on 31
food production. 32
3. The amount of the tax credit claimed shall not 33
exceed the amount of the taxpayer's state tax liability in 34
the tax year for which the credit is claimed, and the 35
taxpayer shall not be allowed to claim a tax credit under 36
this section in excess of five thousand dollars for each 37
urban farm. The total amount of tax credits that may be 38
authorized for all taxpayers for eligible expenses incurred 39
on any given urban farm shall not exceed twenty-five 40
thousand dollars. Any issued tax credit that cannot be 41
claimed in the tax year in which the eligible expenses were 42
incurred may be carried over to the next three succeeding 43
tax years until the full credit is claimed. 44
4. The total amount of tax credits that may be 45
authorized under this section shall not exceed two hundred 46
thousand dollars in any calendar year. 47
5. Tax credits issued under the provisions of this 48
section shall not be transferred, sold, or assigned. 49
6. The Missouri agricultural and small business 50
development authority shall recapture the amount of tax 51
credits issued to any taxpayer who, after receiving such tax 52
credit, uses the urban farm for the personal benefit of the 53
taxpayer instead of for producing agricultural food products 54
used solely for distribution to the public by sale or 55
donation. 56
7. The Missouri agricultural and small business 57
development authority may promulgate rules to implement the 58
provisions of this section. Any rule or portion of a rule, 59
as that term is defined in section 536.010, that is created 60
under the authority delegated in this section shall become 61
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effective only if it complies with and is subject to all of 62
the provisions of chapter 536 and, if applicable, section 63
536.028. This section and chapter 536 are nonseverable and 64
if any of the powers vested with the general assembly 65
pursuant to chapter 536 to review, to delay the effective 66
date, or to disapprove and annul a rule are subsequently 67
held unconstitutional, then the grant of rulemaking 68
authority and any rule proposed or adopted after January 2, 69
2023, shall be invalid and void. 70
8. Under section 23.253 of the Missouri sunset act: 71
(1) The program authorized under this section shall 72
automatically sunset on December 31, [2028] 2033, unless 73
reauthorized by an act of the general assembly; 74
(2) If such program is reauthorized, the program 75
authorized under this section shall automatically sunset on 76
December thirty-first twelve years after the effective date 77
of the reauthorization of this section; 78
(3) This section shall terminate on September first of 79
the calendar year immediately following the calendar year in 80
which the program authorized under this section is sunset; 81
and 82
(4) Nothing in this subsection shall prevent a 83
taxpayer from claiming a tax credit properly issued before 84
the program was sunset in a tax year after the program is 85
sunset. 86
137.1018. 1. The commission shall ascertain the 1
statewide average rate of property taxes levied the 2
preceding year, based upon the total assessed valuation of 3
the railroad and street railway companies and the total 4
property taxes levied upon the railroad and street railway 5
companies. It shall determine total property taxes levied 6
from reports prescribed by the commission from the railroad 7
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and street railway companies. Total taxes levied shall not 8
include revenues from the surtax on subclass three real 9
property. 10
2. The commission shall report its determination of 11
average property tax rate for the preceding year, together 12
with the taxable distributable assessed valuation of each 13
freight line company for the current year to the director no 14
later than October first of each year. 15
3. Taxes on property of such freight line companies 16
shall be collected at the state level by the director on 17
behalf of the counties and other local public taxing 18
entities and shall be distributed in accordance with 19
sections 137.1021 and 137.1024. The director shall tax such 20
property based upon the distributable assessed valuation 21
attributable to Missouri of each freight line company, using 22
the average tax rate for the preceding year of the railroad 23
and street railway companies certified by the commission. 24
Such tax shall be due and payable on or before December 25
thirty-first of the year levied and, if it becomes 26
delinquent, shall be subject to a penalty equal to that 27
specified in section 140.100. 28
4. (1) As used in this subsection, the following 29
terms mean: 30
(a) "Eligible expenses", expenses incurred in this 31
state to manufacture, maintain, or improve a freight line 32
company's qualified rolling stock; 33
(b) "Qualified rolling stock", any freight, stock, 34
refrigerator, or other railcars subject to the tax levied 35
under this section. 36
(2) For all taxable years beginning on or after 37
January 1, 2009, a freight line company shall, subject to 38
appropriation, be allowed a credit against the tax levied 39
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under this section for the applicable tax year. The tax 40
credit amount shall be equal to the amount of eligible 41
expenses incurred during the calendar year immediately 42
preceding the tax year for which the credit under this 43
section is claimed. The amount of the tax credit issued 44
shall not exceed the freight line company's liability for 45
the tax levied under this section for the tax year for which 46
the credit is claimed. 47
(3) A freight line company may apply for the credit by 48
submitting to the commission an application in the form 49
prescribed by the state tax commission. 50
(4) Subject to appropriation, the state shall 51
reimburse, on an annual basis, any political subdivision of 52
this state for any decrease in revenue due to the provisions 53
of this subsection. 54
5. Pursuant to section 23.253 of the Missouri sunset 55
act: 56
(1) The program authorized under subsection 4 of this 57
section shall expire on August 28, [2028] 2033; and 58
(2) Subsection 4 of this section shall terminate on 59
September 1, [2029] 2034. 60
348.436. The provisions of sections 348.430 to 348.436 1
shall expire December 31, [2028] 2033. 2
348.491. 1. This section shall be known and may be 1
cited as the "Specialty Agricultural Crops Act". 2
2. As used in this section, the following terms mean: 3
(1) "Authority", the Missouri agricultural and small 4
business development authority created in section 348.020; 5
(2) "Family farmer", a farmer who is a Missouri 6
resident and who has less than one hundred thousand dollars 7
in agricultural sales per year; 8
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(3) "Lender", the same definition as in section 9
348.015; 10
(4) "Specialty crop", fruits and vegetables, tree 11
nuts, dried fruits, and horticulture and nursery crops 12
including, but not limited to, floriculture. Specialty crop 13
shall not include medical marijuana or industrial hemp. 14
3. The authority shall establish a specialty 15
agricultural crops loan program for family farmers for the 16
purchase of specialty crop seeds, seedlings, or trees; soil 17
amendments including compost; irrigation equipment; fencing; 18
row covers; trellising; season extension equipment; 19
refrigeration equipment; and equipment for planting and 20
harvesting. 21
4. To participate in the loan program, a family farmer 22
shall first obtain approval for a specialty agricultural 23
crops loan from a lender. Each family farmer shall be 24
eligible for only one specialty agricultural crops loan per 25
family. 26
5. The maximum amount of the specialty agricultural 27
crops loan for specialty crop producers shall be thirty-five 28
thousand dollars. 29
6. Eligible borrowers under the program: 30
(1) Shall use the proceeds of the specialty 31
agricultural crops loan to acquire the farming resources 32
described in subsection 3 of this section; 33
(2) Shall not finance more than ninety percent of the 34
anticipated cost of the purchase of such farming resources 35
through the specialty agricultural crops loan; and 36
(3) Shall not be charged interest by the lender for 37
the first year of the qualified specialty agricultural crops 38
loan. 39
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7. Upon approval of the specialty agricultural crops 40
loan by a lender under subsection 4 of this section, the 41
loan shall be submitted for approval by the authority. The 42
authority shall promulgate rules establishing eligibility 43
under this section, taking into consideration: 44
(1) The eligible borrower's ability to repay the 45
specialty agricultural crops loan; 46
(2) The general economic conditions of the area in 47
which the farm is located; 48
(3) The prospect of a financial return for the family 49
farmer for the type of farming resource for which the 50
specialty agricultural crops loan is sought; and 51
(4) Such other factors as the authority may establish. 52
8. For eligible borrowers participating in the 53
program, the authority shall be responsible for reviewing 54
the purchase price of any farming resources to be purchased 55
by an eligible borrower under the program to determine 56
whether the price to be paid is appropriate for the type of 57
farming resources purchased. The authority may impose a one- 58
time loan review fee of one percent, which shall be 59
collected by the lender at the time of the loan and paid to 60
the authority. 61
9. Nothing in this section shall be construed to 62
preclude a family farmer from participating in any other 63
agricultural program. 64
10. Any rule or portion of a rule, as that term is 65
defined in section 536.010, that is created under the 66
authority delegated in this section shall become effective 67
only if it complies with and is subject to all of the 68
provisions of chapter 536 and, if applicable, section 69
536.028. This section and chapter 536 are nonseverable and 70
if any of the powers vested with the general assembly 71
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pursuant to chapter 536 to review, to delay the effective 72
date, or to disapprove and annul a rule are subsequently 73
held unconstitutional, then the grant of rulemaking 74
authority and any rule proposed or adopted after January 2, 75
2023, shall be invalid and void. 76
11. Under section 23.253 of the Missouri sunset act: 77
(1) The provisions of the new program authorized under 78
this section shall automatically sunset on December 31, 79
[2028] 2033, unless reauthorized by an act of the general 80
assembly; and 81
(2) If such program is reauthorized, the program 82
authorized under this section shall automatically sunset 83
twelve years after the effective date of the reauthorization 84
of this section; and 85
(3) This section shall terminate on September first of 86
the calendar year immediately following the calendar year in 87
which the program authorized under this section is sunset. 88
348.493. 1. As used in this section, "state tax 1
liability" means any state tax liability incurred by a 2
taxpayer under the provisions of chapter 143, 147, or 148, 3
exclusive of the provisions relating to the withholding of 4
tax as provided for in sections 143.191 to 143.265 and 5
related provisions. 6
2. Any eligible lender under the specialty 7
agricultural crops loan program under section 348.491 shall 8
be entitled to receive a tax credit equal to one hundred 9
percent of the amount of interest waived by the lender under 10
section 348.491 on a qualifying loan for the first year of 11
the loan only. The tax credit shall be evidenced by a 12
certificate of tax credit issued by the Missouri 13
agricultural and small business development authority and 14
may be used to satisfy the state tax liability of the owner 15
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of such certificate that becomes due in the tax year in 16
which the interest on a qualified loan is waived by the 17
lender under section 348.491. No lender shall receive a tax 18
credit under this section unless such lender presents a 19
certificate of tax credit to the department of revenue for 20
payment of such state tax liability. The amount of the tax 21
credits that may be issued to all eligible lenders claiming 22
tax credits authorized in this section in a fiscal year 23
shall not exceed three hundred thousand dollars. 24
3. The Missouri agricultural and small business 25
development authority shall be responsible for the 26
administration and issuance of the certificate of tax 27
credits authorized by this section. The authority shall 28
issue a certificate of tax credit at the request of any 29
lender. Each request shall include a true copy of the loan 30
documents, the name of the lender who is to receive a 31
certificate of tax credit, the type of state tax liability 32
against which the tax credit is to be used, and the amount 33
of the certificate of tax credit to be issued to the lender 34
based on the interest waived by the lender under section 35
348.491 on the loan for the first year. 36
4. The department of revenue shall accept a 37
certificate of tax credit in lieu of other payment in such 38
amount as is equal to the lesser of the amount of the tax or 39
the remaining unused amount of the credit as indicated on 40
the certificate of tax credit and shall indicate on the 41
certificate of tax credit the amount of tax thereby paid and 42
the date of such payment. 43
5. The following provisions shall apply to tax credits 44
authorized under this section: 45
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(1) Tax credits claimed in a tax year may be claimed 46
on a quarterly basis and applied to the estimated quarterly 47
tax of the lender; 48
(2) Any amount of tax credit that exceeds the tax due, 49
including any estimated quarterly taxes paid by the lender 50
under subdivision (1) of this subsection that result in an 51
overpayment of taxes for a tax year, shall not be refunded 52
but may be carried over to any subsequent tax year, not to 53
exceed a total of three years for which a tax credit may be 54
taken for a qualified specialty agricultural crops loan; 55
(3) Notwithstanding any provision of law to the 56
contrary, a lender may assign, transfer, sell, or otherwise 57
convey tax credits authorized under this section, with the 58
new owner of the tax credit receiving the same rights in the 59
tax credit as the lender. For any tax credits assigned, 60
transferred, sold, or otherwise conveyed, a notarized 61
endorsement shall be filed by the lender with the authority 62
specifying the name and address of the new owner of the tax 63
credit and the value of such tax credit; and 64
(4) Notwithstanding any other provision of this 65
section to the contrary, any commercial bank may use tax 66
credits created under this section as provided in section 67
148.064 and receive a net tax credit against taxes actually 68
paid in the amount of the first year's interest on loans 69
made under this section. If such first year tax credits 70
reduce taxes due as provided in section 148.064 to zero, the 71
remaining tax credits may be carried over as otherwise 72
provided in this section and used as provided in section 73
148.064 in subsequent years. 74
6. Under section 23.253 of the Missouri sunset act: 75
(1) The provisions of the new program authorized under 76
this section shall automatically sunset on December 31, 77
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[2028] 2033, unless reauthorized by an act of the general 78
assembly; and 79
(2) If such program is reauthorized, the program 80
authorized under this section shall automatically sunset 81
twelve years after the effective date of the reauthorization 82
of this section; and 83
(3) This section shall terminate on September first of 84
the calendar year immediately following the calendar year in 85
which the program authorized under this section is sunset. 86
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