5875: Biodiesel Producer Tax Credit (Revision 2025-12)

Who files this form

Form 5875 is for qualified Missouri biodiesel producers claiming the Biodiesel Producer Tax Credit.

A qualifying producer is a person, firm, or corporation doing business in Missouri that:

• Produces biodiesel fuel in Missouri.
• Is registered with the United States Environmental Protection Agency under 40 CFR Part 79.
• Began construction on the facility or had been selling biodiesel fuel produced there on or before January 2, 2023.

The producer and fuel must meet the qualifications in Section 135.778, RSMo. The credit applies against state income tax liability, not withholding tax.

What you'll need

Have the following ready:

• Claimant information: Business name, tax identification information, entity type, tax-year beginning and ending dates, mailing address, Missouri production facility address, and authorized representative contact information.
• Production information: The number of qualifying gallons produced during the tax year. You must provide documentation supporting the claim if requested.
• Tax return and credit form: The applicable Missouri return and Form MO-TC, as described in the filing instructions.
• Compliance affidavit: A signed and notarized affidavit relating to unauthorized aliens, substantially similar to the one available at the Missouri Attorney General's website.
• Form 2827, if applicable: Complete this if the authorized representative is not the taxpayer or an officer, member, or partner already registered with the Department of Revenue for the tax period being claimed.

How to file

1. Complete the claimant information and answer the producer and fuel qualification questions.
2. Enter qualifying gallons produced during the tax year on Line 1. Line 2 shows the credit rate of $0.02 per gallon. Multiply Line 1 by Line 2 and enter the result on Line 3.
3. Have the authorized representative complete and sign the form. Submit the required signed and notarized compliance affidavit.
4. Submit Form 5875 with the applicable Missouri tax return.

With Form MO-1040, MO-1120, or MO-PTE: Submit Form 5875 with the return. Also report the credit on Form MO-TC so it can first be applied against the applicable income tax liability. The Form MO-TC direction for MO-1040 excludes composite returns.

With Form MO-1065 or MO-1120S, when no MO-PTE is filed: File both Form 5875 and Form MO-TC with the return. This also serves as a claim for refund. These claims must be submitted with a paper-filed return and mailed to:

Missouri Department of Revenue

P.O. Box 27

Jefferson City, MO 65105

Common mistakes

• Leaving required fields blank: Fields marked with an asterisk are required, including business name, mailing address, facility location, and authorized representative contact information.
• Omitting the compliance affidavit: The applicant must submit a signed and notarized affidavit relating to unauthorized aliens.
• Overlooking representative authorization: Form 2827 is needed when the representative does not meet the taxpayer or registered officer, member, or partner conditions described in the instructions.
• Using a non-paper return for an MO-1065 or MO-1120S claim: The instructions require these claims to be submitted with a paper-filed return and mailed to the specified address.
• Providing protected affiliation information unnecessarily: The form says you are not required to provide information identifying members, supporters, volunteers, or donors of entities exempt under Section 501(c).

Questions people ask

How much is the credit?

The credit is $0.02 for each gallon of qualified biodiesel fuel produced by a qualified Missouri producer during the tax year.

What fuel qualifies?

The fuel must be a renewable, biodegradable, mono alkyl ester combustible liquid derived from agricultural or other plant oils or animal fats and meet the most recent ASTM International D6751 standard. The definition includes pure B100 or B99 fuel. Biodiesel made from palm oil does not qualify unless the palm oil is contained in waste oil and grease collected within the United States.

What happens if the credit is more than my state tax liability?

The difference is refundable.

Is there a limit on credits issued?

Yes. Total credits issued under this section cannot exceed $5,500,000 in a fiscal year. Credits are authorized on a first-come, first-served basis.

Can I transfer or sell the credit?

No. Credits authorized under this section cannot be transferred, sold, or assigned.

Official sources

• https://dor.mo.gov/forms/5875.pdf