SB 1406 - This act establishes the "Missouri Defense and Energy Independence Act". For all tax years beginning on or after January 1, 2027, this act authorizes a qualified company to claim a tax credit not to exceed $6 million for qualified conversion costs incurred by the qualified company for converting such company to produce chemicals, metals, gases, or rare earth minerals that will be used for projects designed to decrease or eliminate reliance on foreign-produced materials. Tax credits authorized by the act shall be issued to a qualified company in four equal annual installments. Tax credits shall not be refundable or carried forward, and shall not be transferred, sold, or assigned. This act also establishes the "Grants for Independence from Foreign Influence Fund", which shall consist of at least $10 million in appropriated moneys. The fund shall be used by the Department of Economic Development to provide grants to qualified companies in an amount not to exceed $500,000. Grant funds shall be used solely for qualified conversion costs incurred before the completion of the conversion of the qualified company. This act shall sunset on August 28, 2032, unless reauthorized by the General Assembly. This act is identical to SB 537 (2025) and HB 1511 (2025), and is substantially similar to SS/SB 1553 (2026), HB 3027 (2026), SB 1360 (2024), and HB 1834 (2024), and to a provision in HCS/HB 1935 (2024). JOSH NORBERG

2026 Regular Session Introduced by Mike Henderson

Establishes Missouri Defense and Energy Independence Act to enhance state energy autonomy through domestic production and reduced external reliance policies.

Hearing Cancelled S Commerce, Consumer Protection, Energy & the Environment Committee

Legislative bill overview

SB 1406 establishes the Missouri Defense and Energy Independence Act, a framework designed to enhance Missouri's energy autonomy and defense-related capabilities through state-level energy policy. The bill appears to prioritize domestic energy production and reducing reliance on external energy sources, though specific statutory provisions are not detailed in the available legislative record.

Why is this important

Energy independence is a significant policy objective with implications for state economic development, utility costs, job creation, and supply chain resilience. The framing around "defense" suggests the bill may connect energy strategy to national security considerations, which could influence Missouri's approach to energy infrastructure investment and regulatory decisions.

Potential points of contention

Definition and scope ambiguity: The bill's actual mechanisms and targets remain unclear from available records; "independence" can mean different things (in-state production, reduced imports, specific fuel sources), potentially creating disagreement over implementation

Energy source preferences: Depending on provisions, the bill may advantage certain energy sectors (fossil fuels, nuclear, renewables) over others, generating opposition from competing industry stakeholders and environmental groups

Regulatory and cost implications: Energy independence policies often involve subsidies, mandates, or infrastructure investments that raise utility costs or require regulatory changes, affecting consumer bills and business competitiveness