"Producers of Protein and Power"
Investors in American Energy Producers, Inc. may qualify for Missouri tax credits. These credits are limited to the lesser of 50% of the investment or $15,000.00. Additionally, the AEP project is limited to a total of $1.5 million of tax credits. Therefore, the tax credits will be prorated among the investors.
The Missouri Department of Agriculture has a step-by-step guide to help Missouri farmers use and market tax credits they receive when investing in new generation cooperatives. Dubbed the “tax credit tool kit,” the guide is available online at the following link: http://www.mda.mo.gov/masbda/pdf/toolkit.pdf.
The Department will also provide a hard copy or CD containing the information if you call (573) 751-2129.
Below is an example based
on 1000 investors and total investment of $32,000,000.
Actual tax credits will
be determined by the Missouri Department of Agriculture.
|
|
|
|||||
| 575 | farmers @ |
$20,000
|
each, = |
$11,500,000
|
$10,000
|
$5,750,000
|
| 425 | farmers @ |
$30,000
or more
|
each, = |
$20,500,000
|
$15,000
|
$6,375,000
|
| 1000 |
Total
Farmer Investment
|
$32,000,000
|
Total
Credits
|
$12,125,000
|
||
The actual tax credit amount allowed
is limited to $1,500,000
(because of the $1.5 million cap
on "Large Capital Projects"):
Estimated tax
credits
$1,500,000/$12,125,000 = 12.3711%
$10,000 x 12.3711% = $1,237.11 x
575 = $ 711,338.25
$15,000 x 12.3711% = $1,855.67
x 425 = $ 788,659.75
TOTAL tax credits $1,499,998.00
Based on this example, the producer who invested $20,000 would receive a tax credit of $1,237.25, and the producer who invested $30,000 or more would receive a tax credit of $1,855.75. Tax credits must be applied for through the Missouri Department of Agriculture.