New Tax Credits For Missouri Farmers

Corporate and personal income tax legislation for Missouri farm taxes extended and revised the qualified beef animal sale tax credit, enacted a meat processing facility investment tax credit, and extended and revised the agricultural product utilization contributor and new generation cooperative incentive tax credits.

Qualified Beef Animal Sale Tax Credit

The credit for the sale of a qualifying beef animal was made available for tax years ending on or before December 31, 2021 (previously, 2016), and the credit amount was changed to 10 cents per pound for each pound above the animal’s baseline weight for sale weights under 600 pounds and 25 cents per pound for each pound above the animal’s baseline weight for sale weights over 600 pounds (previously, simply 10 cents per pound for each pound above the animal’s baseline weight), as long as the sale weight is at least 100 pounds (previously, 200 pounds) above the baseline weight. Also, the definition of “baseline weight” was modified to be based on the average weight of all beef animals sold that are 30 months or younger in the previous two years instead of the previous three years. The tax credit is limited to a maximum of $15,000 per taxpayer per year, and may be claimed for no more than three years. The Agricultural and Small Business Development Authority may waive no more than 25% of the 100-pound weight gain requirement, rather than 25% of the previous 200-pound weight gain requirement. The total amount of qualified beef tax credits and meat processing facility investment tax credits (discussed below) that may be issued to all taxpayers is limited under this legislation to $2 million per calendar year. Previously, the total amount of qualified beef tax credits that could be issued was limited to $3 million per fiscal year.

Meat Processing Facility Investment Tax Credit

For all tax years beginning on or after January 1, 2017, but ending on or before December 31, 2021, a taxpayer may claim a credit for meat processing modernization or expansion at the taxpayer’s meat processing facility. The tax credit amount is equal to 25% of the amount the taxpayer paid in the tax year for modernization and expansion. The tax credit is not refundable, but may be carried forward to any of the taxpayer’s four subsequent tax years. The total amount of tax credits that a taxpayer may claim is limited to $75,000 per year. If two or more taxpayers own and operate the facility, each may claim a credit in proportion to their ownership interest, but taken together all tax credits for one facility cannot exceed the $75,000 cap. The total amount of meat processing facility investment tax credits and qualified beef tax credits (discussed below) that may be issued to all taxpayers is limited to $2 million per calendar year.

Agricultural Product Utilization Contributor Tax Credit and New Generation Cooperative Incentive Tax Credit

The expiration date for the agricultural product utilization contributor tax credit and new generation cooperative incentive tax credit provisions was extended to December 31, 2021 (previously, 2016). Also, the credit carryback option (previously, three years) was eliminated, and the credit carryforward period was reduced to four years (previously, five years).