AIM supports wood energy and film tax credits in hearing
March 26, 2019: Associated Industries of Missouri President/CEO Ray McCarty testified today in support of two bills in the Senate Economic Development Committee, chaired by Sen. Mike Cierpiot.
SB 454, sponsored by Senate Appropriations Chairman Dan Hegeman, would extend two tax credits that are set to expire in 2020: the wood-energy processed wood products tax credit and a tax credit for freight line company’s rolling stock that is manufactured, improved, or maintained in Missouri.
McCarty’s comments in favor of the wood energy tax credit included the history of the tax credit and the reasons the credit should be maintained.
“Prior to enactment of this tax credit originally, I understand piles of sawdust rotted around sawmills because there was no incentive to turn that byproduct of the sawmill industry into any usable product,” he said. “The credit provides an incentive to charcoal producers and pellet manufacturers to use the sawdust in making new products. Without the credit, converting the sawdust into usable goods would not be economically feasible. Also, the credit helps our Missouri charcoal producers compete with other manufacturers in other states,” he said.
McCarty also spoke in favor of Sen. Denny Hoskins‘ SB 437, a bill to re-establish the film tax credit in Missouri.
“The film tax credit would help Missouri compete for film projects and our hope is an entire industry could be built by chaining these large film projects together, providing new opportunities for light and sound professionals as well as set construction and the hospitality industries,” said McCarty.
The Committee took no action on either bill at the hearing today.