SS/SCS/HCS/HB 888 - This act allows the Missouri Agricultural and Small Business Development Authority to make grants, loans, and loan guarantees for the creation, development, and operation of agricultural businesses adding value to agricultural commodities.

The Department of Agriculture and the Department of Natural Resources may provide for feasibility studies, market studies, legal assistance, loan organization and consulting on physical facilities or business operations. All or part of the consulting services may also be available through private contracts with outside sources. Assistance may continue for up to three years following the approval of an application.

The General Assembly may appropriate up to $3,000,000 annually to the Agricultural Product Utilization Grant Fund. At least 10% of the grants are to be awarded for requests of $25,000 or less. No proposal is to receive more than $200,000 in grants.

Loans and loan guarantees may be made from this fund. The limit for funding is $2 million per project or an amount equal to the net state economic impact, whichever is less.

AGRICULTURAL PRODUCT UTILIZATION CONTRIBUTOR TAX CREDITS - Tax credits may be granted in amount up to one hundred percent of the contribution to the authority, as determined by the authority. The tax credits may be carried forward for five years.

Funds generated by this tax credit are directed to the grant fund and may be used to provide financial assistance to qualified projects in the form of grants, loans, and loan guarantees.

NEW GENERATION COOPERATIVE INCENTIVE TAX CREDIT - This act allows tax credits to be granted for the lesser of 50% of the amount of investment or $15,000 for anyone investing cash in a new generation agricultural cooperative. This credit begins January 1, 1999, and may by carried back 3 years or carried forward 5 years. A new generation agricultural cooperative is a nonprofit cooperative association formed for the purpose of production, development, and marketing of agricultural products or a renewable fuel production facility.

The aggregate of all tax credits issued pursuant to this act, per fiscal year, shall not to exceed $6 million. The balance of the authority funds may not exceed $12 million dollars. Tax credits may be refunded, transferred, assigned, or sold.

The authority is required to report, each November, on all tax credits issued in the past fiscal year including all credits issued, authorized, claimed, and unclaimed.

The Department of Agriculture shall market products developed with the use of this program.

The act contains an emergency clause.
ELIZABETH BAX