A wide‑ranging tax credit package aimed at supporting Missouri agriculture and improving rail infrastructure has cleared the Missouri Senate and now heads to the House for consideration.
The legislation would extend several existing agriculture‑ and energy‑related tax credits while creating a new railroad infrastructure tax credit, set to begin in 2027.
Sen. Kurtis Gregory, R‑Marshall, the bill’s sponsor, said the new railroad incentive focuses on short‑line railroads — often the critical link between farms and major rail networks.
“The short line is like what I would call the Double‑E Highway,” Gregory said. “It’s the county road that gets your farm‑to‑market roads. It’s the farm‑to‑market railroad — where it goes from the Union Pacific line down to smaller towns to really connect those.”
Gregory says many of those short‑line railroads are aging and need upgrades to remain viable. He points to similar programs in other states that have successfully helped modernize rail infrastructure and keep agricultural products moving efficiently.
“They need to be fixed up for something that’s worked really well in other states,” Gregory said. “We’re trying to bring that here to the state of Missouri.”
Beyond rail improvements, the bill extends multiple tax credits aimed at boosting agriculture‑related investments, including meat processing and fuel production connected to farm operations. Gregory said those incentives help strengthen Missouri’s agricultural economy from production to processing.
“This is what keeps the ag wheels turning in the state of Missouri,” he said. “In terms of investment, infrastructure — all things that are good and right that have helped out in the ag world — it’s inside of this piece of legislation.”
If approved by the House and signed into law, the measure would continue existing incentives while introducing new tools intended to support rural communities, improve infrastructure, and reinforce Missouri’s role as an agricultural leader.
The bill now moves to the Missouri House of Representatives for further consideration.
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