Wood Energy Production Credit

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Eligibility: 
Commercial
Industrial
Savings Category: 
Biomass
Maximum Rebate: 

Credit may be claimed for a period of five years; total tax credits cap set at $6,000,000 annually, subject to appropriations

Program Info
Sector Name: 
State
Administrator: 
Division of Energy
Expiration Date: 

06/30/2020

State: 
Missouri
Program Type: 
Corporate Tax Credit
Rebate Amount: 

$5 per ton of processed materials

Summary: 
The Wood Energy Tax Credit allows individuals or businesses processing Missouri forestry industry residues into fuels a state income tax credit of $5.00 per ton of processed material (e.g., wood pellets). A multiplier of 4 applies to charcoal, based on the amount of Missouri forest industry residue required to produce one ton of charcoal. Any amount of credit exceeding the tax due by a company in the year of production may be carried over to a subsequent taxable year, not to exceed four years. A credit earned under this program may also be transferred to third parties for use within this five-year period. To be considered an eligible fuel, forestry industry residues must have undergone some thermal, chemical or mechanical process(es) sufficient to alter the residues into a fuel product. In 2014, S.B. 729 extended the tax credit to June 30, 2020, established an annual cap of $6 million per fiscal year, and added a requirement that an appropriation for the tax credits needs to be made before they are authorized.

Click here to access Missouri's Wood Energy Tax Credit Application Form.