Urban Farm Investment Tax Credit Program
Description
The Missouri Agricultural and Small Business Development Authority provides Missouri tax credits based on eligible expenses incurred in the establishment or improvement of an urban farm which focuses solely on food production for sale or donation to the public.
How Does the Program Work?
For all tax years beginning on or after January 1, 2023, a taxpayer may claim this tax credit for eligible expenses incurred in establishing or improving an urban farm. The tax credit shall be equal to 50% of the amount the taxpayer paid in the tax year for establishing or improving an urban farm, not to exceed $5,000 per urban farm. The total amount of tax credits that may be authorized for all taxpayers for eligible expenses incurred on any given urban farm shall not exceed $25,000.
Any tax credit that cannot be claimed in the tax year in which the eligible expenses were incurred may be carried over to the next three succeeding tax years until the full credit is claimed.
Who is Eligible?
A taxpayer who incurs eligible expenses in the construction or development of establishing or improving an urban farm in an urban area (please see below) for all tax years beginning on or after January 1, 2023.
Monetary donations made by a taxpayer to an urban farm may qualify for a tax credit if accompanied by a certification by the urban farm confirming receipt of the donation and that the donation was used for eligible expenses.
Construction or expansion activity(ies) paid for or reimbursed by state or federal funds are not considered eligible expenses for the Urban Farm Investment Tax Credit.
To determine if your farm is located in an eligible urban area, please visit this website or call MASBDA at (573) 751-2129.
Tax Credit Amount
A total of $200,000 in tax credits are available per calendar year. 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 50% of the eligible construction or development costs, and a taxpayer cannot claim a tax credit in excess of $5,000 for each urban farm. The total amount of tax credits authorized for all taxpayers on any given urban farm cannot exceed $25,000.
The tax credits may not be transferred, sold, or assigned.
Fees
$100 application fee and tax credit issuance fee of 3% ($50 minimum)
Application Information
All Tax Credit applications for 2023 must be submitted no later than November 1, 2024.
All Tax Credit applications for 2024 must be submitted no later than November 1, 2025.