The Missouri New Generation Cooperative Incentive Tax Credit Program is provided by the Missouri Agricultural and Small Business Development Authority to encourage investments in new-gen co-ops. Authorized under HB 888 passed last July, the credit is allocated specifically for incorporated cooperatives that own or develop facilities producing products derived from agricultural commodities or renewable fuel production facilities.
The tax credits are only available to individuals or entities that are members of the new-generation co-ops- outside investors are ineligible. The amount of a tax credit issued to a member may be the lesser of 50 percent of the member’s cash investment or $15,000. Under the program, farmers have 8 years to apply the tax credit, and may transfer or sell the credits.
The credit program has a maximum allocation per project of $1.5 million. Three million dollars are available in the program this year, with $6 million/year in subsequent years until 2010. Since enactment, the program has encouraged the development of two new farmer owned ethanol cooperatives. On the federal level, Rep Talent (R-MO) may introduce legislation to apply his state’s program nationally. The bill will provide a producer investment tax credit for up to 50 percent of the producer investment in value-added co-ops, up to $30,000.
More:
- Missouri Agricultural and Small Business Development Authority
- Authorizing legislation H.B. 888
- Missouri Revised Statutes: Chapter 348 Authorities and Corporations for Economic and Technological Section 348.432
- Missouri Agricultural Product Utilization and Incubation Center
- Missouri Value Added Development Center
- Carbohydrate Economy Clearinghouse
- Center for Cooperatives – at the University of Wisconsin
- Rural Cooperatives Magazine (formerly known as Farmer Cooperatives) – full text of selected articles since 1995.
- USDA Rural Development Program – has an enormous collection of information resources on cooperatives including, Cooperative Information Reports, Cooperative Research Reports, and Cooperative Service Reports.
- Coops 101: An Introduction to Cooperatives – by USDA
- The Impact of New Generation Cooperatives on Their Communities – USDA
- Centre for the Study of Cooperatives
- Illinois Institute for Rural Affairs – has a section called the Illinois Value-Added Rural Development Center
- National Council of Farmer Cooperatives
- Missouri Agricultural Product Utilization and Incubation Center
- Missouri Value Added Development Center