HCS HB 2016 -- TAX CREDIT FOR CERTAIN CATTLE SALES

SPONSOR:  Munzlinger (Schlottach)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Agri-Business by a vote of 10 to 0.

This substitute establishes the Qualified Beef Tax Credit Act
which authorizes the Agricultural and Small Business Development
Authority to issue a tax credit certificate in an amount equal to
10 cents per pound above 450 pounds when qualified beef cattle
are sold and 10 cents per pound at a subsequent sale if the
weight of the qualified beef at the subsequent sale is greater
than the weight at the previous sale.  The beef cattle must be
born in Missouri after August 28, 2006, must not be breeding
stock, and must have been raised and finished instate to qualify
for the tax credit.  The authority will require submission of an
application for the tax credit including certain information
which will be confidential.

The tax credit must be claimed in the year the qualifying sale
occurs, but any unused portion may be carried back three taxable
years, carried forward five taxable years, assigned, transferred,
or sold.  The maximum amount of tax credits that may be claimed
beginning January 1, 2007, and ending December 31, 2010, is $10
million in any tax year but cannot exceed $30 million in total.
If the demand among qualified applicants for tax credits exceeds
$10 million in any year, the tax credits will be prorated among
the qualified applicants.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $57,149
in FY 2007, $75,197 to $10,075,197 in FY 2008, and $77,078 to
$10,077,078 in FY 2009.  No impact on Other State Funds in FY
2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that over one million of the
approximately two million calves born in Missouri are shipped out
of state to be fattened.  The byproducts from renewable fuel
production facilities need a market.  This tax credit incentive
will stimulate instate feeding of beef cattle.  For every dollar
of tax credit issued, the state will experience over $13.50 of
direct economic benefit.

Testifying for the bill were Representative Schlottach;
Department of Agriculture; University of Missouri, College of
Agriculture, Food and Natural Resources; and Dennis Mickroy,
Circle A Ranch.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:45 am