WASHINGTON — A battle over tax breaks for nonbank lenders is expected to move one step closer to a hearing before the U.S. Supreme Court on Friday, when Missouri is due to file a brief arguing that a Farm Credit System lender should not be immune from state corporate income tax.

The appeal challenges a January ruling by the Supreme Court of Missouri, which overturned a state commission’s decision that Farm Credit System members must pay the tax. The case arose after CoBank, a Farm Credit lender based in Denver, began arguing that it should not be subject to state taxes and requested a refund of several years’ worth of taxes already paid.

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