2023 Legislative Session

2023 Corporate Income Tax Year Changes

The following changes are effective for the tax year beginning January 1, 2023, and will be reflected on the 2023 Missouri Corporation Income Tax Return.

Note: Changes are subject to modifications pending special session.

Filing Deadline for 2023

  • The due date for the calendar year 2023 Missouri Corporation Income Tax Return is April 15, 2024.
  • The extension due date for the 2023 Missouri Corporation Income Tax Return is October 15, 2024.
  • The Adoption Tax Credit, Food Pantry Tax Credit, and Champion for Children Tax Credit are all due April 15, 2024.

New Corporate Tax Deductions

  • Federal Broadband Grants’ Income Tax Deduction (Section143.121)
    • Taxpayers can now receive a subtraction from their federal adjusted gross income of 100% of the federal grant money they receive, for the purpose of providing or expanding broadband internet to the areas of the state that are deemed to be lacking. This subtraction only applies to grant funds received on or after August 28, 2023.

Tax Credits

  • Show MO Act Tax Credit Program (FPC) (Section 135.750)
    • This restarts and modifies the previously sunset Film Production tax credit program. It is renamed the Show MO Act.
    • The Show Mo Act Tax Credit applies to tax years beginning on or after January 1, 2023.
    • A qualifying taxpayer who produces qualified motion media production projects or series production projects may be eligible to receive a tax credit based on actual expenses toward production.
    • The percentage amount of the credit is awarded based on the number of delineated items achieved.
    • The cap is set at $8 million annually for the motion medial production projects and another $8 million annually for the series production projects.
    • The Show Mo Act Tax Credit Program will be administered by the Missouri Department of Economic Development.
  • Ethanol Retailer and Distributor Tax Credit Program (ERD) (Section 135.772)
    • The Ethanol Retailer and Distributor Tax Credit Program allows a credit to qualified Missouri ethanol retailers or distributors who sells qualified ethanol higher blend fuel in the state of Missouri; beginning on January 1, 2023.  For taxpayer’s whose tax year begins prior to January 1, 2023, but ends during 2023; a credit is available for the fuel sold during calendar year 2023.
    • The credit is calculated at $0.05 (5 cents) per gallon of higher ethanol blend fuels sold.  
    • This credit will be apportioned if the annual program cap of $5,000,000 is exceeded.
    • The Ethanol Retailer and Distributor Tax Credit cannot be refunded, but can be carried forward 5 years.  This credit cannot be transferred or sold.
    • The Ethanol Retailer and Distributor Tax Credit Program is administered by the Missouri Department of Revenue.
  • Biodiesel Retailer’s Tax Credit Changes (BRD) (Section 135.775)
    • This credit is applicable to a retail dealer that sells a biodiesel blend at a retail service station or a distributor that sells biodiesel blend directly to the final user located in the state of Missouri.
    • The Biodiesel Retailer and Distributor Tax Credit Program starts on January 1, 2023. For taxpayer’s whose tax year begins prior to January 1, 2023, but ends during 2023; a credit is available for the fuel sold during calendar year 2023.
    • The Biodiesel Retailer and Distributor Tax Credit is calculated as follows:
      • Two cents ($0.02) per gallon of biodiesel blend of at least five percent but not more than ten percent sold by the retail dealer at a retail service station or by a distributor directly to the final user located in this state during the tax year for which the tax credit is claimed; and
      • Five cents ($0.05) per gallon of biodiesel blend in excess of ten percent but not more than twenty percent sold by the retail dealer at a retail service station or by a distributor directly to the final user located in this state during the tax year for which the tax credit is claimed.
    • This credit will be apportioned if the annual program cap of $16,000,000 is exceeded.
    • The Biodiesel Retailer and Distributor Tax Credit is refundable, but cannot be carried forward. This credit cannot be transferred or sold.
    • The Biodiesel Retailer and Distributor Tax Credit Program is administered by the Missouri Department of Revenue.
  • Biodiesel Producer’s Tax Credit Program (BPT) (Section 135.778)
    • This credit is applicable to Missouri biodiesel producers who produce biodiesel fuel in the state of Missouri and has begun construction on such facility or has been selling biodiesel fuel produced at such facility on or before January 2, 2023.
    • The Biodiesel Producer Tax Credit Program starts on January 1, 2023. For taxpayer’s whose tax year begins prior to January 1, 2023, but ends during 2023; a credit is available for the fuel produced during calendar year 2023.
    • The credit is calculated at two cents ($0.02) per gallon of biodiesel fuel produced in the state of Missouri, during the tax year for which the tax credit is claimed.
    • This credit is issued on a first-come, first-serve bases and has an annual cap of $5,500,000.
    • This credit is refundable. It cannot be carried forward, sold, or transferred
    • The Biodiesel Producer Tax Credit Program is administered by the Missouri Department of Revenue.
  • Medical Preceptorship Tax Credit (MPT) (Section 135.690)
    • This credit is applicable to a faculty preceptor who may earn a $1,000 tax credit for each preceptorship completed. Limit of 3 preceptorships tax credits per year.
    • The Medical Preceptorship Tax Credit Program starts on January 1, 2023.
    • The Medical Preceptorship Tax Credit Program is non-refundable, cannot be carried forward.  This credit cannot be transferred or sold.
    • The Medical Preceptorship Tax Credit Program is administered by the Missouri Department of Social Services.
  • Specialty Agricultural Crops Loan Tax Credit (SAC) (Section 348.493 )
    • This credit is applicable to Eligible lenders are allowed a tax credit equal to 100% of the interest waived in the first year by the lender on qualified loans.
    • The Specialty Agricultural Crops Loan Tax Credit Program starts on January 1, 2023.
    • The Specialty Agricultural Crops Loan Tax Credit Program is non-refundable, can be carried forward 3 subsequent tax years. This credit can be assigned, transferred or sold.
    • The Specialty Agricultural Crops Loan Tax Credit Program is administered by the Missouri Department of Agriculture.
  • Urban Farm Tax Credit  (UFT) (Section 135.1610)
    • This credit is equal to fifty percent of the taxpayer’s eligible expenses for establishing or improving an urban farm that focuses on food production.
    • The Urban Farm Tax Credit Program starts on January 1, 2023.
    • The Urban Farm Tax Credit Program is non-refundable, but can be carried forward 2 succeeding tax years. This credit cannot be assigned, transferred or sold.
    • The cap is set at $200K.
    • Limited to $5k per urban farm with a cap of $25k per taxpayer
    • The Urban Farm Tax Credit Program is administered by the Missouri Department of Agriculture.