New Generation Cooperative Incentive Tax Credit Program
The Missouri Agricultural and Small Business Development Authority provides New Generation Cooperative Incentive Tax Credits to induce producer member investment into new generation processing entities that will process Missouri agricultural commodities and agricultural products into value-added goods, provide substantial benefits to Missouri’s agricultural producers, and create jobs for Missourians.
How Does the Program Work?
Prior to issuing any tax credits, the new generation processing entities must be organized, file an Application for Requesting Certification of New Generation Cooperative Incentive Tax Credits, and be approved by the authority. After investment, producer members then file a Member Application for Requesting New Generation Cooperative Incentive Tax Credits.
Who is Eligible?
New generation processing entities, partnerships, corporations, cooperatives, or limited liability companies organized or incorporated pursuant to the laws of Missouri and consisting of not less than 12 members, approved by the authority, for the purpose of owning or operating within this state a development facility or a renewable fuel production facility in which producer members:
- Hold a majority of the governance or voting rights of the entity and any governing committee;
- Control the hiring and firing of management; and
- Deliver agricultural commodities to the entity for processing, unless processing is required by multiple entities.
"Development facility" is defined as a "facility producing either a good derived from an agricultural commodity or using a process to produce a good derived from an agricultural product." A "renewable fuel production facility" is defined as a "facility producing an energy source that is derived from a renewable, domestically grown, organic compound capable of powering machinery, including an engine or power plant, and any by-products derived from such energy source."
Tax credit eligibility:
- "Producer member" is a person, partnership, corporation, trust or limited liability company whose main purpose is agricultural production that invests cash funds to an eligible new generation cooperative or eligible new generation processing entity.
Tax Credit Amounts
The amount of a tax credit issued to a member may be the lesser of 50 percent of the member’s cash investment or $15,000, except for any pro-ration of the member’s tax credits.
If members’ investment in a new generation "Large Capital Project" processing entity would be eligible for tax credits in excess of the project’s allocation (maximum allocation per project is $1.5 million) or "Employee Qualified Capital Project" (maximum allocation per project is $3.0 million), tax credits will be pro-rated between producer members on a percent of investment basis, not to exceed the maximum allowed per producer member.
New generation processing entity producer members must submit a $50.00 processing fee with each application submitted.
Tax credits may be used by their owner to offset eligible tax liabilities due against taxes due pursuant to Chapters 143 (income tax except for sections 143.191 to 143.265), 147 (corporation franchise tax), and 148 (financial institution taxes), RSMo. Credits may be carried forward to any of the subsequent four taxable years after the investment is made. Tax credits may be applied to estimated quarterly taxes.
The tax credits may be transferred, sold, or assigned.
Request for Transfer – Missouri Form R
Effective July 1, 2018, there is a $50 fee for each tax credit transfer.