Tax Credits
New Generation Cooperative Incentive Tax Credit Program
Description
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.
Restrictions
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.
Fees
New generation processing entity producer members must submit a $25.00
processing fee with each application submitted.
Other Information
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
back to satisfy the state tax liability of the owner of the certificate
that was due during each of the three previous taxable years and
may be carried forward to any of the subsequent five 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.
New Generation Cooperative Incentive - Missouri
Form R
Application Information
Form A (PDF: 42kb) - Application for New Generation Processing Entities Requesting Certification of New Generation Cooperative Incentive Tax Credits.
Form NG (PDF: 50kb) - Producer Member Application for Requesting New Generation Cooperative Incentive Tax Credits.