Tax benefits for farmers one step closer to Parson’s desk
JEFFERSON CITY, Mo. (KMIZ)
Lawmakers are one step closer to giving Missouri farmers tax credits for six more years.
A bill that would do that was unanimously passed Tuesday out of the Senate Appropriations Committee. Gov. Mike Parson wants to extend several tax credits for at least six years, including meat processing facility investment. He also wants to create several credits for the biodiesel industry and improve the urban farming credit.
In fiscal year 2022, $1,302,451.21 was invested into the meat processing facility tax credit, according to the state accountability portal. About $2 million of the credit is available each year, according to the Missouri Department of Agriculture. The credit is equal to 25% of the amount spent for modernization and expansion, and is capped at $75,000 per year per taxpayer.
The bill has an economic impact of $40 million, but that is minuscule compared to the $94 billion industry that is Missouri agriculture.
"That income tax that was cut was a step in the right direction, but hopefully we can finish off this special session with the six-year extension of the tax credits," bill sponsor Rep. Brad Pollitt (R-Sedalia) said .
Agriculture is one of the most-impactful industries in the state, but it's suffering as drought conditions continue and inflation takes a toll.
"Drought conditions continue to spread across the state of Missouri which is a gut punch to Missouri agriculture," Pollitt said.
ABC 17 Stormtrack Meteorologist Chance Gotsch said drought conditions have made the growing season difficult for Missouri farmers.
"Much of Mid-Missouri has seen well below-average rainfall putting us in drought conditions," Gotsch said. "Even in September, we saw two inches below normal with some areas seeing extreme drought."
Representatives from nearly every agriculture industry in the state came to support the bill..
"We had an ag bill that was bipartisanly worked on that lots of folks supported that passed nearly unanimously during the regular session that then the governor decided to veto," House Minority Leader Rep. Crystal Quade (D-Springfield) said.
The Missouri Senate meets Tuesday morning when senators hope to get this bill to the finish line
The other part of this special session was income tax cuts. The Missouri House passed a bill to cut the state's income tax last Thursday, sending the measure to Parson for his signature. The House approved the cut 98-32. The most immediate impact will be felt in January 2023, when the top rate will drop from 5.3% to 4.95%. The Senate passed the measure earlier this month.
