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MissouriSB9132026 Regular SessionSenateWALLET

Modifies provisions relating to tax credits

Sponsored By: Kurtis Gregory (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 10 benefits, 0 costs, 2 mixed.

Meat processors keep broader tax breaks longer

The law extends the meat-processing investment credit from December 31, 2028, through December 31, 2033. Owners must have fewer than 500 meat-processing employees nationwide, and qualifying property can have no more than 5% other use. The credit covers 25% of qualifying Missouri modernization or expansion costs, up to $75,000 per taxpayer annually. It now offsets taxes under chapters 143, 147, and 148; the statewide annual cap remains $2 million. Credits are nonrefundable, carry forward four years, and can be transferred with a notarized endorsement. The state must verify projects within three years or recover the credits.

Urban farms get startup tax credits

For tax years beginning January 1, 2023, qualifying urban farms get credits covering 50% of eligible startup or improvement costs. Farms, including community gardens, must be in Census-defined urbanized areas and produce food solely for public sale or donation. Annual caps are $5,000 per taxpayer per farm, $25,000 per farm, and $200,000 statewide. Labor and marijuana or industrial-hemp growing costs are excluded; credits are recovered if farms instead serve personal benefit. Credits cannot exceed state taxes owed, cannot transfer, and carry forward three years. The program ends December 31, 2033, unless renewed; properly issued credits remain claimable afterward.

Family farms get loans with possible fees

Missouri family farmers with under $100,000 in annual agricultural sales can get specialty-crop loans with no first-year interest. One loan per family can cover up to 90% of eligible seeds, plants, supplies, and equipment, capped at $35,000. Lender and state agricultural authority approval are required; the authority may charge a one-time 1% review fee at origination. Specialty crops include fruits, vegetables, nuts, and nursery crops, but not medical marijuana or industrial hemp. The program ends December 31, 2033, unless renewed.

Taxpayers avoid penalties after unfunded credit denials

Taxpayers avoid penalties and interest when an otherwise qualified credit is denied wholly or partly because funding is unavailable. They must pay the resulting balance or make approved payment arrangements within 60 days after the denial notice. Missing that deadline leaves penalties and interest in place.

Agricultural tax credit provisions last longer

The law extends the agricultural tax-credit provisions in sections 348.430 through 348.436 from December 31, 2028, to December 31, 2033. The supplied description does not identify the individual credits, who qualifies, or the credit amounts.

Biodiesel producers keep tax credits longer

The law extends Missouri's biodiesel producer credit from December 31, 2028, through December 31, 2033. Producers get 2 cents per qualifying gallon, with refunds for credits above their state tax bills. The $5.5 million cap per state budget year is available first come, first served. Producers must have federal fuel registration; facility construction must have started, or its biodiesel sales begun, by January 2, 2023. Palm oil is excluded except for qualifying U.S.-sourced waste oil or grease.

Biodiesel sellers gain broader, longer tax relief

The law includes biodiesel blends used in both on-road and off-road diesel vehicles in the seller credit. Eligible sales occur at retail stations or through distributors selling directly to Missouri final users. The credit pays 2 cents per gallon for 5%–10% biodiesel blends and 5 cents for blends above 10% through 20%. Credits above the seller's state tax bill are refundable; claims share a $16 million annual cap and proportional reductions when oversubscribed. The law extends the program from December 31, 2028, through December 31, 2033.

Crop lenders get interest-waiver tax credits

Eligible specialty-crop lenders get credits equal to 100% of first-year interest waived, sharing a $300,000 cap per state budget year. Lenders need a state-issued credit certificate and can claim quarterly against specified state taxes, excluding withholding. Credits are nonrefundable, carry forward three years, and can be sold or transferred with a notarized endorsement. The program ends December 31, 2033, unless renewed.

Ethanol sellers keep tax credits through 2033

The law extends the higher-ethanol-blend seller credit from December 31, 2028, through December 31, 2033, unless renewed again. Eligible sellers get 5 cents per qualifying gallon sold through Missouri station pumps or directly to Missouri final users. Claims share a $5 million cap per state budget year and are reduced proportionally when demand exceeds funding. Credits are nonrefundable and nontransferable, with unused amounts carried forward up to five years.

Freight companies keep railcar tax relief longer

The law extends the freight-line railcar credit through August 28, 2033; the applicable legal subsection ends September 1, 2034. With an appropriation, companies can offset taxes using qualifying Missouri railcar manufacturing, maintenance, or improvement costs from the prior calendar year. The credit cannot exceed the company's tax bill. The state reimburses local governments for the resulting revenue loss, subject to appropriation.

Wood energy producers keep tax credits longer

The law extends approval of new wood energy credits through June 30, 2033; none can be approved after that date. Qualified producers get $5 per ton of qualifying Missouri forest residue used at their facilities. The program requires an appropriation and has a $6 million cap per state budget year. Credits are nonrefundable and usable within a five-year eligibility window.

Rail businesses gain credits with funding caps

For tax years beginning January 1, 2027, eligible short-line railroads and rail-track owners or lessees get nonrefundable credits. Credits cover 50% of qualifying Missouri costs, capped at $5,000 per track mile or $1 million per new rail-served customer project. Annual funding caps are $4.5 million for track work and $5 million for new infrastructure, with claims allowed in order. Grant-funded or federally credited track costs do not qualify; completed work requires certification through the Department of Economic Development. Unused credits carry forward five years and can transfer by written agreement jointly filed with the Department of Revenue. Recipients retain the remaining carryforward period; the original holder owes any overstatement or recapture after transfer.

Sponsors & Cosponsors

Sponsor

  • Kurtis Gregory

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 29 • No: 6

House vote • 5/15/2026

Reported Do Pass

Yes: 5 • No: 2

House vote • 5/11/2026

Reported Do Pass

Yes: 8 • No: 1

House vote • 4/30/2026

Reported Do Pass

Yes: 16 • No: 3

Actions Timeline

  1. Delivered to Secretary of State (G)

    7/9/2026

  2. Approved by Governor (G)

    7/9/2026

  3. Delivered to Governor

    5/28/2026

  4. Signed by House Speaker

    5/28/2026House

  5. House Message

    5/15/2026House

  6. Truly Agreed To and Finally Passed

    5/15/2026

  7. Title of Bill - Agreed To

    5/15/2026

  8. Taken Up for Third Reading

    5/15/2026House

  9. Reported Do Pass - AYES: 5 NOES: 2 PRESENT: 0

    5/15/2026House

  10. Voted Do Pass

    5/15/2026House

  11. Executive Session Completed

    5/15/2026House

  12. Action Postponed

    5/14/2026House

  13. Executive Session Continued

    5/14/2026

  14. Placed on the Informal Third Reading Calendar

    5/14/2026House

  15. Referred: Fiscal Review

    5/12/2026House

  16. Reported Do Pass - AYES: 8 NOES: 1 PRESENT: 0

    5/11/2026House

  17. Voted Do Pass

    5/11/2026House

  18. Executive Session Completed

    5/11/2026House

  19. Referred: Rules - Administrative

    5/7/2026House

  20. Reported Do Pass - AYES: 16 NOES: 3 PRESENT: 0

    4/30/2026House

  21. Voted Do Pass

    4/28/2026House

  22. Executive Session Completed

    4/28/2026House

  23. Public Hearing Completed

    4/21/2026House

  24. Referred: Agriculture

    4/7/2026House

  25. Read Second Time

    4/7/2026House

Bill Text

  • Truly Agreed to and Finally Passed

    5/15/2026

    PDF

  • Introduced

    PDF

  • Perfected

    PDF

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