HCS SB 668 -- AGRICULTURAL TAX CREDITS

SPONSOR:  Cauthorn (Myers)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agriculture by a vote of 19 to 0.

This substitute changes provisions related to the carry-forward
and carry-back provisions of net operating losses for income tax
purposes.  Any amount of net operating losses taken against
federal taxes but disallowed against Missouri taxes since July 1,
2002, may be carried forward and used up to 20 years in the
future.  In addition, certain net operating losses relating to
farming may be carried back and forward in the same manner as
allowed by federal law.

The substitute allows the following tax credits to be taken
against estimated quarterly taxes paid:

(1)  Credits for investments in eligible new generation
cooperatives or eligible new generation processing entities; and

(2)  Credits received for contributions to the Agricultural
Product Utilization Grant Fund.

The substitute adds eligible new generation cooperatives,
eligible new generation processing entities, and agricultural
product utilization contributor tax credits to the restriction
that the tax credits taken against insurance premiums will not
reduce moneys transferred to the county foreign insurance fund.

For investors to receive a New Generation Cooperative Incentive
Tax Credit, the substitute decreases the required number of
employees in an employee-qualified capital project from 100 to
60.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$340,215 to Unknown in FY 2004, FY 2005, and FY 2006.  Unknown
could exceed $100,000 annually.  Estimated Net Effect on State
Schools Money Fund of $0 in FY 2004, FY 2005, and FY 2006.

PROPONENTS:  Supporters say that the bill facilitates business
entities' purchase of tax credits from producers investing in an
eligible new generation cooperative or an eligible new generation
processing entity at a higher rate of exchange.  The bill also
allows agricultural product utilization contributor tax credits
to be purchased by business entities from persons contributing to
the Agricultural Product Utilization Grant Fund at a higher rate
of exchange.

Testifying for the bill were Senator Cauthorn; Missouri Soybean
Association; and Missouri Farm Bureau.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:13 am