HB 1142 -- Tax Credits and Exemptions

Sponsor:  Loehner

Beginning January 1, 2009, this bill authorizes a tax credit for
any resident taxpayer who is actively engaged in milk production.
The allowable tax credit will be based on milk production for any
month in which the average amount of revenue received from
products drops below the announced production price determined by
the Food and Agricultural Policy Research Institute on the basis
of non-controllable input cost.  Taxpayers must submit a tax
credit application to the Missouri Agricultural and Small
Business Development Authority.  Beginning January 1, 2011, the
authority must make available on a monthly basis the announced
price based upon factors specified in the bill.

The credit is not refundable but may be carried forward for three
years.  No more than $5,000 in tax credits can be issued per milk
producer per year.

Beginning January 1, 2009, the bill authorizes a tax credit for
any resident taxpayer who is actively engaged in livestock
production.  The credit will be based on the amount of livestock
produced and sold and upon losses incurred as a result of market
fluctuations which result in current livestock production costs
exceeding the current market value of livestock.

The Department of Agriculture will determine the market value of
feed commodities used in the production of swine and beef cattle
and the market value of the livestock.  These market values will
be calculated and posted on the fifteenth and last day of each
month.  Based on these market values, the department will
determine on a bimonthly basis:

(1)  The current per pound or per unit livestock production cost
of bringing each type of livestock;

(2)  The current per pound or per unit market price necessary for
the livestock producer to equal the livestock production costs
for each type of livestock;

(3)  The current per pound or per unit market price of each type
of livestock; and

(4)  Whether the current livestock production costs exceed the
current market price for each type of livestock.

Based on these calculations, if the current livestock production
costs exceed the current market price of livestock, program
participants will be eligible to receive a tax credit if he or
she has a qualifying loss for a 12-month period.  The credit will
be equal to the 12-month qualifying loss.  The credit may be
carried forward for three years.  No more than $5,000 in tax
credits can be issued per livestock producer per year.

The authority or the department cannot issue more credits in any
calendar year than are allocable to these programs; however, any
remaining unissued tax credits in the following programs may also
be made available annually for allocation to these programs:

(1)  Up to $30 million in neighborhood assistance tax credits
which have not been issued by April 30;

(2)  Up to $10 million in distressed areas land assemblage tax
credits which have not been issued by December 1;

(3)  Up to $16 million in rebuilding communities and neighborhood
preservation tax credits which have not been issued by
December 1;

(4)  Up to $10 million in tax credits for investment in, or
relocating a business to, a distressed community which have not
been issued by December 1;

(5)  Up to $15 million in qualified equity investment tax credits
which have not been issued by April 30; and

(6)  Up to $4 million in family development account tax credits
which have not been issued by April 30.

The bill also authorizes a state and local sales and use tax
exemption for medical equipment, supplies, or devices which are
prescribed by a practitioner or paid by Medicare, Medicaid, or a
third-party health insurer.

The provisions regarding the Milk Producers Tax Credit and the
Livestock Producers Tax Credit will expire December 31, 2015.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am