HCS HB 630 -- TAX CREDIT FOR CERTAIN CATTLE SALES

SPONSOR:  Quinn, 7 (Schlottach)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agriculture Policy by a vote of 10 to 0.

This substitute establishes the Qualified Beef Tax Credit Act
which authorizes the Missouri Agricultural and Small Business
Development Authority in the Department of Agriculture 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 if the weight of the qualified beef at a subsequent
sale is greater than the weight at the previous sale.  The beef
cattle must be born in Missouri after August 28, 2007, 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 in which 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, 2009, and ending
December 31, 2016, is $10 million in any tax year but cannot
exceed $30 million.  If the demand among qualified applicants
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
$3,085,323 in FY 2008, $10,096,988 in FY 2009, and $10,099,896 in
FY 2010.  No impact on Other State Funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that Missouri cattle producers need
to utilize feed byproducts from renewable fuel facilities.  The
total annual economic benefit to the state from adding value and
retaining cattle under the provisions of the bill will be
$407,000 per year for every 1,000 head, and every $1 in tax
incentives provides a $13.50 value to the state.

Testifying for the bill were Representative Schlottach; Mike
John, MFA, Incorporated; Missouri Cattlemens Association;
Missouri Corn Growers Association; Dennis Michaecree, Circle A
Ranch; Dr. Vern Price, University of Missouri; Missouri Farm
Bureau; Department of Agriculture; and Missouri Agricultural and
Small Business Development Authority.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am