By BRENT MARTIN
St. Joseph Post
A bill that would have extended agricultural tax credits for the next two years as well as create new ag tax credits has been vetoed by Gov. Mike Parson.
Parson says he will call lawmakers back to Jefferson City for a special legislative session later this year to extend the tax credits for six years, arguing a two-year extension doesn’t allow enough time for the credits to be effective.
Parson, in his veto statement, called the two-year extension problematic, “Applicants often need a minimum 24 months in order to secure the equity and private investment needed for projects. When a program is only guaranteed for a partial period of a projects (sic) development, businesses are less likely to invest.”
“We must extend these key agriculture tax credits for a minimum of six years,” Parson said in his veto statement of HB 1720.
Sen. Dan Hegeman of Cosby, Senate Appropriations Committee chair, says sponsors settled for what they could get this past session.
“I would have been in favor at the time of a six-year extension as well, but two seemed to be what we could get at the time,” Hegeman tells KFEQ/St. Joseph Post. “So, I was supportive of that, but I understand where the governor is coming from.”
Hegeman says sponsors had to settle for two years during a session that made passage of bills difficult. Hegeman says the governor is counting on changing minds to remove obstacles to a six-year extension.
“Well, certainly, that’s the hope and the desire is that senators that had a reluctance of doing it will come along and see the need to be able to move the program forward and see the need to have that six-year extension, rather than a two-year extension,” Hegeman says.
Hegeman says if the governor can broker a consensus among lawmakers, a special session shouldn’t take much time.
“A lot of times, if things are worked out ahead of time you can knock these special sessions out in like three or four days,” according to Hegeman. “It could take up to a week. Hopefully, it’ll just maybe take just three to four days if we’re able to move forward on this.”
The governor also wants lawmakers to consider exempting certain agricultural equipment from the state and local sales tax as well as expand the Family Farms Act to allow more small farmers to qualify.