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Biodiesel tax credit fix in MO omnibus ag bill

Missouri lawmakers have approved updates to the biodiesel production tax credit to make it easier for biodiesel plants to use.

Having the production tax credit in place makes soybean oil more affordable for biodiesel producers, because of competition from oil refiners to use the feedstock for other fuels like renewable diesel.

Missouri Soybean Association Public Policy Director Casey Wasser says the funding cap increased to $5.5 million in the omnibus ag bill.

“We have about 250 million gallons of production in this state. Each producer can get 2 cents per gallon, so that’s a $5 million cap in itself. We give certainty with those tax credits to try and grow the industry.”

Missouri is a top biodiesel producer and Wasser says producing the fuel in the state gives farmers a better price for the soybeans they grow.

Wasser says there are several other items included in the omnibus ag bill, including a Beginning Farmer Program and other tax updates.

“In 2018, the Missouri General Assembly passed a tax cut that restructured how parts of the tax code were written. The business income deductions under state statute Missourians can take advantage of, no longer included Schedule F income,” he says. “We made sure Schedule F income qualifies for that business deduction.”

Wasser says this change should help farmers be able to stay in business. The bill is awaiting Governor Parson’s signature.