HCS HB 658 & 706 -- TAX CREDIT FOR MILK PRODUCERS (Dugger)

COMMITTEE OF ORIGIN:  Committee on Agri-Business

Beginning January 1, 2009, this substitute 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 Missouri Agricultural and Small Business
Development Authority 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 authority cannot issue more than $25,000 in tax credits per
eligible taxpayer per year.  The tax credit can be transferred,
but is not refundable and must be claimed in the year in which
the credit is issued against the taxpayer's state tax liability
or quarterly estimated tax.  Taxpayers must submit to the
authority an application for the tax credit on a form provided by
the authority.  The authority may charge a service fee.

The authority 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 substitute will expire two years from the
effective date.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2010, FY
2011, and FY 2012.  (This proposal could allocate roughly $54.6
million of unused tax credits to this new program in fiscal years
2010, 2011, and 2012.)  No impact on Other State Funds in FY
2010, FY 2011, and FY 2012.

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