Missouri SB 140: Authorizes a tax credit for the sale of ethanol fuel

Bill Text

0847S.02C
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SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 140
AN ACT
To amend chapter 135, RSMo, by adding thereto one new
section relating to a tax credit for the sale of
ethanol fuel.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 135, RSMo, is amended by adding thereto
one new section, to be known as section 135.755, to read as
follows:
135.755. 1. For the purposes of this section, the
following terms shall mean:
(1) "Department", the Missouri department of revenue;
(2) "Higher ethanol blend", a fuel capable of being
dispensed directly into motor vehicle fuel tanks for
consumption that is comprised of at least fifteen percent
but not more than eighty-five percent ethanol;
(3) "Retail dealer", a person that owns or operates a
retail service station;
(4) "Retail service station", a location from which
higher ethanol blend is sold to the general public and is
dispensed directly into motor vehicle fuel tanks for
consumption.
2. For all tax years beginning on or after January 1,
2022, a retail dealer that sells higher ethanol blend at
such retail dealer's retail service station shall be allowed
a tax credit to be taken against the retail dealer's state
income tax liability. The amount of the credit shall equal
five cents per gallon of higher ethanol blend sold by the
retail dealer and dispensed through metered pumps at the
retail dealer's retail service station during the tax year

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in which the tax credit is claimed. Tax credits authorized
pursuant to this section shall not be transferred, sold, or
assigned. If the amount of the tax credit exceeds the
taxpayer's state tax liability, the difference shall not be
refundable, but may be carried forward to any of the five
subsequent tax years. The total amount of tax credits
authorized pursuant to this section for any given fiscal
year shall not exceed four million dollars.
3. The tax credit allowed by this section shall be
claimed by such taxpayer at the time such taxpayer files a
return and shall be applied against the income tax liability
imposed by chapter 143 after reduction for all other credits
allowed thereon. The department may require any
documentation it deems necessary to implement the provisions
of this section.
4. The department shall promulgate rules to implement
the provisions of this section. Any rule or portion of a
rule, as that term is defined in section 536.010, that is
created under the authority delegated in this section shall
become effective only if it complies with and is subject to
all of the provisions of chapter 536 and, if applicable,
section 536.028. This section and chapter 536 are
nonseverable and if any of the powers vested with the
general assembly pursuant to chapter 536 to review, to delay
the effective date, or to disapprove and annul a rule are
subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after
August 28, 2021, shall be invalid and void.
5. Pursuant to section 23.253 of the Missouri sunset
act:
(1) The provisions of this section shall automatically
sunset on December 31, 2027, unless reauthorized by an act
of the general assembly; and

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(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset
twelve years after the effective date of the reauthorization
of this section; and
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset.