Missouri fuel sellers could claim credits for biodiesel blend sales

Retail dealers and distributors would be allowed to claim income tax credits for qualifying biodiesel blend sales. The credit covers retail dealers selling at a retail service station and distributors selling directly to final users in Missouri. Retail dealers must sell the blend at a retail service station. Distributors must sell it directly to a final user in Missouri. Blends with 5% to 10% biodiesel qualify for 2 cents per gallon. Blends with more than 10% and up to 20% qualify for 5 cents per gallon. The text covers tax years beginning on or after January 1, 2023. A tax year that began earlier but ends in 2023 would qualify only for sales during 2023.

Credits above a seller’s state income tax liability would be refundable, subject to an annual cap and possible reductions among claimants. These rules apply to credits claimed under this section. Credits could not be transferred, sold, or assigned. The state could issue no more than $16 million in credits per fiscal year. If claims exceed the amount available, credits would be apportioned among eligible sellers who claim by April 15, or as otherwise directed by state law.

The credit program would sunset unless the legislature reauthorizes it. These sunset terms apply to the biodiesel credit program described in this section. If reauthorized, the program would sunset 12 years after the reauthorization takes effect. Sunset would not prevent claims for eligible activity completed before the program ends or end the department’s duties to verify eligibility and enforce applicable rules. If the program sunsets, this section would terminate on September 1 of the following calendar year.