JEFFERSON CITY — A Senate panel signed off Monday on a package of tax credits largely focused on benefiting rural Missouri, signaling the possible quick end of an otherwise slow-moving special session.
The $40 million proposal was sought by Gov. Mike Parson after he vetoed an earlier version in June. The main difference is the length of time the tax incentives will be in place.
Under the proposal unanimously endorsed by the Senate Appropriations Committee, the incentives for the 10 tax credits will run for six years, rather than the original two years.
Parson, a cattle farmer from rural Bolivar, said the two-year window was not enough for farmers, ranchers and others involved in the state’s agriculture industry to make long-term financial plans.
Rep. , R-Sedalia, who sponsored the legislation in the House, said economic forces, including higher seed and fertilizer costs, are threatening to land a “gut punch†against farmers.
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“Inflation continues to escalate,†Pollitt said. “Hopefully we can finish off this special session with this six-year extension.â€
The full Senate is expected to vote on the measure Tuesday. Parson likely will schedule a bill signing ceremony for later in the week.
The measure moved out of the House last week with just one vote more than was needed to pass after Democrats withheld their votes over a procedural issue by GOP leaders that left them unable to offer up amendments or conduct debate.
Although Republicans have a supermajority in the House, some members did not show up for the special session, resulting in a scramble by leaders to find enough support to keep the measure alive.
The scope of the tax credits ranges from helping the ethanol industry to subsidizing the launch of more urban farms.
For example, gas stations selling a 15% blend of corn-based ethanol would receive a 5-cents-per-gallon credit capped at a total of $5 million per year.
Biodiesel producers, who used soybean oil to create fuel, would get a credit of 2 cents per gallon.
Meat processors who employ fewer than 500 workers could receive a credit of up to 25% of the cost of expanding their facilities.
The urban farm program would give credits worth up to $25,000 to establish farms in communities of 50,000 people or more.
The tax credits represent the last piece of Parson’s special session request.
Lawmakers last week sent him legislation that will trigger a phased-in reduction of the state’s income tax rate from 5.3% to 4.5% if certain revenue goals are hit in each of the coming years.
The agriculture tax credits legislation is