HB 706 -- Tax Credit for Milk Producers

Sponsor:  Brown (149)

Beginning January 1, 2010, this bill authorizes a tax credit for
any resident taxpayer who is actively engaged in milk production.
The tax credit will be based on milk production for any month in
which the average of the United States Department of Agriculture
(USDA) Uniform Prices in Federal Orders Numbers 7 and 32 drops
below the announced production price during the calendar year.

Beginning January 1, 2010, and the first day of every month
thereafter, the Director of the Department of Agriculture must
report and make available to the public the announced price of
milk based on:

(1)  The average price of milk in the top five states where milk
is imported into Missouri;

(2)  The average transportation costs of importing milk from the
top five states where milk is imported into Missouri; and

(3)  The cost of milk production in Missouri.

In any month in which tax credits are available, eligible
taxpayers may be issued a tax credit equal to the sum of the
difference between the average of the USDA price and the
announced price multiplied by the amount of milk produced during
the month in pounds divided by 100.

The department cannot issue more than $25,000 in tax credits per
eligible taxpayer per year.  The tax credit is not transferrable
or refundable and must be claimed in the year in which the credit
is issued.  Taxpayers must submit to the department an
application for the tax credit on a form provided by the
department.

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

(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 provisions of the bill will expire two years from the
effective date.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am