Missouri beef producers will get a real boost from the "Qualified Beef Tax Credit Act," signed into law by Missouri Governor Matt Blunt in early August.
The Qualified Beef Tax Credit Act, which was part of the Economic Development bill sponsored by Representative Ron Richard, passed during a special legislative session. Representative Charlie Schlottach sponsored the beef tax credit portion of the bill. Representative Brian Munzlinger and Senator John Griesheimer also championed the bill
"We are very grateful to our legislators for passing the Qualified Beef Tax Credit Act," says Merrel Breyer, president of the Missouri Cattlemen's Association. "The tax credits will keep cattle in the state longer, which will boost Missouri's cattle industry and our state's economy."
The legislation adds value to Missouri feeder cattle, reports Jeff Windett, MCA executive vice president. "Every year, between 1.5-1.7 million calves leave the state to be finished in feedlots. By adding more weight to the calves, Missouri producers will capture more value before the calves leave the state. Missouri already produces some of the best genetics in the world, now producers can capitalize on their investment," he notes.
The legislation will provide a tax credit equal to 10 cents per pound gained (above 450 pounds) when cattle born after Aug. 28, 2008 are sold by a qualified Missouri producer. Qualified Missouri producers must establish a baseline weight at which cattle are typically marketed. The tax credit will be calculated by subtracting the baseline weight from the sale weight and multiplying the difference by 10 cents per pound, with a maximum of 200 pounds.
Producers can claim tax credits after Jan 1, 2009 through 2016. A maximum of $3 million per year for three years will be available to those who qualify. The Missouri Department of Agriculture will administer the program.