MO House Ag Committee hears favorable testimonies for biofuel tax credits
Several Missouri ag groups spoke in favor of reinstating Missouri Agriculture and Small Business Development Authority tax credits at the recent Missouri House Ag Committee hearing, citing benefits to biofuels.
MASBDA’s sponsor, Representative Brad Pollitt, testified before the committee.
“A retail dealer that sells a higher ethanol blend, at least 15 but less than 85 (percent), shall receive a tax credit of five cents a gallon,” Pollitt said.
And he said biodiesel…
“…Has a tax credit of two cents per gallon for five percent to 10 percent blends and five cents per gallon which exceeds a 10 percent blend,” he said. “The difference is this bill also has a two cents per gallon tax credit for producers in the state of Missouri that was not in the bill when it through the house last year.”
The credits, under House Bill 1720, would start in 2023.
The Missouri Soybean Association’s Casey Wasser said the tax credits are needed to stay competitive in the market.
“Missouri is losing out on an opportunity to bring some additional economic advantages to us when it comes to our fuel,” Wasser said. “They are disadvantaged when it comes to the price of the diesel that they’re selling.”
If passed, the MASBDA tax credits for biofuels would run through June of 2028 with a maximum of $6 million in credits available.
Missouri Soybean, Missouri Corn Growers, Missouri Cattlemen’s, Missouri Farm Bureau, National Biodiesel Board and others testified or submitted letters in favor of the credits.