Senate Substitute

URBAN FARMS TAX CREDIT

Current law authorizes a tax credit for fifty percent of eligible expenses incurred for establishing or improving an urban farm. This act expands such tax credit to include expenses incurred for establishing or improving a small-scale specialty crop farm in a food desert, as such terms are defined in the act. This act also modifies the definition of "urban farm" to provide that urban farms shall not exceed five acres in size. Additionally, the maximum amount of such tax credits that may be authorized in a calendar year is increased from $200,000 to $3 million. (Section 135.1610)

This provision is substantially similar to a provision in SB 636 (2023).

GROCERY STORE TAX CREDIT

For all tax years beginning on or after January 1, 2024, this act authorizes a tax credit for expenses incurred in the establishment of a full-service grocery store located in a food desert, as such terms are defined in the act. The tax credit shall be equal to fifty percent of eligible expenses that are in excess of initial expenses, which shall be at least $1 million in eligible expenses if the full-service grocery store is located in a charter county, a first class county, or in St. Louis City, or at least $500,000 if located in any other county.

A taxpayer shall apply to the Department of Economic Development and shall indicate the amount of eligible expenses, the date of the commencement of construction and operations, and any other information required by the Department.

The tax credit authorized by this act shall not exceed $2.5 million per tax year and shall not be refundable, but may be carried forward for three subsequent tax years. The total amount of tax credits authorized under this act shall not exceed $22 million per calendar year, and shall be issued on a first-come, first-served basis.

The Department shall recoup from a taxpayer any amount of tax credits issued if the taxpayer fails to complete construction of the full-service grocery store within five years of commencement of the project or if the taxpayer fails to operate the full-service grocery store for at least ten consecutive years. A taxpayer shall annually submit a report to the Department indicating compliance with the act.

This act shall expire on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1620)

This provision is substantially similar to SCS/SB 790 (2022), HB 2871 (2022), HB 596 (2021), HB 1412 (2021), and HB 1495 (2020), and to a provision contained in SCS/SB 188 (2021).

SOCIALLY DISADVANTAGED COMMUNITIES OUTREACH PROGRAM

This act creates within the Department of Agriculture the "Socially Disadvantaged Communities Outreach Program" to connect historically unserved and underserved communities with access to healthy fresh food and knowledge and skills related to food production. The program shall accomplish certain tasks as described in the act. The Department shall submit an annual report to the General Assembly detailing the number of residents who received training pursuant to the act. (Section 261.021)

This provision is identical to a provision in SB 636 (2023).

JOSH NORBERG