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SECOND REGULAR SESSION
HOUSE BILL NO. 2654
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE KNIGHT .
6081H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 620, RSMo, by adding thereto one new section relating to a tax credit for
certain capital investments.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto one new section, to be
2 known as section 620.2012, to read as follows:
620.2012. 1. In exchange for the consideration pro vided by the new tax re venues
2 and other economic stimuli that will be generated by the crea tion or ret ention of jobs
3 and the making of new capital investment in this state, a qualified company may be
4 eligible to r eceive the tax cr edits described in this section if:
5 (1) The department makes, and the qualified company accepts, a pro posal for
6 benefits that includes tax cre dits authorized by this section; and
7 (2) The qualified company will expend at least fifty million dollars in new capital
8 investment for the pro ject no later than two years after the date of the notice of intent.
9 2. Notwithstanding the pr ovisions of subdivision (29) of subsection 1 of section
10 620.2005 to the contrary , a data storage center as defined in subdivision (4) of subsection
11 1 of section 144.810 shall not be eligible to be a qualified company for the purposes of
12 the tax cred its authorized under this section.
13 3. A qualified company that intends to seek the benefits authorized under this
14 section shall submit to the department a notice of intent. Notwithstanding the
15 pr ovisions of subsection 1 of section 620.2020 to the contrary , a notice of intent fr om a
16 qualified company that did not r eceive and accept a pr oposal of benefits for tax cred its
17 under this section shall be ineligible for the tax cred its under this section. The
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.
18 department shall r espond within thirty days to a notice of intent with an appr oval or a
19 r ejection, prov ided that the department may withhold appr oval or pro vide a contingent
20 appr oval until it is satisfied that pr oper documentation of eligibility has been pr ovided.
21 A failur e of the department to r espond within thirty days shall not res ult in the notice of
22 intent being deemed appr oved.
23 4. The tax cr edits authorized by this section shall not exceed two and one-half
24 per cent of the new capital investment made at the pr oject facility during the thr ee-year
25 period beginning upon the date of the notice of intent. No new capital investment
26 incurr ed prior to the date of the notice of intent shall be eligible for tax credi ts under
27 this section.
28 5. T ax cred its authorized by this section shall be included in and subject to the
29 limitations on the maximum amount of tax cred its that may be authorized in a fiscal
30 year as pr ovided in subdivision (1) of subsection 7 of section 620.2020. The pr ovisions of
31 subsection 9 of section 620.2020 shall also apply to tax cre dits authorized pursuant to
32 this section, except that any authorization of tax credi ts under this section shall expir e if,
33 within two years fr om the date of the notice of intent for the project , the qualified
34 company has failed to meet the minimum requi red new capital investment as r equir ed
35 in subdivision (2) of subsection 1 of this section.
36 6. The amount of tax cred its prop osed and awarded to a qualified company
37 under this section shall not exceed the least amount necessary to obtain the qualified
38 company's commitment to initiate the project . In determining the amount of tax cred its
39 to include in a prop osal for benefits to a qualified company under this section, the
40 department shall consider the following factors:
41 (1) The significance of the qualified company's need for pro gram benefits;
42 (2) The overall size and quality of the pro posed pr oject, including the number of
43 jobs crea ted or reta ined, new capital investment, prop osed wages for such jobs, gr owth
44 potential of the qualified company , and similar factors;
45 (3) The financial stability and cr editworthiness of the qualified company;
46 (4) The level of economic distre ss in the ar ea;
47 (5) An evaluation of the competitiveness of alternative locations for the pr oject
48 facility , as applicable; and
49 (6) The per cent of local incentives committed.
50 7. Notwithstanding the pr ovisions of subsection 3 of section 620.2020 to the
51 contrary , a qualified company recei ving benefits under this section shall pr ovide an
52 annual rep ort of the number of jobs creat ed or ret ained, and wage information for such
53 jobs, new capital investment, and such other information as may be req uired by the
54 department to document the basis for progra m benefits no later than ninety days prior
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55 to the end of the qualified company's tax year immediately following the tax year for
56 which the benefits pr ovided under this section ar e attributed. Failur e to timely file the
57 annual rep ort requ ired under this section may res ult in the forfeitur e of tax cred its
58 attributable to the year for which the r eporting was re quir ed.
59 8. Upon appr oval of a notice of intent to r eceive tax cre dits under subsection 3 of
60 this section, the department and the qualified company shall enter into a written
61 agr eement covering the applicable pr oject period. The agre ement shall specify , at a
62 minimum:
63 (1) The committed number of jobs creat ed or ret ained, wages for such jobs, and
64 new capital investment for each year during the project period;
65 (2) The terms and conditions upon the issuance of tax cr edits, which,
66 notwithstanding subsection 4 of section 620.2020 to the contrary , shall be issued no
67 sooner than when the qualified company files its first annual report req uire d under
68 subsection 3 of section 620.2020 after making the minimum req uired new capital
69 investment as set forth in subdivision (2) of subsection 1 of this section;
70 (3) Clawback pr ovisions, as may be r equir ed by the department; and
71 (4) Any other pr ovisions the department may requ ire.
72 9. Notwithstanding any other provi sion of law to the contrary , any qualified
73 company that is awarded tax credi ts under this section shall not simultaneously rec eive
74 benefits under sections 135.100 to 135.155, 620.2010, or 620.2015 for the same jobs,
75 wages, or new capital investment that qualified for tax credi ts under this section.
✔
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