The Wood Energy Tax Credit allows individuals or businesses using Missouri forestry industry residues to produce processed wood products (e.g., wood pellets) to be used as a fuel, the opportunity for a state income tax credit of $5 per ton of processed material. A multiplier of 4 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 be claimed for a period of 5 years and is a tax credit against tax otherwise due. In no event shall the aggregate amount of all tax credits allowed under sections 135.300 to 135.311, RSM0 exceed six million dollars in any given fiscal year. There shall be no tax credits authorized under sections 135.300 to 135.311, RSM0 unless an appropriation is made for such tax credits. No new tax credits, provided for under sections 135.300 to 135.311, RSM0, shall be authorized after June 30, 2028. Additional information about the Wood Energy Credit is outlined in Code of State Regulations, 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 Missouri Revised Statutes, Chapter 143, RSMo, except sections 143.191 to 143.261, RSMo. A wood energy producer using the federal credit for wood energy is not eligible to claim the state tax credit.
Application
To apply for the Wood Energy Tax Credit, complete and sign the application form below and submit the application and supporting documents to the department at the address listed on the form.