Qualified Beef Tax Credit Program
Description
The Missouri Agricultural and Small Business Development Authority (MASBDA) provides Missouri tax credits to Missouri’s qualified beef producers who raise and background or finish Missouri born qualified beef animals to a weight of one hundred (100) pounds or more over their established baseline weight.
The eligibility dates are subject to change due to action by the House Budget Committee on May 18, 2018, stating that no credits are approved for Qualified Beef, pursuant to Section 135.679, RSMo, for any tax year beginning on or after July 1, 2018 and on or before June 30, 2019.
In May of 2019, the House Budget Committee stated that no credits are approved for Qualified Beef, pursuant to Section 135.679, RSMo, for any tax year beginning on or after July 1, 2019 and on or before June 30, 2020.
On June 30, 2020, the House Budget Committee stated that no credits are approved for Qualified Beef, pursuant to Section 135.679, RSMo, for any tax year beginning on or after July 1, 2020 and on or before June 30, 2021.
How Does the Program Work?
To participate in the tax credit program, a beef producer must first be certified by MASBDA at which time a baseline weight will be established.
To be qualified and for the establishment of a baseline weight, the following documents must be included:
- MISSOURI FORM QBE,
- Copies of all scale tickets and/or sales receipts of all beef animals thirty months of age or less during the immediate past two (2) years, categorized by sex,
- Financial statements for past two (2) years.
Who is Eligible?
- Any Missouri taxpayer who is subject to tax imposed in Chapter 143, RSMo (excluding withholding tax imposed by sections 143.191 to 143.265, RSMo) or the tax imposed in Chapter 147, RSMo,
- A resident of this state, and
- Owns or rents agricultural property, and
- Principal place of business is located in Missouri.
Tax Credit Amount
A total of $2,000,000 in tax credits are available per calendar year, subject to budgetary constraints, for the Qualified Beef Tax Credit Act (Chapter 135.679 RSMo) and the Meat Processing Facility Investment Tax Credit Act (Chapter 135.686 RSMo). Tax credits shall be issued on an as-received application basis until the calendar year limit is reached. Any credits not issued in any calendar year shall expire and shall not be issued in any subsequent year.
The tax credit amount shall be ten cents ($.10) per pound and calculated by subtracting the baseline weight from the qualifying sale weight multiplied by ten cents ($.10) per pound provided the difference is one hundred (100) pounds or greater for cattle weighing up to 599 pounds.
The tax credit amount shall be twenty-five cents ($.25) per pound and calculated by subtracting the baseline weight from the qualifying sale weight multiplied by twenty-five cents ($.25) per pound provided the difference is one hundred (100) pounds or greater for cattle weighing 600 or more pounds.
The total amount of tax credits that any taxpayer may claim shall not exceed $15,000 per year and no taxpayer shall be allowed to claim tax credits from this program for more than three years.
Fees
- A non-refundable fee of $100 must accompany the application.
- There is a 3% issuance fee per credit.
- A $50 fee is charged for each tax credit transfer.