State approves tax credits for urban farms

South KC Perspective

By John Sharp

Legislation to encourage investments to establish or improve urban farms including community gardens was approved by the Missouri General Assembly on October 4 during the last day of a special legislative session called by Governor Mike Parson to consider providing tax incentives to benefit Missouri agriculture and enacting a major state income tax reduction.

Current and future urban farmers in KCMO should have several opportunities to benefit from the tax credits since city ordinances allow many types of urban farming in much of the city, unlike numerous Missouri cities that have stringent restrictions on urban farming.

The legislation provides that taxpayers can receive income tax credits equal to 50% of their eligible expenses up to $5,000 for establishing or improving an urban farm (including a community-run garden) that produces food for distribution to the public by sale or donation.

The bill provides that the total tax credits allowed for all taxpayers for any specific urban farm not exceed $25,000 and that the total statewide amount of urban farm tax credits not exceed $200,000 in any calendar year.

The urban farm tax credits would first be available for the 2023 tax year and would continue through 2028 before requiring reauthorization by the legislature.

The legislation was signed into law by the governor on October 5, the day after it passed.  It will become effective 90 days after the special session adjourned on January 2.