5885: Ethanol Retailer and Distributor Tax Credit (Revision 2025-12)

Who files this form

Missouri ethanol retailers and distributors use Form 5885 to claim the Ethanol Retailer and Distributor Tax Credit.

To qualify:

• A retail dealer must own or operate a Missouri retail service station where qualifying fuel is sold to the public and dispensed directly into vehicle fuel tanks.
• A distributor must do business in Missouri by producing, refining, blending, compounding, manufacturing, importing, or distributing motor fuel. Qualifying sales must be made directly to a final user in Missouri.
• The fuel must contain at least 15% but no more than 85% ethanol and be capable of being dispensed directly into vehicle fuel tanks.

Pass-through entities must claim the credit at the entity level. They cannot pass it through to partners, shareholders, or members.

When it's due

The form prints fiscal-year timing rules but does not assign them to specific tax years:

• April 15: The deadline stated for claims included in apportionment if total claims exceed the fiscal-year funding limit. If this falls on a Saturday, Sunday, or legal holiday, filing on the next business day is timely.
• July 1 through April 15: Claims received during this fiscal-year period are held until all have been processed to determine whether apportionment is needed.
• On or after July 1: If apportionment reduces your credit, you may file an amended return with Form 5885 and Form MO-TC for consideration in the following fiscal year.

What you'll need

Prepare:

• Completed and signed Form 5885, Form MO-TC, and your Form MO-1040, MO-1120, or MO-PTE.
• Business and taxpayer identification information, tax-year beginning and ending dates, mailing address, and authorized representative contact information.
• The retail station's physical address or, for distributors, the final user's name and physical address. Attach a list if there is more than one location or final user.
• The number of qualifying gallons sold during the tax year. The Department may request supporting documentation.
• A signed and notarized affidavit of compliance relating to unauthorized aliens, substantially similar to the affidavit available at ago.mo.gov/get-help/programs-services-from-a-z/unauthorized-alien-workers/.

Form 2827 is needed if the representative signing is not the taxpayer or an officer, member, or partner already registered with the Department for the tax period.

How to file

1. Complete the claimant information, select the entity type, and answer the qualification questions.
2. Enter qualifying gallons sold during the tax year on Line 1. Multiply by the $0.05 rate on Line 2, and enter the result on Line 3 and Form MO-TC.
3. Have the authorized representative sign and date the form and print their name.
4. Submit Form 5885 with Form MO-TC and your Form MO-1040, MO-1120, or MO-PTE, along with required attachments.

The form lists these submission options:

Mail: Missouri Department of Revenue, P.O. Box 27, Jefferson City, MO 65105

Email: taxcredit@dor.mo.gov

Common mistakes

• Assuming the full calculated credit will be allowed. Credits may be reduced through apportionment if total claims exceed the fiscal-year limit.
• Ignoring a balance due while waiting for the credit. The form suggests paying the balance that would be due without the credit by the return due date to avoid interest and applicable additions or penalties. The law does not provide a waiver because of apportionment.
• Passing the credit through to owners. Pass-through entities must claim it at the entity level. The credit cannot be transferred, sold, or assigned.
• Expecting unused credit to be refunded. Credit exceeding tax liability is not refundable, though it may be carried forward to the entity's five subsequent tax years.

Questions people ask

How much is the credit?

The credit is $0.05 per qualifying gallon sold during the tax year, subject to the funding limit and possible apportionment.

Which taxes can the credit offset?

It applies against the retailer's or distributor's Missouri state income tax liability under Chapter 143, excluding withholding tax imposed by Sections 143.191 to 143.265.

Is there a statewide funding limit?

Yes. Total credits redeemed by all taxpayers cannot exceed $5,000,000 in a fiscal year. If claims exceed that amount, the Department apportions credits in an equal ratio among valid claims filed within the stated deadline.

What if I have more than one qualifying location?

Retailers must attach a list of all qualifying retail station locations. Distributors must attach a list of locations and final users if there is more than one location or final user.

Official sources

• https://dor.mo.gov/forms/5885.pdf