SB 805 - This act establishes two tax credits relating to the production and sale of biodiesel fuels.BIODIESEL RETAIL SALE TAX CREDIT
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit for retail dealers selling biodiesel blend at the retail dealer's service station, as such terms are defined in the act. The credit shall be equal to two cents per gallon of biodiesel blend of between 5-10%, and five cents per gallon of biodiesel blend in excess of 10% sold and dispensed at the service station during the tax year.
Tax credits authorized by the act shall not be transferable but shall be refundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $16 million. If the amount of tax credits claimed during the fiscal year exceed such amount, the tax credits shall be equally apportioned among the retail dealers claiming the credit by April 15 of such year.
This provision shall sunset on December 31, 2028, unless reauthorized by the General Assembly. (Section 135.775)
This provision is substantially similar to a provision in CCS/SS/SCS/HCS/HB 1720 (2022), HCS/HB 1875 (2022), and CCS/SB 37 (2021), and is similar to a provision in SS/SCS/SB 354 (2021).
BIODIESEL PRODUCTION TAX CREDIT
For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit for Missouri biodiesel producers in the amount of two cents per gallon of biodiesel fuel produced by such producer. To qualify for a tax credit, a biodiesel producer shall be a facility that produces biodiesel fuel, is registered with the U.S. Environmental Protection Agency as required by federal law, has begun construction or has been selling biodiesel fuel on or before August 28, 2022, and is at least 51% owned by agricultural producers who are residents of the state, or sources at least 80% of its feedstock, as defined in the act, from within the state.
Biodiesel producers that are not at least 51% owned by agricultural producers who are residents of the state and that do not source at least 80% of its feedstock from within the state may receive a prorated tax credit. The tax credit shall equal 1.5 cents per gallon if the percentage of feedstock sourced within the state is between 70-80%, 1 cent per gallon if the percentage is between 60-70%, and 0.5 cents per gallon if the percentage is between 50-60%.
Tax credits authorized by the act shall not be transferable but shall be refundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $4 million. If the amount of tax credits claimed during the fiscal year exceed such amount, the tax credits shall be equally apportioned among the biodiesel producers claiming the credit by April 15 of such year.
This provision shall sunset on December 31, 2028, unless reauthorized by the General Assembly. (Section 135.778)
This provision is substantially similar to a provision in CCS/SS/SCS/HCS/HB 1720 (2022) and HCS/HB 1875 (2022).
JOSH NORBERG