The Wood Energy Tax Credit allows individuals or businesses using Missouri forestry industry residues to produce processed wood fuel (e.g., wood pellets), the opportunity for a state income tax credit of $5 per ton of processed material. A multiplier of four applies to charcoal, based on the amount of Missouri forest industry residue required to produce one ton of charcoal. This credit is a production incentive to produce processed wood products in a qualified wood-producing facility using Missouri forest product residue.
The Wood Energy Tax Credit may be claimed for a period of five years and is a tax credit against tax otherwise due. The aggregate amount of all tax credits allowed under sections 135.300 to 135.311, RSMo, may not exceed $6M in any given fiscal year. No tax credits will be authorized under sections 135.300 to 135.311, RSMo, unless an appropriation is made for such credits. No new tax credits provided for under sections 135.300 to 135.311, RSMo, will be authorized after June 30, 2033.
Additional information about the Wood Energy Tax Credit is outlined in 10 CSR 140-4.010.
Eligibility
To be considered an eligible fuel, forestry industry residues must have undergone thermal, chemical or mechanical processing sufficient to alter the residues into a fuel product.
A Missouri wood energy producer is eligible for a tax credit on taxes otherwise due under chapter 143, RSMo. A wood energy producer using the federal credit for wood energy is not eligible to claim the state tax credit.
Application Process
The application deadline is June 30 of each year. To apply for the Wood Energy Tax Credit, you must complete the following:
- For 10% of your processed wood fuel sold, have the purchaser(s) complete the Wood Energy Tax Credit Verification of Wood Energy Product Purchase MO 780-3072 and send the completed form(s) to you.
- Complete the Wood Energy Tax Credit Application MO 780-1305.
- Prepare a complete list of your processed wood fuel customers, including the business names and addresses, plus the number of tons sold to each.
Submit the above documents by mail to the address below or by email to energy@dnr.mo.gov.
Missouri Department of Natural Resources
Division of Energy
ATTN: WETC
P.O. Box 176
Jefferson City, MO 65102-0176