Read the full stored bill text
SECOND REGULAR SESSION
HOUSE BILL NO. 1715
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE SHARPE (4).
4076H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 620, RSMo, by adding thereto four new sections relating to workforce
housing tax incentives, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto four new sections, to
2 be known as sections 620.2022, 620.2024, 620.2026, and 620.2028, to read as follows:
620.2022. 1. Sections 620.2022 to 620.2028 shall be known and may be cited as
2 the "W orkforce Housing T ax Incentives Pr ogram".
3 2. As used in sections 620.2022 to 620.2028, the following terms mean:
4 (1) "Br ownfield site", an abandoned, idled, or underutilized pr operty wher e
5 expansion or r edevelopment is complicated by r eal or per ceived envir onmental
6 contamination. A br ownfield site includes pro perty contiguous with the site on which
7 the pr operty is located. A brow nfield site does not include pro perty that has been
8 placed, or is pr oposed for placement, on the national priorities list established under the
9 federal Compr ehensive Envir onmental Response, Compensation, and Liability Act, 42
10 U.S.C. Section 9601 et seq.;
11 (2) "Community", a small city , urban ar ea, or county;
12 (3) "Department", the Missouri department of economic development;
13 (4) "Disaster recove ry housing pro ject", a qualified housing pro ject located in a
14 county that is a declar ed state disaster as defined under section 190.275 or disaster ar ea
15 as defined under section 184.805 and is eligible for Federal Emergency Management
16 Agency (FEMA) Individual Assistance pr ogram;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17 (5) "Governing body", the board, the body , or the persons in whom the powers
18 of a political subdivision as a body corporate, or otherwise, ar e vested;
19 (6) "Grayfield site", a prop erty meeting the following req uirements :
20 (a) The prop erty has been developed and has infrastructur e in place but the
21 pr operty’ s curr ent use is outdated or pr events a better or mor e efficient use of the
22 pr operty . Such prope rty includes vacant, blighted, obsolete, or otherwise underutilized
23 pr operty; and
24 (b) The pr operty’ s impr ovements and infrastructure are at least twenty-five
25 years old and one or mor e of the following conditions exist:
26 a. Thirty per cent or mor e of a building located on the prop erty that is available
27 for occupancy has been vacant or unoccupied for twelve months or mor e;
28 b. The assessed value of the impr ovements on the prop erty has decr eased by
29 twenty-five per cent or mor e;
30 c. The pr operty is curren tly being used as a parking lot; or
31 d. The impr ovements on the pr operty no longer exist;
32 (7) "Gr eenfield site", a site that does not meet the definition of a br ownfield site
33 or grayfield site. A pr oject prop osed at a site located on previo usly undeveloped land or
34 agricultural land shall be pr esumed to be a green field site;
35 (8) "Housing business", a business that is a housing developer , housing
36 contractor , or nonpr ofit organization that completes a housing pr oject in the state;
37 (9) "Housing pr oject", a project located in this state meeting the requ irem ents of
38 section 620.2024;
39 (10) "Multi-use building", a building whose str eet-level grou nd story is used for
40 a purpose other than res idential, and whose upper story or stories are curr ently used
41 primarily for a res idential purpose or will be used primarily for a r esidential purpose
42 after completion of the housing pr oject associated with the building;
43 (1 1) "Pro gram", the workfor ce housing tax incentives progr am administer ed
44 under sections 620.2022 to 620.2028;
45 (12) "Qualified r ehabilitation pr oject", a pr oject for the rehab ilitation of
46 pr operty in this state that meets the following criteria:
47 (a) The pr operty is at least one of the following:
48 a. Pr operty listed on the National Register of Historic Places or eligible for such
49 listing;
50 b. Pr operty designated as of historic significance to a district listed in the
51 National Register of Historic Places or eligible for such designation;
52 c. Pr operty or district designated a local landmark by a city or county
53 ordinance; or
HB 1715 2
54 d. A barn constructed prior to 1937;
55 (b) The pr operty meets the physical criteria and standards for rehab ilitation
56 established by the department by rule. T o the extent applicable, the physical standards
57 and criteria shall be consistent with the United States Secr etary of the Interior ’ s
58 Standards for Rehabilitation; and
59 (c) The project has qualified reha bilitation expenditures that meet or exceed the
60 following:
61 a. In the case of commer cial pro perty , expenditures totaling at least fifty
62 thousand dollars or fifty per cent of the assessed value of the prop erty , excluding the
63 land, prior to r ehabilitation, whichever is less; or
64 b. In the case of pro perty other than commer cial pr operty including, but not
65 limited to, barns constructed prior to 1937, expenditure s totaling at least twenty-five
66 thousand dollars or twenty-five percen t of the assessed value, excluding the land, prior
67 to rehab ilitation, whichever is less;
68 (13) "Qualifying new investment", costs that are dire ctly relat ed to the
69 acquisition, rep air , re habilitation, or rede velopment of a housing project in this state. A
70 qualifying new investment includes costs that ar e dir ectly r elated to new construction of
71 dwelling units if the new construction occurs in a distr essed workfor ce housing
72 community . The amount of costs that may be used to compute a qualifying new
73 investment shall not exceed the costs used for the first one hundred fifty thousand
74 dollars of value for each dwelling unit that is part of a housing pr oject. A qualifying
75 new investment does not include the following:
76 (a) The portion of the total cost of a housing pro ject that is financed by federal,
77 state, or local government tax credi ts, grants, forgivable loans, or other forms of
78 financial assistance that do not r equir e r epayment, excluding the tax incentives pr ovided
79 under sections 620.2022 to 620.2028; or
80 (b) If a housing project includes the r ehabilitation, rep air , or red evelopment of
81 an existing multi-use building, the portion of the total acquisition costs of the multi-use
82 building, including a pr oportionate share of the total acquisition costs of the land upon
83 which the multi-use building is situated, that are attributable to the str eet-level groun d
84 story that is used for a purpose that is other than res idential;
85 (14) "Small city", a city or village that:
86 (a) Is not located wholly within one of the eight most populous counties in the
87 state as determined by the most recent decennial census; or
88 (b) If located wholly within one of the eight most populous counties as
89 determined by the most recen t decennial census, meets both of the following:
90 a. Has two thousand five hundred or fewer inhabitants; and
HB 1715 3
91 b. Experienced less than thirty per centage points of population gr owth when
92 comparing the most rece nt decennial census to the decennial census immediately
93 pr eceding the most r ecent decennial census.
94
95 The term "small city" shall not include any city with mor e than four hundr ed thousand
96 inhabitants and located in mor e than one county;
97 (15) "T ax cr edit" or "tax cred its", a credit or cred its issued by the department
98 against the tax otherwise due under chapter 143 or 148, excluding withholding tax
99 imposed under sections 143.191 to 143.265;
100 (16) "T ax incentive", a state measur e that is intended to encourage individuals
101 and businesses to spend moneys or save moneys by red ucing the amount of tax that they
102 have to pay including, but not limited to, tax cr edits and ref unds of sales and use tax
103 issued under this progra m;
104 (17) "Urban area" :
105 (a) Any city or municipality , except for a small city , that is wholly located within
106 one of the eight most populous counties in the state as determined by the most recent
107 decennial census; or
108 (b) Any city with mor e than four hundr ed thousand inhabitants and located in
109 mor e than one county .
620.2024. 1. T o recei ve workfor ce housing tax incentives under sections
2 620.2022 to 620.2028, a pr oposed housing pro ject shall meet the following req uirements:
3 (1) The housing project includes at least one of the following:
4 (a) Four or mor e single-family dwelling units, except for a housing pr oject
5 located in a small city , then two or mor e single-family dwelling units;
6 (b) One or mor e multiple dwelling unit buildings, each containing thr ee or mor e
7 individual dwelling units; or
8 (c) T wo or mor e dwelling units located in the upper story of an existing multi-use
9 building;
10 (2) The housing project consists of any of the following:
11 (a) Rehabilitation, repa ir , or redevel opment at a br ownfield or grayfield site that
12 r esults in new dwelling units;
13 (b) The r ehabilitation, r epair , or re development of dilapidated dwelling units;
14 (c) The r ehabilitation, r epair , or redeve lopment of dwelling units located in the
15 upper story of an existing multi-use building;
16 (d) For a housing proj ect located in a small city that meets program
17 r equir ements under paragraph (a) of subdivision (1) of this subsection, development
18 at a gr eenfield site; or
HB 1715 4
19 (e) For a disaster recove ry housing pr oject as defined under section 620.2022,
20 development at a gr eenfield site;
21 (3) (a) Except as pr ovided in paragraph (b) of this subdivision, the average
22 dwelling unit cost shall not exceed the maximum amount established by the department
23 for each fiscal year for the applicable project type and project location. The department
24 shall establish the maximum average dwelling unit cost for a housing project that
25 includes single-family dwelling units that are located in a small city and for a housing
26 pr oject that includes single-family dwelling units that are located in an urban area. The
27 department shall establish the maximum average dwelling unit cost for a housing
28 pr oject that includes multiple dwelling unit buildings and is located in a small city and
29 for a housing pr oject that includes multiple dwelling unit buildings and is located in an
30 urban area. In establishing each maximum average dwelling unit cost, the department
31 shall primarily consider the most r ecent annual United States Census Bur eau Building
32 Permits Survey and historical pr ogram data;
33 (b) If the housing pr oject involves the r ehabilitation, repai r , red evelopment, or
34 pr eservation of pr operty described in subdivision (12) of subsection 2 of section
35 620.2022, the average dwelling unit cost shall not exceed one hundr ed twenty-five
36 per cent of the maximum average dwelling unit cost established by the department for
37 the applicable housing pro ject type and housing project location as provi ded in
38 paragraph (a) of this subdivision; and
39 (4) The dwelling units, when completed and made available for occupancy , meet
40 the United States Department of Housing and Urban Development’ s housing quality
41 standards as set forth in 24 CFR 982 and all applicable local safety standards.
620.2026. 1. (1) A housing business seeking workforce housing tax incentives
2 pr ovided under section 620.2028 shall apply to the department in the manner prescrib ed
3 by the department's rules. The department may accept applications during one or mor e
4 annual application periods to be determined by the department by rule.
5 (2) The application shall include the following:
6 (a) Information establishing local participation in the housing project , including:
7 a. A res olution in support of the housing pro ject by the governing body of the
8 community wher e the housing pr oject will be located; and
9 b. Documentation of local matching funds pledged for the housing project in an
10 amount equal to at least one thousand dollars per dwelling unit including, but not
11 limited to, a funding agr eement between the housing business and the governing body of
12 the community wher e the housing pro ject will be located. For purposes of this
13 subparagraph, local matching funds shall be in the form of cash or cash equivalents or
14 in the form of a local prop erty tax exemption, reb ate, ref und, or reim bursement;
HB 1715 5
15 (b) Information evidencing an agree ment between the business and the
16 department specifying the requ irem ents that will be met to confirm eligibility and the
17 r equir ements shall be maintained thr oughout the period of the agreement in order to
18 r etain the incentives or financial assistance recei ved. The department shall consult with
19 the governing body of the community during negotiations rela ting to the agreement.
20 The agr eement shall contain a repo rt submitted to the department by a business,
21 together with its application, describing all violations of envir onmental law or worker
22 safety law within the last five years. If, upon revi ew of the application, the department
23 finds that the business has a reco rd of violations of the law , statutes, rules, or reg ulations
24 that tend to show a consistent pattern, the department shall not provi de incentives or
25 assistance to the business unless the department finds either that the violations did not
26 seriously affect public health, public safety , or the envir onment, or if such violations did
27 seriously affect public health, public safety , or the envir onment, that mitigating
28 cir cumstances were present ;
29 (c) Information showing the total costs and funding sources of the housing
30 pr oject sufficient to allow the department to adequately determine the financing that
31 will be utilized for the housing pr oject, the actual cost of the dwelling units, and the
32 amount of the qualifying new investment; and
33 (d) Any other information deemed necessary by the department to evaluate the
34 eligibility and financial need of the housing pr oject under the pr ogram.
35
36 In addition to complying with the applicable requ irem ents under this subdivision, a
37 housing business applying for disaster r ecovery housing pr oject tax incentives shall also
38 submit a certification that the applicant’ s housing pro ject meets the definition of a
39 disaster recov ery housing project , if applicable. The housing business shall also submit
40 documentation that pr ovides evidence that the qualified disaster re covery housing
41 pr oject is needed due to the impact of the disaster that is the subject of the major
42 disaster declaration.
43 2. (1) All completed applications shall be r eviewed and scor ed on a competitive
44 basis by the department under rules adopted by the department.
45 (2) Upon revi ew and scoring of all applications r eceived during an application
46 period, the department may make a tax incentive award to a housing pr oject, which tax
47 incentive award shall rep res ent the maximum amount of tax incentives the housing
48 pr oject may qualify for under the pr ogram. In determining a tax incentive award, the
49 department shall not use an amount of housing pr oject costs that exceeds the amount
50 included in the application of the housing business. T ax incentive awards shall be
51 appr oved by the dir ector of the department.
HB 1715 6
52 (3) After making a tax incentive award, the department shall notify the housing
53 business of its tax incentive award. The notification shall include the amount of tax
54 incentives awarded under section 620.2028 and a statement that the housing business
55 has no right to receiv e a tax incentive certificate or claim a tax incentive until all
56 r equir ements of the pr ogram, including all requi rem ents imposed by the agreement
57 enter ed into under subsection 3 of this section, ar e satisfied. The amount of tax cred its
58 included on a tax cr edit certificate issued under this section, or a claim for r efund of
59 sales and use taxes, shall be contingent upon completion of the r equir ements under
60 subsection 3 of this section.
61 (4) An applicant that does not r eceive a tax incentive award during an
62 application period may make additional applications during subsequent application
63 periods. Such applicant shall be r equir ed to submit a new application, which shall be
64 competitively rev iewed and scor ed in the same manner as other applications in that
65 application period.
66 3. (1) Upon receip t of a tax incentive award for the housing pr oject, the housing
67 business shall enter into an agr eement with the department for the successful
68 completion of all requi rem ents of the pro gram. The agr eement shall identify the tax
69 incentive award amount, the tax incentive award date, the housing pr oject completion
70 deadline, and the total costs of the housing pr oject.
71 (2) The following compliance cost fees shall apply to all agr eements enter ed into
72 under this pr ogram and shall be collected in a manner determined by the department:
73 (a) The imposition of a one-time compliance cost fee of five hundred dollars to be
74 collected by the authority prior to the issuance of a tax incentive certificate or the
75 disbursement of financial assistance; and
76 (b) The imposition of a compliance cost fee equal to one-half of one percen t of
77 the value of tax incentives claimed under an agre ement that has an aggr egate tax
78 incentive value of one hundred thousand dollars or grea ter . The department shall
79 collect the fee fr om the business after the tax incentive is claimed by the business fr om
80 the department of r evenue.
81 (3) (a) Except as pro vided in paragraph (b) of this subdivision, a housing
82 business shall complete its housing pr oject within thr ee years fr om the date the housing
83 pr oject is reg istered by the department.
84 (b) The department may , for good cause within its discr etion, extend a housing
85 pr oject’ s completion deadline by up to twelve months upon application by the housing
86 business. Such application shall be made prior to the expiration of the thr ee-year
87 completion deadline in paragraph (a) of this subdivision. The department may appr ove
88 a second extension of up to twelve months if prior to the expiration of the first twelve-
HB 1715 7
89 month extension the housing business applies and substantiates to the satisfaction of the
90 department that the second extension is warranted due to extenuating cir cumstances
91 outside the contr ol of the housing business. The department may determine what
92 qualifies as good cause and establish by rule the extenuating circu mstances that will
93 qualify for appr oval and any additional information that the department may requ ire
94 for appr oval of such extension. Applications by a housing business shall be made in the
95 manner and form prescribed by the department by rule.
96 (4) Upon completion of a housing project , a housing business shall submit the
97 following to the department:
98 (a) An examination of the housing project in accordance with the American
99 Institute of Certified Public Accountants’ Statements on Standards for Attestation
100 Engagements, completed by a certified public accountant authorized to practice in this
101 state;
102 (b) A statement of the final amount of the qualifying new investment for the
103 housing pro ject; and
104 (c) Any information the department deems necessary to ensur e compliance with
105 the agr eement signed by the housing business under paragraph (a), the requ irem ents of
106 this pro gram, and rules the department and the department of reven ue adopt under
107 subsection 4 of section 620.2028.
108 (5) (a) Upon rev iew of the examination, verification of the amount of the
109 qualifying new investment, and r eview of any other information submitted under
110 paragraph (c) of subdivision (4) of this subsection, the department shall notify the
111 housing business of the amount that the housing business may claim as a ref und of the
112 sales and use tax under subsection 2 of section 620.2028 and shall issue a tax credi t
113 certificate to the housing business stating the amount of workforc e housing investment
114 tax credits under subsection 3 of section 620.2028 the eligible housing business may
115 claim. The sum of the amount that the housing business may claim as a r efund of the
116 sales and use tax and the amount of the tax cred it certificate shall not exceed the total
117 amount of the tax incentive award.
118 (b) If upon revi ew of the examination in paragraph (a) of subdivision (4) of this
119 subsection the department determines that a housing pro ject has incurr ed project costs
120 in excess of the amount submitted in the application made under subsection 1 of this
121 section and identified in the agr eement, the department shall do one of the following:
122 a. If the housing pr oject costs do not cause the housing pr oject’ s average
123 dwelling unit cost to exceed the applicable maximum amount authorized under
124 subdivision (3) of subsection 1 of section 620.2024, the department shall consider the
125 agr eement fulfilled and shall issue a tax cr edit certificate;
HB 1715 8
126 b. If the housing pr oject costs cause the housing project’ s average dwelling unit
127 cost to exceed the applicable maximum amount authorized under subdivision (3) of
128 subsection 1 of section 620.2024 but do not cause the average dwelling unit cost to
129 exceed one hundred fifty perc ent of such applicable maximum amount, the department
130 shall consider the agreemen t fulfilled and shall issue a tax cr edit certificate. In such
131 case, the department shall r educe the tax incentive award and the corr esponding
132 amount of tax incentives the eligible housing pr oject shall claim under subsections 2 and
133 3 of section 620.2028 by the same per centage that the housing pr oject’ s average dwelling
134 unit cost exceeds the applicable maximum amount under subdivision (3) of subsection 1
135 of section 620.2024, and such tax incentive redu ction shall be re flected on the tax credit
136 certificate. If the department issues a certificate under this subparagraph, the
137 department of r evenue shall accept the certificate notwithstanding that the housing
138 pr oject’ s average dwelling unit costs exceed the maximum amount specified in
139 subdivision (3) of subsection 1 of section 620.2024; or
140 c. If the housing pro ject costs cause the housing pr oject’ s average dwelling unit
141 cost to exceed one hundred fifty percen t of the applicable maximum amount authorized
142 under subdivision (3) of subsection 1 of section 620.2024, the department shall
143 determine the eligible housing business to be in default under the agr eement, shall
144 r evoke the tax incentive award, and shall not issue a tax credi t certificate. The housing
145 business shall not be allowed a r efund of sales and use tax under subsection 2 of section
146 620.2028.
147 (6) The maximum aggreg ate amount of tax incentives that may be awarded and
148 issued under section 620.2028 to a housing business for a housing project shall not
149 exceed one million dollars.
150 (7) If a housing business qualifies for a higher amount of tax incentives under
151 section 620.2028 than is allowed by the limitation imposed under subdivision (4) of this
152 subsection, the department and the housing business may negotiate an apportionment of
153 the redu ction in tax incentives between the sales tax refu nd pro vided in subsection 2 of
154 section 620.2028 and the workfor ce housing investment tax cred its pro vided in
155 subsection 3 of section 620.2028, pr ovided the total aggr egate amount of tax incentives
156 after the apportioned redu ction does not exceed the amount under subdivision (4) of this
157 subsection.
158 (8) The department shall issue tax incentives under the progra m on a first-come,
159 first-served basis until the maximum amount of tax incentives allocated under
160 subdivision (4) of subsection 5 of this section is reach ed. The department shall
161 maintain a list of housing pr ojects regist ered prior to January 1, 2027, and of housing
162 pr ojects awarded tax incentives on or after January 1, 2027, so that if the maximum
HB 1715 9
163 aggr egate amount of tax incentives is rea ched in a given fiscal year , such register ed
164 housing pr ojects that were completed but for which tax incentives wer e not issued, and
165 such housing pr ojects that wer e completed and ar e awarded tax incentives but for which
166 tax incentives have not been issued, shall be placed on a wait list in the order the housing
167 pr ojects wer e reg istered or awarded tax incentives and shall be given priority for
168 r eceiving tax incentives in succeeding fiscal years.
169 4. (1) The failur e by a housing business in completing a housing pr oject to
170 comply with any req uirement of this pr ogram or any of the terms and obligations of an
171 agr eement enter ed into under this section may r esult in the revoca tion, redu ction,
172 termination, or r escission of the tax incentive award or the appr oved tax incentives and
173 may subject the housing business to the r epayment or r ecapture of tax incentives
174 claimed under section 620.2028.
175 (2) If the housing business does not meet any of the re quir ements of this
176 subsection or the resulti ng agr eement, the tax incentives pr ovided under this section
177 shall be r epaid or recap tur ed. The rep ayment of incentives under this subsection shall
178 be consider ed a tax payment due and payable to the department of reven ue by any
179 taxpayer who has claimed such incentives, and the failur e to make such a repay ment
180 may be trea ted by the department of reven ue in the same manner as a failur e to pay the
181 tax shown due or r equir ed to be shown due with the filing of a ret urn or deposit form.
182 In addition, the county shall have the authority to take action to recover the value of
183 pr operty taxes not collected as a r esult of the exemption pr ovided to the business under
184 this progra m.
185 5. (1) Notwithstanding subsection 1 of this section, the department may establish
186 a disaster recov ery housing project application period following the declaration of a
187 major disaster for a disaster ar ea in Missouri.
188 (2) Upon rev iew and scoring of all applications r eceived during a disaster
189 r ecovery application period, the department may make a tax incentive award to a
190 disaster reco very housing pr oject. The tax incentive award shall repr esent the
191 maximum amount of tax incentives that the disaster recov ery housing pr oject may
192 qualify for under the progr am. In determining a tax incentive award, the department
193 shall not use an amount of housing project costs that exceeds the amount included in the
194 application of the housing business. T ax incentive awards shall be appr oved by the
195 dir ector of the department.
196 (3) The department shall issue tax incentives under the pr ogram for disaster
197 r ecovery housing pr ojects on a first-come, first-served basis until the maximum amount
198 of tax incentives is allocated. The aggr egate cap for all tax incentives issued for disaster
199 r ecovery housing pr ojects under this pr ogram shall be thirty-five million dollars. Of the
HB 1715 10
200 moneys allocated to disaster reco very housing pr ojects, seventeen million five hundr ed
201 thousand dollars shall be res erved for allocation to qualified housing pr ojects in small
202 cities.
203 (4) All other housing pr ojects under this pr ogram that are not disaster recov ery
204 housing pro jects shall be subject to a thirty-five million dollar cap.
620.2028. 1. A housing business that has enter ed into an agr eement under
2 section 620.2026 is eligible to re ceive the tax incentives described in subsections 2 and 3
3 of this section.
4 2. (1) A housing business may claim a r efund of the sales and use taxes paid
5 under chapter 144 prior to the completion of the housing pr oject that ar e dir ectly
6 r elated to a housing project and specified in the agr eement.
7 (2) T o receive a refu nd, a claim shall be filed by the housing business with the
8 department of reve nue as follows:
9 (a) The contractor or subcontractor shall state under oath, on forms provi ded by
10 the department of r evenue, the amount of sales and use taxes paid under chapter 144
11 prior to the completion of the housing project that are dir ectly relat ed to a housing
12 pr oject and specified in the agr eement;
13 (b) The contractor or subcontractor shall file the forms with the housing
14 business before final settlement is made; and
15 (c) a. The housing business shall, after the agree ment completion date, apply to
16 the department of revenu e for any ref und of the amount of sales and use taxes paid
17 under chapter 144 prior to the completion of the housing project that wer e dir ectly
18 r elated to a housing project and specified in the agr eement. The application shall be
19 made in the manner and upon forms to be pr ovided by the department of rev enue. The
20 department of revenu e shall audit the claim and, if appr oved, issue a ref und to the
21 housing business. The application shall be made within one year after the agree ment
22 completion date. A claim filed by the housing business in accordance with this
23 subsection shall not be denied by reas on of a limitation pro vision set forth in chapter 143
24 or 144; and
25 b. For purposes of this paragraph, "agr eement completion date" means the date
26 on which the department notifies the department of reven ue that all applicable
27 r equir ements of the agreement enter ed into under subdivision (1) of subsection 3 of
28 section 620.2026, and all applicable req uirements of this pr ogram, including the rules
29 the department and the department of revenu e adopt under subsection 4 of this section
30 ar e satisfied.
31
HB 1715 1 1
32 A contractor or subcontractor who willfully makes a false claim under oath in violation
33 of the pr ovisions of this subsection shall be guilty of a misdemeanor , and, in addition to
34 any other penalty , the contractor or subcontractor shall be liable for the payment of the
35 tax and any applicable penalty and interes t.
36 3. (1) For all tax years beginning on or after January 1, 2027, a housing business
37 may claim a tax credit in an amount not to exceed the following:
38 (a) For a housing pr oject located in an urban ar ea, ten per cent of the qualifying
39 new investment of a housing pr oject specified in the agreement;
40 (b) For a housing pro ject located in a small city , twenty percent of the qualifying
41 new investment of a housing pr oject specified in the agreement; and
42 (c) For a disaster reco very housing pr oject, twenty perce nt of the qualifying new
43 investment of a housing project specified in the agreement.
44 (2) An individual who is part of the housing business may claim a tax credi t
45 under this subsection fro m a partnership, limited liability company , S corporation,
46 estate, or trust electing to have income taxed dir ectly to the individual. The amount
47 claimed by the individual shall be based upon the pr o rata shar e of the individual’ s
48 earnings fr om the partnership, limited liability company , S corporation, estate, or trust.
49 (3) Any tax credit in excess of the housing business or individual taxpayer ’ s
50 liability for the tax year is not ref undable but may be cr edited to the tax liability for the
51 following five years or until depleted, whichever is earlier .
52 (4) (a) T o claim a tax credi t under this subsection, a taxpayer shall include one
53 or mor e tax cred it certificates with the taxpayer’ s tax ret urn.
54 (b) The tax credi t certificate shall contain the taxpayer’ s name, addr ess, tax
55 identification number , the amount of the credi t, the name of the eligible housing
56 business, any other information requ ired by the department of rev enue, and a place for
57 the name and tax identification number of a transfer ee and the amount of the tax credit
58 being transferre d, if applicable.
59 (c) The tax cr edit certificate, unless r escinded by the department, shall be
60 accepted by the department of r evenue as payment for taxes for all tax years beginning
61 on or after January 1, 2027, subject to any conditions or res trictions placed by the
62 department upon the face of the tax cred it certificate and subject to the limitations of
63 this progra m.
64 (d) T ax cre dit certificates issued under subdivision (5) of subsection 3 of section
65 620.2026 may be transferred to any person. Within ninety days of transfer , the
66 transfer ee shall submit the transferr ed tax cred it certificate to the department of
67 r evenue along with a statement containing the transfer ee’ s name, tax identification
68 number , and addr ess; the denomination that each r eplacement tax credit certificate is to
HB 1715 12
69 carry; and any other information r equir ed by the department of re venue. However , tax
70 cr edit certificate amounts of less than the minimum amount established by rule of the
71 department shall not be transferable.
72 (e) Within thirty days of r eceiving the transferred tax credit certificate and the
73 transfer ee’ s statement, the department of revenu e shall issue one or mor e r eplacement
74 tax credit certificates to the transfer ee. Each repla cement tax cr edit certificate shall
75 contain the information requ ired for the original tax cr edit certificate and shall have the
76 same expiration date that appear ed on the transferred tax cr edit certificate.
77 (f) A tax cred it shall not be claimed by a transfer ee under this section until a
78 r eplacement tax cred it certificate identifying the transfer ee as the pro per holder has
79 been issued. The transfer ee may use the amount of the tax credi t transferred against the
80 transfer ee taxpayer's state tax liability for all tax years beginning on or after January 1,
81 2027, under the same terms and conditions that the transfer or was allowed. Any
82 consideration receiv ed for the transfer of the tax cr edit shall not be included as income
83 under chapter 143. Any consideration paid for the transfer of the tax cred it shall not be
84 deducted fr om income under chapter 143.
85 (5) For purposes of the individual and corporate income taxes and the franchise
86 tax, the incr ease in the basis of the prop erty that would otherwise r esult fr om the
87 qualifying new investment shall be red uced by the amount of the tax cred it computed
88 under this subsection.
89 (6) Notwithstanding any pro vision of section 105.1500 to the contrary , any
90 r equir ement to pr ovide information, documents, or rec ords under this section, and any
91 r equir ement established by the department to provi de information, documents, or
92 r ecords for the purpose of administering and enforcing this section, shall be exempt
93 fr om section 105.1500.
94 4. The department of economic development and the department of revenu e may
95 pr omulgate all necessary rules and reg ulations for the administration of this section.
96 Any rule or portion of a rule, as that term is defined in section 536.010, that is creat ed
97 under the authority delegated in this section shall become effective only if it complies
98 with and is subject to all of the pr ovisions of chapter 536 and, if applicable, section
99 536.028. This section and chapter 536 are nonseverable and if any of the powers vested
100 with the general assembly pursuant to chapter 536 to rev iew , to delay the effective date,
101 or to disappr ove and annul a rule are subsequently held unconstitutional, then the grant
102 of rulemaking authority and any rule pr oposed or adopted after August 28, 2026, shall
103 be invalid and void.
104 5. Under section 23.253 of the Missouri sunset act:
HB 1715 13
105 (1) The pr ovisions of the new pr ogram authorized under sections 620.2022 to
106 620.2028 shall automatically sunset on December thirty-first, six years after the effective
107 date of sections 620.2022 to 620.2028 unless reauthori zed by an act of the general
108 assembly;
109 (2) Sections 620.2022 to 620.2028 shall terminate on September first of the
110 calendar year immediately following the calendar year in which the prog ram authorized
111 under sections 620.2022 to 620.2028 is sunset; and
112 (3) Nothing in this subsection shall prev ent a taxpayer fr om claiming a tax credit
113 pr operly issued before this pr ogram was sunset in a tax year after the prog ram is sunset.
✔
HB 1715 14