HCS HB 879 -- MANAGED ENVIRONMENT LIVESTOCK OPERATION TAX CREDITS

SPONSOR:  Munzlinger (Hobbs)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Agri-Business by a vote of 9 to 1.

This substitute authorizes the Missouri Agriculture and Small
Business Development Authority to issue tax credits to owners of
livestock operations to partially offset certain expenses
incurred for implementing odor abatement best management
practices and systems.  The maximum tax credit amount for
implementing a system necessary to achieve managed environment
livestock operation (MELO) accreditation and/or improving basic
infrastructure to increase the setback from the property line
will be the lessor of 50% of the eligible expenses or $50,000.
The maximum tax credit amount for implementing a system necessary
to meet preferred environmental practices and/or improving basic
infrastructure to increase the setback from the property line
will be the lessor of 75% of the eligible expenses or $75,000.
The yearly maximum amount of tax credits issued by the authority
for odor abatement will be $3 million.  The tax credits may be
carried back three years, forward five years, assigned,
transferred, or sold and may be taken against the estimated
quarterly tax or quarterly taxes.

The authority is required to establish rules for tax credit
eligibility based on odor abatement impact, the owner's
prospective use and funding of proven technologies, and other
factors that the authority deems necessary.  Ninety percent of
the tax credits issued in any one year will go to livestock
operation owners for the implementation of best management
practices and systems necessary to achieve MELO accreditation.
Ten percent and any remaining MELO tax credits will be issued to
livestock operation owners for the implementation of preferred
environmental practices.  Any unissued tax credits will not carry
over to the succeeding year.  The authority will impose an
application fee of .25% of the tax credit amount issued.

The provisions of the substitute will expire June 30, 2012.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill provides a proactive
approach to the odor problem associated with raising livestock.
Rural Missouri is changing due to an influx of urban families
causing the livestock industry to find ways to be less intrusive.
Decreasing animal odor through cutting edge management and
technologies is an added expense for an industry that does not
set the price of its product and operates on a very slim profit
margin.

Testifying for the bill were Representative Hobbs; Department of
Agriculture; Missouri Soybean Association; Missouri Farm Bureau;
Missouri Corn Growers Association; and Missouri Cattlemen's
Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am