Missouri · Forest-Specific / Biomass · MO-WOOD-001
Wood Energy Tax Credit
Publication revised September 24, 2026. Sourcebook page 167.
Credit amount / calculation
$5 per ton of processed material for up to five years; statewide cap $6 million per fiscal year; appropriation required; no new authorizations after June 30, 2033.
Business fit and eligible activity
Rare forest-specific production credit for processed wood products made from Missouri forest-product residue. Qualifying production, feedstock or energy technology; ordinary wood residuals are not automatically eligible.
Eligibility and practical use
This is a specialized credit, but the dollar value can be large when a mill or residuals business is actually developing qualifying energy infrastructure or fuel production. A biomass boiler, combined heat and power project, residuals conversion line, or fuel project should be tested against the exact statutory feedstock and emissions rules rather than the ordinary meaning of "renewable." Registration or certification can be a gating item before production or commitment.
Illustrative business benefit
A Missouri residual-processing operation produces 18,000 tons of qualifying processed material in a year. At $5 per ton, the nominal credit would be $90,000, subject to program appropriation, statewide limits, and the facility/feedstock rules.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
Related programs
Missouri Works Tax Credit
Approved projects may retain withholding on qualifying new
Expanding manufacturers can earn performance-based credits, but the program has strict pre-project timing.
New Investment Tax Credit
up to
Effective August 28, 2026, this credit targets very large capital projects and will usually be above small-mill scale.
Qualified Research Expense Tax Credit
Generally
Manufacturers with increased Missouri qualified research expenses can apply for an allocation-limited credit.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the
Potentially relevant only if a forest-products business actually produces qualifying transportation fuel.