Modifies provisions relating to tax credits

EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1188
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR COLEMAN.
4418S.02I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 32.125, 99.1205, 100.260, 100.270, 100.286, 100.293, 100.297, 100.850,
135.090, 135.110, 135.313, 135.326, 135.339, 135.341, 135.352, 135.432, 135.460,
135.487, 135.490, 135.500, 135.503, 135.505, 135.508, 135.516, 135.517, 135.520,
135.523, 135.526, 135.529, 135.530, 135.535, 135.545, 135.546, 135.562, 135.647,
135.679, 135.680, 135.682, 135.690, 135.700, 135.710, 135.750, 135.766, 135.772,
135.775, 135.778, 135.800, 135.950, 135.953, 135.957, 135.960, 135.963, 135.967,
135.968, 135.970, 135.973, 135.1125, 135.1150, 135.1180, 137.123, 143.119, 143.177,
143.436, 143.471, 148.030, 148.330, 148.350, 173.196, 190.465, 192.2015, 208.770,
320.092, 320.093, 348.302, 348.304, 348.306, 348.308, 348.310, 348.312, 348.316,
348.318, 348.505, 447.708, 620.635, 620.638, 620.641, 620.644, 620.647, 620.650,
620.653, 620.1875, 620.1878, 620.1881, 620.1884, 620.1887, 620.1890, 620.1910,
620.2010, 620.2020, and 620.2600, RSMo, and section 348.300 as enacted by senate
bill no. 7, ninety -sixth general assembly , first extraordinary session, and section
348.300 as enacted by house bill no. 1, ninety -fourth general assembly, first
extraordinary session, and to enact in lieu thereof forty-six new sections relating to tax
credits.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 32.125, 99.1205, 100.260, 100.270, 1
100.286, 100.293, 100.297, 100.850, 135.090, 135.110, 135.313, 2
135.326, 135.339, 135.341, 135.352, 135.432, 135.460, 135.487, 3
135.490, 135.500, 135.503, 135.505, 135.508, 135.516, 135.517, 4
135.520, 135.523, 135.526, 135.529, 135.530, 135.535, 135.545, 5
135.546, 135.562, 135.647, 135.679, 135.680, 135.682, 135.690, 6
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135.700, 135.710, 135.750, 135.766, 135.772, 135.775, 135.778, 7
135.800, 135.950, 135.953, 135.957, 135.960, 135.963, 135.967, 8
135.968, 135.970, 135.973, 135.1125, 135.1150, 135.1180, 9
137.123, 143.119, 143.177, 143.436, 143.471, 148.030, 148.330, 10
148.350, 173.196, 190.465, 192.2015, 208.770, 320.092, 320.093, 11
348.302, 348.304, 348.306, 348.308, 348.310, 348.312, 348.316, 12
348.318, 348.505, 447.708, 620.635, 620.638, 620.641, 620.644, 13
620.647, 620.650, 620.653, 620.1875, 620.1878, 620.1881, 14
620.1884, 620.1887, 620.1890, 620.1910, 620.2010, 620.2020, and 15
620.2600, RSMo, and section 348.300 as enacted by senate bill 16
no. 7, ninety -sixth general assembly, first extraordinary 17
session, and section 348.300 as enacted by house bill no. 1, 18
ninety-fourth general assembly, first extraordinary session, 19
are repealed and forty-six new sections enacted in lieu thereof, 20
to be known as sections 32.125, 100.260, 100.270, 100.286, 21
100.293, 100.297, 100.850, 135.090, 135.110, 135.326, 135.339, 22
135.341, 135.352, 135.432, 135.460, 135.487, 135.490, 135.530, 23
135.562, 135.647, 135.690, 135.750, 135.772, 135.775, 135.778, 24
135.800, 135.835, 135.1150, 135.1180, 137.123, 143.119, 25
143.177, 143.436, 143.471, 148.030, 148.330, 148.350, 190.465, 26
192.2015, 208.770, 320.092, 348.505, 447.708, 620.1910, 27
620.2010, and 620.2020, to read as follows:28
32.125. 1. No rule or portion of a rule promulgated 1
under the authority of this chapter shall become effective 2
unless it has been promulgated pursuant to the provisions of 3
section 536.024. 4
2. Pursuant to section 23.253 of the Missouri sunset 5
act: 6
(1) The program authorized pursuant to sections 32.100 7
to 32.125 shall automatically sunset August 28, 2032, unless 8
reauthorized by an act of the general assembly; 9
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(2) Sections 32.100 to 32.125 shall terminate on 10
September first of the calendar year immediately following 11
the calendar year in which the program authorized pursuant 12
to sections 32.100 to 32.125 is sunset; and 13
(3) The provisions of this subsection shall not be 14
construed to impair or impede the state's fulfillment of any 15
obligations, including the authorization, issuance, or 16
redemption of tax credits, incurred pursuant to sections 17
32.100 to 32.125 prior to the date the program authorized 18
pursuant to sections 32.100 to 32.125 is sunset. 19
100.260. 1. There are hereby created four special 1
funds, to be known as the "Industrial Development and 2
Reserve Fund", the "Industrial Development Guarantee Fund", 3
the "Export Finance Fund", and the "Jobs Now Fund", into 4
which the following may be deposited as and when received 5
and designated for deposit in one of such funds: 6
(1) Any moneys appropriated by the general assembly 7
for use by the board in carrying out the powers set forth in 8
sections 100.250 to 100.297; 9
(2) Any moneys made available through the issuance of 10
revenue bonds under the provisions of sections 100.250 to 11
[100.295] 100.297; 12
(3) Any moneys received from grants or which are 13
given, donated, or contributed to the fund from any source; 14
(4) Any moneys received in repayment of loans or from 15
application fees, reserve participation fees, guarantee fees 16
and premium payments as provided for under sections 100.250 17
to 100.297; 18
(5) Any moneys received as interest on deposits or as 19
income on approved investments of the fund; 20
(6) Any moneys obtained from the issuance of revenue 21
bonds or notes by the board; 22
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(7) Any moneys that were in the industrial development 23
fund authorized by this section, the economic development 24
reserve authorized by section 620.215, or the industrial 25
revenue bond guarantee fund authorized by section 620.240, 26
respectively, as of September 28, 1985; and 27
(8) Any moneys obtained from any other available 28
source. 29
2. The development and reserve fund, the guarantee 30
fund, the jobs now fund, and the export finance fund shall 31
be administered by the board as provided in sections 100.250 32
to 100.297. Separate accounts may be created within the 33
development and reserve fund and the guarantee fund for 34
moneys specifically appropriated, donated or otherwise 35
received for industrial development purposes. The board may 36
also create such other separate accounts within any of such 37
funds as deemed necessary or appropriate by the board to 38
carry out the duties and purposes of sections 100.250 to 39
100.297. All such separate accounts may be administered by 40
a corporate trustee on behalf of the board upon the terms 41
and conditions established by the board. 42
3. Moneys in the jobs now fund, the development and 43
reserve fund, the guarantee fund, and the export finance 44
fund shall be invested by the board in the manner prescribed 45
by the board and any interest earned on invested moneys 46
shall accrue to the benefit of the respective fund. 47
4. None of the funds and accounts of the board shall 48
be considered a state fund, and money deposited therein may 49
not be appropriated therefrom, nor shall any money deposited 50
therein be subject to the provisions of section 33.080. 51
5. The commissioner of administration shall annually 52
calculate the increased amount of revenue to the state 53
treasury due to the provisions of sections 135.155[,] and 54
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135.286[, 135.546, and subsection 7 of section 620.1039,] as 55
enacted or modified by this act and shall allocate up to 56
twelve million dollars of such revenue to the jobs now fund. 57
100.270. The board shall have the power to: 1
(1) Sue and be sued in its official name; 2
(2) Adopt and use an official seal; 3
(3) Confer with agencies of the state and development 4
agencies, and with representatives of business, industry, 5
and labor for the purpose of promoting the economic 6
development of this state; 7
(4) Consider and review applications for loans to be 8
made from the development and reserve fund or for loans, 9
bonds or notes to be made by or secured by the development 10
and reserve fund, the guarantee fund, the export finance 11
fund or the infrastructure development fund or any other 12
available money, under sections 100.250 to 100.297, and for 13
grants or loans to be made by or secured by the jobs now 14
fund; 15
(5) Enter into agreements with development agencies, 16
borrowers, participating lenders and others to implement any 17
of the provisions of sections 100.250 to 100.297; 18
(6) Direct disbursements from the development and 19
reserve fund, the guarantee fund, the export finance fund, 20
the infrastructure development fund, and the jobs now fund 21
as provided in sections 100.250 to 100.297; 22
(7) Administer the development and reserve fund, the 23
guarantee fund, the export finance fund, the infrastructure 24
development fund, and the jobs now fund and invest any 25
portion of such funds not required for immediate 26
disbursement in obligations of the United States, or any 27
agency or instrumentality of the United States, in 28
obligations of the state of Missouri and its political 29
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subdivisions, in certificates of deposit and time deposits 30
or other obligations of banks and savings and loan 31
associations or in such other obligations as may be 32
prescribed by the board; 33
(8) Apply for and accept gifts, grants, 34
appropriations, loans or contributions to the development 35
and reserve fund, the guarantee fund, the export finance 36
fund, the infrastructure development fund, and the jobs now 37
fund from any source, public or private, and enter into 38
contracts or other transactions with any federal or state 39
agency, any development agency, private organization, or any 40
other source in furtherance of the purposes of sections 41
100.250 to 100.297, and do any and all things necessary in 42
order to avail itself of such aid and cooperation; 43
(9) Issue, from time to time, its negotiable revenue 44
bonds or notes in such principal amounts as, in its opinion, 45
shall be necessary to provide sufficient funds for achieving 46
its purposes; 47
(10) Establish reserves to secure bonds, notes and 48
loans issued or made by the board, development agencies or 49
participating lenders; 50
(11) Make, purchase, or participate in the making or 51
purchase, of loans, bonds, or notes to finance the costs of 52
projects; 53
(12) Procure insurance, letters of credit, or other 54
form of credit enhancement, to secure the payment of 55
principal and interest on any loans, bonds or notes or other 56
obligations of the board; 57
(13) Purchase, receive, take by grant, gift, devise, 58
bequest or otherwise, lease, or otherwise acquire, own, 59
hold, improve, employ, use and otherwise deal in and with, 60
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real or personal property, or any interest therein, wherever 61
situated; 62
(14) Sell, convey, lease, exchange, transfer or 63
otherwise dispose of, all or any of its property, or any 64
interest therein, wherever situated; 65
(15) Conduct hearings and other methods of 66
examination, and authorize any of its members to do so, on 67
any matter material for its information and necessary to the 68
exercise of the duties of the board; 69
(16) Employ and fix the compensation of an executive 70
director and such other agents or employees as it considers 71
necessary; 72
(17) Adopt, alter, or repeal its own bylaws, rules, 73
and regulations governing the manner in which its business 74
may be transacted; 75
(18) Assess or charge a fee for each application it 76
receives for funding for a project or a jobs now project and 77
assess or charge other fees as the board determines to be 78
reasonable to carry out its purposes, including, but not 79
limited to, fees or premiums for loans made from the 80
development and reserve fund and the export finance fund and 81
for loans, bonds or notes secured by the development and 82
reserve fund, the guarantee fund, the export finance fund or 83
the infrastructure development fund or the jobs now fund; 84
(19) Make all expenditures which are incident and 85
necessary to carry out its purposes and powers; 86
(20) Take such action, enter into such agreements and 87
exercise all other powers and functions necessary or 88
appropriate to carry out the duties and purposes set forth 89
in sections 100.250 to 100.297; 90
(21) Insure, coinsure, guarantee loans and make loans 91
relating to qualified export transactions and adopt 92
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criteria, by means of rules and regulations, establishing 93
which exporters shall be eligible for the insurance, 94
coinsurance, loan guarantees and loans which may be extended 95
by the board; 96
(22) Do all things necessary to ensure full 97
participation by the state of Missouri in any federal 98
program which may relate to the construction, repair, 99
replacement or further development of the infrastructure of 100
the state and its political subdivisions; 101
(23) Receive funds from the federal government for 102
deposit into the infrastructure development fund or the jobs 103
now fund and authorize disbursements therefrom. The board 104
may enter into agreements with agencies of the federal 105
government and may, on behalf of the state of Missouri, do 106
all things necessary to ensure full participation by the 107
state of Missouri in any federal program which may relate to 108
the repair, replacement or further development of the 109
infrastructure of the state and its political subdivisions; 110
(24) Set guidelines and priorities for loans, loan 111
guarantees or grants from the infrastructure development 112
fund. The board is the sole state agency authorized to set 113
such guidelines and priorities with respect to the 114
infrastructure development fund on behalf of the state or 115
any of its political subdivisions, and loans, loan 116
guarantees, or grants shall only be made upon approval of 117
the board; 118
(25) Make equity investments in or otherwise acquire 119
ownership interests in: for-profit and not-for-profit 120
federal- or state-authorized community development 121
corporations; small business investment companies, including 122
minority or specialized small business investment companies; 123
and microloan corporations and similar lending institutions, 124
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when such investments are deemed to enhance the benefit of 125
the public; 126
(26) Make investments in Missouri certified capital 127
companies, as defined [by] under this subdivision [(5) of 128
subsection 2 of section 135.500], or other investment 129
companies for investment in qualified Missouri businesses, 130
as defined [by] under this subdivision [(14) of subsection 2 131
of section 135.500]. All investments made by the board for 132
the eventual investment in qualified Missouri businesses 133
shall be matched by an equivalent investment made by the 134
certified capital company or other investment firm for 135
investment into qualified Missouri businesses. All 136
investments made into Missouri qualified businesses under 137
the provisions of this subdivision shall be in the form of 138
equity or unsecured debt financing. No investment shall be 139
made by the board under the provisions of this subdivision 140
without the approval of the director of the department of 141
economic development. For the purposes of this subdivision, 142
the following terms mean: 143
(a) "Certified capital company", any partnership, 144
corporation, trust, or limited liability company, whether 145
organized on a profit or not-for-profit basis, that is 146
located, headquartered, and registered to conduct business 147
in Missouri and has as its primary business activity the 148
investment of cash in qualified Missouri businesses; 149
(b) "Qualified Missouri business", an independently 150
owned and operated business that is headquartered and 151
located in Missouri and is in need of venture capital and 152
cannot obtain conventional financing. Such business shall 153
have no more than two hundred employees, at least eighty 154
percent of whom are employed in Missouri. Such business 155
shall be involved in commerce for the purpose of 156
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manufacturing, processing or assembling products, conducting 157
research and development, or providing services in 158
interstate commerce, but excluding retail, real estate, real 159
estate development, insurance, and professional services 160
provided by accountants, lawyers, or physicians. At the 161
time a certified capital company or qualified investing 162
entity makes an initial investment in a business, such 163
business shall be a small business concern that meets the 164
requirements of the United States Small Business 165
Administration's qualification size standards for its 166
venture capital program, as defined in Section 13 CFR 167
121.301(c) of the Small Business Investment Act of 1958, as 168
amended. Any business that is classified as a qualified 169
Missouri business at the time of the first investment in 170
such business by a Missouri certified capital company or 171
qualified investing entity shall, for a period of seven 172
years from the date of such first investment, remain 173
classified as a qualified Missouri business and may receive 174
follow-on investments from any Missouri certified capital 175
company or qualified investing entity and such follow-on 176
investments shall be qualified investments regardless of 177
whether such business meets the other qualifications of this 178
subsection at the time of such follow-on investments; and 179
(27) Make loans and grants from the jobs now fund in 180
accordance with the provisions of section 100.293. 181
100.286. 1. Within the discretion of the board, the 1
development and reserve fund, the infrastructure development 2
fund or the export finance fund may be pledged to secure the 3
payment of any bonds or notes issued by the board, or to 4
secure the payment of any loan made by the board or a 5
participating lender which loan: 6
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(1) Is requested to finance any project or export 7
trade activity; 8
(2) Is requested by a borrower who is demonstrated to 9
be financially responsible; 10
(3) Can reasonably be expected to provide a benefit to 11
the economy of this state; 12
(4) Is otherwise secured by a mortgage or deed of 13
trust on real or personal property or other security 14
satisfactory to the board; provided that loans to finance 15
export trade activities may be secured by export accounts 16
receivable or inventories of exportable goods satisfactory 17
to the board; 18
(5) Does not exceed five million dollars; 19
(6) Does not have a term longer than five years if 20
such loan is made to finance export trade activities; and 21
(7) Is, when used to finance export trade activities, 22
made to small or medium size businesses or agricultural 23
businesses, as may be defined by the board. 24
2. The board shall prescribe standards for the 25
evaluation of the financial condition, business history, and 26
qualifications of each borrower and the terms and conditions 27
of loans which may be secured, and may require each 28
application to include a financial report and evaluation by 29
an independent certified public accounting firm, in addition 30
to such examination and evaluation as may be conducted by 31
any participating lender. 32
3. Each application for a loan secured by the 33
development and reserve fund, the infrastructure development 34
fund or the export finance fund shall be reviewed in the 35
first instance by any participating lender to whom the 36
application was submitted. If satisfied that the standards 37
prescribed by the board are met and that the loan is 38
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otherwise eligible to be secured by the development and 39
reserve fund, the infrastructure development fund or the 40
export finance fund, the participating lender shall certify 41
the same and forward the application for final approval to 42
the board. 43
4. The securing of any loans by the development and 44
reserve fund, the infrastructure development fund or the 45
export finance fund shall be conditioned upon approval of 46
the application by the board, and receipt of an annual 47
reserve participation fee, as prescribed by the board, 48
submitted by or on behalf of the borrower. 49
5. The securing of any loan by the export finance fund 50
for export trade activities shall be conditioned upon the 51
board's compliance with any applicable treaties and 52
international agreements, such as the general agreement on 53
tariffs and trade and the subsidies code, to which the 54
United States is then a party. 55
6. Any taxpayer, including any charitable organization 56
that is exempt from federal income tax and whose Missouri 57
unrelated business taxable income, if any, would be subject 58
to the state income tax imposed under chapter 143, may, 59
subject to the limitations provided under subsection 8 of 60
this section, receive a tax credit against any tax otherwise 61
due under the provisions of chapter 143, excluding 62
withholding tax imposed by sections 143.191 to 143.261, 63
chapter 147, or chapter 148, in the amount of fifty percent 64
of any amount contributed in money or property by the 65
taxpayer to the development and reserve fund, the 66
infrastructure development fund or the export finance fund 67
during the taxpayer's tax year, provided, however, the total 68
tax credits awarded in any calendar year beginning after 69
January 1, 1994, shall not be the greater of ten million 70
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dollars or five percent of the average growth in general 71
revenue receipts in the preceding three fiscal years. This 72
limit may be exceeded only upon joint agreement by the 73
commissioner of administration, the director of the 74
department of economic development, and the director of the 75
department of revenue that such action is essential to 76
ensure retention or attraction of investment in Missouri. 77
If the board receives, as a contribution, real property, the 78
contributor at such contributor's own expense shall have two 79
independent appraisals conducted by appraisers certified by 80
the Master Appraisal Institute. Both appraisals shall be 81
submitted to the board, and the tax credit certified by the 82
board to the contributor shall be based upon the value of 83
the lower of the two appraisals. The board shall not 84
certify the tax credit until the property is deeded to the 85
board. Such credit shall not apply to reserve participation 86
fees paid by borrowers under sections 100.250 to 100.297. 87
The portion of earned tax credits which exceeds the 88
taxpayer's tax liability may be carried forward for up to 89
five years. 90
7. Notwithstanding any provision of law to the 91
contrary, any taxpayer may sell, assign, exchange, convey or 92
otherwise transfer tax credits allowed in subsection 6 of 93
this section under the terms and conditions prescribed in 94
subdivisions (1) and (2) of this subsection. Such taxpayer, 95
hereinafter the assignor for the purpose of this subsection, 96
may sell, assign, exchange or otherwise transfer earned tax 97
credits: 98
(1) For no less than seventy-five percent of the par 99
value of such credits; and 100
(2) In an amount not to exceed one hundred percent of 101
annual earned credits. 102
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The taxpayer acquiring earned credits, hereinafter the 103
assignee for the purpose of this subsection, may use the 104
acquired credits to offset up to one hundred percent of the 105
tax liabilities otherwise imposed by chapter 143, excluding 106
withholding tax imposed by sections 143.191 to 143.261, 107
chapter 147, or chapter 148. Unused credits in the hands of 108
the assignee may be carried forward for up to five years, 109
provided all such credits shall be claimed within ten years 110
following the tax years in which the contribution was made. 111
The assignor shall enter into a written agreement with the 112
assignee establishing the terms and conditions of the 113
agreement and shall perfect such transfer by notifying the 114
board in writing within thirty calendar days following the 115
effective day of the transfer and shall provide any 116
information as may be required by the board to administer 117
and carry out the provisions of this section. 118
Notwithstanding any other provision of law to the contrary, 119
the amount received by the assignor of such tax credit shall 120
be taxable as income of the assignor, and the excess of the 121
par value of such credit over the amount paid by the 122
assignee for such credit shall be taxable as income of the 123
assignee. 124
8. Provisions of subsections 1 to 7 of this section to 125
the contrary notwithstanding, no more than ten million 126
dollars in tax credits provided under this section, may be 127
authorized or approved annually. The limitation on tax 128
credit authorization and approval provided under this 129
subsection may be exceeded only upon mutual agreement, 130
evidenced by a signed and properly notarized letter, by the 131
commissioner of the office of administration, the director 132
of the department of economic development, and the director 133
of the department of revenue that such action is essential 134
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to ensure retention or attraction of investment in Missouri 135
provided, however, that in no case shall more than twenty- 136
five million dollars in tax credits be authorized or 137
approved during such year. Taxpayers shall file, with the 138
board, an application for tax credits authorized under this 139
section on a form provided by the board. The provisions of 140
this subsection shall not be construed to limit or in any 141
way impair the ability of the board to authorize tax credits 142
for issuance for projects authorized or approved, by a vote 143
of the board, on or before the thirtieth day following the 144
effective date of this act, or a taxpayer's ability to 145
redeem such tax credits. 146
9. Pursuant to section 23.253 of the Missouri sunset 147
act: 148
(1) The program authorized pursuant to this section 149
shall automatically sunset August 28, 2032, unless 150
reauthorized by an act of the general assembly; 151
(2) This section shall terminate on September first of 152
the calendar year immediately following the calendar year in 153
which the program authorized pursuant to this section is 154
sunset; and 155
(3) The provisions of this subsection shall not be 156
construed to impair or impede the state's fulfillment of any 157
obligations, including the authorization, issuance, or 158
redemption of tax credits, incurred pursuant to this section 159
prior to the date the program authorized pursuant to this 160
section is sunset. 161
100.293. 1. This section[,] and section 100.277[, and 1
sections 135.950 to 135.973] shall be known and may be cited 2
as the "Jobs Now Act". 3
2. There shall be created a "Jobs Now Recommendation 4
Committee", comprised of representatives of the department 5
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of economic development, the department of agriculture, the 6
department of natural resources, and the department of 7
transportation. The committee shall establish application 8
materials and procedures for development agencies to apply 9
to the board for grants or low-interest or interest-free 10
loans for the purpose of funding jobs now projects. 11
3. Applications shall be submitted simultaneously to 12
the committee and the board. The committee shall review the 13
applications and prepare and submit analyses and 14
recommendations to the board for a determination as to 15
approval or denial of grants or loans from the jobs now fund. 16
4. In reviewing applications, the board shall give 17
preference to redevelopment projects that protect natural 18
resources or rehabilitate existing dilapidated or inadequate 19
infrastructure in areas defined under section 135.530. 20
5. After reviewing applications and such other 21
information as the board may require, the board may grant 22
all or a part of a grant or loan request, provided the board 23
determines: 24
(1) The jobs now project: 25
(a) Will not happen without the grant or loan from the 26
board; or 27
(b) Will have a significant local economic impact; or 28
(c) Demonstrates high levels of job creation; 29
(2) In the case of a low-interest or interest-free 30
loan, the jobs now project will generate sufficient revenues 31
or the borrower will otherwise have sufficient revenues 32
available to enable the borrower to repay the loan to the 33
jobs now fund, along with any interest to be charged; and 34
(3) No loan or grant may exceed two million dollars. 35
100.297. 1. The board may authorize a tax credit, as 1
described in this section, to the owner of any revenue bonds 2
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or notes issued by the board pursuant to the provisions of 3
sections 100.250 to 100.297, for infrastructure facilities 4
as defined in subdivision (9) of section 100.255, if, prior 5
to the issuance of such bonds or notes, the board determines 6
that: 7
(1) The availability of such tax credit is a material 8
inducement to the undertaking of the project in the state of 9
Missouri and to the sale of the bonds or notes; 10
(2) The loan with respect to the project is adequately 11
secured by a first deed of trust or mortgage or comparable 12
lien, or other security satisfactory to the board. 13
2. Upon making the determinations specified in 14
subsection 1 of this section, the board may declare that 15
each owner of an issue of revenue bonds or notes shall be 16
entitled, in lieu of any other deduction with respect to 17
such bonds or notes, to a tax credit against any tax 18
otherwise due by such owner pursuant to the provisions of 19
chapter 143, excluding withholding tax imposed by sections 20
143.191 to 143.261, chapter 147, or chapter 148, in the 21
amount of one hundred percent of the unpaid principal of and 22
unpaid interest on such bonds or notes held by such owner in 23
the [taxable] tax year of such owner following the calendar 24
year of the default of the loan by the borrower with respect 25
to the project. The occurrence of a default shall be 26
governed by documents authorizing the issuance of the 27
bonds. The tax credit allowed pursuant to this section 28
shall be available to the original owners of the bonds or 29
notes or any subsequent owner or owners thereof. Once an 30
owner is entitled to a claim, any such tax credits shall be 31
transferable as provided in subsection 7 of section 32
100.286. Notwithstanding any provision of Missouri law to 33
the contrary, any portion of the tax credit to which any 34
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owner of a revenue bond or note is entitled pursuant to this 35
section which exceeds the total income tax liability of such 36
owner of a revenue bond or note shall be carried forward and 37
allowed as a credit against any future taxes imposed on such 38
owner within the next ten years pursuant to the provisions 39
of chapter 143, excluding withholding tax imposed by 40
sections 143.191 to 143.261, chapter 147, or chapter 148. 41
The eligibility of the owner of any revenue bond or note 42
issued pursuant to the provisions of sections 100.250 to 43
100.297 for the tax credit provided by this section shall be 44
expressly stated on the face of each such bond or note. The 45
tax credit allowed pursuant to this section shall also be 46
available to any financial institution or guarantor which 47
executes any credit facility as security for bonds issued 48
pursuant to this section to the same extent as if such 49
financial institution or guarantor was an owner of the bonds 50
or notes, provided however, in such case the tax credits 51
provided by this section shall be available immediately 52
following any default of the loan by the borrower with 53
respect to the project. In addition to reimbursing the 54
financial institution or guarantor for claims relating to 55
unpaid principal and interest, such claim may include 56
payment of any unpaid fees imposed by such financial 57
institution or guarantor for use of the credit facility. 58
3. The aggregate principal amount of revenue bonds or 59
notes outstanding at any time with respect to which the tax 60
credit provided in this section shall be available shall not 61
exceed fifty million dollars. 62
4. Pursuant to section 23.253 of the Missouri sunset 63
act: 64
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(1) The program authorized pursuant to this section 65
shall automatically sunset August 28, 2032, unless 66
reauthorized by an act of the general assembly; 67
(2) This section shall terminate on September first of 68
the calendar year immediately following the calendar year in 69
which the program authorized pursuant to this section is 70
sunset; and 71
(3) The provisions of this subsection shall not be 72
construed to impair or impede the state's fulfillment of any 73
obligations, including the authorization, issuance, or 74
redemption of tax credits, incurred pursuant to this section 75
prior to the date the program authorized pursuant to this 76
section is sunset. 77
100.850. 1. The approved company shall remit to the 1
board a job development assessment fee, not to exceed five 2
percent of the gross wages of each eligible employee whose 3
job was created as a result of the economic development 4
project, or not to exceed ten percent if the economic 5
development project is located within a distressed community 6
as defined in section 135.530, for the purpose of retiring 7
bonds which fund the economic development project. 8
2. Any approved company remitting an assessment as 9
provided in subsection 1 of this section shall make its 10
payroll books and records available to the board at such 11
reasonable times as the board shall request and shall file 12
with the board documentation respecting the assessment as 13
the board may require. 14
3. Any assessment remitted pursuant to subsection 1 of 15
this section shall cease on the date the bonds are retired. 16
4. Any approved company which has paid an assessment 17
for debt reduction shall be allowed a tax credit equal to 18
the amount of the assessment. The tax credit may be claimed 19
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against taxes otherwise imposed by chapters 143 and 148, 20
except withholding taxes imposed under the provisions of 21
sections 143.191 to 143.265, which were incurred during the 22
tax period in which the assessment was made. 23
5. In no event shall the aggregate amount of tax 24
credits authorized by subsection 4 of this section exceed 25
twenty-five million dollars annually. Of such amount, nine 26
hundred fifty thousand dollars shall be reserved for an 27
approved project for a world headquarters of a business 28
whose primary function is tax return preparation that is 29
located in any home rule city with more than four hundred 30
thousand inhabitants and located in more than one county, 31
which amount reserved shall end in the year of the final 32
maturity of the certificates issued for such approved 33
project. 34
6. The director of revenue shall issue a refund to the 35
approved company to the extent that the amount of credits 36
allowed in subsection 4 of this section exceeds the amount 37
of the approved company's income tax. 38
7. Pursuant to section 23.253 of the Missouri sunset 39
act: 40
(1) The program authorized pursuant to sections 41
100.700 to 100.850 shall automatically sunset August 28, 42
2032, unless reauthorized by an act of the general assembly; 43
(2) Sections 100.700 to 100.850 shall terminate on 44
September first of the calendar year immediately following 45
the calendar year in which the program authorized pursuant 46
to sections 100.700 to 100.850 is sunset; and 47
(3) The provisions of this subsection shall not be 48
construed to impair or impede the state's fulfillment of any 49
obligations, including the authorization, issuance, or 50
redemption of tax credits, incurred pursuant to sections 51
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100.700 to 100.850 prior to the date the program authorized 52
pursuant to this section is sunset. 53
135.090. 1. As used in this section, the following 1
terms mean: 2
(1) "Homestead", the dwelling in Missouri owned by the 3
surviving spouse and not exceeding five acres of land 4
surrounding it as is reasonably necessary for use of the 5
dwelling as a home. As used in this section, "homestead" 6
shall not include any dwelling which is occupied by more 7
than two families; 8
(2) "Public safety officer", any firefighter, police 9
officer, capitol police officer, parole officer, probation 10
officer, correctional employee, water patrol officer, park 11
ranger, conservation officer, commercial motor vehicle 12
enforcement officer, emergency medical responder, as defined 13
in section 190.100, emergency medical technician, first 14
responder, or highway patrolman employed by the state of 15
Missouri or a political subdivision thereof who is killed in 16
the line of duty, unless the death was the result of the 17
officer's own misconduct or abuse of alcohol or drugs; 18
(3) "Surviving spouse", a spouse, who has not 19
remarried, of a public safety officer. 20
2. For all tax years beginning on or after January 1, 21
2008, a surviving spouse shall be allowed a credit against 22
the tax otherwise due under chapter 143, excluding 23
withholding tax imposed by sections 143.191 to 143.265, in 24
an amount equal to the total amount of the property taxes on 25
the surviving spouse's homestead paid during the tax year 26
for which the credit is claimed. A surviving spouse may 27
claim the credit authorized under this section for each tax 28
year beginning the year of death of the public safety 29
officer spouse until the tax year in which the surviving 30
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spouse remarries. No credit shall be allowed for the tax 31
year in which the surviving spouse remarries. If the amount 32
allowable as a credit exceeds the income tax reduced by 33
other credits, then the excess shall be considered an 34
overpayment of the income tax. The department shall 35
prescribe the method for submitting applications for 36
claiming the tax credit authorized under this section. 37
After issuance of a tax credit certificate by the department 38
of public safety, such tax credit shall be redeemed by 39
filing a copy of the tax credit certificate with the 40
taxpayer's income tax return for the tax year for which such 41
credit was issued. 42
3. (1) For all fiscal years beginning on or after 43
July 1, 2027, the cumulative amount of tax credits issued 44
annually to all taxpayers by the department of public safety 45
under this section shall not exceed the total cap amount, 46
which shall be an amount equal to the highest annual amount 47
of tax credits issued in any one previous fiscal year, from 48
fiscal year 2024 to fiscal year 2026, as determined and 49
calculated by the department of revenue. 50
(2) If the amount of tax credits claimed in a fiscal 51
year under this section exceeds the total cap determined 52
under subdivision (1) of this subsection, tax credits shall 53
be allowed based on the order in which they were issued. 54
4. On and after August 28, 2026, the department of 55
public safety shall administer the tax credit provided under 56
this section. 57
5. The department of [revenue] public safety shall 58
promulgate rules to implement the provisions of this section. 59
[4.] 6. Any rule or portion of a rule, as that term is 60
defined in section 536.010, that is created under the 61
authority delegated in this section shall become effective 62
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only if it complies with and is subject to all of the 63
provisions of chapter 536 and, if applicable, section 64
536.028. This section and chapter 536 are nonseverable and 65
if any of the powers vested with the general assembly 66
pursuant to chapter 536 to review, to delay the effective 67
date, or to disapprove and annul a rule are subsequently 68
held unconstitutional, then the grant of rulemaking 69
authority and any rule proposed or adopted after August 28, 70
2007, shall be invalid and void. 71
[5.] 7. Pursuant to section 23.253 of the Missouri 72
sunset act: 73
(1) The program authorized under this section shall 74
expire on December 31, 2027, unless reauthorized by the 75
general assembly; and 76
(2) This section shall terminate on September first of 77
the calendar year immediately following the calendar year in 78
which the program authorized under this section is sunset; 79
and 80
(3) The provisions of this subsection shall not be 81
construed to limit or in any way impair the department's 82
ability to redeem tax credits authorized on or before the 83
date the program authorized under this section expires or a 84
taxpayer's ability to redeem such tax credits. 85
135.110. 1. Any taxpayer who shall establish a new 1
business facility shall be allowed a credit, each year for 2
ten years, in an amount determined pursuant to subsection 2 3
or 3 of this section, whichever is applicable, against the 4
tax imposed by chapter 143, excluding withholding tax 5
imposed by sections 143.191 to 143.265, or an insurance 6
company which shall establish a new business facility by 7
satisfying the requirements in subdivision (9) of section 8
135.100 shall be allowed a credit against the tax otherwise 9
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imposed by chapter 148, and in the case of an insurance 10
company exempt from the thirty percent employee requirement 11
of section 135.230, against any obligation imposed pursuant 12
to section 375.916, except that no taxpayer shall be 13
entitled to multiple ten-year periods for subsequent 14
expansions at the same facility, except as otherwise 15
provided in this section. For the purpose of this section, 16
the term "facility" shall mean, and be limited to, the 17
facility or facilities which are located on the same site in 18
which the new business facility is located, and in which the 19
business conducted at such facility or facilities is 20
directly related to the business conducted at the new 21
business facility. Notwithstanding the provisions of this 22
subsection, a taxpayer may be entitled to an additional ten- 23
year period, and an additional six-year period after the 24
expiration of such additional ten-year period, if a new 25
business facility is expanded in the eighth, ninth or tenth 26
year of the current ten-year period or in subsequent years 27
following the expiration of the ten-year period, if the 28
number of new business facility employees attributed to such 29
expansion is at least twenty-five and the amount of new 30
business facility investment attributed to such expansion is 31
at least one million dollars. Credits may not be carried 32
forward but shall be claimed for the [taxable] tax year 33
during which commencement of commercial operations occurs at 34
such new business facility, and for each of the nine 35
succeeding [taxable] tax years. A letter of intent, as 36
provided for in section 135.258, must be filed with the 37
department of economic development no later than fifteen 38
days prior to the commencement of commercial operations at 39
the new business facility. The initial application for 40
claiming tax credits must be made in the taxpayer's tax 41
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period immediately following the tax period in which 42
commencement of commercial operations began at the new 43
business facility. This provision shall have effect on all 44
initial applications filed on or after August 28, 1992. No 45
credit shall be allowed pursuant to this section unless the 46
number of new business facility employees engaged or 47
maintained in employment at the new business facility for 48
the [taxable] tax year for which the credit is claimed 49
equals or exceeds two; except that the number of new 50
business facility employees engaged or maintained in 51
employment by a revenue-producing enterprise other than a 52
revenue-producing enterprise defined in paragraphs (a) to 53
(g) and (i) to (l) of subdivision (12) of section 135.100 54
which establishes an office as defined in subdivision (9) of 55
section 135.100 shall equal or exceed twenty-five. 56
2. For tax periods beginning after August 28, 1991, in 57
the case of a taxpayer operating an existing business 58
facility, the credit allowed by subsection 1 of this section 59
shall offset the greater of: 60
(1) Some portion of the income tax otherwise imposed 61
by chapter 143, excluding withholding tax imposed by 62
sections 143.191 to 143.265, or in the case of an insurance 63
company, the tax on the direct premiums, as defined in 64
chapter 148, and in the case of an insurance company exempt 65
from the thirty percent employee requirement of section 66
135.230, against any obligation imposed pursuant to section 67
375.916 with respect to such taxpayer's new business 68
facility income for the [taxable] tax year for which such 69
credit is allowed; or 70
(2) Up to fifty percent or, in the case of an economic 71
development project located within a distressed community as 72
defined in section 135.530, seventy-five percent of the 73
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business income tax otherwise imposed by chapter 143, 74
excluding withholding tax imposed by sections 143.191 to 75
143.265, or in the case of an insurance company, the tax on 76
the direct premiums, as defined in chapter 148, and in the 77
case of an insurance company exempt from the thirty percent 78
employee requirement of section 135.230, against any 79
obligation imposed pursuant to section 375.916 if the 80
business operates no other facilities in Missouri. In the 81
case of an existing business facility operating more than 82
one facility in Missouri, the credit allowed in subsection 1 83
of this section shall offset up to the greater of the 84
portion prescribed in subdivision (1) of this subsection or 85
twenty-five percent or, in the case of an economic 86
development project located within a distressed community as 87
defined in section 135.530, thirty-five percent of the 88
business' tax, except that no taxpayer operating more than 89
one facility in Missouri shall be allowed to offset more 90
than twenty-five percent or, in the case of an economic 91
development project located within a distressed community as 92
defined in section 135.530, thirty-five percent of the 93
taxpayer's business income tax in any tax period under the 94
method prescribed in this subdivision. Such credit shall be 95
an amount equal to the sum of one hundred dollars or, in the 96
case of an economic development project located within a 97
distressed community as defined in section 135.530, one 98
hundred fifty dollars for each new business facility 99
employee plus one hundred dollars or, in the case of an 100
economic development project located within a distressed 101
community as defined in section 135.530, one hundred fifty 102
dollars for each one hundred thousand dollars, or major 103
fraction thereof (which shall be deemed to be fifty-one 104
percent or more) in new business facility investment. For 105
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the purpose of this section, tax credits earned by a 106
taxpayer, who establishes a new business facility because it 107
satisfies the requirements of paragraph (c) of subdivision 108
(5) of section 135.100, shall offset the greater of the 109
portion prescribed in subdivision (1) of this subsection or 110
up to fifty percent or, in the case of an economic 111
development project located within a distressed community as 112
defined in section 135.530, seventy-five percent of the 113
business' tax provided the business operates no other 114
facilities in Missouri. In the case of a business operating 115
more than one facility in Missouri, the credit allowed in 116
subsection 1 of this section shall offset up to the greater 117
of the portion prescribed in subdivision (1) of this 118
subsection or twenty-five percent or, in the case of an 119
economic development project located within a distressed 120
community as defined in section 135.530, thirty-five percent 121
of the business' tax, except that no taxpayer operating more 122
than one facility in Missouri shall be allowed to offset 123
more than twenty-five percent or, in the case of an economic 124
development project located within a distressed community as 125
defined in section 135.530, thirty-five percent of the 126
taxpayer's business income tax in any tax period under the 127
method prescribed in this subdivision. 128
3. For tax periods beginning after August 28, 1991, in 129
the case of a taxpayer not operating an existing business 130
facility, the credit allowed by subsection 1 of this section 131
shall offset the greater of: 132
(1) Some portion of the income tax otherwise imposed 133
by chapter 143, excluding withholding tax imposed by 134
sections 143.191 to 143.265, or in the case of an insurance 135
company, the tax on the direct premiums, as defined in 136
chapter 148, and in the case of an insurance company exempt 137
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from the thirty percent employee requirement of section 138
135.230, against any obligation imposed pursuant to section 139
375.916 with respect to such taxpayer's new business 140
facility income for the [taxable] tax year for which such 141
credit is allowed; or 142
(2) Up to one hundred percent of the business income 143
tax otherwise imposed by chapter 143, excluding withholding 144
tax imposed by sections 143.191 to 143.265, or in the case 145
of an insurance company, the tax on the direct premiums, as 146
defined in chapter 148, and in the case of an insurance 147
company exempt from the thirty percent employee requirement 148
of section 135.230, against any obligation imposed pursuant 149
to section 375.916 if the business has no other facilities 150
operating in Missouri. In the case of a taxpayer not 151
operating an existing business and operating more than one 152
facility in Missouri, the credit allowed by subsection 1 of 153
this section shall offset up to the greater of the portion 154
prescribed in subdivision (1) of this subsection or twenty- 155
five percent or, in the case of an economic development 156
project located within a distressed community as defined in 157
section 135.530, thirty-five percent of the business' tax, 158
except that no taxpayer operating more than one facility in 159
Missouri shall be allowed to offset more than twenty-five 160
percent or, in the case of an economic development project 161
located within a distressed community as defined in section 162
135.530, thirty-five percent of the taxpayer's business 163
income tax in any tax period under the method prescribed in 164
this subdivision. Such credit shall be an amount equal to 165
the sum of seventy-five dollars or, in the case of an 166
economic development project located within a distressed 167
community as defined in section 135.530, one hundred twenty- 168
five dollars for each new business facility employee plus 169
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seventy-five dollars or, in the case of an economic 170
development project located within a distressed community as 171
defined in section 135.530, one hundred twenty-five dollars 172
for each one hundred thousand dollars, or major fraction 173
thereof (which shall be deemed to be fifty-one percent or 174
more) in new business facility investment. 175
4. The number of new business facility employees 176
during any [taxable] tax year shall be determined by 177
dividing by twelve the sum of the number of individuals 178
employed on the last business day of each month of such 179
[taxable] tax year. If the new business facility is in 180
operation for less than the entire [taxable] tax year, the 181
number of new business facility employees shall be 182
determined by dividing the sum of the number of individuals 183
employed on the last business day of each full calendar 184
month during the portion of such [taxable] tax year during 185
which the new business facility was in operation by the 186
number of full calendar months during such period. For the 187
purpose of computing the credit allowed by this section in 188
the case of a facility which qualifies as a new business 189
facility because it qualifies as a separate facility 190
pursuant to subsection 6 of this section, and, in the case 191
of a new business facility which satisfies the requirements 192
of paragraph (c) of subdivision (5) of section 135.100, or 193
subdivision (11) of section 135.100, the number of new 194
business facility employees at such facility shall be 195
reduced by the average number of individuals employed, 196
computed as provided in this subsection, at the facility 197
during the [taxable] tax year immediately preceding the 198
[taxable] tax year in which such expansion, acquisition, or 199
replacement occurred and shall further be reduced by the 200
number of individuals employed by the taxpayer or related 201
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taxpayer that was subsequently transferred to the new 202
business facility from another Missouri facility and for 203
which credits authorized in this section are not being 204
earned, whether such credits are earned because of an 205
expansion, acquisition, relocation or the establishment of a 206
new facility. 207
5. For the purpose of computing the credit allowed by 208
this section in the case of a facility which qualifies as a 209
new business facility because it qualifies as a separate 210
facility pursuant to subsection 6 of this section, and, in 211
the case of a new business facility which satisfies the 212
requirements of paragraph (c) of subdivision (5) of section 213
135.100 or subdivision (11) of section 135.100, the amount 214
of the taxpayer's new business facility investment in such 215
facility shall be reduced by the average amount, computed as 216
provided in subdivision (8) of section 135.100 for new 217
business facility investment, of the investment of the 218
taxpayer, or related taxpayer immediately preceding such 219
expansion or replacement or at the time of acquisition. 220
Furthermore, the amount of the taxpayer's new business 221
facility investment shall also be reduced by the amount of 222
investment employed by the taxpayer or related taxpayer 223
which was subsequently transferred to the new business 224
facility from another Missouri facility and for which 225
credits authorized in this section are not being earned, 226
whether such credits are earned because of an expansion, 227
acquisition, relocation or the establishment of a new 228
facility. 229
6. If a facility, which does not constitute a new 230
business facility, is expanded by the taxpayer, the 231
expansion shall be considered a separate facility eligible 232
for the credit allowed by this section if: 233
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(1) The taxpayer's new business facility investment in 234
the expansion during the tax period in which the credits 235
allowed in this section are claimed exceeds one hundred 236
thousand dollars, or, if less, one hundred percent of the 237
investment in the original facility prior to expansion and 238
if the number of new business facility employees engaged or 239
maintained in employment at the expansion facility for the 240
[taxable] tax year for which credit is claimed equals or 241
exceeds two, except that the number of new business facility 242
employees engaged or maintained in employment at the 243
expansion facility for the [taxable] tax year for which the 244
credit is claimed equals or exceeds twenty-five if an office 245
as defined in subdivision (9) of section 135.100 is 246
established by a revenue-producing enterprise other than a 247
revenue-producing enterprise defined in paragraphs (a) to 248
(g) and (i) to (l) of subdivision (12) of section 135.100 249
and the total number of employees at the facility after the 250
expansion is at least two greater than the total number of 251
employees before the expansion, except that the total number 252
of employees at the facility after the expansion is at least 253
greater than the number of employees before the expansion by 254
twenty-five, if an office as defined in subdivision (9) of 255
section 135.100 is established by a revenue-producing 256
enterprise other than a revenue-producing enterprise defined 257
in paragraphs (a) to (g) and (i) to (l) of subdivision (12) 258
of section 135.100; and 259
(2) The expansion otherwise constitutes a new business 260
facility. The taxpayer's investment in the expansion and in 261
the original facility prior to expansion shall be determined 262
in the manner provided in subdivision (8) of section 135.100. 263
7. No credit shall be allowed pursuant to this section 264
to a public utility, as such term is defined in section 265
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386.020. Notwithstanding any provision of this subsection 266
to the contrary, motor carriers, barge lines or railroads 267
engaged in transporting property for hire, or any 268
interexchange telecommunications company or local exchange 269
telecommunications company that establishes a new business 270
facility shall be eligible to qualify for credits allowed in 271
this section. 272
8. For the purposes of the credit described in this 273
section, in the case of a corporation described in section 274
143.471 or partnership, in computing Missouri's tax 275
liability, this credit shall be allowed to the following: 276
(1) The shareholders of the corporation described in 277
section 143.471; 278
(2) The partners of the partnership. 279
This credit shall be apportioned to the entities described 280
in subdivisions (1) and (2) of this subsection in proportion 281
to their share of ownership on the last day of the 282
taxpayer's tax period. 283
9. Notwithstanding any provision of law to the 284
contrary, any employee-owned engineering firm classified as 285
SIC 8711, architectural firm as classified SIC 8712, or 286
accounting firm classified SIC 8721 establishing a new 287
business facility because it qualifies as a headquarters as 288
defined in subsection 10 of this section, shall be allowed 289
the credits described in subsection 11 of this section under 290
the same terms and conditions prescribed in sections 135.100 291
to 135.150; provided: 292
(1) Such facility maintains an average of at least 293
five hundred new business facility employees as defined in 294
subdivision (6) of section 135.100 during the taxpayer's tax 295
period in which such credits are being claimed; and 296
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(2) Such facility maintains an average of at least 297
twenty million dollars in new business facility investment 298
as defined in subdivision (8) of section 135.100 during the 299
taxpayer's tax period in which such credits are being 300
claimed. 301
10. For the purpose of the credits allowed in 302
subsection 9 of this section: 303
(1) "Employee-owned" means the business employees own 304
directly or indirectly, including through an employee stock 305
ownership plan or trust at least: 306
(a) Seventy-five percent of the total business stock, 307
if the taxpayer is a corporation described in section 308
143.441; or 309
(b) One hundred percent of the interest in the 310
business if the taxpayer is a corporation described in 311
section 143.471, a partnership, or a limited liability 312
company; and 313
(2) "Headquarters" means: 314
(a) The administrative management of at least three 315
integrated facilities operated by the taxpayer or related 316
taxpayer; and 317
(b) The taxpayer's business has been headquartered in 318
this state for more than fifty years. 319
11. The tax credits allowed in subsection 9 of this 320
section shall be the greater of: 321
(1) Four hundred dollars for each new business 322
facility employee as computed in subsection 4 of this 323
section and four percent of new business facility investment 324
as computed in subsection 5 of this section; or 325
(2) Five hundred dollars for each new business 326
facility employee as computed in subsection 4 of this 327
section, and five hundred dollars of each one hundred 328
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thousand dollars of new business facility investment as 329
computed in subsection 5 of this section. 330
12. For the purpose of the credit described in 331
subsection 9 of this section, in the case of a small 332
corporation described in section 143.471, or a partnership, 333
or a limited liability company, the credits allowed in 334
subsection 9 of this section shall be apportioned in 335
proportion to the share of ownership of each shareholder, 336
partner or stockholder on the last day of the taxpayer's tax 337
period for which such credits are being claimed. 338
13. For the purpose of the credit described in 339
subsection 9 of this section, tax credits earned, to the 340
extent such credits exceed the taxpayer's Missouri tax on 341
taxable business income, shall constitute an overpayment of 342
taxes and in such case, be refunded to the taxpayer provided 343
such refunds are used by the taxpayer to purchase specified 344
facility items. For the purpose of the refund as authorized 345
in this subsection, "specified facility items" means 346
equipment, computers, computer software, copiers, tenant 347
finishing, furniture and fixtures installed and in use at 348
the new business facility during the taxpayer's [taxable] 349
tax year. The taxpayer shall perfect such refund by 350
attesting in writing to the director, subject to the 351
penalties of perjury, the requirements prescribed in this 352
subsection have been met and submitting any other 353
information the director may require. 354
14. Notwithstanding any provision of law to the 355
contrary, any taxpayer may sell, assign, exchange, convey or 356
otherwise transfer tax credits allowed in subsection 9 of 357
this section under the terms and conditions prescribed in 358
subdivisions (1) and (2) of this subsection. Such taxpayer, 359
referred to as the assignor for the purpose of this 360
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subsection, may sell, assign, exchange or otherwise transfer 361
earned tax credits: 362
(1) For no less than seventy-five percent of the par 363
value of such credits; and 364
(2) In an amount not to exceed one hundred percent of 365
such earned credits. 366
The taxpayer acquiring the earned credits referred to as the 367
assignee for the purpose of this subsection may use the 368
acquired credits to offset up to one hundred percent of the 369
tax liabilities otherwise imposed by chapter 143, excluding 370
withholding tax imposed by sections 143.191 to 143.261, or 371
chapter 148, or in the case of an insurance company exempt 372
from the thirty percent employee requirement of section 373
135.230, against any obligation imposed pursuant to section 374
375.916. Unused credits in the hands of the assignee may be 375
carried forward for up to five tax periods, provided all 376
such credits shall be claimed within ten tax periods 377
following the tax period in which commencement of commercial 378
operations occurred at the new business facility. The 379
assignor shall enter into a written agreement with the 380
assignee establishing the terms and conditions of the 381
agreement and shall perfect such transfer by notifying the 382
director in writing within thirty calendar days following 383
the effective date of the transfer and shall provide any 384
information as may be required by the director to administer 385
and carry out the provisions of this subsection. 386
Notwithstanding any other provision of law to the contrary, 387
the amount received by the assignor of such tax credit shall 388
be taxable as income of the assignor, and the difference 389
between the amount paid by the assignee and the par value of 390
the credits shall be taxable as income of the assignee. 391
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15. (1) For all fiscal years beginning on or after 392
July 1, 2027, the cumulative amount of tax credits issued 393
annually to all taxpayers under this section shall not 394
exceed the total cap amount, which shall be an amount equal 395
to the highest annual amount of tax credits issued in any 396
one previous fiscal year, from fiscal year 2024 to fiscal 397
year 2026, as determined and calculated by the department. 398
(2) If the amount of tax credits claimed in a fiscal 399
year under this section exceeds the total cap determined 400
under subdivision (1) of this subsection, tax credits shall 401
be allowed based on the order in which they were issued. 402
135.326. As used in sections 135.325 to 135.339, the 1
following terms shall mean: 2
(1) "Business entity", person, firm, a partner in a 3
firm, corporation or a shareholder in an S corporation doing 4
business in the state of Missouri and subject to the state 5
income tax imposed by the provisions of chapter 143, or a 6
corporation subject to the annual corporation franchise tax 7
imposed by the provisions of chapter 147, or an insurance 8
company paying an annual tax on its gross premium receipts 9
in this state, or other financial institution paying taxes 10
to the state of Missouri or any political subdivision of 11
this state under the provisions of chapter 148, or an 12
express company which pays an annual tax on its gross 13
receipts in this state pursuant to chapter 153; 14
(2) "Child", any individual who: 15
(a) Has not attained an age of at least eighteen 16
years; or 17
(b) Is eighteen years of age or older but is 18
physically or mentally incapable of caring for himself or 19
herself; 20
(3) "Department", the department of social services; 21
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(4) "Disability", a mental, physical, or emotional 22
impairment that substantially limits one or more major life 23
activities, whether the impairment is congenital or acquired 24
by accident, injury or disease, and where the impairment is 25
verified by medical findings; 26
[(4)] (5) "Nonrecurring adoption expenses", reasonable 27
and necessary adoption fees, court costs, [attorney] 28
attorney's fees, and other expenses which are directly 29
related to the legal adoption of a child and which are not 30
incurred in violation of federal, state, or local law; 31
[(5)] (6) "Special needs child", a child for whom it 32
has been determined by the children's division, or by a 33
child-placing agency licensed by the state, or by a court of 34
competent jurisdiction to be a child: 35
(a) That cannot or should not be returned to the home 36
of his or her parents; and 37
(b) Who has a specific factor or condition such as 38
age, membership in a sibling group, medical condition or 39
diagnosis, or disability because of which it is reasonable 40
to conclude that such child cannot be easily placed with 41
adoptive parents; 42
[(6)] (7) "State tax liability", any liability 43
incurred by a taxpayer under the provisions of chapter 143, 44
chapter 147, chapter 148, and chapter 153, exclusive of the 45
provisions relating to the withholding of tax as provided 46
for in sections 143.191 to 143.265 and related provisions. 47
135.339. 1. On and after August 28, 2026, the 1
department of social services shall administer the tax 2
credit provided under sections 135.325 to 135.339. The 3
department shall prescribe the method for submitting 4
applications for claiming the tax credit authorized under 5
sections 135.325 to 135.339. After issuance of a tax credit 6
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certificate by the department of social services, such tax 7
credit shall be redeemed by filing a copy of the tax credit 8
certificate with the taxpayer's income tax return for the 9
tax year for which such credit was issued. 10
2. The director of revenue[, in consultation with the 11
children's division,] and the director of the department of 12
social services shall prescribe such rules and regulations 13
necessary to carry out the provisions of sections 135.325 to 14
135.339. No rule or portion of a rule promulgated under the 15
authority of sections 135.325 to 135.339 shall become 16
effective unless it has been promulgated pursuant to the 17
provisions of section 536.024. 18
135.341. 1. As used in this section, the following 1
terms shall mean: 2
(1) "CASA", an entity which receives funding from the 3
court-appointed special advocate fund established under 4
section 476.777, including an association based in this 5
state, affiliated with a national association, organized to 6
provide support to entities receiving funding from the court- 7
appointed special advocate fund; 8
(2) "Child advocacy centers", the regional child 9
assessment centers listed in subsection 2 of section 10
210.001, including an association based in this state, 11
affiliated with a national association, and organized to 12
provide support to entities listed in subsection 2 of 13
section 210.001; 14
(3) "Contribution", the amount of donation to a 15
qualified agency; 16
(4) "Crisis care center", entities contracted with 17
this state which provide temporary care for children whose 18
age ranges from birth through seventeen years of age whose 19
parents or guardian are experiencing an unexpected and 20
SB 1188 39
unstable or serious condition that requires immediate action 21
resulting in short-term care, usually three to five 22
continuous, uninterrupted days, for children who may be at 23
risk for child abuse, neglect, or in an emergency situation; 24
(5) "Department", the department of [revenue] social 25
services; 26
(6) "Director", the director of the department of 27
[revenue] social services; 28
(7) "Qualified agency", CASA, child advocacy centers, 29
or a crisis care center; 30
(8) "Tax liability", the tax due under chapter 143 31
other than taxes withheld under sections 143.191 to 143.265. 32
2. For all tax years beginning on or after January 1, 33
2013, and ending on or before December 31, 2024, a tax 34
credit may be claimed in an amount equal to up to fifty 35
percent of a verified contribution to a qualified agency and 36
shall be named the champion for children tax credit. For 37
all tax years beginning on or after January 1, 2025, a tax 38
credit may be claimed in an amount not to exceed seventy 39
percent of a verified contribution to a qualified agency. 40
The minimum amount of any tax credit issued shall not be 41
less than fifty dollars and shall be applied to taxes due 42
under chapter 143, excluding sections 143.191 to 143.265. 43
For all tax years beginning on or after January 1, 2025, a 44
taxpayer shall not be allowed to claim a tax credit under 45
this section in excess of fifty thousand dollars in any tax 46
year. A contribution verification shall be issued to the 47
taxpayer by the agency receiving the contribution. Such 48
contribution verification shall include the taxpayer's name, 49
Social Security number, amount of tax credit, amount of 50
contribution, the name and address of the agency receiving 51
the credit, and the date the contribution was made. The tax 52
SB 1188 40
credit provided under this subsection shall be initially 53
filed for the year in which the verified contribution is 54
made. 55
3. The cumulative amount of the tax credits [redeemed] 56
issued shall not exceed one million dollars for all fiscal 57
years ending on or before June 30, 2019; one million five 58
hundred thousand dollars for all fiscal years beginning on 59
or after July 1, 2019, and ending on or before June 30, 60
2025; and two million five hundred thousand dollars for all 61
fiscal years beginning on or after July 1, 2025. The amount 62
available shall be equally divided among the three qualified 63
agencies: CASA, child advocacy centers, or crisis care 64
centers, to be used towards tax credits issued. In the 65
event tax credits claimed under one agency do not total the 66
allocated amount for that agency, the unused portion for 67
that agency will be made available to the remaining agencies 68
equally. In the event the total amount of tax credits 69
claimed for any one agency exceeds the amount available for 70
that agency, the amount [redeemed] issued shall and will be 71
apportioned equally to all eligible taxpayers claiming the 72
credit under that agency. 73
4. Prior to December thirty-first of each year, each 74
qualified agency shall apply to the department of social 75
services in order to verify their qualified agency status 76
and apply for the champion for children tax credit. Upon a 77
determination that the agency is eligible to be a qualified 78
agency, the department of social services shall provide a 79
letter of eligibility and the tax credit certificate to such 80
agency. No later than February first of each year, the 81
department of social services shall provide a list of 82
qualified agencies to the department of revenue. All tax 83
credit applications to claim the champion for children tax 84
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credit shall be filed between July first and April fifteenth 85
of each fiscal year. A taxpayer shall [apply for] redeem 86
the champion for children tax credit by attaching a copy of 87
the contribution verification provided by a qualified agency 88
and the tax credit certificate to such taxpayer's income tax 89
return. 90
5. Any amount of tax credit which exceeds the tax due 91
or which is applied for and otherwise eligible for issuance 92
but not issued shall not be refunded but may be carried over 93
to any subsequent tax year, not to exceed a total of five 94
years. 95
6. Tax credits may not be assigned, transferred or 96
sold. 97
7. In the event a full or partial credit denial, due 98
to the cumulative maximum amount of credits being redeemed 99
for the fiscal year, causes an income tax balance due to be 100
owed to the state by the taxpayer, the taxpayer shall not be 101
held liable for any addition to tax, penalty, or interest on 102
that income tax balance due, provided the balance is paid, 103
or approved payment arrangements have been made, within 104
sixty days from the issuance of the notice of credit denial. 105
8. The department of social services may promulgate 106
such rules or regulations as are necessary to administer the 107
provisions of this section. Any rule or portion of a rule, 108
as that term is defined in section 536.010, that is created 109
under the authority delegated in this section shall become 110
effective only if it complies with and is subject to all of 111
the provisions of chapter 536 and, if applicable, section 112
536.028. This section and chapter 536 are nonseverable and 113
if any of the powers vested with the general assembly 114
pursuant to chapter 536 to review, to delay the effective 115
date, or to disapprove and annul a rule are subsequently 116
SB 1188 42
held unconstitutional, then the grant of rulemaking 117
authority and any rule proposed or adopted after August 28, 118
2013, shall be invalid and void. 119
9. Pursuant to section 23.253, of the Missouri sunset 120
act: 121
(1) The program authorized under this section shall be 122
reauthorized as of August 28, 2025, and shall expire on 123
December 31, 2031, unless reauthorized by the general 124
assembly; and 125
(2) This section shall terminate on September first of 126
the calendar year immediately following the calendar year in 127
which the program authorized under this section is sunset; 128
and 129
(3) The provisions of this subsection shall not be 130
construed to limit or in any way impair the department's 131
ability to redeem tax credits authorized on or before the 132
date the program authorized under this section expires or a 133
taxpayer's ability to redeem such credits. 134
10. Beginning on March 29, 2013, any verified 135
contribution to a qualified agency made on or after January 136
1, 2013, shall be eligible for tax credits as provided by 137
this section. 138
11. On and after August 28, 2026, the department of 139
social services shall administer the tax credit provided 140
under this section. 141
135.352. 1. A taxpayer owning an interest in a 1
qualified Missouri project shall, subject to the limitations 2
provided under the provisions of subsection 3 of this 3
section, be allowed a state tax credit, whether or not 4
allowed a federal tax credit, to be termed the Missouri low- 5
income housing tax credit, if the commission issues an 6
eligibility statement for that project. 7
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2. For qualified Missouri projects placed in service 8
after January 1, 1997, the Missouri low-income housing tax 9
credit available to a project shall be such amount as the 10
commission shall determine is necessary to ensure the 11
feasibility of the project, up to an amount equal to the 12
federal low-income housing tax credit for a qualified 13
Missouri project, for a federal tax period, and such amount 14
shall be subtracted from the amount of state tax otherwise 15
due for the same tax period. 16
3. No more than six million dollars in tax credits 17
shall be authorized each fiscal year for projects financed 18
through tax-exempt bond issuance. 19
4. The Missouri low-income housing tax credit shall be 20
taken against the taxes and in the order specified pursuant 21
to section 32.115. The credit authorized by this section 22
shall not be refundable. Any amount of credit that exceeds 23
the tax due for a taxpayer's taxable year may be carried 24
back to any of the taxpayer's three prior taxable years or 25
carried forward to any of the taxpayer's five subsequent 26
taxable years. 27
5. All or any portion of Missouri tax credits issued 28
in accordance with the provisions of sections 135.350 to 29
135.362 may be allocated to parties who are eligible 30
pursuant to the provisions of subsection 1 of this section. 31
Beginning January 1, 1995, for qualified projects which 32
began on or after January 1, 1994, an owner of a qualified 33
Missouri project shall certify to the director the amount of 34
credit allocated to each taxpayer. The owner of the project 35
shall provide to the director appropriate information so 36
that the low-income housing tax credit can be properly 37
allocated. 38
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6. In the event that recapture of Missouri low-income 39
housing tax credits is required pursuant to subsection 2 of 40
section 135.355, any statement submitted to the director as 41
provided in this section shall include the proportion of the 42
state credit required to be recaptured, the identity of each 43
taxpayer subject to the recapture and the amount of credit 44
previously allocated to such taxpayer. 45
7. The director of the department may promulgate rules 46
and regulations necessary to administer the provisions of 47
this section. No rule or portion of a rule promulgated 48
pursuant to the authority of this section shall become 49
effective unless it has been promulgated pursuant to the 50
provisions of section 536.024. 51
8. The tax credits authorized under the provisions of 52
sections 135.350 to 135.362 shall not be subject to 53
appropriations, as provided under subsection 4 of section 54
135.835. 55
135.432. 1. The department of economic development 1
shall promulgate such rules and regulations as are necessary 2
to implement the provisions of sections 135.400 to 135.430. 3
2. No rule or portion of a rule promulgated under the 4
authority of this chapter shall become effective until it 5
has been approved by the joint committee on administrative 6
rules in accordance with the procedures provided in this 7
section, and the delegation of the legislative authority to 8
enact law by the adoption of such rules is dependent upon 9
the power of the joint committee on administrative rules to 10
review and suspend rules pending ratification by the senate 11
and the house of representatives as provided in this section. 12
3. Upon filing any proposed rule with the secretary of 13
state, the department shall concurrently submit such 14
SB 1188 45
proposed rule to the committee, which may hold hearings upon 15
any proposed rule or portion thereof at any time. 16
4. A final order of rulemaking shall not be filed with 17
the secretary of state until thirty days after such final 18
order of rulemaking has been received by the committee. The 19
committee may hold one or more hearings upon such final 20
order of rulemaking during the thirty-day period. If the 21
committee does not disapprove such order of rulemaking 22
within the thirty-day period, the department may file such 23
order of rulemaking with the secretary of state and the 24
order of rulemaking shall be deemed approved. 25
5. The committee may, by majority vote of the members, 26
suspend the order of rulemaking or portion thereof by action 27
taken prior to the filing of the final order of rulemaking 28
only for one or more of the following grounds: 29
(1) An absence of statutory authority for the proposed 30
rule; 31
(2) An emergency relating to public health, safety or 32
welfare; 33
(3) The proposed rule is in conflict with state law; 34
(4) A substantial change in circumstance since 35
enactment of the law upon which the proposed rule is based. 36
6. If the committee disapproves any rule or portion 37
thereof, the department shall not file such disapproved 38
portion of any rule with the secretary of state and the 39
secretary of state shall not publish in the Missouri 40
Register any final order of rulemaking containing the 41
disapproved portion. 42
7. If the committee disapproves any rule or portion 43
thereof, the committee shall report its findings to the 44
senate and the house of representatives. No rule or portion 45
thereof disapproved by the committee shall take effect so 46
SB 1188 46
long as the senate and the house of representatives ratify 47
the act of the joint committee by resolution adopted in each 48
house within thirty legislative days after such rule or 49
portion thereof has been disapproved by the joint committee. 50
8. Upon adoption of a rule as provided in this 51
section, any such rule or portion thereof may be suspended 52
or revoked by the general assembly either by bill or, 53
pursuant to Section 8, Article IV of the Constitution of 54
Missouri, by concurrent resolution upon recommendation of 55
the joint committee on administrative rules. The committee 56
shall be authorized to hold hearings and make 57
recommendations pursuant to the provisions of section 58
536.037. The secretary of state shall publish in the 59
Missouri Register, as soon as practicable, notice of the 60
suspension or revocation. 61
9. Pursuant to section 23.253 of the Missouri sunset 62
act: 63
(1) The program authorized pursuant to sections 64
135.400 to 135.432 shall automatically sunset August 28, 65
2032, unless reauthorized by an act of the general assembly; 66
(2) Sections 135.400 to 135.432 shall terminate on 67
September first of the calendar year immediately following 68
the calendar year in which the program authorized pursuant 69
to sections 135.400 to 135.432 is sunset; and 70
(3) The provisions of this subsection shall not be 71
construed to impair or impede the state's fulfillment of any 72
obligations, including the authorization, issuance, or 73
redemption of tax credits, incurred pursuant to sections 74
135.400 to 135.432 prior to the date the program authorized 75
pursuant to this section is sunset. 76
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135.460. 1. This section and sections 620.1100 and 1
620.1103 shall be known and may be cited as the "Youth 2
Opportunities and Violence Prevention Act". 3
2. As used in this section, the term "taxpayer" shall 4
include corporations as defined in section 143.441 or 5
143.471, any charitable organization which is exempt from 6
federal income tax and whose Missouri unrelated business 7
taxable income, if any, would be subject to the state income 8
tax imposed under chapter 143, and individuals, individual 9
proprietorships and partnerships. 10
3. A taxpayer shall be allowed a tax credit against 11
the tax otherwise due pursuant to chapter 143, excluding 12
withholding tax imposed by sections 143.191 to 143.265, 13
chapter 147, chapter 148, or chapter 153 in an amount equal 14
to thirty percent for property contributions and seventy 15
percent for monetary contributions of the amount such 16
taxpayer contributed to the programs described in subsection 17
5 of this section, not to exceed two hundred thousand 18
dollars per [taxable] tax year, per taxpayer; except as 19
otherwise provided in subdivision (5) of subsection 5 of 20
this section. The department of economic development shall 21
prescribe the method for claiming the tax credits allowed in 22
this section. No rule or portion of a rule promulgated 23
under the authority of this section shall become effective 24
unless it has been promulgated pursuant to the provisions of 25
chapter 536. All rulemaking authority delegated prior to 26
June 27, 1997, is of no force and effect and repealed; 27
however, nothing in this section shall be interpreted to 28
repeal or affect the validity of any rule filed or adopted 29
prior to June 27, 1997, if such rule complied with the 30
provisions of chapter 536. The provisions of this section 31
and chapter 536 are nonseverable and if any of the powers 32
SB 1188 48
vested with the general assembly pursuant to chapter 536, 33
including the ability to review, to delay the effective 34
date, or to disapprove and annul a rule or portion of a 35
rule, are subsequently held unconstitutional, then the 36
purported grant of rulemaking authority and any rule so 37
proposed and contained in the order of rulemaking shall be 38
invalid and void. 39
4. The tax credits allowed by this section shall be 40
claimed by the taxpayer to offset the taxes that become due 41
in the taxpayer's tax period in which the contribution was 42
made. Any tax credit not used in such tax period may be 43
carried over the next five succeeding tax periods. 44
5. The tax credit allowed by this section may only be 45
claimed for monetary or property contributions to public or 46
private programs authorized to participate pursuant to this 47
section by the department of economic development and may be 48
claimed for the development, establishment, implementation, 49
operation, and expansion of the following activities and 50
programs: 51
(1) An adopt-a-school program. Components of the 52
adopt-a-school program shall include donations for school 53
activities, seminars, and functions; school-business 54
employment programs; and the donation of property and 55
equipment of the corporation to the school; 56
(2) Expansion of programs to encourage school dropouts 57
to reenter and complete high school or to complete a 58
graduate equivalency degree program; 59
(3) Employment programs. Such programs shall 60
initially, but not exclusively, target unemployed youth 61
living in poverty and youth living in areas with a high 62
incidence of crime; 63
(4) New or existing youth clubs or associations; 64
SB 1188 49
(5) Employment/internship/apprenticeship programs in 65
business or trades for persons less than twenty years of 66
age, in which case the tax credit claimed pursuant to this 67
section shall be equal to one-half of the amount paid to the 68
intern or apprentice in that tax year, except that such 69
credit shall not exceed ten thousand dollars per person; 70
(6) Mentor and role model programs; 71
(7) Drug and alcohol abuse prevention training 72
programs for youth; 73
(8) Donation of property or equipment of the taxpayer 74
to schools, including schools which primarily educate 75
children who have been expelled from other schools, or 76
donation of the same to municipalities, or not-for-profit 77
corporations or other not-for-profit organizations which 78
offer programs dedicated to youth violence prevention as 79
authorized by the department; 80
(9) Not-for-profit, private or public youth activity 81
centers; 82
(10) Nonviolent conflict resolution and mediation 83
programs; 84
(11) Youth outreach and counseling programs. 85
6. Any program authorized in subsection 5 of this 86
section shall, at least annually, submit a report to the 87
department of economic development outlining the purpose and 88
objectives of such program, the number of youth served, the 89
specific activities provided pursuant to such program, the 90
duration of such program and recorded youth attendance where 91
applicable. 92
7. The department of economic development shall, at 93
least annually submit a report to the Missouri general 94
assembly listing the organizations participating, services 95
SB 1188 50
offered and the number of youth served as the result of the 96
implementation of this section. 97
8. The tax credit allowed by this section shall apply 98
to all [taxable] tax years beginning after December 31, 1995. 99
9. For the purposes of the credits described in this 100
section, in the case of a corporation described in section 101
143.471, partnership, limited liability company described in 102
section 347.015, cooperative, marketing enterprise, or 103
partnership, in computing Missouri's tax liability, such 104
credits shall be allowed to the following: 105
(1) The shareholders of the corporation described in 106
section 143.471; 107
(2) The partners of the partnership; 108
(3) The members of the limited liability company; and 109
(4) Individual members of the cooperative or marketing 110
enterprise. 111
Such credits shall be apportioned to the entities described 112
in subdivisions (1) and (2) of this subsection in proportion 113
to their share of ownership on the last day of the 114
taxpayer's tax period. 115
10. Pursuant to section 23.253 of the Missouri sunset 116
act: 117
(1) The program authorized pursuant to this section 118
shall automatically sunset August 28, 2032, unless 119
reauthorized by an act of the general assembly; 120
(2) This section shall terminate on September first of 121
the calendar year immediately following the calendar year in 122
which the program authorized pursuant to this section is 123
sunset; and 124
(3) The provisions of this subsection shall not be 125
construed to impair or impede the state's fulfillment of any 126
SB 1188 51
obligations, including the authorization, issuance, or 127
redemption of tax credits, incurred pursuant to this section 128
prior to the date the program authorized pursuant to this 129
section is sunset. 130
135.487. 1. To obtain any credit allowed pursuant to 1
sections 135.475 to 135.487, a taxpayer shall submit to the 2
department, for preliminary approval, an application for tax 3
credit. The director shall, upon final approval of an 4
application and presentation of acceptable proof of 5
substantial completion of construction, issue the taxpayer a 6
certificate of tax credit. The director shall issue all 7
credits allowed pursuant to sections 135.475 to 135.487 in 8
the order the applications are received. In the case of a 9
taxpayer other than an owner-occupant, the director shall 10
not delay the issuance of a tax credit pursuant to sections 11
135.475 to 135.487 until the sale of a residence at market 12
rate for owner-occupancy. A taxpayer, [taxpayer] other than 13
an owner-occupant who receives a certificate of tax credit 14
pursuant to sections 135.475 to 135.487, shall, within 15
thirty days of the date of the sale of a residence, furnish 16
to the director satisfactory proof that such residence was 17
sold at market rate for owner-occupancy. If the director 18
reasonably determines that a residence was not in good faith 19
intended for long-term owner occupancy, the director make 20
revoke any tax credits issued and seek recovery of any tax 21
credits issued pursuant to section 620.017. 22
2. The department may cooperate with a municipality or 23
a county in which a project is located to help identify the 24
location of the project, the type and eligibility of the 25
project, the estimated cost of the project and the 26
completion date of the project. 27
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3. The department may promulgate such rules or 28
regulations or issue administrative guidelines as are 29
necessary to administer the provisions of sections 135.475 30
to 135.487. No rule or portion of a rule promulgated 31
pursuant to the authority of this section shall become 32
effective unless it has been promulgated pursuant to the 33
provisions of chapter 536. 34
4. The department shall conduct annually a 35
comprehensive program evaluation illustrating where the tax 36
credits allowed pursuant to sections 135.475 to 135.487 are 37
being utilized, explaining the economic impact of such 38
program and making recommendations on appropriate program 39
modifications to ensure the program's success. 40
5. Pursuant to section 23.253 of the Missouri sunset 41
act: 42
(1) The program authorized pursuant to sections 43
135.475 to 135.487 shall automatically sunset August 28, 44
2032, unless reauthorized by an act of the general assembly; 45
(2) Sections 135.475 to 135.487 shall terminate on 46
September first of the calendar year immediately following 47
the calendar year in which the program authorized pursuant 48
to sections 135.475 to 135.487 is sunset; and 49
(3) The provisions of this subsection shall not be 50
construed to impair or impede the state's fulfillment of any 51
obligations, including the authorization, issuance, or 52
redemption of tax credits, incurred pursuant to sections 53
135.475 to 135.487 prior to the date the program authorized 54
pursuant to this section is sunset. 55
135.490. 1. In order to encourage and foster 1
community improvement, an eligible small business, as 2
defined in Section 44 of the Internal Revenue Code, shall be 3
allowed a credit not to exceed five thousand dollars against 4
SB 1188 53
the tax otherwise due pursuant to chapter 143, not including 5
sections 143.191 to 143.265, in an amount equal to fifty 6
percent of all eligible access expenditures exceeding the 7
monetary cap provided by Section 44 of the Internal Revenue 8
Code. For purposes of this section, "eligible access 9
expenditures" means amounts paid or incurred by the taxpayer 10
in order to comply with applicable access requirements 11
provided by the Americans With Disabilities Act of 1990, as 12
further defined in Section 44 of the Internal Revenue Code 13
and federal rulings interpreting Section 44 of the Internal 14
Revenue Code. 15
2. The department of economic development shall 16
prescribe the method for submitting applications for 17
claiming the tax credit allowed by this section. After 18
issuance of a tax credit certificate by the department of 19
economic development, such tax credit shall be [claimed] 20
redeemed by [the taxpayer at the time such taxpayer files a] 21
filing a copy of the tax credit certificate with the 22
taxpayer's income tax return for the tax year for which such 23
credit was issued. Any amount of tax credit which exceeds 24
the tax due shall be carried over to any subsequent 25
[taxable] tax year, but shall not be refunded and shall not 26
be transferable. 27
3. On and after August 28, 2026, the director of the 28
department of economic development [and the director of the 29
department of revenue] shall [jointly] administer the tax 30
credit authorized by this section. [Both] The director of 31
the department of economic development [and the director of 32
the department of revenue are] is authorized to promulgate 33
rules and regulations necessary to administer the provisions 34
of this section. No rule or portion of a rule promulgated 35
pursuant to the authority of this section shall become 36
SB 1188 54
effective unless it has been promulgated pursuant to the 37
provisions of chapter 536. 38
4. The provisions of this section shall become 39
effective on January 1, 2000, and shall apply to all 40
[taxable] tax years beginning after December 31, 1999. 41
5. (1) For all fiscal years beginning on or after 42
July 1, 2027, the cumulative amount of tax credits issued 43
annually to all taxpayers by the department of economic 44
development under this section shall not exceed the total 45
cap amount, which shall be an amount equal to the highest 46
annual amount of tax credits issued in any one previous 47
fiscal year, from fiscal year 2024 to fiscal year 2026, as 48
determined and calculated by the department. 49
(2) If the amount of tax credits claimed in a fiscal 50
year under this section exceeds the total cap determined 51
under subdivision (1) of this subsection, tax credits shall 52
be allowed based on the order in which they were issued. 53
6. Pursuant to section 23.253 of the Missouri sunset 54
act: 55
(1) The program authorized pursuant to this section 56
shall automatically sunset August 28, 2032, unless 57
reauthorized by an act of the general assembly; 58
(2) This section shall terminate on September first of 59
the calendar year immediately following the calendar year in 60
which the program authorized pursuant to this section is 61
sunset; and 62
(3) The provisions of this subsection shall not be 63
construed to impair or impede the state's fulfillment of any 64
obligations, including the authorization, issuance, or 65
redemption of tax credits, incurred pursuant to this section 66
prior to the date the program authorized pursuant to this 67
section is sunset. 68
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135.530. For the purposes of sections [100.010,] 1
100.710, 100.850, 135.110, [135.200, 135.258, 135.313,] 2
135.403, 135.405, [135.503,] 135.530, [135.545,] and 3
215.030, [348.300, 348.302, and 620.1400 to 620.1460,] 4
"distressed community" means either a Missouri municipality 5
within a metropolitan statistical area which has a median 6
household income of under seventy percent of the median 7
household income for the metropolitan statistical area, 8
according to the United States Census Bureau's American 9
Community Survey, based on the most recent of five-year 10
period estimate data in which the final year of the estimate 11
ends in either zero or five, or a United States census block 12
group or contiguous group of block groups within a 13
metropolitan statistical area which has a population of at 14
least two thousand five hundred, and each block group having 15
a median household income of under seventy percent of the 16
median household income for the metropolitan area in 17
Missouri, according to the United States Census Bureau's 18
American Community Survey, based on the most recent of five- 19
year period estimate data in which the final year of the 20
estimate ends in either zero or five. In addition the 21
definition shall include municipalities not in a 22
metropolitan statistical area, with a median household 23
income of under seventy percent of the median household 24
income for the nonmetropolitan areas in Missouri according 25
to the United States Census Bureau's American Community 26
Survey, based on the most recent of five-year period 27
estimate data in which the final year of the estimate ends 28
in either zero or five or a census block group or contiguous 29
group of block groups which has a population of at least two 30
thousand five hundred with each block group having a median 31
household income of under seventy percent of the median 32
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household income for the nonmetropolitan areas of Missouri, 33
according to the United States Census Bureau's American 34
Community Survey, based on the most recent of five-year 35
period estimate data in which the final year of the estimate 36
ends in either zero or five. In metropolitan statistical 37
areas, the definition shall include areas that were 38
designated as either a federal empowerment zone; or a 39
federal enhanced enterprise community; or a state enterprise 40
zone that was originally designated before January 1, 1986, 41
but shall not include expansions of such state enterprise 42
zones done after March 16, 1988. 43
135.562. 1. If any taxpayer with a federal adjusted 1
gross income of thirty thousand dollars or less incurs costs 2
for the purpose of making all or any portion of such 3
taxpayer's principal dwelling accessible to an individual 4
with a disability who permanently resides with the taxpayer, 5
such taxpayer shall receive a tax credit against such 6
taxpayer's Missouri income tax liability in an amount equal 7
to the lesser of one hundred percent of such costs or two 8
thousand five hundred dollars per taxpayer, per tax year. 9
2. Any taxpayer with a federal adjusted gross income 10
greater than thirty thousand dollars but less than sixty 11
thousand dollars who incurs costs for the purpose of making 12
all or any portion of such taxpayer's principal dwelling 13
accessible to an individual with a disability who 14
permanently resides with the taxpayer shall receive a tax 15
credit against such taxpayer's Missouri income tax liability 16
in an amount equal to the lesser of fifty percent of such 17
costs or two thousand five hundred dollars per taxpayer per 18
tax year. No taxpayer shall be eligible to receive tax 19
credits under this section in any tax year immediately 20
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following a tax year in which such taxpayer received tax 21
credits under the provisions of this section. 22
3. Tax credits issued under this section may be 23
refundable in an amount not to exceed two thousand five 24
hundred dollars per tax year. 25
4. Eligible costs for which the credit may be claimed 26
include: 27
(1) Constructing entrance or exit ramps; 28
(2) Widening exterior or interior doorways; 29
(3) Widening hallways; 30
(4) Installing handrails or grab bars; 31
(5) Moving electrical outlets and switches; 32
(6) Installing stairway lifts; 33
(7) Installing or modifying fire alarms, smoke 34
detectors, and other alerting systems; 35
(8) Modifying hardware of doors; or 36
(9) Modifying bathrooms. 37
5. The tax credits allowed, including the maximum 38
amount that may be claimed, under this section shall be 39
reduced by an amount sufficient to offset any amount of such 40
costs a taxpayer has already deducted from such taxpayer's 41
federal adjusted gross income or to the extent such taxpayer 42
has applied any other state or federal income tax credit to 43
such costs. 44
6. [A taxpayer shall claim a] The tax credit allowed 45
by this section [in the same tax year as the credit is 46
issued, and at the time such], after issuance of a tax 47
credit certificate by the department of economic 48
development, shall be redeemed by filing a copy of the tax 49
credit certificate when the taxpayer files his or her 50
Missouri income tax return[;] for the tax year for which 51
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such credit was issued, provided that such return is timely 52
filed. 53
7. The department of economic development may, in 54
consultation with the department of social services, 55
promulgate such rules or regulations as are necessary to 56
administer the provisions of this section. Any rule or 57
portion of a rule, as that term is defined in section 58
536.010, that is created under the authority delegated in 59
this section shall become effective only if it complies with 60
and is subject to all of the provisions of chapter 536 and, 61
if applicable, section 536.028. This section and chapter 62
536 are nonseverable and if any of the powers vested with 63
the general assembly pursuant to chapter 536 to review, to 64
delay the effective date or to disapprove and annul a rule 65
are subsequently held unconstitutional, then the grant of 66
rulemaking authority and any rule proposed or adopted after 67
August 28, 2007, shall be invalid and void. 68
8. The provisions of this section shall apply to all 69
tax years beginning on or after January 1, 2008. 70
9. The provisions of this section shall expire 71
December 31, 2025, unless reauthorized by the general 72
assembly. This section shall terminate on September first 73
of the calendar year immediately following the calendar year 74
in which the program authorized under this section is 75
sunset. The provisions of this subsection shall not be 76
construed to limit or in any way impair the [department's] 77
department of revenue's ability to redeem tax credits 78
authorized on or before the date the program authorized 79
under this section expires or a taxpayer's ability to redeem 80
such tax credits. 81
10. In no event shall the aggregate amount of all tax 82
credits allowed under this section exceed one hundred 83
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thousand dollars in any given fiscal year. The tax credits 84
issued pursuant to this section shall be on a first-come, 85
first-served filing basis. 86
11. On and after August 28, 2026, the department of 87
economic development shall administer the tax credit 88
provided under this section. 89
135.647. 1. As used in this section, the following 1
terms shall mean: 2
(1) "Department", the department of social services; 3
(2) "Local food pantry", any food pantry that is: 4
(a) Exempt from taxation under section 501(c)(3) of 5
the Internal Revenue Code of 1986, as amended; and 6
(b) Distributing emergency food supplies to Missouri 7
low-income people who would otherwise not have access to 8
food supplies in the area in which the taxpayer claiming the 9
tax credit under this section resides; 10
[(2)] (3) "Local homeless shelter", any homeless 11
shelter that is: 12
(a) Exempt from taxation under Section 501(c)(3) of 13
the Internal Revenue Code of 1986, as amended; and 14
(b) Providing temporary living arrangements, in the 15
area in which the taxpayer claiming the tax credit under 16
this section resides, for individuals and families who 17
otherwise lack a fixed, regular, and adequate nighttime 18
residence and lack the resources or support networks to 19
obtain other permanent housing; 20
[(3)] (4) "Local soup kitchen", any soup kitchen that 21
is: 22
(a) Exempt from taxation under section 501(c)(3) of 23
the Internal Revenue Code of 1986, as amended; and 24
(b) Providing prepared meals through an established 25
congregate feeding operation to needy, low-income persons 26
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including, but not limited to, homeless persons in the area 27
in which the taxpayer claiming the tax credit under this 28
section resides; 29
[(4)] (5) "Taxpayer", an individual, a firm, a partner 30
in a firm, corporation, or a shareholder in an S corporation 31
doing business in this state and subject to the state income 32
tax imposed by chapter 143, excluding withholding tax 33
imposed by sections 143.191 to 143.265. 34
2. (1) Beginning on March 29, 2013, any donation of 35
cash or food made to a local food pantry on or after January 36
1, 2013, unless such food is donated after the food's 37
expiration date, shall be eligible for tax credits as 38
provided by this section. 39
(2) Beginning on August 28, 2018, any donation of cash 40
or food made to a local soup kitchen or local homeless 41
shelter on or after January 1, 2018, unless such food is 42
donated after the food's expiration date, shall be eligible 43
for a tax credit as provided under this section. 44
(3) Any taxpayer who makes a donation that is eligible 45
for a tax credit under this section shall be allowed a 46
credit against the tax otherwise due under chapter 143, 47
excluding withholding tax imposed by sections 143.191 to 48
143.265, in an amount equal to fifty percent of the value of 49
the donations made to the extent such amounts that have been 50
subtracted from federal adjusted gross income or federal 51
taxable income are added back in the determination of 52
Missouri adjusted gross income or Missouri taxable income 53
before the credit can be [claimed] redeemed. Each taxpayer 54
claiming a tax credit under this section shall file an 55
affidavit with the [income tax return] application to the 56
department of social services verifying the amount of their 57
contributions. The department shall prescribe the method 58
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for submitting applications for claiming the tax credit 59
allowed by this section. After issuance of a tax credit 60
certificate by the department, such tax credit shall be 61
redeemed by filing a copy of the tax credit certificate with 62
the taxpayer's income tax return for the tax year for which 63
such credit was issued. The amount of the tax credit 64
claimed shall not exceed the amount of the taxpayer's state 65
tax liability for the tax year that the credit is claimed 66
and shall not exceed two thousand five hundred dollars per 67
taxpayer claiming the credit. Any amount of credit that the 68
taxpayer is prohibited by this section from claiming in a 69
tax year shall not be refundable, but may be carried forward 70
to any of the taxpayer's three subsequent tax years. No tax 71
credit granted under this section shall be transferred, 72
sold, or assigned. No taxpayer shall be eligible to receive 73
a credit pursuant to this section if such taxpayer employs 74
persons who are not authorized to work in the United States 75
under federal law. No taxpayer shall be able to claim more 76
than one credit under this section for a single donation. 77
3. The cumulative amount of tax credits under this 78
section which may be allocated to all taxpayers contributing 79
to a local food pantry, local soup kitchen, or local 80
homeless shelter in any one fiscal year shall not exceed one 81
million seven hundred fifty thousand dollars. The [director 82
of revenue] department shall establish a procedure by which 83
the cumulative amount of tax credits issued is apportioned 84
among all taxpayers [claiming] filing an application for the 85
credit [by April fifteenth of the] in that fiscal year [in 86
which the tax credit is claimed]. To the maximum extent 87
possible, the [director of revenue] department shall 88
establish the procedure described in this subsection in such 89
a manner as to ensure that taxpayers can claim all the tax 90
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credits possible up to the cumulative amount of tax credits 91
available for the fiscal year. 92
4. Any local food pantry, local soup kitchen, or local 93
homeless shelter may accept or reject any donation of food 94
made under this section for any reason. For purposes of 95
this section, any donations of food accepted by a local food 96
pantry, local soup kitchen, or local homeless shelter shall 97
be valued at fair market value, or at wholesale value if the 98
taxpayer making the donation of food is a retail grocery 99
store, food broker, wholesaler, or restaurant. 100
5. The department of [revenue] social services shall 101
promulgate rules to implement the provisions of this 102
section. Any rule or portion of a rule, as that term is 103
defined in section 536.010, that is created under the 104
authority delegated in this section shall become effective 105
only if it complies with and is subject to all of the 106
provisions of chapter 536 and, if applicable, section 107
536.028. This section and chapter 536 are nonseverable and 108
if any of the powers vested with the general assembly 109
pursuant to chapter 536 to review, to delay the effective 110
date, or to disapprove and annul a rule are subsequently 111
held unconstitutional, then the grant of rulemaking 112
authority and any rule proposed or adopted after August 28, 113
2007, shall be invalid and void. 114
6. Under section 23.253 of the Missouri sunset act: 115
(1) The program authorized under this section shall be 116
reauthorized as of August 28, 2018, and shall expire on 117
December 31, 2026, unless reauthorized by the general 118
assembly; and 119
(2) This section shall terminate on September first of 120
the calendar year immediately following the calendar year in 121
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which the program authorized under this section is sunset; 122
and 123
(3) The provisions of this subsection shall not be 124
construed to limit or in any way impair a taxpayer's ability 125
to redeem tax credits authorized on or before the date the 126
program authorized under this section expires. 127
7. On and after August 28, 2026, the department of 128
social services shall administer the tax credit provided 129
under this section. 130
135.690. 1. As used in this section, the following 1
terms mean: 2
(1) "Community-based faculty preceptor", a physician 3
or physician assistant who is licensed in Missouri and 4
provides preceptorships to Missouri medical students or 5
physician assistant students without direct compensation for 6
the work of precepting; 7
(2) "Department", the Missouri department of health 8
and senior services; 9
(3) "Division", the division of professional 10
registration of the department of commerce and insurance; 11
(4) "Federally Qualified Health Center (FQHC)", a 12
reimbursement designation from the Bureau of Primary Health 13
Care and the Centers for Medicare and Medicaid Services of 14
the United States Department of Health and Human Services; 15
(5) "Medical student", an individual enrolled in a 16
Missouri medical college approved and accredited as 17
reputable by the American Medical Association or the Liaison 18
Committee on Medical Education or enrolled in a Missouri 19
osteopathic college approved and accredited as reputable by 20
the Commission on Osteopathic College Accreditation; 21
(6) "Medical student core preceptorship" or "physician 22
assistant student core preceptorship", a preceptorship for a 23
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medical student or physician assistant student that provides 24
a minimum of one hundred twenty hours of community-based 25
instruction in family medicine, internal medicine, 26
pediatrics, psychiatry, or obstetrics and gynecology under 27
the guidance of a community-based faculty preceptor. A 28
community-based faculty preceptor may add together the 29
amounts of preceptorship instruction time separately 30
provided to multiple students in determining whether he or 31
she has reached the minimum hours required under this 32
subdivision, but the total preceptorship instruction time 33
provided shall equal at least one hundred twenty hours in 34
order for such preceptor to be eligible for the tax credit 35
authorized under this section; 36
(7) "Physician assistant student", an individual 37
participating in a Missouri physician assistant program 38
accredited by the Accreditation Review Commission on 39
Education for the Physician Assistant or its successor 40
organization; 41
(8) "Taxpayer", any individual, firm, partner in a 42
firm, corporation, or shareholder in an S corporation doing 43
business in this state and subject to the state income tax 44
imposed under chapter 143, excluding withholding tax imposed 45
under sections 143.191 to 143.265. 46
2. (1) Beginning January 1, 2023, any community-based 47
faculty preceptor who serves as the community-based faculty 48
preceptor for a medical student core preceptorship or a 49
physician assistant student core preceptorship shall be 50
allowed a credit against the tax otherwise due under chapter 51
143, excluding withholding tax imposed under sections 52
143.191 to 143.265, in an amount equal to one thousand 53
dollars for each preceptorship, up to a maximum of three 54
thousand dollars per tax year, if he or she completes up to 55
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three preceptorship rotations during the tax year and did 56
not receive any direct compensation for the preceptorships. 57
(2) To receive the credit allowed by this section, a 58
community-based faculty preceptor shall claim such credit on 59
his or her return for the tax year in which he or she 60
completes the preceptorship rotations and shall submit 61
supporting documentation as prescribed by the division and 62
the department. 63
(3) In no event shall the total amount of a tax credit 64
authorized under this section exceed a taxpayer's income tax 65
liability for the tax year for which such credit is 66
claimed. No tax credit authorized under this section shall 67
be allowed a taxpayer against his or her tax liability for 68
any prior or succeeding tax year. 69
(4) No more than two hundred preceptorship tax credits 70
shall be authorized under this section for any one calendar 71
year. The tax credits shall be awarded on a first-come, 72
first-served basis. The division and the department shall 73
jointly promulgate rules for determining the manner in which 74
taxpayers who have obtained certification under this section 75
are able to claim the tax credit. The cumulative amount of 76
tax credits awarded under this section shall not exceed two 77
hundred thousand dollars per year. 78
(5) Notwithstanding the provisions of subdivision (4) 79
of this subsection, the department is authorized to exceed 80
the two hundred thousand dollars per year tax credit program 81
cap in any amount not to exceed the amount of funds 82
remaining in the medical preceptor fund, as established 83
under subsection 3 of this section, as of the end of the 84
most recent tax year, after any required transfers to the 85
general revenue fund have taken place in accordance with the 86
provisions of subsection 3 of this section. 87
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3. (1) Funding for the tax credit program authorized 88
under this section shall be generated by the division from a 89
license fee increase of seven dollars per license for 90
physicians and surgeons and from a license fee increase of 91
three dollars per license for physician assistants. The 92
license fee increases shall take effect beginning January 1, 93
2023, based on the underlying license fee rates prevailing 94
on that date. The underlying license fee rates shall be 95
determined under section 334.090 and all other applicable 96
provisions of chapter 334. 97
(2) (a) There is hereby created in the state treasury 98
the "Medical Preceptor Fund", which shall consist of moneys 99
collected under this subsection. The state treasurer shall 100
be custodian of the fund. In accordance with sections 101
30.170 and 30.180, the state treasurer may approve 102
disbursements. The fund shall be a dedicated fund and, upon 103
appropriation, moneys in the fund shall be used solely by 104
the department and the division for the administration of 105
the tax credit program authorized under this section. 106
Notwithstanding the provisions of section 33.080 to the 107
contrary, any moneys remaining in the fund at the end of the 108
biennium shall not revert to the credit of the general 109
revenue fund. The state treasurer shall invest moneys in 110
the medical preceptor fund in the same manner as other funds 111
are invested. Any interest and moneys earned on such 112
investments shall be credited to the fund. 113
(b) Notwithstanding any provision of this chapter or 114
any other provision of law to the contrary, all revenue from 115
the license fee increases described under subdivision (1) of 116
this subsection shall be deposited in the medical preceptor 117
fund. After the end of every tax year, an amount equal to 118
the total dollar amount of all tax credits claimed under 119
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this section shall be transferred from the medical preceptor 120
fund to the state's general revenue fund established under 121
section 33.543. Any excess moneys in the medical preceptor 122
fund shall remain in the fund and shall not be transferred 123
to the general revenue fund. 124
4. (1) The department shall administer the tax credit 125
program authorized under this section. Each taxpayer 126
claiming a tax credit under this section shall file an 127
application with the department verifying the number of 128
hours of instruction and the amount of the tax credit 129
claimed. The hours claimed on the application shall be 130
verified by the college or university department head or the 131
program director on the application. The certification by 132
the department affirming the taxpayer's eligibility for the 133
tax credit provided to the taxpayer shall be filed with the 134
taxpayer's income tax return. 135
(2) No amount of any tax credit allowed under this 136
section shall be refundable. No tax credit allowed under 137
this section shall be transferred, sold, or assigned. No 138
taxpayer shall be eligible to receive the tax credit 139
authorized under this section if such taxpayer employs 140
persons who are not authorized to work in the United States 141
under federal law. 142
5. The department of commerce and insurance and the 143
department of health and senior services shall jointly 144
promulgate rules to implement the provisions of this 145
section. Any rule or portion of a rule, as that term is 146
defined in section 536.010, that is created under the 147
authority delegated in this section shall become effective 148
only if it complies with and is subject to all of the 149
provisions of chapter 536 and, if applicable, section 150
536.028. This section and chapter 536 are nonseverable and 151
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if any of the powers vested with the general assembly 152
pursuant to chapter 536 to review, to delay the effective 153
date, or to disapprove and annul a rule are subsequently 154
held unconstitutional, then the grant of rulemaking 155
authority and any rule proposed or adopted after August 28, 156
2022, shall be invalid and void. 157
6. Pursuant to section 23.253 of the Missouri sunset 158
act: 159
(1) The program authorized pursuant to this section 160
shall automatically sunset August 28, 2032, unless 161
reauthorized by an act of the general assembly; 162
(2) This section shall terminate on September first of 163
the calendar year immediately following the calendar year in 164
which the program authorized pursuant to this section is 165
sunset; and 166
(3) The provisions of this subsection shall not be 167
construed to impair or impede the state's fulfillment of any 168
obligations, including the authorization, issuance, or 169
redemption of tax credits, incurred pursuant to this section 170
prior to the date the program authorized pursuant to this 171
section is sunset. 172
135.750. 1. This section shall be known and may be 1
referred to as the "Show MO Act". 2
2. As used in this section, the following terms mean: 3
(1) "Above-the-line individual", any individual hired 4
or credited on screen for a qualified motion media 5
production project as any type of producer, principal cast 6
that is at a Screen Actors Guild Schedule F and above 7
payment rate, screenwriter, and the director; 8
(2) "Qualified motion media production project", any 9
film or series production, including videos, commercials, 10
video games, webisodes, music videos, content-based mobile 11
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applications, virtual reality, augmented reality, multi- 12
media, and new media, as well as standalone visual effects 13
and postproduction for such motion media production project, 14
as approved by the department of economic development and 15
the office of the Missouri film commission, that features a 16
statement and logo designated by the department of economic 17
development in the credits of the completed production 18
indicating that the project was filmed in Missouri and that 19
is under thirty minutes in length with expected qualifying 20
expenses in excess of fifty thousand dollars or is over 21
thirty minutes in length with expected qualifying expenses 22
in excess of one hundred thousand dollars. Regardless of 23
the production costs, qualified motion media project shall 24
not include any: 25
(a) News or current events programming; 26
(b) Talk show; 27
(c) Production produced primarily for industrial, 28
corporate, or institutional purposes, and for internal use; 29
(d) Sports event or sports program; 30
(e) Gala presentation or awards show; 31
(f) Infomercial or any production that directly 32
solicits funds; 33
(g) Political ad; 34
(h) Production that is considered obscene, as defined 35
in section 573.010; 36
(3) "Qualifying expenses", the sum of the total amount 37
spent in this state for the following by a production 38
company in connection with a qualified motion media 39
production project: 40
(a) Goods and services leased or purchased by the 41
production company. For goods with a purchase price of 42
twenty-five thousand dollars or more, the amount included in 43
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qualifying expenses shall be the purchase price less the 44
fair market value of the goods at the time the production is 45
completed; 46
(b) Compensation and wages paid by the production 47
company on which the production company remitted withholding 48
payments to the department of revenue under chapter 143. 49
For purposes of this section, compensation and wages paid to 50
all above-the-line individuals shall be limited to twenty- 51
five percent of the overall qualifying expenses; 52
(4) "Tax credit", a credit against the tax otherwise 53
due under chapter 143, excluding withholding tax imposed by 54
sections 143.191 to 143.265, or otherwise due under chapter 55
148; 56
(5) "Taxpayer", any individual, partnership, or 57
corporation as described in section 143.441, 143.471, or 58
section 148.370 that is subject to the tax imposed in 59
chapter 143, excluding withholding tax imposed by sections 60
143.191 to 143.265, or the tax imposed in chapter 148 or any 61
charitable organization which is exempt from federal income 62
tax and whose Missouri unrelated business taxable income, if 63
any, would be subject to the state income tax imposed under 64
chapter 143. 65
3. (1) For all tax years beginning on or after 66
January 1, 2023, a taxpayer shall be allowed a tax credit 67
equal to twenty percent of qualifying expenses. 68
(2) An additional five percent may be earned for 69
qualifying expenses if at least fifty percent of the 70
qualified motion media production project is filmed in 71
Missouri. 72
(3) An additional five percent may be earned for 73
qualifying expenses if at least fifteen percent of the 74
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qualified motion media production project that is filmed in 75
Missouri takes place in a rural or blighted area in Missouri. 76
(4) An additional five percent may be earned for 77
qualifying expenses if at least three departments of the 78
qualified motion media production hire a Missouri resident 79
ready to advance to the next level in a specialized craft 80
position or learn a new skillset. 81
(5) An additional five percent may be earned for 82
qualifying expenses if the department of economic 83
development determines that the script of the qualified 84
motion media production project positively markets a city or 85
region of the state, the entire state, or a tourist 86
attraction located in the state, and the qualified motion 87
media production provides no less than five high resolution 88
photographs containing cast with the rights cleared for 89
promotional use by the Missouri film commission, accompanied 90
by a list with the title of production, location, names, and 91
titles of the individuals shown in the photography and 92
photographer credit. 93
(6) The total dollar amount of tax credits authorized 94
pursuant to subdivision (1) of this subsection shall be 95
increased by ten percent for qualified film production 96
projects located in a county of the second, third, or fourth 97
class. 98
(7) Activities qualifying a taxpayer for the tax 99
credit pursuant to this subsection shall be approved by the 100
office of the Missouri film commission and the department of 101
economic development. 102
4. A qualified motion media production project shall 103
not be eligible for tax credits pursuant to this section 104
unless such project employs at least the following number of 105
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Missouri registered apprentices or veterans residing in 106
Missouri with transferable skills: 107
(1) If the qualifying expenses are less than five 108
million dollars, two; 109
(2) If the qualifying expenses are at least five 110
million dollars but less than ten million dollars, three; 111
(3) If the qualifying expenses are at least ten 112
million dollars but less than fifteen million dollars, six; 113
or 114
(4) If the qualifying expenses are at least fifteen 115
million dollars, eight. 116
5. Taxpayers shall apply for the motion media 117
production tax credit by submitting an application to the 118
department of economic development, on a form provided by 119
the department. As part of the application, the expected 120
qualifying expenses of the qualified motion media production 121
project shall be documented. In addition, the application 122
shall include an economic impact statement, showing the 123
economic impact from the activities of the qualified motion 124
media production project. Such economic impact statement 125
shall indicate the impact on the region of the state in 126
which the qualified motion media production or production- 127
related activities are located and on the state as a whole. 128
Final applications shall be accompanied by a report by a 129
certified public accountant licensed by the state of 130
Missouri, prepared at the expense of the applicant, 131
attesting that the amounts in the final application are 132
qualifying expenses. 133
6. For all tax years beginning on or after January 1, 134
2023, the total amount of tax credits authorized by this 135
section for film production shall not exceed a total of 136
eight million dollars per year, and the total amount of all 137
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tax credits authorized by this section for series production 138
shall not exceed a total of eight million dollars per year. 139
Taxpayers may carry forward unused credits for up to five 140
tax periods, provided all such credits shall be claimed 141
within ten tax periods following the tax period in which the 142
qualified motion media production or production-related 143
activities for which the credits are certified by the 144
department occurred. 145
7. Notwithstanding any provision of law to the 146
contrary, any taxpayer may sell, assign, exchange, convey or 147
otherwise transfer tax credits allowed in subsection 3 of 148
this section. The taxpayer acquiring the tax credits may 149
use the acquired credits to offset the tax liabilities 150
otherwise imposed by chapter 143, excluding withholding tax 151
imposed by sections 143.191 to 143.265, or chapter 148. 152
Unused acquired credits may be carried forward for up to 153
five tax periods, provided all such credits shall be claimed 154
within ten tax periods following the tax period in which the 155
qualified motion media production or production-related 156
activities for which the credits are certified by the 157
department occurred. 158
8. The tax credit authorized by this section shall be 159
considered a business recruitment tax credit, as defined in 160
section 135.800, and shall be subject to the provisions of 161
sections 135.800 to 135.830. 162
9. The department of economic development may adopt 163
such rules, statements of policy, procedures, forms, and 164
guidelines as may be necessary to implement the provisions 165
of this section. Any rule or portion of a rule, as that 166
term is defined in section 536.010, that is created under 167
the authority delegated in this section shall become 168
effective only if it complies with and is subject to all of 169
SB 1188 74
the provisions of chapter 536 and, if applicable, section 170
536.028. This section and chapter 536 are nonseverable and 171
if any of the powers vested with the general assembly 172
pursuant to chapter 536 to review, to delay the effective 173
date, or to disapprove and annul a rule are subsequently 174
held unconstitutional, then the grant of rulemaking 175
authority and any rule proposed or adopted after August 28, 176
2023, shall be invalid and void. 177
10. Under section 23.253 of the Missouri sunset act: 178
(1) The provisions of the program authorized under 179
this section shall automatically sunset on December 31, 180
2029, unless reauthorized by an act of the general assembly; 181
and 182
(2) If such program is reauthorized, the program 183
authorized under this section shall automatically sunset on 184
December thirty-first, twelve years after the effective date 185
of the reauthorization of this section; and 186
(3) This section shall terminate on September first of 187
the calendar year immediately following the calendar year in 188
which the program authorized under this section is sunset; 189
and 190
(4) The provisions of this subsection shall not be 191
construed to limit or in any way impair the department's 192
ability to redeem tax credits authorized on or before the 193
date the program authorized pursuant to this section 194
expires, or a taxpayer's ability to redeem such tax credits. 195
11. (1) Notwithstanding the provisions of subsection 196
10 of this section to the contrary, the provisions of this 197
section shall automatically terminate and expire one year 198
after the department of economic development determines that 199
all other state and local governments in the United States 200
of America have terminated or let lapse their tax credit or 201
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other governmental incentive program for the film production 202
industry, regardless of whether such credits or programs are 203
now in effect or first commence after August 28, 2023. The 204
department of economic development shall notify the revisor 205
of statutes upon the department's determination that the tax 206
credit authorized by this section shall terminate pursuant 207
to this subsection. 208
(2) The provisions of this subsection shall not be 209
construed to limit or in any way impair the ability of any 210
taxpayer that has met the requirements in this section prior 211
to the termination of this section to participate in the 212
program authorized under this section. The provisions of 213
this section shall not be construed to limit or in any way 214
impair the department of revenue's ability to redeem tax 215
credits qualified for on or before the date the program 216
authorized pursuant to this section expires. 217
12. The tax credits authorized under this section 218
shall not be subject to appropriations, as provided under 219
subsection 4 of section 135.835. 220
135.772. 1. For the purposes of this section, the 1
following terms shall mean: 2
(1) "Department", the Missouri department of [revenue] 3
agriculture; 4
(2) "Distributor", a person, firm, or corporation 5
doing business in this state that: 6
(a) Produces, refines, blends, compounds, or 7
manufactures motor fuel; 8
(b) Imports motor fuel into the state; or 9
(c) Is engaged in distribution of motor fuel; 10
(3) "Higher ethanol blend", a fuel capable of being 11
dispensed directly into motor vehicle fuel tanks for 12
SB 1188 76
consumption that is comprised of at least fifteen percent 13
but not more than eighty-five percent ethanol; 14
(4) "Retail dealer", a person, firm, or corporation 15
doing business in this state that owns or operates a retail 16
service station in this state; 17
(5) "Retail service station", a location in this state 18
from which higher ethanol blend is sold to the general 19
public and is dispensed directly into motor vehicle fuel 20
tanks for consumption. 21
2. For all tax years beginning on or after January 1, 22
2023, a retail dealer that sells higher ethanol blend at 23
such retail dealer's retail service station or a distributor 24
that sells higher ethanol blend directly to the final user 25
located in this state shall be allowed a tax credit to be 26
taken against the retail dealer's or distributor's state 27
income tax liability. The amount of the credit shall equal 28
five cents per gallon of higher ethanol blend sold by the 29
retail dealer and dispensed through metered pumps at the 30
retail dealer's retail service station or by a distributor 31
directly to the final user located in this state during the 32
tax year for which the tax credit is claimed. For any 33
retail dealer or distributor with a tax year beginning prior 34
to January 1, 2023, but ending during the 2023 calendar 35
year, such retail dealer or distributor shall be allowed a 36
tax credit for the amount of higher ethanol blend sold 37
during the portion of such tax year that occurs during the 38
2023 calendar year. Tax credits authorized pursuant to this 39
section shall not be transferred, sold, or assigned. If the 40
amount of the tax credit exceeds the taxpayer's state tax 41
liability, the difference shall not be refundable but may be 42
carried forward to any of the five subsequent tax years. 43
The total amount of tax credits issued pursuant to this 44
SB 1188 77
section for any given fiscal year shall not exceed five 45
million dollars. 46
3. In the event the total amount of tax credits 47
claimed under this section exceeds the amount of available 48
tax credits, the tax credits shall be apportioned among all 49
eligible retail dealers and distributors claiming a tax 50
credit by April fifteenth, or as directed by section 51
143.851, of the fiscal year in which the tax credit is 52
claimed. 53
4. The department shall prescribe the method for 54
submitting applications for claiming the tax credit allowed 55
by this section [shall be claimed by such taxpayer at the 56
time such taxpayer files a return and]. After issuance of a 57
tax credit certificate by the department, such tax credit 58
shall be redeemed by filing a copy of the tax credit 59
certificate with the taxpayer's income tax return for the 60
tax year for which such credit was issued. Such tax credit 61
shall be applied against the income tax liability imposed by 62
chapter 143, excluding the withholding tax imposed by 63
sections 143.191 to 143.265, after reduction for all other 64
credits allowed thereon. The department may require any 65
documentation it deems necessary to implement the provisions 66
of this section. 67
5. The department of agriculture shall promulgate 68
rules to implement the provisions of this section. Any rule 69
or portion of a rule, as that term is defined in section 70
536.010, that is created under the authority delegated in 71
this section shall become effective only if it complies with 72
and is subject to all of the provisions of chapter 536 and, 73
if applicable, section 536.028. This section and chapter 74
536 are nonseverable and if any of the powers vested with 75
the general assembly pursuant to chapter 536 to review, to 76
SB 1188 78
delay the effective date, or to disapprove and annul a rule 77
are subsequently held unconstitutional, then the grant of 78
rulemaking authority and any rule proposed or adopted after 79
January 2, 2023, shall be invalid and void. 80
6. Under section 23.253 of the Missouri sunset act: 81
(1) The provisions of this section shall automatically 82
sunset on December 31, 2028, unless reauthorized by an act 83
of the general assembly; and 84
(2) If such program is reauthorized, the program 85
authorized under this section shall automatically sunset 86
twelve years after the effective date of the reauthorization 87
of this section; and 88
(3) This section shall terminate on September first of 89
the calendar year immediately following the calendar year in 90
which the program authorized under this section is sunset. 91
7. On and after August 28, 2026, the department of 92
agriculture shall administer the tax credit provided under 93
this section. 94
135.775. 1. As used in this section, the following 1
terms mean: 2
(1) "Biodiesel blend", a blend of diesel fuel and 3
biodiesel fuel of at least five percent and not more than 4
twenty percent for on-road and off-road diesel-fueled 5
vehicle use; 6
(2) "Biodiesel fuel", a renewable, biodegradable, mono 7
alkyl ester combustible liquid fuel that is derived from 8
agricultural and other plant oils or animal fats and that 9
meets the most recent version of the ASTM International 10
D6751 Standard Specification for Biodiesel Fuel Blend 11
Stock. A fuel shall be deemed to be biodiesel fuel if the 12
fuel consists of a pure B100 or B99 ratio. Biodiesel 13
produced from palm oil is not biodiesel fuel for the 14
SB 1188 79
purposes of this section unless the palm oil is contained 15
within waste oil and grease collected within the United 16
States; 17
(3) "B99", a blend of ninety-nine percent biodiesel 18
fuel that meets the most recent version of the ASTM 19
International D6751 Standard Specification for Biodiesel 20
Fuel Blend Stock with a minimum of one-tenth of one percent 21
and maximum of one percent diesel fuel that meets the most 22
recent version of the ASTM International D975 Standard 23
Specification for Diesel Fuel; 24
(4) "Department", the Missouri department of [revenue] 25
agriculture; 26
(5) "Distributor", a person, firm, or corporation 27
doing business in this state that: 28
(a) Produces, refines, blends, compounds, or 29
manufactures motor fuel; 30
(b) Imports motor fuel into the state; or 31
(c) Is engaged in distribution of motor fuel; 32
(6) "Retail dealer", a person, firm, or corporation 33
doing business in this state that owns or operates a retail 34
service station in this state; 35
(7) "Retail service station", a location in this state 36
from which biodiesel blend is sold to the general public and 37
is dispensed directly into motor vehicle fuel tanks for 38
consumption at retail. 39
2. For all tax years beginning on or after January 1, 40
2023, a retail dealer that sells a biodiesel blend at a 41
retail service station or a distributor that sells a 42
biodiesel blend directly to the final user located in this 43
state shall be allowed a tax credit to be taken against the 44
retail dealer or distributor's state income tax liability. 45
For any retail dealer or distributor with a tax year 46
SB 1188 80
beginning prior to January 1, 2023, but ending during the 47
2023 calendar year, such retail dealer or distributor shall 48
be allowed a tax credit for the amount of biodiesel blend 49
sold during the portion of such tax year that occurs during 50
the 2023 calendar year. The amount of the credit shall be 51
equal to: 52
(1) Two cents per gallon of biodiesel blend of at 53
least five percent but not more than ten percent sold by the 54
retail dealer at a retail service station or by a 55
distributor directly to the final user located in this state 56
during the tax year for which the tax credit is claimed; and 57
(2) Five cents per gallon of biodiesel blend in excess 58
of ten percent but not more than twenty percent sold by the 59
retail dealer at a retail service station or by a 60
distributor directly to the final user located in this state 61
during the tax year for which the tax credit is claimed. 62
3. Tax credits authorized under this section shall not 63
be transferred, sold, or assigned. If the amount of the tax 64
credit exceeds the taxpayer's state tax liability, the 65
difference shall be refundable. The total amount of tax 66
credits issued under this section for any given fiscal year 67
shall not exceed sixteen million dollars. 68
4. In the event the total amount of tax credits 69
claimed under this section exceeds the amount of available 70
tax credits, the tax credits shall be apportioned among all 71
eligible retail dealers and distributors claiming a tax 72
credit by April fifteenth, or as directed by section 73
143.851, of the fiscal year in which the tax credit is 74
claimed. 75
5. The department shall prescribe the method for 76
submitting applications for claiming the tax credit allowed 77
by this section [shall be claimed by such taxpayer at the 78
SB 1188 81
time such taxpayer files a return] and such tax credit shall 79
be applied against the income tax liability imposed by 80
chapter 143, excluding the withholding tax imposed by 81
sections 143.191 to 143.265, after reduction for all other 82
credits allowed thereon. The department may require any 83
documentation it deems necessary to administer the 84
provisions of this section. The tax credit allowed by this 85
section, after issuance by the department, shall be redeemed 86
on the taxpayer's income tax return for the tax year for 87
which such credit was issued. 88
6. Notwithstanding the provisions of section 32.057 to 89
the contrary, the department may work with the division of 90
weights and measures within the department of agriculture to 91
validate that the biodiesel blend a retail dealer or 92
distributor claims for the tax credit authorized under this 93
section contains a sufficient percentage of biodiesel fuel. 94
7. The department of agriculture shall promulgate 95
rules to implement and administer the provisions of this 96
section. Any rule or portion of a rule, as that term is 97
defined in section 536.010, that is created pursuant to the 98
authority delegated in this section shall become effective 99
only if it complies with and is subject to all of the 100
provisions of chapter 536 and, if applicable, section 101
536.028. This section and chapter 536 are nonseverable and 102
if any of the powers vested with the general assembly 103
pursuant to chapter 536 to review, to delay the effective 104
date, or to disapprove and annul a rule are subsequently 105
held unconstitutional, then the grant of rulemaking 106
authority and any rule proposed or adopted after January 2, 107
2023, shall be invalid and void. 108
8. Under section 23.253 of the Missouri sunset act: 109
SB 1188 82
(1) The provisions of the new program authorized under 110
this section shall automatically sunset on December 31, 111
2028, unless reauthorized by an act of the general assembly; 112
(2) If such program is reauthorized, the program 113
authorized under this section shall automatically sunset 114
twelve years after the effective date of the reauthorization 115
of this section; and 116
(3) This section shall terminate on September first of 117
the calendar year immediately following the calendar year in 118
which the program authorized under this section is sunset. 119
The termination of the program as described in this 120
subsection shall not be construed to preclude any qualified 121
taxpayer who claims any benefit under any program that is 122
sunset under this subsection from claiming such benefit for 123
all allowable activities related to such claim that were 124
completed before the program was sunset or to eliminate any 125
responsibility of the department to verify the continued 126
eligibility of qualified individuals receiving tax credits 127
and to enforce other requirements of law that applied before 128
the program was sunset. 129
9. On and after August 28, 2026, the department of 130
agriculture shall administer the tax credit provided under 131
this section. 132
135.778. 1. For the purposes of this section, the 1
following terms shall mean: 2
(1) "Biodiesel fuel", a renewable, biodegradable, mono 3
alkyl ester combustible liquid fuel that is derived from 4
agricultural and other plant oils or animal fats and that 5
meets the most recent version of the ASTM International 6
D6751 Standard Specification for Biodiesel Fuel Blend 7
Stock. A fuel shall be deemed to be biodiesel fuel if the 8
fuel consists of a pure B100 or B99 ratio. Biodiesel 9
SB 1188 83
produced from palm oil is not biodiesel fuel for the 10
purposes of this section unless the palm oil is contained 11
within waste oil and grease collected within the United 12
States; 13
(2) "B99", a blend of ninety-nine percent biodiesel 14
fuel that meets the most recent version of the ASTM 15
International D6751 Standard Specification for Biodiesel 16
Fuel Blend Stock with a minimum of one-tenth of one percent 17
and maximum of one percent diesel fuel that meets the most 18
recent version of the ASTM International D975 Standard 19
Specification for Diesel Fuel; 20
(3) "Department", the Missouri department of [revenue] 21
agriculture; 22
(4) "Missouri biodiesel producer", a person, firm, or 23
corporation doing business in this state that produces 24
biodiesel fuel in this state, is registered with the United 25
States Environmental Protection Agency according to the 26
requirements of 40 CFR Part 79, and has begun construction 27
on such facility or has been selling biodiesel fuel produced 28
at such facility on or before January 2, 2023. 29
2. For all tax years beginning on or after January 1, 30
2023, a Missouri biodiesel producer shall be allowed a tax 31
credit to be taken against the producer's state income tax 32
liability. For any Missouri biodiesel producer with a tax 33
year beginning prior to January 1, 2023, but ending during 34
the 2023 calendar year, such Missouri biodiesel producer 35
shall be allowed a tax credit for the amount of biodiesel 36
fuel produced during the portion of such tax year that 37
occurs during the 2023 calendar year. The amount of the tax 38
credit shall be two cents per gallon of biodiesel fuel 39
produced by the Missouri biodiesel producer during the tax 40
year for which the tax credit is claimed. 41
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3. Tax credits authorized under this section shall not 42
be transferred, sold, or assigned. If the amount of the tax 43
credit exceeds the taxpayer's state tax liability, the 44
difference shall be refundable. The total amount of tax 45
credits issued under this section for any given fiscal year 46
shall not exceed five million five hundred thousand dollars, 47
which shall be authorized on a first-come, first-served 48
basis. 49
4. The department shall prescribe the method for 50
submitting applications for claiming the tax credit 51
authorized under this section [shall be claimed by such 52
taxpayer at the time such taxpayer files a return] and such 53
tax credit shall be applied against the income tax liability 54
imposed by chapter 143, excluding the withholding tax 55
imposed by sections 143.191 to 143.265, after reduction for 56
all other credits allowed thereon. The department may 57
require any documentation it deems necessary to administer 58
the provisions of this section. The tax credit allowed by 59
this section, after issuance by the department, shall be 60
redeemed on the taxpayer's income tax return for the tax 61
year for which such credit was issued. 62
5. The department of agriculture shall promulgate 63
rules to implement and administer the provisions of this 64
section. Any rule or portion of a rule, as that term is 65
defined in section 536.010, that is created pursuant to the 66
authority delegated in this section shall become effective 67
only if it complies with and is subject to all of the 68
provisions of chapter 536 and, if applicable, section 69
536.028. This section and chapter 536 are nonseverable and 70
if any of the powers vested with the general assembly 71
pursuant to chapter 536 to review, to delay the effective 72
date, or to disapprove and annul a rule are subsequently 73
SB 1188 85
held unconstitutional, then the grant of rulemaking 74
authority and any rule proposed or adopted after January 2, 75
2023, shall be invalid and void. 76
6. Under section 23.253 of the Missouri sunset act: 77
(1) The provisions of the new program authorized under 78
this section shall automatically sunset on December 31, 79
2028, unless reauthorized by an act of the general assembly; 80
(2) If such program is reauthorized, the program 81
authorized under this section shall automatically sunset 82
twelve years after the effective date of the reauthorization 83
of this section; and 84
(3) This section shall terminate on September first of 85
the calendar year immediately following the calendar year in 86
which the program authorized under this section is sunset. 87
The termination of the program as described in this 88
subsection shall not be construed to preclude any qualified 89
taxpayer who claims any benefit under any program that is 90
sunset under this subsection from claiming such benefit for 91
all allowable activities related to such claim that were 92
completed before the program was sunset, or to eliminate any 93
responsibility of the department to verify the continued 94
eligibility of qualified individuals receiving tax credits 95
and to enforce other requirements of law that applied before 96
the program was sunset. 97
7. On and after August 28, 2026, the department of 98
agriculture shall administer the tax credit provided under 99
this section. 100
135.800. 1. The provisions of sections 135.800 to 1
135.830 shall be known and may be cited as the "Tax Credit 2
Accountability Act of 2004". 3
2. As used in sections 135.800 to 135.830, the 4
following terms mean: 5
SB 1188 86
(1) "Administering agency", the state agency or 6
department charged with administering a particular tax 7
credit program, as set forth by the program's enacting 8
statute; where no department or agency is set forth, the 9
department of revenue; 10
(2) "Agricultural tax credits", the agricultural 11
product utilization contributor tax credit created pursuant 12
to section 348.430, the new generation cooperative incentive 13
tax credit created pursuant to section 348.432, and the 14
family farm breeding livestock loan tax credit created under 15
section 348.505[, the qualified beef tax credit created 16
under section 135.679, and the wine and grape production tax 17
credit created pursuant to section 135.700]; 18
(3) "Business recruitment tax credits", the business 19
facility tax credit created pursuant to sections 135.110 to 20
135.150 and section 135.258, the enterprise zone tax 21
benefits created pursuant to sections 135.200 to 135.270, 22
the business use incentives for large-scale development 23
programs created pursuant to sections 100.700 to 100.850, 24
[the development tax credits created pursuant to sections 25
32.100 to 32.125, the rebuilding communities tax credit 26
created pursuant to section 135.535,] and the [film 27
production] show MO act tax credit created pursuant to 28
section 135.750[, the enhanced enterprise zone created 29
pursuant to sections 135.950 to 135.970, and the Missouri 30
quality jobs program created pursuant to sections 620.1875 31
to 620.1900]; 32
(4) "Community development tax credits", the 33
neighborhood assistance tax credit created pursuant to 34
sections 32.100 to 32.125[,] and the family development 35
account tax credit created pursuant to sections 208.750 to 36
208.775[, the dry fire hydrant tax credit created pursuant 37
SB 1188 87
to section 320.093, and the transportation development tax 38
credit created pursuant to section 135.545]; 39
(5) "Domestic and social tax credits", the youth 40
opportunities tax credit created pursuant to section 135.460 41
and sections 620.1100 to 620.1103, the shelter for victims 42
of domestic violence or rape crisis center created pursuant 43
to section 135.550, the senior citizen or disabled person 44
property tax credit created pursuant to sections 135.010 to 45
135.035, the adoption tax credit created pursuant to 46
sections 135.325 to 135.339, the champion for children tax 47
credit created pursuant to section 135.341, the maternity 48
home tax credit created pursuant to section 135.600, the 49
surviving spouse tax credit created pursuant to section 50
135.090, the residential treatment agency tax credit created 51
pursuant to section 135.1150, the pregnancy resource center 52
tax credit created pursuant to section 135.630, the food 53
pantry tax credit created pursuant to section 135.647, the 54
residential dwelling access tax credit created pursuant to 55
section 135.562, the developmental disability care provider 56
tax credit created under section 135.1180, the shared care 57
tax credit created pursuant to section 192.2015, [the 58
health, hunger, and hygiene tax credit created pursuant to 59
section 135.1125,] and the diaper bank tax credit created 60
pursuant to section 135.621; 61
(6) "Entrepreneurial tax credits", the capital tax 62
credit created pursuant to sections 135.400 to [135.429, the 63
certified capital company tax credit created pursuant to 64
sections 135.500 to 135.529, the seed capital tax credit 65
created pursuant to sections 348.300 to 348.318, the new 66
enterprise creation tax credit created pursuant to sections 67
620.635 to 620.653] 135.432, the research tax credit created 68
pursuant to section 620.1039, and the small business 69
SB 1188 88
incubator tax credit created pursuant to section 620.495[, 70
the guarantee fee tax credit created pursuant to section 71
135.766, and the new generation cooperative tax credit 72
created pursuant to sections 32.105 to 32.125]; 73
(7) "Environmental tax credits", [the charcoal 74
producer tax credit created pursuant to section 135.313,] 75
the wood energy tax credit created pursuant to sections 76
135.300 to 135.311[, and the alternative fuel stations tax 77
credit created pursuant to section 135.710]; 78
(8) "Financial and insurance tax credits", the bank 79
franchise tax credit created pursuant to section 148.030, 80
the bank tax credit for S corporations created pursuant to 81
section 143.471, the exam fee tax credit created pursuant to 82
section 148.400, the health insurance pool tax credit 83
created pursuant to section 376.975, the life and health 84
insurance guaranty association tax credit created pursuant 85
to section 376.745, the property and casualty guaranty 86
association tax credit created pursuant to section 375.774, 87
and the self-employed health insurance tax credit created 88
pursuant to section 143.119; 89
(9) "Housing tax credits", the neighborhood 90
preservation tax credit created pursuant to sections 135.475 91
to 135.487, the low-income housing tax credit created 92
pursuant to sections 135.350 to 135.363, and the affordable 93
housing tax credit created pursuant to sections 32.105 to 94
32.125; 95
(10) "Recipient", the individual or entity who both: 96
(a) Is the original applicant for a tax credit; and 97
(b) Who directly receives a tax credit or the right to 98
transfer a tax credit under a tax credit program, regardless 99
as to whether the tax credit has been used or redeemed; a 100
SB 1188 89
recipient shall not include the transferee of a transferable 101
tax credit; 102
(11) "Redevelopment tax credits", the historic 103
preservation tax credit created pursuant to sections 253.545 104
to 253.559, the brownfield redevelopment program tax credit 105
created pursuant to sections 447.700 to 447.718, the 106
community development corporations tax credit created 107
pursuant to sections 135.400 to [135.430] 135.432, the 108
infrastructure tax credit created pursuant to subsection 6 109
of section 100.286, the bond guarantee tax credit created 110
pursuant to section 100.297, and the disabled access tax 111
credit created pursuant to section 135.490[, the new markets 112
tax credit created pursuant to section 135.680, and the 113
distressed areas land assemblage tax credit created pursuant 114
to section 99.1205]; 115
(12) "Tax credit program", any of the tax credit 116
programs included in the definitions of agricultural tax 117
credits, business recruitment tax credits, community 118
development tax credits, domestic and social tax credits, 119
entrepreneurial tax credits, environmental tax credits, 120
housing tax credits, redevelopment tax credits, and training 121
and educational tax credits; 122
(13) "Training and educational tax credits", the 123
Missouri works new jobs tax credit and Missouri works 124
retained jobs credit created pursuant to sections 620.800 to 125
620.809. 126
135.835. 1. The provisions of this section shall be 1
construed, wherever necessary, to be in addition to existing 2
requirements, duties, or obligations present in other 3
provisions of law with regard to all tax credit programs. 4
2. For all tax years beginning on or after January 1, 5
2027, in enacting any law creating a new tax credit or 6
SB 1188 90
increasing the cumulative cap amount of an existing tax 7
credit, the general assembly shall repeal, modify, or reduce 8
the total amount of an existing tax credit or tax credits to 9
ensure that the amount available to taxpayers is less than 10
or equal to the total amount reduced as a result of the 11
newly created tax credit program or the increased cumulative 12
cap amount on the existing tax credit program. 13
3. For all tax years beginning on or after January 1, 14
2027, all tax credits issued on or after such date shall not 15
be carried forward beyond three years, if carry forward 16
provisions are applicable. 17
4. (1) Except as provided under subdivision (2) of 18
this subsection, for all fiscal years beginning on or after 19
July 1, 2027, all tax credits shall be subject to 20
appropriation. If no appropriation is made for a tax credit 21
program, such tax credit shall not be issued for that fiscal 22
year. 23
(2) The following tax credits shall be exempt from the 24
appropriation requirement under subdivision (1) of this 25
subsection: 26
(a) The Missouri low-income housing tax credits 27
created under sections 135.350 to 135.363; 28
(b) The show MO act tax credits created under section 29
135.750; 30
(c) The self-employed health insurance tax credit 31
created under section 143.119; 32
(d) The Missouri working family tax credit created 33
under section 143.177; 34
(e) The SALT parity tax credits created under section 35
143.436; 36
(f) The bank tax credits for S corporations created 37
under section 143.471; and 38
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(g) The bank franchise tax credit created under 39
section 148.030. 40
5. The provisions of this section shall not be 41
construed to limit or in any way impair a taxpayer's ability 42
to redeem tax credits or an administering agency's ability 43
to issue tax credits authorized prior to January 1, 2027. 44
135.1150. 1. This section shall be known and may be 1
cited as the "Residential Treatment Agency Tax Credit Act". 2
2. As used in this section, the following terms mean: 3
(1) "Certificate", a tax credit certificate issued 4
under this section; 5
(2) "Department", the Missouri department of social 6
services; 7
(3) "Eligible donation", donations received from a 8
taxpayer by an agency that are used solely to provide direct 9
care services to children who are residents of this state. 10
Eligible donations may include cash, publicly traded stocks 11
and bonds, and real estate that will be valued and 12
documented according to rules promulgated by the department 13
of social services. For purposes of this section, "direct 14
care services" include but are not limited to increasing the 15
quality of care and service for children through improved 16
employee compensation and training; 17
(4) "Qualified residential treatment agency" or 18
"agency", a residential care facility that is licensed under 19
section 210.484, accredited by the Council on Accreditation 20
(COA), the Joint Commission on Accreditation of Healthcare 21
Organizations (JCAHO), or the Commission on Accreditation of 22
Rehabilitation Facilities (CARF), and is under contract with 23
the Missouri department of social services to provide 24
treatment services for children who are residents or wards 25
of residents of this state, and that receives eligible 26
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donations. Any agency that operates more than one facility 27
or at more than one location shall be eligible for the tax 28
credit under this section only for any eligible donation 29
made to facilities or locations of the agency which are 30
licensed and accredited; 31
(5) "Taxpayer", any of the following individuals or 32
entities who make an eligible donation to an agency: 33
(a) A person, firm, partner in a firm, corporation, or 34
a shareholder in an S corporation doing business in the 35
state of Missouri and subject to the state income tax 36
imposed in chapter 143; 37
(b) A corporation subject to the annual corporation 38
franchise tax imposed in chapter 147; 39
(c) An insurance company paying an annual tax on its 40
gross premium receipts in this state; 41
(d) Any other financial institution paying taxes to 42
the state of Missouri or any political subdivision of this 43
state under chapter 148; 44
(e) An individual subject to the state income tax 45
imposed in chapter 143; 46
(f) Any charitable organization which is exempt from 47
federal income tax and whose Missouri unrelated business 48
taxable income, if any, would be subject to the state income 49
tax imposed under chapter 143. 50
3. For all [taxable] tax years beginning on or after 51
January 1, 2007, any taxpayer shall be allowed a credit 52
against the taxes otherwise due under chapter 143, 147, or 53
148, excluding withholding tax imposed by sections 143.191 54
to 143.265, in an amount equal to fifty percent of the 55
amount of an eligible donation, subject to the restrictions 56
in this section. The amount of the tax credit claimed shall 57
not exceed the amount of the taxpayer's state income tax 58
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liability in the tax year for which the credit is claimed. 59
Any amount of credit that the taxpayer is prohibited by this 60
section from claiming in a tax year shall not be refundable, 61
but may be carried forward to any of the taxpayer's four 62
subsequent [taxable] tax years. 63
4. To claim the credit authorized in this section, an 64
agency may submit to the department an application for the 65
tax credit authorized by this section on behalf of 66
taxpayers. The department shall verify that the agency has 67
submitted the following items accurately and completely: 68
(1) A valid application in the form and format 69
required by the department; 70
(2) A statement attesting to the eligible donation 71
received, which shall include the name and taxpayer 72
identification number of the individual making the eligible 73
donation, the amount of the eligible donation, and the date 74
the eligible donation was received by the agency; and 75
(3) Payment from the agency equal to the value of the 76
tax credit for which application is made. 77
If the agency applying for the tax credit meets all criteria 78
required by this subsection, the department shall issue a 79
certificate in the appropriate amount. 80
5. An agency may apply for tax credits in an aggregate 81
amount that does not exceed the payments made by the 82
department to the agency in the preceding twelve months. 83
6. Tax credits issued under this section may be 84
assigned, transferred, sold, or otherwise conveyed, and the 85
new owner of the tax credit shall have the same rights in 86
the credit as the taxpayer. Whenever a certificate is 87
assigned, transferred, sold, or otherwise conveyed, a 88
notarized endorsement shall be filed with the department 89
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specifying the name and address of the new owner of the tax 90
credit or the value of the credit. 91
7. (1) For all fiscal years beginning on or after 92
July 1, 2027, the cumulative amount of tax credits issued 93
annually to all taxpayers by the department under this 94
section shall not exceed the total cap amount, which shall 95
be an amount equal to the highest annual amount of tax 96
credits issued in any one previous fiscal year, from fiscal 97
year 2024 to fiscal year 2026, as determined and calculated 98
by the department. 99
(2) If the amount of tax credits claimed in a fiscal 100
year under this section exceeds the total cap determined 101
under subdivision (1) of this subsection, tax credits shall 102
be allowed based on the order in which they were issued. 103
[7.] 8. The department shall promulgate rules to 104
implement the provisions of this section. Any rule or 105
portion of a rule, as that term is defined in section 106
536.010, that is created under the authority delegated in 107
this section shall become effective only if it complies with 108
and is subject to all of the provisions of chapter 536 and, 109
if applicable, section 536.028. This section and chapter 110
536 are nonseverable and if any of the powers vested with 111
the general assembly pursuant to chapter 536 to review, to 112
delay the effective date, or to disapprove and annul a rule 113
are subsequently held unconstitutional, then the grant of 114
rulemaking authority and any rule proposed or adopted after 115
August 28, 2006, shall be invalid and void. 116
9. Pursuant to section 23.253 of the Missouri sunset 117
act: 118
(1) The program authorized pursuant to this section 119
shall automatically sunset August 28, 2032, unless 120
reauthorized by an act of the general assembly; 121
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(2) This section shall terminate on September first of 122
the calendar year immediately following the calendar year in 123
which the program authorized pursuant to this section is 124
sunset; and 125
(3) The provisions of this subsection shall not be 126
construed to impair or impede the state's fulfillment of any 127
obligations, including the authorization, issuance, or 128
redemption of tax credits, incurred pursuant to this section 129
prior to the date the program authorized pursuant to this 130
section is sunset. 131
135.1180. 1. This section shall be known and may be 1
cited as the "Developmental Disability Care Provider Tax 2
Credit Program". 3
2. As used in this section, the following terms mean: 4
(1) "Certificate", a tax credit certificate issued 5
under this section; 6
(2) "Department", the Missouri department of social 7
services; 8
(3) "Eligible donation", donations received by a 9
provider from a taxpayer that are used solely to provide 10
direct care services to persons with developmental 11
disabilities who are residents of this state. Eligible 12
donations may include cash, publicly traded stocks and 13
bonds, and real estate that will be valued and documented 14
according to rules promulgated by the department of social 15
services. For purposes of this section, "direct care 16
services" include, but are not limited to, increasing the 17
quality of care and service for persons with developmental 18
disabilities through improved employee compensation and 19
training; 20
(4) "Qualified developmental disability care provider" 21
or "provider", a care provider that provides assistance to 22
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persons with developmental disabilities, and is accredited 23
by the Council on Accreditation (COA), the Joint Commission 24
on Accreditation of Healthcare Organizations (JCAHO), or the 25
Commission on Accreditation of Rehabilitation Facilities 26
(CARF), or is under contract with the Missouri department of 27
social services or department of mental health to provide 28
treatment services for such persons, and that receives 29
eligible donations. Any provider that operates more than 30
one facility or at more than one location shall be eligible 31
for the tax credit under this section only for any eligible 32
donation made to facilities or locations of the provider 33
which are licensed or accredited; 34
(5) "Taxpayer", any of the following individuals or 35
entities who make an eligible donation to a provider: 36
(a) A person, firm, partner in a firm, corporation, or 37
a shareholder in an S corporation doing business in the 38
state of Missouri and subject to the state income tax 39
imposed in chapter 143; 40
(b) A corporation subject to the annual corporation 41
franchise tax imposed in chapter 147; 42
(c) An insurance company paying an annual tax on its 43
gross premium receipts in this state; 44
(d) Any other financial institution paying taxes to 45
the state of Missouri or any political subdivision of this 46
state under chapter 148; 47
(e) An individual subject to the state income tax 48
imposed in chapter 143; 49
(f) Any charitable organization which is exempt from 50
federal income tax and whose Missouri unrelated business 51
taxable income, if any, would be subject to the state income 52
tax imposed under chapter 143. 53
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3. For all [taxable] tax years beginning on or after 54
January 1, 2012, any taxpayer shall be allowed a credit 55
against the taxes otherwise due under chapter 143, 147, or 56
148 excluding withholding tax imposed by sections 143.191 to 57
143.265 in an amount equal to fifty percent of the amount of 58
an eligible donation, subject to the restrictions in this 59
section. The amount of the tax credit claimed shall not 60
exceed the amount of the taxpayer's state income tax 61
liability in the tax year for which the credit is claimed. 62
Any amount of credit that the taxpayer is prohibited by this 63
section from claiming in a tax year shall not be refundable, 64
but may be carried forward to any of the taxpayer's four 65
subsequent [taxable] tax years. 66
4. To claim the credit authorized in this section, a 67
provider may submit to the department an application for the 68
tax credit authorized by this section on behalf of 69
taxpayers. The department shall verify that the provider 70
has submitted the following items accurately and completely: 71
(1) A valid application in the form and format 72
required by the department; 73
(2) A statement attesting to the eligible donation 74
received, which shall include the name and taxpayer 75
identification number of the individual making the eligible 76
donation, the amount of the eligible donation, and the date 77
the eligible donation was received by the provider; and 78
(3) Payment from the provider equal to the value of 79
the tax credit for which application is made. 80
If the provider applying for the tax credit meets all 81
criteria required by this subsection, the department shall 82
issue a certificate in the appropriate amount. 83
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5. Tax credits issued under this section may be 84
assigned, transferred, sold, or otherwise conveyed, and the 85
new owner of the tax credit shall have the same rights in 86
the credit as the taxpayer. Whenever a certificate is 87
assigned, transferred, sold, or otherwise conveyed, a 88
notarized endorsement shall be filed with the department 89
specifying the name and address of the new owner of the tax 90
credit or the value of the credit. 91
6. (1) For all fiscal years beginning on or after 92
July 1, 2027, the cumulative amount of tax credits issued 93
annually to all taxpayers by the department under this 94
section shall not exceed the total cap amount, which shall 95
be an amount equal to the highest annual amount of tax 96
credits issued in any one previous fiscal year, from fiscal 97
year 2024 to fiscal year 2026, as determined and calculated 98
by the department. 99
(2) If the amount of tax credits claimed in a fiscal 100
year under this section exceeds the total cap determined 101
under subdivision (1) of this subsection, tax credits shall 102
be allowed based on the order in which they were issued. 103
[6.] 7. The department shall promulgate rules to 104
implement the provisions of this section. Any rule or 105
portion of a rule, as that term is defined in section 106
536.010, that is created under the authority delegated in 107
this section shall become effective only if it complies with 108
and is subject to all of the provisions of chapter 536 and, 109
if applicable, section 536.028. This section and chapter 110
536 are nonseverable and if any of the powers vested with 111
the general assembly pursuant to chapter 536 to review, to 112
delay the effective date, or to disapprove and annul a rule 113
are subsequently held unconstitutional, then the grant of 114
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rulemaking authority and any rule proposed or adopted after 115
August 28, 2012, shall be invalid and void. 116
8. Pursuant to section 23.253 of the Missouri sunset 117
act: 118
(1) The program authorized pursuant to this section 119
shall automatically sunset August 28, 2032, unless 120
reauthorized by an act of the general assembly; 121
(2) This section shall terminate on September first of 122
the calendar year immediately following the calendar year in 123
which the program authorized pursuant to this section is 124
sunset; and 125
(3) The provisions of this subsection shall not be 126
construed to impair or impede the state's fulfillment of any 127
obligations, including the authorization, issuance, or 128
redemption of tax credits, incurred pursuant to this section 129
prior to the date the program authorized pursuant to this 130
section is sunset. 131
137.123. 1. Beginning January 1, 2022, for purposes 1
of assessing all real property, excluding land, or tangible 2
personal property associated with a project that uses wind 3
energy directly to generate electricity, thirty-seven and 4
one-half percent of the original costs shall be the true 5
value in money of such property. Such value shall begin the 6
year immediately following the year of construction of the 7
property. The original costs shall reflect either: 8
(1) The actual and documented original property cost 9
to the taxpayer, as shall be provided by the taxpayer to the 10
assessor; or 11
(2) In the absence of actual and documented original 12
property cost to the taxpayer, the estimated cost of the 13
property by the assessor, using an authoritative cost guide. 14
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2. Nothing in this section shall be construed to 15
prohibit a project from engaging in enhanced enterprise zone 16
agreements [under sections 135.950 to 135.973] or similar 17
tax abatement agreements with state or local officials or to 18
affect any existing enhanced enterprise zone agreements. 19
143.119. 1. A self-employed taxpayer, as such term is 1
used in the federal internal revenue code, who is otherwise 2
ineligible for the federal income tax health insurance 3
deduction under Section 162 of the federal internal revenue 4
code shall be entitled to a credit against the tax otherwise 5
due under this chapter, excluding withholding tax imposed by 6
sections 143.191 to 143.265, in an amount equal to the 7
portion of such taxpayer's federal tax liability incurred 8
due to such taxpayer's inclusion of such payments in federal 9
adjusted gross income. To be eligible for a credit under 10
this section, the self-employed taxpayer shall have a 11
Missouri income tax liability, before any other tax credits, 12
of less than three thousand dollars. The tax credits 13
authorized under this section shall be nontransferable, 14
nonrefundable, and shall not be carried back or forward to 15
any other tax year. A self-employed taxpayer shall not 16
claim both a tax credit under this section and a subtraction 17
under section 143.113 for the same tax year. 18
2. (1) For all fiscal years beginning on or after 19
July 1, 2027, the cumulative amount of tax credits issued 20
annually to all taxpayers by the department under this 21
section shall not exceed the total cap amount, which shall 22
be an amount equal to the highest annual amount of tax 23
credits issued in any one previous fiscal year, from fiscal 24
year 2024 to fiscal year 2026, as determined and calculated 25
by the department. 26
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(2) If the amount of tax credits claimed in a fiscal 27
year under this section exceeds the total cap determined 28
under subdivision (1) of this subsection, tax credits shall 29
be allowed based on the order in which they were issued. 30
3. The tax credits authorized under this section shall 31
not be subject to appropriations, as provided under 32
subsection 4 of section 135.835. 33
[2.] 4. The director of the department of revenue 34
shall promulgate rules and regulations to administer the 35
provisions of this section. Any rule or portion of a rule, 36
as that term is defined in section 536.010, that is created 37
under the authority delegated in this section shall become 38
effective only if it complies with and is subject to all of 39
the provisions of chapter 536 and, if applicable, section 40
536.028. This section and chapter 536 are nonseverable and 41
if any of the powers vested with the general assembly 42
pursuant to chapter 536 to review, to delay the effective 43
date, or to disapprove and annul a rule are subsequently 44
held unconstitutional, then the grant of rulemaking 45
authority and any rule proposed or adopted after August 28, 46
2007, shall be invalid and void. 47
[3.] 5. Pursuant to section 23.253 of the Missouri 48
sunset act: 49
(1) The provisions of this section shall sunset 50
automatically on December 31, 2028, unless reauthorized by 51
an act of the general assembly; and 52
(2) If such program is reauthorized, this section 53
shall sunset automatically December thirty-first six years 54
after the effective date of the reauthorization of this 55
section; and 56
(3) This section shall terminate on September first of 57
the calendar year immediately following the calendar year in 58
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which the program authorized under this section is sunset; 59
and 60
(4) The provisions of this subsection shall not be 61
construed to limit or in any way impair the department's 62
ability to redeem tax credits authorized on or before the 63
date the program authorized pursuant to this section 64
expires, or a taxpayer's ability to redeem such tax credits. 65
143.177. 1. This section shall be known and may be 1
cited as the "Missouri Working Family Tax Credit Act". 2
2. For purposes of this section, the following terms 3
shall mean: 4
(1) "Department", the department of revenue; 5
(2) "Eligible taxpayer", a resident individual with a 6
filing status of single, head of household, widowed, or 7
married filing combined who is subject to the tax imposed 8
under this chapter, excluding withholding tax imposed under 9
sections 143.191 to 143.265, and who is allowed a federal 10
earned income tax credit under 26 U.S.C. Section 32, as 11
amended; 12
(3) "Tax credit", a credit against the tax otherwise 13
due under this chapter, excluding withholding tax imposed 14
under sections 143.191 to 143.265. 15
3. (1) Beginning with the 2023 calendar year, an 16
eligible taxpayer shall be allowed a tax credit in an amount 17
equal to a percentage of the amount such taxpayer would 18
receive under the federal earned income tax credit as such 19
credit existed under 26 U.S.C. Section 32 as of January 1, 20
2021, as provided pursuant to subdivision (2) of this 21
subsection. The tax credit allowed by this section shall be 22
claimed by such taxpayer at the time such taxpayer files a 23
return and shall be applied against the income tax liability 24
imposed by this chapter after reduction for all other 25
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credits allowed thereon. If the amount of the credit 26
exceeds the tax liability, the difference shall not be 27
refunded to the taxpayer and shall not be carried forward to 28
any subsequent tax year. 29
(2) Subject to the provisions of subdivision (3) of 30
this subsection, the percentage of the federal earned income 31
tax credit to be allowed as a tax credit pursuant to 32
subdivision (1) of this subsection shall be ten percent, 33
which may be increased to twenty percent subject to the 34
provisions of subdivision (3) of this subsection. The 35
maximum percentage that may be claimed as a tax credit 36
pursuant to this section shall be twenty percent of the 37
federal earned income tax credit that may be claimed by such 38
taxpayer. Any increase in the percentage that may be 39
claimed as a tax credit shall take effect on January first 40
of a calendar year and such percentage shall continue in 41
effect until the next percentage increase occurs. An 42
increase shall only apply to tax years that begin on or 43
after the increase takes effect. 44
(3) The initial percentage to be claimed as a tax 45
credit and any increase in the percentage that may be 46
claimed pursuant to subdivision (2) of this subsection shall 47
only occur if the amount of net general revenue collected in 48
the previous fiscal year exceeds the highest amount of net 49
general revenue collected in any of the three fiscal years 50
prior to such fiscal year by at least one hundred fifty 51
million dollars. 52
(4) For all calendar years beginning on or after 53
January 1, 2028, the cumulative amount of tax credits issued 54
annually to all taxpayers by the department under this 55
section shall not exceed the total cap amount, which shall 56
be an amount equal to the highest annual amount of tax 57
SB 1188 104
credits issued in any one previous fiscal year, from fiscal 58
year 2025 to fiscal year 2027, as determined and calculated 59
by the department. 60
(5) If the amount of tax credits claimed in a calendar 61
year under this section exceeds the total cap determined 62
under subdivision (4) of this subsection, tax credits shall 63
be allowed based on the order in which they were issued. 64
4. Notwithstanding the provisions of section 32.057 to 65
the contrary, the department shall determine whether any 66
taxpayer filing a report or return with the department who 67
did not apply for the credit authorized under this section 68
may qualify for the credit and, if so, determines a taxpayer 69
may qualify for the credit, shall notify such taxpayer of 70
his or her potential eligibility. In making a determination 71
of eligibility under this section, the department shall use 72
any appropriate and available data including, but not 73
limited to, data available from the Internal Revenue 74
Service, the U.S. Department of Treasury, and state income 75
tax returns from previous tax years. 76
5. The department shall prepare an annual report 77
containing statistical information regarding the tax credits 78
issued under this section for the previous tax year, 79
including the total amount of revenue expended, the number 80
of credits claimed, and the average value of the credits 81
issued to taxpayers whose earned income falls within various 82
income ranges determined by the department. 83
6. The director of the department may promulgate rules 84
and regulations to administer the provisions of this 85
section. Any rule or portion of a rule, as that term is 86
defined in section 536.010, that is created under the 87
authority delegated in this section shall become effective 88
only if it complies with and is subject to all of the 89
SB 1188 105
provisions of chapter 536 and, if applicable, section 90
536.028. This section and chapter 536 are nonseverable and 91
if any of the powers vested with the general assembly 92
pursuant to chapter 536 to review, to delay the effective 93
date, or to disapprove and annul a rule are subsequently 94
held unconstitutional, then the grant of rulemaking 95
authority and any rule proposed or adopted after January 1, 96
2023, shall be invalid and void. 97
7. Tax credits authorized under this section shall not 98
be subject to the requirements of sections 135.800 to 99
135.830. 100
8. The tax credits authorized under this section shall 101
not be subject to appropriations, as provided under 102
subsection 4 of section 135.835. 103
9. Pursuant to section 23.253 of the Missouri sunset 104
act: 105
(1) The program authorized pursuant to this section 106
shall automatically sunset August 28, 2029, unless 107
reauthorized by an act of the general assembly; 108
(2) This section shall terminate on September first of 109
the calendar year immediately following the calendar year in 110
which the program authorized pursuant to this section is 111
sunset; and 112
(3) The provisions of this subsection shall not be 113
construed to impair or impede the state's fulfillment of any 114
obligations, including the authorization, issuance, or 115
redemption of tax credits, incurred pursuant to this section 116
prior to the date the program authorized pursuant to this 117
section is sunset. 118
143.436. 1. This section shall be known and may be 1
cited as the "SALT Parity Act". 2
SB 1188 106
2. For the purposes of this section, the following 3
terms shall mean: 4
(1) "Affected business entity", any partnership or S 5
corporation that elects to be subject to tax pursuant to 6
subsection 11 of this section; 7
(2) "Direct member", a member that holds an interest 8
directly in an affected business entity; 9
(3) "Indirect member", a member that itself holds an 10
interest, through a direct or indirect member that is a 11
partnership or an S corporation, in an affected business 12
entity; 13
(4) "Member": 14
(a) A shareholder of an S corporation; 15
(b) A partner in a general partnership, a limited 16
partnership, or a limited liability partnership; or 17
(c) A member of a limited liability company that is 18
treated as a partnership or S corporation for federal income 19
tax purposes; 20
(5) "Partnership", the same meaning as provided in 26 21
U.S.C. Section 7701(a)(2), but not including a publicly 22
traded partnership. The term partnership shall include a 23
limited liability company that is treated as a partnership 24
for federal income tax purposes; 25
(6) "S corporation", a corporation or limited 26
liability company that is treated as an S corporation for 27
federal income tax purposes; 28
(7) "Tax year", the tax year of a partnership or S 29
corporation for federal income tax purposes. 30
3. (1) Notwithstanding any provision of law to the 31
contrary, a tax is hereby imposed on each affected business 32
entity that is a partnership and that is doing business in 33
this state. Such affected business entity shall, at the 34
SB 1188 107
time that the affected business entity's return is due, pay 35
a tax as determined in this subsection. The sum of the 36
separately and nonseparately computed income and deduction 37
items, as described in 26 U.S.C. Section 702(a), of the 38
affected business entity, to the extent derived from or 39
connected with sources within this state, as determined 40
pursuant to section 143.455, shall be decreased by the 41
percentage deduction that would be allowable to the owners 42
under section 143.022, and increased or decreased by any 43
modification made pursuant to sections 143.121 and 143.141 44
that relates to an item of the affected business entity's 45
income, gain, loss, or deduction, to the extent derived from 46
or connected with sources within this state, as determined 47
pursuant to section 143.455. The resulting amount shall be 48
the partnership's Missouri net income or loss, which, if 49
greater than zero, shall be multiplied by the highest rate 50
of tax used to determine a Missouri income tax liability for 51
an individual pursuant to section 143.011 to arrive at the 52
tax due. An affected business entity paying the tax 53
pursuant to this subsection shall include with the payment 54
of such taxes each report provided to a member pursuant to 55
subsection 7 of this section. 56
(2) If a Missouri net loss is calculated pursuant to 57
subdivision (1) of this subsection, such net loss may be 58
carried forward to succeeding tax years for which the 59
affected business entity elects to be subject to tax 60
pursuant to subsection 11 of this section until fully used. 61
4. (1) Notwithstanding any provision of law to the 62
contrary, a tax is hereby imposed on each affected business 63
entity that is an S corporation and that is doing business 64
in this state. Such affected business entity shall, at the 65
time that the affected business entity's tax return is due, 66
SB 1188 108
pay a tax as determined in this subsection. The sum of the 67
separately and nonseparately computed income and deduction 68
items, as described in 26 U.S.C. Section 1366, of the 69
affected business entity, to the extent derived from or 70
connected with sources within this state, as determined 71
pursuant to section 143.455, shall be decreased by the 72
percentage deduction that would be allowable to the owners 73
under section 143.022, and increased or decreased by any 74
modification made pursuant to sections 143.121 and 143.141 75
that relates to an item of the affected business entity's 76
income, gain, loss, or deduction, to the extent derived from 77
or connected with sources within this state, as determined 78
pursuant to section 143.455. The resulting amount shall be 79
the S corporation's Missouri net income or loss, which if 80
greater than zero, shall be multiplied by the highest rate 81
of tax used to determine a Missouri income tax liability for 82
an individual pursuant to section 143.011 to arrive at the 83
tax due. An affected business entity paying the tax 84
pursuant to this subsection shall include with the payment 85
of such taxes each report provided to a member pursuant to 86
subsection 7 of this section. 87
(2) If a Missouri net loss is calculated pursuant to 88
subdivision (1) of this section, such net loss may be 89
carried forward to succeeding tax years for which the 90
affected business entity elects to be subject to tax 91
pursuant to subsection 11 of this section until fully used. 92
5. (1) If an affected business entity is a direct or 93
indirect member of another affected business entity, the 94
member affected business entity shall, when calculating its 95
Missouri net income or loss pursuant to subsection 3 or 4 of 96
this section, subtract its distributive share of Missouri 97
net income or add its distributive share of Missouri net 98
SB 1188 109
loss from the affected business entity in which it is a 99
direct or indirect member. 100
(2) Any member of an affected business entity may 101
elect not to have tax imposed under this section with 102
respect to the affected business entity's separately and 103
nonseparately computed items described in subsection 3 or 4 104
of this section, as the case may be, and otherwise subject 105
to tax under this section, to the extent such items are 106
allocable to that member; however, any such opt-out election 107
made by a nonresident member shall also comply with 108
subdivision (3) of this subsection. If and to the extent 109
one or more members of the affected business entity make an 110
opt-out election, the affected business entity shall, in 111
computing the tax under this section, subtract the opt-out 112
members' allocable items described in the preceding 113
sentence. The affected business entity shall, in applying 114
the provisions of this section, take into account the effect 115
of any opt-out election on each opt-out member's share of 116
deductions, credits, and any other relevant items. 117
(3) Any opt-out election by a nonresident member shall 118
be effective only if that member has agreed to: 119
(a) File a return in accordance with the provisions of 120
section 143.181 and to make timely payment of all taxes 121
imposed on the member by this state with respect to income 122
of the affected business entity; and 123
(b) Be subject to personal jurisdiction in this state 124
for purposes of the collection of income taxes, together 125
with related interest and penalties, imposed on the member 126
by this state with respect to the income of the affected 127
business entity. 128
(4) An opt-out election shall be considered timely 129
filed for a tax year, and for all subsequent tax years, if 130
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it is filed before or in conjunction with the annual return 131
for such tax year under section 143.511. If a member of an 132
affected business entity does not timely file an opt-out 133
election for a tax year, that member shall not be precluded 134
from timely filing an opt-out election for subsequent tax 135
years. 136
6. A nonresident individual who is a member shall not 137
be required to file an income tax return pursuant to this 138
chapter for a tax year if, for such tax year, the only 139
source of income derived from or connected with sources 140
within the state for such member, or the member and the 141
member's spouse if a joint federal income tax return is or 142
shall be filed, is from one or more affected business 143
entities and such affected business entity or entities file 144
and pay the tax due under this section. 145
7. Each partnership and S corporation shall report to 146
each of its members, for each tax year, such member's direct 147
pro rata share of the tax imposed pursuant to this section 148
by such partnership or S corporation if it is an affected 149
business entity and its indirect pro rata share of the tax 150
imposed on any affected business entity in which such 151
affected business entity is a direct or indirect member. 152
For each tax year in which it is subject to a tax under this 153
section, the affected business entity shall file an affected 154
business entity tax return on a date prescribed by the 155
director of revenue. The payment of any interest, additions 156
to tax, or penalties shall not be considered part of the tax 157
imposed under this section. 158
8. (1) Each member that is subject to the tax imposed 159
pursuant to section 143.011 or 143.041 shall be entitled to 160
a credit against the tax imposed pursuant to section 143.011 161
or 143.041. Such credit shall be in an amount equal to such 162
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member's direct and indirect pro rata share of the tax paid 163
pursuant to this section by any affected business entity of 164
which such member is directly or indirectly a member. 165
(2) If the amount of the credit authorized by this 166
subsection exceeds such member's tax liability for the tax 167
imposed pursuant to section 143.011 or 143.041, the excess 168
amount shall not be refunded but may be carried forward to 169
each succeeding tax year until such credit is fully taken. 170
9. (1) Each member that is subject to the tax imposed 171
pursuant to section 143.011 as a resident or part-year 172
resident of this state shall be entitled to a credit against 173
the tax imposed pursuant to section 143.011 for such 174
member's direct and indirect pro rata share of taxes paid to 175
another state of the United States or to the District of 176
Columbia, on income of any partnership or S corporation of 177
which such person is a member that is derived therefrom, 178
provided the taxes paid to another state of the United 179
States or to the District of Columbia results from a tax 180
that the director of revenue determines is substantially 181
similar to the tax imposed pursuant to this section. Any 182
such credit shall be calculated in a manner to be prescribed 183
by the director of revenue, provided such calculation is 184
consistent with the provisions of this section, and further 185
provided that the limitations provided in subsection 2 of 186
section 143.081 shall apply to the credit authorized by this 187
subsection. 188
(2) If the amount of the credit authorized by this 189
subsection exceeds such member's tax liability for the tax 190
imposed pursuant to section 143.011, the excess amount shall 191
not be refunded and shall not be carried forward. 192
10. (1) Each corporation or fiduciary that is subject 193
to the tax imposed pursuant to section 143.061 or 143.071 194
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and that is a member, or, in the case of a fiduciary subject 195
to tax under section 143.061, is the fiduciary of an estate 196
or trust that is a member, shall be entitled to a credit 197
against the tax imposed pursuant to section 143.071. Such 198
credit shall be in an amount equal to such corporation's, 199
estate's, or trust's direct and indirect pro rata share of 200
the tax paid pursuant to this section by any affected 201
business entity of which such corporation, estate, or trust 202
is directly or indirectly a member. Such credit shall be 203
applied after all other credits. 204
(2) If the amount of the credit authorized by this 205
subsection exceeds such corporation's or fiduciary's tax 206
liability for the tax imposed pursuant to section 143.061 or 207
143.071, the excess amount shall not be refunded but may be 208
carried forward to each succeeding tax year until such 209
credit is fully taken. 210
11. A partnership or an S corporation may elect to 211
become an affected business entity that is required to pay 212
the tax pursuant to this section. A separate election shall 213
be made for each tax year. Such election shall be made on 214
such form and in such manner as the director of revenue may 215
prescribe by rule. An election made pursuant to this 216
subsection shall be signed by: 217
(1) Each member of the electing entity who is a member 218
at the time the election is filed; 219
(2) Any officer, manager, or member of the electing 220
entity who is authorized to make the election and who 221
attests to having such authorization under penalty of 222
perjury; or 223
(3) The designated affected business entity 224
representative of the electing entity. 225
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12. The provisions of sections 143.425 and 143.601 226
shall apply to any modifications made to an affected 227
business entity's federal return, and such affected business 228
entity shall pay any resulting underpayment of tax to the 229
extent not already paid pursuant to section 143.425. 230
13. (1) With respect to an action required or 231
permitted to be taken by an affected business entity 232
pursuant to this section, a proceeding under section 143.631 233
for reconsideration by the director of revenue, an appeal to 234
the administrative hearing commission, or a review by the 235
judiciary with respect to such action, a partnership or S 236
corporation shall designate an affected business entity 237
representative for the tax year, and such affected business 238
entity representative shall have the sole authority to act 239
on behalf of the affected business entity, and the affected 240
business entity's members shall be bound by those actions. 241
(2) The department of revenue may establish reasonable 242
qualifications and procedures for designating a person to be 243
the affected business entity representative. 244
(3) The affected business entity representative shall 245
be considered an authorized representative of the affected 246
business entity and its members under section 32.057 for the 247
purposes of compliance with this section, or participating 248
in a proceeding described in subdivision (1) of this 249
subsection. 250
14. The provisions of this section shall only apply to 251
tax years ending on or after December 31, 2022. 252
15. The tax credits authorized under subsections 8, 9, 253
and 10 of this section shall not be subject to 254
appropriations, as provided under subsection 4 of section 255
135.835. 256
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16. The department of revenue may promulgate rules to 257
implement the provisions of this section. Any rule or 258
portion of a rule, as that term is defined in section 259
536.010, that is created under the authority delegated in 260
this section shall become effective only if it complies with 261
and is subject to all of the provisions of chapter 536 and, 262
if applicable, section 536.028. This section and chapter 263
536 are nonseverable and if any of the powers vested with 264
the general assembly pursuant to chapter 536 to review, to 265
delay the effective date, or to disapprove and annul a rule 266
are subsequently held unconstitutional, then the grant of 267
rulemaking authority and any rule proposed or adopted after 268
August 28, 2022, shall be invalid and void. 269
143.471. 1. An S corporation, as defined by Section 1
1361 (a)(1) of the Internal Revenue Code, shall not be 2
subject to the taxes imposed by section 143.071, or other 3
sections imposing income tax on corporations. 4
2. A shareholder of an S corporation shall determine 5
such shareholder's S corporation modification and pro rata 6
share, including its character, by applying the following: 7
(1) Any modification described in sections 143.121 and 8
143.141 which relates to an item of S corporation income, 9
gain, loss, or deduction shall be made in accordance with 10
the shareholder's pro rata share, for federal income tax 11
purposes, of the item to which the modification relates. 12
Where a shareholder's pro rata share of any such item is not 13
required to be taken into account separately for federal 14
income tax purposes, the shareholder's pro rata share of 15
such item shall be determined in accordance with his pro 16
rata share, for federal income tax purposes, of S 17
corporation taxable income or loss generally; 18
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(2) Each item of S corporation income, gain, loss, or 19
deduction shall have the same character for a shareholder 20
pursuant to sections 143.005 to 143.998 as it has for 21
federal income tax purposes. Where an item is not 22
characterized for federal income tax purposes, it shall have 23
the same character for a shareholder as if realized directly 24
from the source from which realized by the S corporation or 25
incurred in the same manner as incurred by the S corporation. 26
3. A nonresident shareholder of an S corporation shall 27
determine such shareholder's Missouri nonresident adjusted 28
gross income and his or her nonresident shareholder 29
modification by applying the provisions of this subsection. 30
Items shall be determined to be from sources within this 31
state pursuant to regulations of the director of revenue in 32
a manner consistent with the division of income provisions 33
of section 143.451, section 143.461, or section 32.200 34
(Multistate Tax Compact). In determining the adjusted gross 35
income of a nonresident shareholder of any S corporation, 36
there shall be included only that part derived from or 37
connected with sources in this state of the shareholder's 38
pro rata share of items of S corporation income, gain, loss 39
or deduction entering into shareholder's federal adjusted 40
gross income, as such part is determined pursuant to 41
regulations prescribed by the director of revenue in 42
accordance with the general rules in section 143.181. Any 43
modification described in subsections 2 and 3 of section 44
143.121 and in section 143.141, which relates to an item of 45
S corporation income, gain, loss, or deduction shall be made 46
in accordance with the shareholder's pro rata share, for 47
federal income tax purposes, of the item to which the 48
modification relates, but limited to the portion of such 49
item derived from or connected with sources in this state. 50
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4. Notwithstanding subsection 3 of this section to the 51
contrary, for all tax years beginning on or after January 1, 52
2020, the items referred to in that subsection shall be 53
determined to be from sources within this state pursuant to 54
regulations of the director of revenue in a manner 55
consistent with the division of income provisions of section 56
143.455 and section 143.461. 57
5. The director of revenue shall permit S corporations 58
to file composite returns and to make composite payments of 59
tax on behalf of its nonresident shareholders not otherwise 60
required to file a return. If the nonresident shareholder's 61
filing requirements result solely from one or more interests 62
in any other partnerships or subchapter S corporations, that 63
nonresident shareholder may be included in the composite 64
return. 65
6. If an S corporation pays or credits amounts to any 66
of its nonresident individual shareholders as dividends or 67
as their share of the S corporation's undistributed taxable 68
income for the [taxable] tax year, the S corporation shall 69
either timely file with the department of revenue an 70
agreement as provided in subsection 7 of this section or 71
withhold Missouri income tax as provided in subsection 8 of 72
this section. An S corporation that timely files an 73
agreement as provided in subsection 7 of this section with 74
respect to a nonresident shareholder for a [taxable] tax 75
year shall be considered to have timely filed such an 76
agreement for each subsequent [taxable] tax year. An S 77
corporation that does not timely file such an agreement for 78
a [taxable] tax year shall not be precluded from timely 79
filing such an agreement for subsequent [taxable] tax 80
years. An S corporation is not required to deduct and 81
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withhold Missouri income tax for a nonresident shareholder 82
if: 83
(1) The nonresident shareholder not otherwise required 84
to file a return agrees to have the Missouri income tax due 85
paid as part of the S corporation's composite return; 86
(2) The nonresident shareholder not otherwise required 87
to file a return had Missouri assignable federal adjusted 88
gross income from the S corporation of less than twelve 89
hundred dollars; 90
(3) The S corporation is liquidated or terminated; 91
(4) Income was generated by a transaction related to 92
termination or liquidation; or 93
(5) No cash or other property was distributed in the 94
current and prior [taxable] tax year. 95
7. The agreement referred to in subdivision (1) of 96
subsection 6 of this section is an agreement of a 97
nonresident shareholder of the S corporation to: 98
(1) File a return in accordance with the provisions of 99
section 143.481 and to make timely payment of all taxes 100
imposed on the shareholder by this state with respect to 101
income of the S corporation; and 102
(2) Be subject to personal jurisdiction in this state 103
for purposes of the collection of income taxes, together 104
with related interest and penalties, imposed on the 105
shareholder by this state with respect to the income of the 106
S corporation. 107
The agreement will be considered timely filed for a 108
[taxable] tax year, and for all subsequent [taxable] tax 109
years, if it is filed at or before the time the annual 110
return for such [taxable] tax year is required to be filed 111
pursuant to section 143.511. 112
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8. The amount of Missouri income tax to be withheld is 113
determined by multiplying the amount of dividends or 114
undistributed income allocable to Missouri that is paid or 115
credited to a nonresident shareholder during the [taxable] 116
tax year by the highest rate used to determine a Missouri 117
income tax liability for an individual, except that the 118
amount of the tax withheld may be determined based on 119
withholding tables provided by the director of revenue if 120
the shareholder submits a Missouri withholding allowance 121
certificate. 122
9. An S corporation shall be entitled to recover for a 123
shareholder on whose behalf a tax payment was made pursuant 124
to this section, if such shareholder has no tax liability. 125
10. With respect to S corporations that are banks or 126
bank holding companies, a pro rata share of the tax credit 127
for the tax payable pursuant to chapter 148 shall be allowed 128
against each S corporation shareholders' state income tax as 129
follows, provided the bank otherwise complies with section 130
148.112: 131
(1) The credit allowed by this subsection shall be 132
equal to the bank tax calculated pursuant to chapter 148 133
based on bank income in 1999 and after, on a bank that makes 134
an election pursuant to 26 U.S.C. Section 1362, and such 135
credit shall be allocated to the qualifying shareholder 136
according to stock ownership, determined by multiplying a 137
fraction, where the numerator is the shareholder's stock, 138
and the denominator is the total stock issued by such bank 139
or bank holding company; 140
(2) The tax credit authorized in this subsection shall 141
be permitted only to the shareholders that qualify as S 142
corporation shareholders, provided the stock at all times 143
during the taxable period qualifies as S corporation stock 144
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as defined in 26 U.S.C. Section 1361, and such stock is held 145
by the shareholder during the taxable period. The credit 146
created by this section on a yearly basis is available to 147
each qualifying shareholder, including shareholders filing 148
joint returns. A bank holding company is not allowed this 149
credit, except that, such credit shall flow through to such 150
bank holding company's qualified shareholders, and be 151
allocated to such shareholders under the same conditions; and 152
(3) In the event such shareholder cannot use all or 153
part of the tax credit in the taxable period of receipt, 154
such shareholder may carry forward such tax credit for a 155
period of the lesser of five years or until used, provided 156
such credits are used as soon as the taxpayer has Missouri 157
taxable income. 158
11. With respect to S corporations that are 159
associations, a pro rata share of the tax credit for the tax 160
payable under chapter 148 shall be allowed against each S 161
corporation shareholders' state income tax as follows, 162
provided the association otherwise complies with section 163
148.655: 164
(1) The credit allowed by this subsection shall be 165
equal to the savings and loan association tax calculated 166
under chapter 148 based on the computations provided in 167
section 148.630 on an association that makes an election 168
under 26 U.S.C. Section 1362, and such credit shall be 169
allocated to the qualifying shareholder according to stock 170
ownership, determined by multiplying a fraction, where the 171
numerator is the shareholder's stock, and the denominator is 172
the total stock issued by the association; 173
(2) The tax credit authorized in this subsection shall 174
be permitted only to the shareholders that qualify as S 175
corporation shareholders, provided the stock at all times 176
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during the taxable period qualifies as S corporation stock 177
as defined in 26 U.S.C. Section 1361, and such stock is held 178
by the shareholder during the taxable period. The credit 179
created by this section on a yearly basis is available to 180
each qualifying shareholder, including shareholders filing 181
joint returns. A savings and loan association holding 182
company is not allowed this credit, except that, such credit 183
shall flow through to such savings and loan association 184
holding company's qualified shareholders, and be allocated 185
to such shareholders under the same conditions; and 186
(3) In the event such shareholder cannot use all or 187
part of the tax credit in the taxable period of receipt, 188
such shareholder may carry forward such tax credit for a 189
period of the lesser of five years or until used, provided 190
such credits are used as soon as the taxpayer has Missouri 191
taxable income. 192
12. With respect to S corporations that are credit 193
institutions, a pro rata share of the tax credit for the tax 194
payable under chapter 148 shall be allowed against each S 195
corporation shareholders' state income tax as follows, 196
provided the credit institution otherwise complies with 197
section 148.657: 198
(1) The credit allowed by this subsection shall be 199
equal to the credit institution tax calculated under chapter 200
148 based on the computations provided in section 148.150 on 201
a credit institution that makes an election under 26 U.S.C. 202
Section 1362, and such credit shall be allocated to the 203
qualifying shareholder according to stock ownership, 204
determined by multiplying a fraction, where the numerator is 205
the shareholder's stock, and the denominator is the total 206
stock issued by such credit institution; 207
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(2) The tax credit authorized in this subsection shall 208
be permitted only to the shareholders that qualify as S 209
corporation shareholders, provided the stock at all times 210
during the taxable period qualifies as S corporation stock 211
as defined in 26 U.S.C. Section 1361, and such stock is held 212
by the shareholder during the taxable period. The credit 213
created by this section on a yearly basis is available to 214
each qualifying shareholder, including shareholders filing 215
joint returns. A credit institution holding company is not 216
allowed this credit, except that, such credit shall flow 217
through to such credit institution holding company's 218
qualified shareholders, and be allocated to such 219
shareholders under the same conditions; and 220
(3) In the event such shareholder cannot use all or 221
part of the tax credit in the taxable period of receipt, 222
such shareholder may carry forward such tax credit for a 223
period of the lesser of five years or until used, provided 224
such credits are used as soon as the taxpayer has Missouri 225
taxable income. 226
13. (1) For all fiscal years beginning on or after 227
July 1, 2027, the cumulative amount of tax credits issued 228
annually to all taxpayers by the department under 229
subsections 10, 11, and 12 of this section shall not exceed 230
the total cap amount, which shall be an amount equal to the 231
highest annual amount of tax credits issued in any one 232
previous fiscal year, from fiscal year 2024 to fiscal year 233
2026, as determined and calculated by the department. 234
(2) If the amount of tax credits claimed in a fiscal 235
year under subsections 10, 11, and 12 of this section 236
exceeds the total cap determined under subdivision (1) of 237
this subsection, tax credits shall be allowed based on the 238
order in which they were issued. 239
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14. The tax credits authorized under subsections 10, 240
11, and 12 of this section shall not be subject to 241
appropriations, as provided under subsection 4 of section 242
135.835. 243
15. Pursuant to section 23.253 of the Missouri sunset 244
act: 245
(1) The program authorized pursuant to subsections 10, 246
11, and 12 of this section shall automatically sunset August 247
28, 2032, unless reauthorized by an act of the general 248
assembly; 249
(2) Subsections 10, 11, and 12 this section shall 250
terminate on September first of the calendar year 251
immediately following the calendar year in which the program 252
authorized pursuant to subsections 10, 11, and 12 of this 253
section is sunset; and 254
(3) The provisions of this subsection shall not be 255
construed to impair or impede the state's fulfillment of any 256
obligations, including the authorization, issuance, or 257
redemption of tax credits, incurred pursuant to subsections 258
10, 11, and 12 of this section prior to the date the program 259
authorized pursuant to this section is sunset. 260
148.030. 1. Every banking institution shall be 1
subject to an annual tax for the privilege of exercising its 2
corporate franchises within the state determined in 3
accordance with subsection 2 of this section. 4
2. The annual franchise tax imposed by subsection 1 of 5
this section shall be the sum of the amounts determined 6
under subdivisions (1) and (2) of this subsection: 7
(1) For [taxable] tax years beginning after December 8
31, 1986, the amount determined under this subdivision shall 9
be determined in accordance with section 147.010; 10
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(2) The amount determined under this subdivision shall 11
be seven percent of the taxpayer's net income for the income 12
period, from which product shall be subtracted the sum of 13
the amount determined under subdivision (1) of this 14
subsection and the credits allowable under subsection 3 of 15
this section. However, the amount determined under this 16
subdivision shall not be less than zero. 17
3. For purposes of subdivision (2) of subsection 2 of 18
this section, the allowable credits are all taxes paid to 19
the state of Missouri or any political subdivision thereof 20
during the relevant income period, including, without 21
limitation, state and local sales and use taxes paid to 22
seller's, vendors, or the state of Missouri with respect to 23
the taxpayer's purchases of tangible personal property and 24
the services enumerated in chapter 144. However, a taxpayer 25
shall not be entitled to credits for taxes on real estate 26
and tangible personal property owned by the taxpayer and 27
held for lease or rental to others, contributions paid 28
pursuant to the unemployment compensation tax law of 29
Missouri, taxes imposed by this law, taxes imposed under 30
chapter 147 for [taxable] tax years after 1985, or state and 31
local sales and use taxes collected by the taxpayer on its 32
sales of tangible personal property and the services 33
enumerated in chapter 144. 34
4. The tax credits authorized under this section shall 35
not be subject to appropriations, as provided under 36
subsection 4 of section 135.835. 37
148.330. 1. Every such company shall, on or before 1
the first day of March in each year, make a return, verified 2
by the affidavit of its president and secretary, or other 3
authorized officers, to the director of the department of 4
commerce and insurance stating the amount of all premiums 5
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received on account of policies issued in this state by the 6
company, whether in cash or in notes, during the year ending 7
on the thirty-first day of December, next preceding. Upon 8
receipt of such returns the director of the department of 9
commerce and insurance shall verify the same and certify the 10
amount of tax due from the various companies on the basis 11
and at the rates provided in section 148.320, and shall 12
certify the same to the director of revenue together with 13
the amount of the quarterly installments to be made as 14
provided in subsection 2 of this section, on or before the 15
thirtieth day of April of each year. 16
2. Beginning January 1, 1983, the amount of the tax 17
due for that calendar year and each succeeding calendar year 18
thereafter shall be paid in four approximately equal 19
estimated quarterly installments, and a fifth reconciling 20
installment. The first four installments shall be based 21
upon the tax for the immediately preceding [taxable] tax 22
year ending on the thirty-first day of December, next 23
preceding. The quarterly installments shall be made on the 24
first day of March, the first day of June, the first day of 25
September and the first day of December. Immediately after 26
receiving certification from the director of the department 27
of commerce and insurance of the amount of tax due from the 28
various companies the director of revenue shall notify and 29
assess each company the amount of taxes on its premiums for 30
the calendar year ending on the thirty-first day of 31
December, next preceding. The director of revenue shall 32
also notify and assess each company the amount of the 33
estimated quarterly installments to be made for the calendar 34
year. If the amount of the actual tax due for any year 35
exceeds the total of the installments made for such year, 36
the balance of the tax due shall be paid on the first day of 37
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June of the year following, together with the regular 38
quarterly payment due at that time. If the total amount of 39
the tax actually due is less than the total amount of the 40
installments actually paid, the amount by which the amount 41
paid exceeds the amount due shall be credited against the 42
tax for the following year and deducted from the quarterly 43
installment otherwise due on the first day of June. If the 44
March first quarterly installment made by a company is less 45
than the amount assessed by the director of revenue, the 46
difference will be due on June first, but no interest will 47
accrue to the state on the difference unless the amount paid 48
by the company is less than eighty percent of one-fourth of 49
the total amount of tax assessed by the director of revenue 50
for the immediately preceding [taxable] tax year. The state 51
treasurer, upon receiving the moneys paid as a tax upon such 52
premiums to the director of revenue, shall place the moneys 53
to the credit of a fund to be known as "The County Stock 54
Insurance Fund", which is hereby created and established. 55
The county stock insurance fund shall be included in the 56
calculation of total state revenue pursuant to Article X, 57
Section 18, of the Missouri Constitution. 58
3. If the estimated quarterly tax installments are not 59
so paid, the director of revenue shall certify such fact to 60
the director of the department of commerce and insurance who 61
shall thereafter suspend such delinquent company or 62
companies from the further transaction of business in this 63
state until such taxes shall be paid and such companies 64
shall be subject to the provisions of sections 148.410 to 65
148.461. 66
4. On or before the first day of September of each 67
year the commissioner of administration shall apportion all 68
moneys in the county stock insurance fund to the general 69
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revenue fund of the state, to the county treasurer and to 70
the treasurer of the school district in which the principal 71
office of the company paying the same is located. All 72
premium tax credits described in [sections 135.500 to 73
135.529 and] sections 348.430 and 348.432 shall only reduce 74
the amounts apportioned to the general revenue fund of the 75
state and shall not reduce any moneys apportioned to any 76
county treasurer or to the treasurer of the school district 77
in which the principal office of the company paying the same 78
is located. Apportionments shall be made in the same ratio 79
which the rates of levy for the same year for state 80
purposes, for county purposes, and for all school district 81
purposes, bear to each other; provided that any proceeds 82
from such tax for prior years remaining on hand in the hands 83
of the county collector or county treasurer undistributed on 84
the effective date of sections 148.310 to 148.460 and any 85
proceeds of such tax for prior years collected thereafter 86
shall be distributed and paid in accordance with the 87
provisions of such sections. Whenever the word "county" 88
occurs herein it shall be construed to include the city of 89
St. Louis. 90
148.350. 1. Every such company or association shall, 1
on or before the first day of March in each year, make a 2
return, verified by the affidavit of its president and 3
secretary or other authorized officers, to the director of 4
the department of commerce and insurance stating the amount 5
of all premiums received on account of policies issued in 6
this state by such company, whether in cash or in notes, 7
during the year ending on the thirty-first day of December, 8
next preceding. Upon receipt of such returns, the director 9
of the department of commerce and insurance shall verify the 10
same and certify the amount of tax due from the various 11
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companies on the basis and at the rate provided in section 12
148.340, and shall certify the same to the director of 13
revenue together with the amount of the quarterly 14
installments to be made as provided in subsection 2 of this 15
section, on or before the thirtieth day of April of each 16
year. 17
2. Beginning January 1, 1983, the amount of the tax 18
due for that calendar year and each succeeding calendar year 19
thereafter shall be paid in four approximately equal 20
estimated quarterly installments and a fifth reconciling 21
installment. The first four installments shall be based 22
upon the tax assessed for the immediately preceding 23
[taxable] tax year ending on the thirty-first day of 24
December, next preceding. The quarterly installment shall 25
be made on the first day of March, the first day of June, 26
the first day of September, and the first day of December. 27
Immediately after receiving from the director of the 28
department of commerce and insurance, certification of the 29
amount of tax due from the various companies, the director 30
of revenue shall notify and assess each company the amount 31
of taxes on its premiums for the calendar year ending on the 32
thirty-first day of December, next preceding. The director 33
of revenue shall also notify and assess each company the 34
amount of the estimated quarterly installments to be made 35
for the calendar year. If the amount of the actual tax due 36
for any year exceeds the total of the installments made for 37
such year, the balance of the tax due shall be paid on the 38
first day of June of the following year, together with the 39
regular quarterly installment due at that time. If the 40
total amount of the tax actually due is less than the total 41
amount of the installments actually paid, the amount by 42
which the amount paid exceeds the amount due shall be 43
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credited against the tax for the following year and deducted 44
from the quarterly installment otherwise due on the first 45
day of June. If the March first quarterly installment made 46
by a company is less than the amount assessed by the 47
director of revenue, the difference will be due on June 48
first, but no interest will accrue to the state on the 49
difference unless the amount paid by the company is less 50
than eighty percent of one-fourth of the total amount of tax 51
assessed by the director of revenue for the immediately 52
preceding [taxable] tax year. If the estimated quarterly 53
tax installments are not so paid, the director of revenue 54
shall certify such fact to the director of the department of 55
commerce and insurance who shall thereafter suspend such 56
delinquent company or companies from the further transaction 57
of business in this state until such taxes shall be paid, 58
and such companies shall be subject to the provisions of 59
sections 148.410 to 148.461. 60
3. Upon receiving such money from the director of 61
revenue, the state treasurer shall receipt one-half thereof 62
into the general revenue fund of the state, and he shall 63
place the remainder of such tax to the credit of a fund to 64
be known as "The County Foreign Insurance Tax Fund", which 65
is hereby created and established. [All premium tax credits 66
described in sections 135.500 to 135.529 shall only reduce 67
the amount of moneys received by the general revenue fund of 68
this state and shall not reduce any moneys received by the 69
county foreign insurance tax fund.] 70
190.465. 1. In order to provide the best possible 911 1
technology and service to all areas of the state in the most 2
efficient and economical manner possible, it is the public 3
policy of this state to encourage the consolidation of 4
emergency communications operations. 5
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2. Any county, city, or 911 or emergency services 6
board established under this chapter or section 321.243 may 7
contract and cooperate with any other county, city, or 911 8
or emergency services board established under this chapter 9
or section 321.243 as provided in sections 70.210 to 10
70.320. Any contracting counties or boards may seek 11
assistance and advice from the Missouri 911 service board 12
established in section 650.325 regarding the terms of the 13
joint contract and the administration and operation of the 14
contracting counties, cities, and boards. 15
3. If two or more counties, cities, 911 districts, or 16
existing emergency communications entities desire to 17
consolidate their emergency communications operations, a 18
joint emergency communications entity may be established by 19
the parties through an agreement identifying the conditions 20
and provisions of the consolidation and the operation of the 21
joint entity. This agreement may include the establishment 22
of a joint governing body that may be comprised of the 23
boards of the entities forming the agreement currently 24
authorized by statute or an elected or appointed joint board 25
authorized under section 70.260; provided that, the 26
representation on the joint board of each of the entities 27
forming the agreement shall be equal. If the entities 28
entering into an agreement under this subsection decide that 29
any 911 service center responsible for the answering of 911 30
calls and the dispatch of assistance shall be physically 31
located in a county other than a county with the lowest 32
average county wage from the set of counties where the 33
entities entering into an agreement under this subsection 34
are located in whole or part, such entities shall provide a 35
written reason for this decision to the Missouri 911 service 36
board and such document shall be considered a public record 37
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under chapter 610. The county average wage comparison shall 38
be conducted using the information from the Missouri 39
department of economic development[, which calculates such 40
county average wages under section 135.950]. 41
4. After August 28, 2018, no public safety answering 42
point operation may be established as a result of its 43
separation from an existing public safety answering point 44
operation without a study by, and the approval of, the 45
Missouri 911 service board. 46
5. No provision of this section shall be construed to 47
prohibit or discourage in any manner the formation of 48
multiagency or multijurisdictional public safety answering 49
point operations. 50
192.2015. 1. Any registered caregiver who meets the 1
requirements of this section shall be eligible for a shared 2
care tax credit in an amount not to exceed five hundred 3
dollars to defray the cost of caring for an elderly person. 4
In order to be eligible for a shared care tax credit, a 5
registered caregiver shall: 6
(1) Care for an elderly person, age sixty or older, 7
who: 8
(a) Is physically or mentally incapable of living 9
alone, as determined and certified by his or her physician 10
licensed pursuant to chapter 334, or by the department staff 11
when an assessment has been completed for the purpose of 12
qualification for other services; and 13
(b) Requires assistance with activities of daily 14
living to the extent that without care and oversight at home 15
would require placement in a facility licensed pursuant to 16
chapter 198; and 17
(c) Under no circumstances, is able or allowed to 18
operate a motor vehicle; and 19
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(d) Does not receive funding or services through 20
Medicaid or social services block grant funding; 21
(2) Live in the same residence to give protective 22
oversight for the elderly person meeting the requirements 23
described in subdivision (1) of this subsection for an 24
aggregate of more than six months per tax year; 25
(3) Not receive monetary compensation for providing 26
care for the elderly person meeting the requirements 27
described in subdivision (1) of this subsection; and 28
(4) File the original completed and signed physician 29
certification for shared care tax credit form or the 30
original completed and signed department certification for 31
shared care tax credit form provided for in subsection 2 of 32
section 192.2010 along with such caregiver's Missouri 33
individual income tax return to the department of revenue. 34
2. The tax credit allowed by this section shall apply 35
to any year beginning after December 31, 1999. 36
3. (1) For all fiscal years beginning on or after 37
July 1, 2027, the cumulative amount of tax credits issued 38
annually to all taxpayers by the department under this 39
section shall not exceed the total cap amount, which shall 40
be an amount equal to the highest annual amount of tax 41
credits issued in any one previous fiscal year, from fiscal 42
year 2024 to fiscal year 2026, as determined and calculated 43
by the department. 44
(2) If the amount of tax credits claimed in a fiscal 45
year under this section exceeds the total cap determined 46
under subdivision (1) of this subsection, tax credits shall 47
be allowed based on the order in which they were issued. 48
[3.] 4. Any rule or portion of a rule, as that term is 49
defined in section 536.010, that is created under the 50
authority delegated in sections 192.2000 to 192.2020 shall 51
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become effective only if it complies with and is subject to 52
all of the provisions of chapter 536 and, if applicable, 53
section 536.028. All rulemaking authority delegated prior 54
to August 28, 1999, is of no force and effect and repealed. 55
Nothing in this section shall be interpreted to repeal or 56
affect the validity of any rule filed or adopted prior to 57
August 28, 1999, if it fully complied with all applicable 58
provisions of law. This section and chapter 536 are 59
nonseverable and if any of the powers vested with the 60
general assembly pursuant to chapter 536 to review, to delay 61
the effective date or to disapprove and annul a rule are 62
subsequently held unconstitutional, then the grant of 63
rulemaking authority and any rule proposed or adopted after 64
August 28, 1999, shall be invalid and void. 65
[4.] 5. Any person who knowingly falsifies any 66
document required for the shared care tax credit shall be 67
subject to the same penalties for falsifying other tax 68
documents as provided in chapter 143. 69
6. Pursuant to section 23.253 of the Missouri sunset 70
act: 71
(1) The program authorized pursuant to this section 72
shall automatically sunset August 28, 2032, unless 73
reauthorized by an act of the general assembly; 74
(2) This section shall terminate on September first of 75
the calendar year immediately following the calendar year in 76
which the program authorized pursuant to this section is 77
sunset; and 78
(3) The provisions of this section shall not be 79
construed to impair or impede the state's fulfillment of any 80
obligations, including the authorization, issuance, or 81
redemption of tax credits, incurred pursuant to this section 82
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prior to the date the program authorized pursuant to this 83
section is sunset. 84
208.770. 1. Moneys deposited in or withdrawn pursuant 1
to subsection 1 of section 208.760 from a family development 2
account by an account holder are exempted from taxation 3
pursuant to chapter 143, excluding withholding tax imposed 4
by sections 143.191 to 143.265, and chapter 147, 148 or 153 5
provided, however, that any money withdrawn for an 6
unapproved use should be subject to tax as required by law. 7
2. Interest earned by a family development account is 8
exempted from taxation pursuant to chapter 143. 9
3. Any funds in a family development account, 10
including accrued interest, shall be disregarded when 11
determining eligibility to receive, or the amount of, any 12
public assistance or benefits. 13
4. A program contributor shall be allowed a credit 14
against the tax imposed by chapter 143, excluding 15
withholding tax imposed by sections 143.191 to 143.265, and 16
chapter 147, 148 or 153, pursuant to sections 208.750 to 17
208.775. Contributions up to fifty thousand dollars per 18
program contributor are eligible for the tax credit which 19
shall not exceed fifty percent of the contribution amount. 20
5. The department of economic development shall verify 21
all tax credit claims by contributors. The administrator of 22
the community-based organization, with the cooperation of 23
the participating financial institutions, shall submit the 24
names of contributors and the total amount each contributor 25
contributes to a family development account reserve fund for 26
the calendar year. The director shall determine the date by 27
which such information shall be submitted to the department 28
by the local administrator. The department shall submit 29
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verification of qualified tax credits pursuant to sections 30
208.750 to 208.775 to the department of revenue. 31
6. For all fiscal years ending on or before June 30, 32
2010, the total tax credits authorized pursuant to sections 33
208.750 to 208.775 shall not exceed four million dollars in 34
any fiscal year. For all fiscal years beginning on or after 35
July 1, 2010, the total tax credits authorized under 36
sections 208.750 to 208.775 shall not exceed three hundred 37
thousand dollars in any fiscal year. 38
7. Pursuant to section 23.253 of the Missouri sunset 39
act: 40
(1) The program authorized pursuant to this section 41
shall automatically sunset August 28, 2032, unless 42
reauthorized by an act of the general assembly; 43
(2) This section shall terminate on September first of 44
the calendar year immediately following the calendar year in 45
which the program authorized pursuant to this section is 46
sunset; and 47
(3) The provisions of this section shall not be 48
construed to impair or impede the state's fulfillment of any 49
obligations, including the authorization, issuance, or 50
redemption of tax credits, incurred pursuant to this section 51
prior to the date the program authorized pursuant to this 52
section is sunset. 53
320.092. 1. Tax credits issued pursuant to sections 1
135.400[,] to 135.432 and section 135.750 [and 320.093] 2
shall be subject to oversight provisions. Effective January 3
1, 2000, notwithstanding the provisions of section 32.057, 4
the board, department or authority issuing tax credits shall 5
annually report to the office of administration, president 6
pro tem of the senate, and the speaker of the house of 7
representatives regarding the tax credits issued pursuant to 8
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sections 135.400[,] to 135.432 and section 135.750 [and 9
320.093] which were issued in the previous fiscal year. The 10
report shall contain, but not be limited to, the aggregate 11
number and dollar amount of tax credits issued by the board, 12
department or authority, the number and dollar amount of tax 13
credits claimed by taxpayers, and the number and dollar 14
amount of tax credits unclaimed by taxpayers as well as the 15
number of years allowed for claims to be made. This report 16
shall be delivered no later than November of each year. 17
2. The reporting requirements established pursuant to 18
subsection 1 of this section shall also apply to the 19
department of economic development and the Missouri 20
development finance board established pursuant to section 21
100.265. The department and the Missouri development 22
finance board shall report on the tax credit programs which 23
they respectively administer that are authorized under the 24
provisions of chapters 32, 100, 135, 178, 253, 348, 447 and 25
620. 26
348.505. 1. As used in this section, "state tax 1
liability"[,] means any state tax liability incurred by a 2
taxpayer under the provisions of chapters 143, 147, and 148, 3
exclusive of the provisions relating to the withholding of 4
tax as provided for in sections 143.191 to 143.265 and 5
related provisions. 6
2. Any eligible lender under the family farm livestock 7
loan program under section 348.500 shall be entitled to 8
receive a tax credit equal to one hundred percent of the 9
amount of interest waived by the lender under section 10
348.500 on a qualifying loan for the first year of the loan 11
only. The tax credit shall be evidenced by a tax credit 12
certificate issued by the agricultural and small business 13
development authority and may be used to satisfy the state 14
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tax liability of the owner of such certificate that becomes 15
due in the tax year in which the interest on a qualified 16
loan is waived by the lender under section 348.500. No 17
lender may receive a tax credit under this section unless 18
such person presents a tax credit certificate to the 19
department of revenue for payment of such state tax 20
liability. The amount of the tax credits that may be issued 21
to all eligible lenders claiming tax credits authorized in 22
this section in a fiscal year shall not exceed three hundred 23
thousand dollars. 24
3. The agricultural and small business development 25
authority shall be responsible for the administration and 26
issuance of the certificate of tax credits authorized by 27
this section. The authority shall issue a certificate of 28
tax credit at the request of any lender. Each request shall 29
include a true copy of the loan documents, the name of the 30
lender who is to receive a certificate of tax credit, the 31
type of state tax liability against which the tax credit is 32
to be used, and the amount of the certificate of tax credit 33
to be issued to the lender based on the interest waived by 34
the lender under section 348.500 on the loan for the first 35
year. 36
4. The Missouri department of revenue shall accept a 37
certificate of tax credit in lieu of other payment in such 38
amount as is equal to the lesser of the amount of the tax or 39
the remaining unused amount of the credit as indicated on 40
the certificate of tax credit, and shall indicate on the 41
certificate of tax credit the amount of tax thereby paid and 42
the date of such payment. 43
5. The following provisions shall apply to tax credits 44
authorized under this section: 45
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(1) Tax credits claimed in a [taxable] tax year may be 46
claimed on a quarterly basis and applied to the estimated 47
quarterly tax of the lender; 48
(2) Any amount of tax credit which exceeds the tax 49
due, including any estimated quarterly taxes paid by the 50
lender under subdivision (1) of this subsection which 51
results in an overpayment of taxes for a [taxable] tax year, 52
shall not be refunded but may be carried over to any 53
subsequent [taxable] tax year, not to exceed a total of 54
three years for which a tax credit may be taken for a 55
qualified family farm livestock loan; 56
(3) Notwithstanding any provision of law to the 57
contrary, a lender may assign, transfer or sell tax credits 58
authorized under this section, with the new owner of the tax 59
credit receiving the same rights in the tax credit as the 60
lender. For any tax credits assigned, transferred, sold, or 61
otherwise conveyed, a notarized endorsement shall be filed 62
by the lender with the authority specifying the name and 63
address of the new owner of the tax credit and the value of 64
such tax credit; and 65
(4) Notwithstanding any other provision of this 66
section to the contrary, any commercial bank may use tax 67
credits created under this section as provided in section 68
148.064 and receive a net tax credit against taxes actually 69
paid in the amount of the first year's interest on loans 70
made under this section. If such first year tax credits 71
reduce taxes due as provided in section 148.064 to zero, the 72
remaining tax credits may be carried over as otherwise 73
provided in this section and utilized as provided in section 74
148.064 in subsequent years. 75
6. Pursuant to section 23.253 of the Missouri sunset 76
act: 77
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(1) The program authorized pursuant to this section 78
shall automatically sunset August 28, 2032, unless 79
reauthorized by an act of the general assembly; 80
(2) This section shall terminate on September first of 81
the calendar year immediately following the calendar year in 82
which the program authorized pursuant to this section is 83
sunset; and 84
(3) The provisions of this section shall not be 85
construed to impair or impede the state's fulfillment of any 86
obligations, including the authorization, issuance, or 87
redemption of tax credits, incurred pursuant to this section 88
prior to the date the program authorized pursuant to this 89
section is sunset. 90
447.708. 1. For eligible projects, the director of 1
the department of economic development, with notice to the 2
directors of the departments of natural resources and 3
revenue, and subject to the other provisions of sections 4
447.700 to 447.718, may not create a new enterprise zone but 5
may decide that a prospective operator of a facility being 6
remedied and renovated pursuant to sections 447.700 to 7
447.718 may receive the tax credits and exemptions pursuant 8
to sections 135.100 to 135.150 and sections 135.200 to 9
135.257. The tax credits allowed pursuant to this 10
subsection shall be used to offset the tax imposed by 11
chapter 143, excluding withholding tax imposed by sections 12
143.191 to 143.265, or the tax otherwise imposed by chapter 13
147, or the tax otherwise imposed by chapter 148. For 14
purposes of this subsection: 15
(1) For receipt of the ad valorem tax abatement 16
pursuant to section 135.215, the eligible project must 17
create at least ten new jobs or retain businesses which 18
supply at least twenty-five existing jobs. The city, or 19
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county if the eligible project is not located in a city, 20
must provide ad valorem tax abatement of at least fifty 21
percent for a period not less than ten years and not more 22
than twenty-five years; 23
(2) For receipt of the income tax exemption pursuant 24
to section 135.220 and tax credit for new or expanded 25
business facilities pursuant to sections 135.100 to 135.150, 26
and 135.225, the eligible project must create at least ten 27
new jobs or retain businesses which supply at least twenty- 28
five existing jobs, or combination thereof. For purposes of 29
sections 447.700 to 447.718, the tax credits described in 30
section 135.225 are modified as follows: the tax credit 31
shall be four hundred dollars per employee per year, an 32
additional four hundred dollars per year for each employee 33
exceeding the minimum employment thresholds of ten and 34
twenty-five jobs for new and existing businesses, 35
respectively, an additional four hundred dollars per year 36
for each person who is a person difficult to employ as 37
defined by section 135.240, and investment tax credits at 38
the same amounts and levels as provided in subdivision (4) 39
of subsection 1 of section 135.225; 40
(3) For eligibility to receive the income tax refund 41
pursuant to section 135.245, the eligible project must 42
create at least ten new jobs or retain businesses which 43
supply at least twenty-five existing jobs, or combination 44
thereof, and otherwise comply with the provisions of section 45
135.245 for application and use of the refund and the 46
eligibility requirements of this section; 47
(4) The eligible project operates in compliance with 48
applicable environmental laws and regulations, including 49
permitting and registration requirements, of this state as 50
well as the federal and local requirements; 51
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(5) The eligible project operator shall file such 52
reports as may be required by the director of economic 53
development or the director's designee; 54
(6) The taxpayer may claim the state tax credits 55
authorized by this subsection and the state income exemption 56
for a period not in excess of ten consecutive tax years. 57
For the purpose of this section, "taxpayer" means an 58
individual proprietorship, partnership or corporation 59
described in section 143.441 or 143.471 who operates an 60
eligible project. The director shall determine the number 61
of years the taxpayer may claim the state tax credits and 62
the state income exemption based on the projected net state 63
economic benefits attributed to the eligible project; 64
(7) For the purpose of meeting the new job requirement 65
prescribed in subdivisions (1), (2) and (3) of this 66
subsection, it shall be required that at least ten new jobs 67
be created and maintained during the taxpayer's tax period 68
for which the credits are earned, in the case of an eligible 69
project that does not replace a similar facility in 70
Missouri. "New job" means a person who was not previously 71
employed by the taxpayer or related taxpayer within the 72
twelve-month period immediately preceding the time the 73
person was employed by that taxpayer to work at, or in 74
connection with, the eligible project on a full-time basis. 75
"Full-time basis" means the employee works an average of at 76
least thirty-five hours per week during the taxpayer's tax 77
period for which the tax credits are earned. For the 78
purposes of this section, "related taxpayer" has the same 79
meaning as defined in subdivision (10) of section 135.100; 80
(8) For the purpose of meeting the existing job 81
retention requirement, if the eligible project replaces a 82
similar facility that closed elsewhere in Missouri prior to 83
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the end of the taxpayer's tax period in which the tax 84
credits are earned, it shall be required that at least 85
twenty-five existing jobs be retained at, and in connection 86
with the eligible project, on a full-time basis during the 87
taxpayer's tax period for which the credits are earned. 88
"Retained job" means a person who was previously employed by 89
the taxpayer or related taxpayer, at a facility similar to 90
the eligible project that closed elsewhere in Missouri prior 91
to the end of the taxpayer's tax period in which the tax 92
credits are earned, within the tax period immediately 93
preceding the time the person was employed by the taxpayer 94
to work at, or in connection with, the eligible project on a 95
full-time basis. "Full-time basis" means the employee works 96
an average of at least thirty-five hours per week during the 97
taxpayer's tax period for which the tax credits are earned; 98
(9) In the case where an eligible project replaces a 99
similar facility that closed elsewhere in Missouri prior to 100
the end of the taxpayer's tax period in which the tax 101
credits are earned, the owner and operator of the eligible 102
project shall provide the director with a written statement 103
explaining the reason for discontinuing operations at the 104
closed facility. The statement shall include a comparison 105
of the activities performed at the closed facility prior to 106
the date the facility ceased operating, to the activities 107
performed at the eligible project, and a detailed account 108
describing the need and rationale for relocating to the 109
eligible project. If the director finds the relocation to 110
the eligible project significantly impaired the economic 111
stability of the area in which the closed facility was 112
located, and that such move was detrimental to the overall 113
economic development efforts of the state, the director may 114
deny the taxpayer's request to claim tax benefits; 115
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(10) Notwithstanding any provision of law to the 116
contrary, for the purpose of this section, the number of new 117
jobs created and maintained, the number of existing jobs 118
retained, and the value of new qualified investment used at 119
the eligible project during any tax year shall be determined 120
by dividing by twelve, in the case of jobs, the sum of the 121
number of individuals employed at the eligible project, or 122
in the case of new qualified investment, the value of new 123
qualified investment used at the eligible project, on the 124
last business day of each full calendar month of the tax 125
year. If the eligible project is in operation for less than 126
the entire tax year, the number of new jobs created and 127
maintained, the number of existing jobs retained, and the 128
value of new qualified investment created at the eligible 129
project during any tax year shall be determined by dividing 130
the sum of the number of individuals employed at the 131
eligible project, or in the case of new qualified 132
investment, the value of new qualified investment used at 133
the eligible project, on the last business day of each full 134
calendar month during the portion of the tax year during 135
which the eligible project was in operation, by the number 136
of full calendar months during such period; 137
(11) For the purpose of this section, "new qualified 138
investment" means new business facility investment as 139
defined and as determined in subdivision (8) of section 140
135.100 which is used at and in connection with the eligible 141
project. New qualified investment shall not include small 142
tools, supplies and inventory. "Small tools" means tools 143
that are portable and can be hand held. 144
2. The determination of the director of economic 145
development pursuant to subsection 1 of this section shall 146
not affect requirements for the prospective purchaser to 147
SB 1188 143
obtain the approval of the granting of real property tax 148
abatement by the municipal or county government where the 149
eligible project is located. 150
3. (1) The director of the department of economic 151
development, with the approval of the director of the 152
department of natural resources, may, in addition to the tax 153
credits allowed in subsection 1 of this section, grant a 154
remediation tax credit to the applicant for up to one 155
hundred percent of the costs of materials, supplies, 156
equipment, labor, professional engineering, consulting and 157
architectural fees, permitting fees and expenses, 158
demolition, asbestos abatement, and direct utility charges 159
for performing the voluntary remediation activities for the 160
preexisting hazardous substance contamination and releases, 161
including, but not limited to, the costs of performing 162
operation and maintenance of the remediation equipment at 163
the property beyond the year in which the systems and 164
equipment are built and installed at the eligible project 165
and the costs of performing the voluntary remediation 166
activities over a period not in excess of four tax years 167
following the taxpayer's tax year in which the system and 168
equipment were first put into use at the eligible project, 169
provided the remediation activities are the subject of a 170
plan submitted to, and approved by, the director of natural 171
resources pursuant to sections 260.565 to 260.575. The tax 172
credit may also include up to one hundred percent of the 173
costs of demolition that are not directly part of the 174
remediation activities, provided that the demolition is on 175
the property where the voluntary remediation activities are 176
occurring, the demolition is necessary to accomplish the 177
planned use of the facility where the remediation activities 178
are occurring, and the demolition is part of a redevelopment 179
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plan approved by the municipal or county government and the 180
department of economic development. The demolition may 181
occur on an adjacent property if the project is located in a 182
municipality which has a population less than twenty 183
thousand and the above conditions are otherwise met. The 184
adjacent property shall independently qualify as abandoned 185
or underutilized. The amount of the credit available for 186
demolition not associated with remediation cannot exceed the 187
total amount of credits approved for remediation including 188
demolition required for remediation. 189
(2) The amount of remediation tax credits issued shall 190
be limited to the least amount necessary to cause the 191
project to occur, as determined by the director of the 192
department of economic development. 193
(3) The director may, with the approval of the 194
director of natural resources, extend the tax credits 195
allowed for performing voluntary remediation maintenance 196
activities, in increments of three-year periods, not to 197
exceed five consecutive three-year periods. The tax credits 198
allowed in this subsection shall be used to offset the tax 199
imposed by chapter 143, excluding withholding tax imposed by 200
sections 143.191 to 143.265, or the tax otherwise imposed by 201
chapter 147, or the tax otherwise imposed by chapter 148. 202
The remediation tax credit may be taken in the same tax year 203
in which the tax credits are received or may be taken over a 204
period not to exceed twenty years. 205
(4) The project facility shall be projected to create 206
at least ten new jobs or at least twenty-five retained jobs, 207
or a combination thereof, as determined by the department of 208
economic development, to be eligible for tax credits 209
pursuant to this section. 210
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(5) No more than seventy-five percent of earned 211
remediation tax credits may be issued when the remediation 212
costs were paid, and the remaining percentage may be issued 213
when the department of natural resources issues a letter of 214
completion letter or covenant not to sue following 215
completion of the voluntary remediation activities. It 216
shall not include any costs associated with ongoing 217
operational environmental compliance of the facility or 218
remediation costs arising out of spills, leaks, or other 219
releases arising out of the ongoing business operations of 220
the facility. In the event the department of natural 221
resources issues a letter of completion for a portion of a 222
property, an impacted media such as soil or groundwater, or 223
for a site or a portion of a site improvement, a prorated 224
amount of the remaining percentage may be released based on 225
the percentage of the total site receiving a letter of 226
completion. 227
4. In the exercise of the sound discretion of the 228
director of the department of economic development or the 229
director's designee, the tax credits and exemptions 230
described in this section may be terminated, suspended or 231
revoked if the eligible project fails to continue to meet 232
the conditions set forth in this section. In making such a 233
determination, the director shall consider the severity of 234
the condition violation, actions taken to correct the 235
violation, the frequency of any condition violations and 236
whether the actions exhibit a pattern of conduct by the 237
eligible facility owner and operator. The director shall 238
also consider changes in general economic conditions and the 239
recommendation of the director of the department of natural 240
resources, or his or her designee, concerning the severity, 241
scope, nature, frequency and extent of any violations of the 242
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environmental compliance conditions. The taxpayer or person 243
claiming the tax credits or exemptions may appeal the 244
decision regarding termination, suspension or revocation of 245
any tax credit or exemption in accordance with the 246
procedures outlined in subsections 4 and 5 of section 247
135.250. The director of the department of economic 248
development shall notify the directors of the departments of 249
natural resources and revenue of the termination, suspension 250
or revocation of any tax credits as determined in this 251
section or pursuant to the provisions of section 447.716. 252
5. Notwithstanding any provision of law to the 253
contrary, no taxpayer shall earn the tax credits, exemptions 254
or refund otherwise allowed in subdivisions (2), (3) and (4) 255
of subsection 1 of this section and the tax credits 256
otherwise allowed in section 135.110, or the tax credits, 257
exemptions and refund otherwise allowed in sections 135.215, 258
135.220, 135.225 and 135.245, respectively, for the same 259
facility for the same tax period. 260
6. The total amount of the tax credits allowed in 261
subsection 1 of this section may not exceed the greater of: 262
(1) That portion of the taxpayer's income attributed 263
to the eligible project; or 264
(2) One hundred percent of the total business' income 265
tax if the eligible facility does not replace a similar 266
facility that closed elsewhere in Missouri prior to the end 267
of the taxpayer's tax period in which the tax credits are 268
earned, and further provided the taxpayer does not operate 269
any other facilities besides the eligible project in 270
Missouri; fifty percent of the total business' income tax if 271
the eligible facility replaces a similar facility that 272
closed elsewhere in Missouri prior to the end of the 273
taxpayer's tax period in which the credits are earned, and 274
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further provided the taxpayer does not operate any other 275
facilities besides the eligible project in Missouri; or 276
twenty-five percent of the total business income if the 277
taxpayer operates, in addition to the eligible facility, any 278
other facilities in Missouri. In no case shall a taxpayer 279
operating more than one eligible project in Missouri be 280
allowed to offset more than twenty-five percent of the 281
taxpayer's business income in any tax period. That portion 282
of the taxpayer's income attributed to the eligible project 283
as referenced in subdivision (1) of this subsection, for 284
which the credits allowed in sections 135.110 and 135.225 285
and subsection 3 of this section may apply, shall be 286
determined in the same manner as prescribed in subdivision 287
(5) of section 135.100. That portion of the taxpayer's 288
franchise tax attributed to the eligible project for which 289
the remediation tax credit may offset, shall be determined 290
in the same manner as prescribed in paragraph (a) of 291
subdivision (5) of section 135.100. 292
7. Taxpayers claiming the state tax benefits allowed 293
in subdivisions (2) and (3) of subsection 1 of this section 294
shall be required to file all applicable tax credit 295
applications, forms and schedules prescribed by the director 296
during the taxpayer's tax period immediately after the tax 297
period in which the eligible project was first put into 298
use. Otherwise, the taxpayer's right to claim such state 299
tax benefits shall be forfeited. Unused business facility 300
and enterprise zone tax credits shall not be carried forward 301
but shall be initially claimed for the tax period during 302
which the eligible project was first capable of being used, 303
and during any applicable subsequent tax periods. 304
8. Taxpayers claiming the remediation tax credit 305
allowed in subsection 3 of this section shall be required to 306
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file all applicable tax credit applications, forms and 307
schedules prescribed by the director during the taxpayer's 308
tax period immediately after the tax period in which the 309
eligible project was first put into use, or during the 310
taxpayer's tax period immediately after the tax period in 311
which the voluntary remediation activities were performed. 312
9. The recipient of remediation tax credits, for the 313
purpose of this subsection referred to as assignor, may 314
assign, sell or transfer, in whole or in part, the 315
remediation tax credit allowed in subsection 3 of this 316
section to any other person, for the purpose of this 317
subsection referred to as assignee. To perfect the 318
transfer, the assignor shall provide written notice to the 319
director of the assignor's intent to transfer the tax 320
credits to the assignee, the date the transfer is effective, 321
the assignee's name, address and the assignee's tax period 322
and the amount of tax credits to be transferred. The number 323
of tax periods during which the assignee may subsequently 324
claim the tax credits shall not exceed twenty tax periods, 325
less the number of tax periods the assignor previously 326
claimed the credits before the transfer occurred. 327
10. In the case where an operator and assignor of an 328
eligible project has been certified to claim state tax 329
benefits allowed in subdivisions (2) and (3) of subsection 1 330
of this section, and sells or otherwise transfers title of 331
the eligible project to another taxpayer or assignee who 332
continues the same or substantially similar operations at 333
the eligible project, the director shall allow the assignee 334
to claim the credits for a period of time to be determined 335
by the director; except that, the total number of tax 336
periods the tax credits may be earned by the assignor and 337
the assignee shall not exceed ten. To perfect the transfer, 338
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the assignor shall provide written notice to the director of 339
the assignor's intent to transfer the tax credits to the 340
assignee, the date the transfer is effective, the assignee's 341
name, address, and the assignee's tax period, and the amount 342
of tax credits to be transferred. 343
11. For the purpose of the state tax benefits 344
described in this section, in the case of a corporation 345
described in section 143.471 or partnership, in computing 346
Missouri's tax liability, such state benefits shall be 347
allowed to the following: 348
(1) The shareholders of the corporation described in 349
section 143.471; 350
(2) The partners of the partnership. 351
The credit provided in this subsection shall be apportioned 352
to the entities described in subdivisions (1) and (2) of 353
this subsection in proportion to their share of ownership on 354
the last day of the taxpayer's tax period. 355
12. Notwithstanding any provision of law to the 356
contrary, in any county [of the first classification] that 357
has a charter form of government and that has a population 358
of over nine hundred thousand inhabitants, all demolition 359
costs incurred during the redevelopment of any former 360
automobile manufacturing plant shall be allowable costs 361
eligible for tax credits under sections 447.700 to 447.718 362
so long as the redevelopment of such former automobile 363
manufacturing plant shall be projected to create at least 364
two hundred fifty new jobs or at least three hundred 365
retained jobs, or a combination thereof, as determined by 366
the department of economic development. The amount of 367
allowable costs eligible for tax credits shall be limited to 368
the least amount necessary to cause the project to occur, as 369
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determined by the director of the department of economic 370
development, provided that no tax credit shall be issued 371
under this subsection until July 1, 2017. For purposes of 372
this subsection, "former automobile manufacturing plant" 373
means a redevelopment area that qualifies as an eligible 374
project under section 447.700, that consists of at least one 375
hundred acres, and that was used primarily for the 376
manufacture of automobiles but, after 2007, ceased such 377
manufacturing. 378
13. (1) For all fiscal years beginning on or after 379
July 1, 2027, the cumulative amount of tax credits issued 380
annually to all taxpayers by the department under this 381
section shall not exceed the total cap amount which shall be 382
an amount, equal to the highest annual amount of tax credits 383
issued in any one previous fiscal year, from fiscal year 384
2024 to fiscal year 2026, as determined and calculated by 385
the department. 386
(2) If the amount of tax credits claimed in a fiscal 387
year under this section exceeds the total cap determined 388
under subdivision (1) of this subsection, tax credits shall 389
be allowed based on the order in which they were issued. 390
14. Pursuant to section 23.253 of the Missouri sunset 391
act: 392
(1) The program authorized pursuant to this section 393
shall automatically sunset August 28, 2032, unless 394
reauthorized by an act of the general assembly; 395
(2) This section shall terminate on September first of 396
the calendar year immediately following the calendar year in 397
which the program authorized pursuant to this section is 398
sunset; and 399
(3) The provisions of this section shall not be 400
construed to impair or impede the state's fulfillment of any 401
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obligations, including the authorization, issuance, or 402
redemption of tax credits, incurred pursuant to this section 403
prior to the date the program authorized pursuant to this 404
section is sunset. 405
620.1910. 1. This section shall be known and may be 1
cited as the "Manufacturing Jobs Act". 2
2. As used in this section, the following terms mean: 3
(1) "Approval", a document submitted by the department 4
to the qualified manufacturing company or qualified supplier 5
that states the benefits that may be provided under this 6
section; 7
(2) "Average wage", the new payroll divided by the 8
number of new jobs; 9
(3) "Capital investment", expenditures made by a 10
qualified manufacturing company to retool or reconfigure a 11
manufacturing facility directly related to the manufacturing 12
of a new product or the expansion or modification of the 13
manufacture of an existing product; 14
[(3)] (4) "County average wage", the [same meaning as 15
such term is defined in section 620.1878] average wages in 16
each county as determined by the department for the most 17
recently completed full calendar year. However, if the 18
computed county average wage is above the statewide average 19
wage, the statewide average wage shall be deemed the county 20
average wage for such county for the purpose of determining 21
eligibility. The department shall publish the county 22
average wage for each county at least annually. 23
Notwithstanding the provisions of this subdivision to the 24
contrary, for any qualified company that in conjunction with 25
its project is relocating employees from a Missouri county 26
with a higher county average wage, the company shall obtain 27
the endorsement of the governing body of the community from 28
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which jobs are being relocated or the county average wage 29
for its project shall be the county average wage for the 30
county from which the employees are being relocated; 31
[(4)] (5) "Department", the department of economic 32
development; 33
[(5)] (6) "Facility", a building or buildings located 34
in Missouri at which the qualified manufacturing company 35
manufactures a product; 36
[(6)] (7) "Full-time job", a job for which a person is 37
compensated for an average of at least thirty-five hours per 38
week for a twelve-month period, and one for which the 39
qualified manufacturing company or qualified supplier offers 40
health insurance and pays at least fifty percent of such 41
insurance premiums; 42
[(7)] (8) "NAICS industry classification", the most 43
recent edition of the North American Industry Classification 44
System as prepared by the Executive Office of the President, 45
Office of Management and Budget; 46
[(8)] (9) "New job", the [same meaning as such term is 47
defined in section 620.1878] number of full-time employees 48
located at the project facility that exceeds the project 49
facility base employment less any decrease in the number of 50
full-time employees at related facilities below the related 51
facility base employment. No job that was created prior to 52
the date of the notice of intent shall be deemed a new job. 53
An employee who spends less than fifty percent of the 54
employee's work time at the facility is still considered to 55
be located at the facility if the employee receives his or 56
her directions and control from that facility, is on the 57
facility's payroll, one hundred percent of the employee's 58
income from such employment is Missouri income, and the 59
employee is paid at or above the state average wage; 60
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[(9)] (10) "New product", a new model or line of a 61
manufactured good that has not been manufactured in Missouri 62
by the qualified manufacturing company at any time prior to 63
the date of the notice of intent, or an existing brand, 64
model, or line of a manufactured good that is redesigned 65
with more than seventy-five percent new exterior body parts 66
and incorporates new powertrain options; 67
[(10)] (11) "Notice of intent", a form developed by 68
the department, completed by the qualified manufacturing 69
company or qualified supplier and submitted to the 70
department which states the qualified manufacturing 71
company's or qualified supplier's intent to create new jobs 72
or retain current jobs and make additional capital 73
investment, as applicable, and request benefits under this 74
section. The notice of intent shall specify the minimum 75
number of such new or retained jobs and the minimum amount 76
of such capital investment; 77
[(11)] (12) "Qualified manufacturing company", a 78
business with a NAICS code of 33611 that: 79
(a) Manufactures goods at a facility in Missouri; 80
(b) In the case of the manufacture of a new product, 81
commits to make a capital investment of at least seventy- 82
five thousand dollars per retained job within no more than 83
two years of the date the qualified manufacturing company 84
begins to retain withholding tax under this section, or in 85
the case of the modification or expansion of the manufacture 86
of an existing product, commits to make a capital investment 87
of at least fifty thousand dollars per retained job within 88
no more than two years of the date the qualified 89
manufacturing company begins to retain withholding tax under 90
this section; 91
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(c) Manufactures a new product or has commenced making 92
capital improvements to the facility necessary for the 93
manufacturing of such new product, or modifies or expands 94
the manufacture of an existing product or has commenced 95
making capital improvements to the facility necessary for 96
the modification or expansion of the manufacture of such 97
existing product; and 98
(d) Continues to meet the requirements of paragraphs 99
(a) to (c) of this subdivision for the withholding period; 100
[(12)] (13) "Qualified supplier", a manufacturing 101
company that: 102
(a) Attests to the department that it derives more 103
than ten percent of the total annual sales of the company 104
from sales to a qualified manufacturing company; 105
(b) Adds five or more new jobs; 106
(c) Has an average wage, as defined [in] under section 107
135.950, for such new jobs that are equal to or exceed the 108
lower of the county average wage for Missouri as determined 109
by the department using NAICS industry classifications, but 110
not lower than sixty percent of the statewide average wage; 111
and 112
(d) Provides health insurance for all full-time jobs 113
and pays at least fifty percent of the premiums of such 114
insurance; 115
[(13)] (14) "Retained job", the number of full-time 116
jobs of persons employed by the qualified manufacturing 117
company located at the facility that existed as of the last 118
working day of the month immediately preceding the month in 119
which notice of intent is submitted; 120
[(14)] (15) "Statewide average wage", an amount equal 121
to the quotient of the sum of the total gross wages paid for 122
the corresponding four calendar quarters divided by the 123
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average annual employment for such four calendar quarters, 124
which shall be computed using the Quarterly Census of 125
Employment and Wages Data for All Private Ownership 126
Businesses in Missouri, as published by the Bureau of Labor 127
Statistics of the United States Department of Labor; 128
[(15)] (16) "Withholding period", the seven- or ten- 129
year period in which a qualified manufacturing company may 130
receive benefits under this section; 131
[(16)] (17) "Withholding tax", the [same meaning as 132
such term is defined in section 620.1878] state tax imposed 133
by sections 143.191 to 143.265. For purposes of this 134
program, the withholding tax shall be computed using a 135
schedule as determined by the department based on average 136
wages. 137
3. The department shall respond within thirty days to 138
a qualified manufacturing company or a qualified supplier 139
who provides a notice of intent with either an approval or a 140
rejection of the notice of intent. Failure to respond on 141
behalf of the department shall result in the notice of 142
intent being deemed an approval for the purposes of this 143
section. 144
4. A qualified manufacturing company that manufactures 145
a new product may, upon the department's approval of a 146
notice of intent and the execution of an agreement that 147
meets the requirements of subsection 9 of this section, but 148
no earlier than January 1, 2012, retain one hundred percent 149
of the withholding tax from full-time jobs at the facility 150
for a period of ten years. A qualified manufacturing 151
company that modifies or expands the manufacture of an 152
existing product may, upon the department's approval of a 153
notice of intent and the execution of an agreement that 154
meets the requirements of subsection 9 of this section, but 155
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no earlier than January 1, 2012, retain fifty percent of the 156
withholding tax from full-time jobs at the facility for a 157
period of seven years. Except as otherwise allowed under 158
subsection 7 of this section, the commencement of the 159
withholding period may be delayed by no more than twenty- 160
four months after execution of the agreement at the option 161
of the qualified manufacturing company. [Such qualified 162
manufacturing company shall be eligible for participation in 163
the Missouri quality jobs program in sections 620.1875 to 164
620.1890 for any new jobs for which it does not retain 165
withholding tax under this section, provided all 166
qualifications for such program are met.] 167
5. A qualified supplier may, upon approval of a notice 168
of intent by the department, retain all withholding tax from 169
new jobs for a period of three years from the date of 170
approval of the notice of intent or for a period of five 171
years if the supplier pays wages for the new jobs equal to 172
or greater than one hundred twenty percent of county average 173
wage. Notwithstanding any other provision of law to the 174
contrary, a qualified supplier that is awarded benefits 175
under this section shall not receive any tax credit or 176
exemption or be entitled to retain withholding under 177
sections 100.700 to 100.850, sections 135.100 to 135.150, 178
sections 135.200 to 135.286[, section 135.535, sections 179
135.900 to 135.906, sections 135.950 to 135.970, or section 180
620.1881] for the same jobs. 181
6. Notwithstanding any other provision of law to the 182
contrary, the maximum amount of withholding tax that may be 183
retained by any one qualified manufacturing company under 184
this section shall not exceed ten million dollars per 185
calendar year. The aggregate amount of withholding tax that 186
may be retained by all qualified manufacturing companies 187
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under this section shall not exceed fifteen million dollars 188
per calendar year. 189
7. Notwithstanding any other provision of law to the 190
contrary, any qualified manufacturing company that is 191
awarded benefits under this section shall not simultaneously 192
receive tax credits or exemptions under sections 100.700 to 193
100.850, sections 135.100 to 135.150, sections 135.200 to 194
135.286[, section 135.535, or sections 135.900 to 135.906] 195
for the jobs created or retained or capital improvement 196
which qualified for benefits under this section. The 197
benefits available to the qualified manufacturing company 198
under any other state programs for which the qualified 199
manufacturing company is eligible and which utilize 200
withholding tax from the jobs at the facility shall first be 201
credited to the other state program before the applicable 202
withholding period for benefits provided under this section 203
shall begin. These other state programs include, but are 204
not limited to, the Missouri [works] one start jobs training 205
program under sections 620.800 to 620.809, the real property 206
tax increment allocation redevelopment act under sections 207
99.800 to 99.865, or the Missouri downtown and rural 208
economic stimulus act under sections 99.915 to 99.980. If 209
any qualified manufacturing company also participates in the 210
Missouri [works] one start jobs training program in sections 211
620.800 to 620.809, such qualified manufacturing company 212
shall not retain any withholding tax that has already been 213
allocated for use in the new jobs training program. Any 214
qualified manufacturing company or qualified supplier that 215
is awarded benefits under this program and knowingly hires 216
individuals who are not allowed to work legally in the 217
United States shall immediately forfeit such benefits and 218
shall repay the state an amount equal to any withholding 219
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taxes already retained. Subsection 5 of section 285.530 220
shall not apply to qualified manufacturing companies or 221
qualified suppliers which are awarded benefits under this 222
program. 223
8. The department may promulgate rules to implement 224
the provisions of this section. Any rule or portion of a 225
rule, as that term is defined in section 536.010, that is 226
created under the authority delegated in this section shall 227
become effective only if it complies with and is subject to 228
all of the provisions of chapter 536 and, if applicable, 229
section 536.028. This section and chapter 536 are 230
nonseverable and if any of the powers vested with the 231
general assembly under chapter 536 to review, to delay the 232
effective date, or to disapprove and annul a rule are 233
subsequently held unconstitutional, then the grant of 234
rulemaking authority and any rule proposed or adopted after 235
the effective date of this section shall be invalid and void. 236
9. Within six months of completion of a notice of 237
intent required under this section, the qualified 238
manufacturing company shall enter into an agreement with the 239
department that memorializes the content of the notice of 240
intent, the requirements of this section, and the 241
consequences for failing to meet such requirements, which 242
shall include the following: 243
(1) If the amount of capital investment made by the 244
qualified manufacturing company is not made within the two- 245
year period provided for such investment, the qualified 246
manufacturing company shall immediately cease retaining any 247
withholding tax with respect to jobs at the facility and it 248
shall forfeit all rights to retain withholding tax for the 249
remainder of the withholding period. In addition, the 250
qualified manufacturing company shall repay any amounts of 251
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withholding tax retained plus interest of five percent per 252
annum. However, in the event that such capital investment 253
shortfall is due to economic conditions beyond the control 254
of the qualified manufacturing company, the director may, at 255
the qualified manufacturing company's request, suspend 256
rather than terminate its privilege to retain withholding 257
tax under this section for up to three years. Any such 258
suspension shall extend the withholding period by the same 259
amount of time. No more than one such suspension shall be 260
granted to a qualified manufacturing company; 261
(2) If the qualified manufacturing company 262
discontinues the manufacturing of the new product and does 263
not replace it with a subsequent or additional new product 264
manufactured at the facility at any time during the 265
withholding period, the qualified manufacturing company 266
shall immediately cease retaining any withholding tax with 267
respect to jobs at that facility and it shall forfeit all 268
rights to retain withholding tax for the remainder of the 269
withholding period. 270
10. Prior to March first each year, the department 271
shall provide a report to the general assembly including the 272
names of participating qualified manufacturing companies or 273
qualified suppliers, location of such companies or 274
suppliers, the annual amount of benefits provided, the 275
estimated net state fiscal impact including direct and 276
indirect new state taxes derived, and the number of new jobs 277
created or jobs retained. 278
11. Under section 23.253 of the Missouri sunset act: 279
(1) The provisions of the new program authorized under 280
this section shall automatically sunset October 12, 2016, 281
unless reauthorized by an act of the general assembly; and 282
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(2) If such program is reauthorized, the program 283
authorized under this section shall automatically sunset 284
twelve years after the effective date of the reauthorization 285
of this section; and 286
(3) This section shall terminate on September first of 287
the calendar year immediately following the calendar year in 288
which the program authorized under this section is sunset. 289
620.2010. 1. In exchange for the consideration 1
provided by the new tax revenues and other economic stimuli 2
that will be generated by the new jobs created, a qualified 3
company may, for a period of five years from the date the 4
new jobs are created, or for a period of six years from the 5
date the new jobs are created if the qualified company is an 6
existing Missouri business, retain an amount equal to the 7
withholding tax as calculated under subdivision (38) of 8
section 620.2005 from the new jobs that would otherwise be 9
withheld and remitted by the qualified company under the 10
provisions of sections 143.191 to 143.265 if: 11
(1) The qualified company creates ten or more new 12
jobs, and the average wage of the new payroll equals or 13
exceeds ninety percent of the county average wage; 14
(2) The qualified company creates two or more new jobs 15
at a project facility located in a rural area, the average 16
wage of the new payroll equals or exceeds ninety percent of 17
the county average wage, and the qualified company commits 18
to making at least one hundred thousand dollars of new 19
capital investment at the project facility within two years; 20
or 21
(3) The qualified company creates two or more new jobs 22
at a project facility located within [a] an enhanced 23
enterprise zone [designated under sections 135.950 to 24
135.963], the average wage of the new payroll equals or 25
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exceeds eighty percent of the county average wage, and the 26
qualified company commits to making at least one hundred 27
thousand dollars in new capital investment at the project 28
facility within two years of approval. 29
2. In addition to any benefits available under 30
subsection 1 of this section, the department may award a 31
qualified company that satisfies subdivision (1) of 32
subsection 1 of this section additional tax credits, issued 33
each year for a period of five years from the date the new 34
jobs are created, or for a period of six years from the date 35
the new jobs are created if the qualified company is an 36
existing Missouri business, in an amount equal to or less 37
than six percent of new payroll; provided that in no event 38
may the total amount of benefits awarded to a qualified 39
company under this section exceed nine percent of new 40
payroll in any calendar year. The amount of tax credits 41
awarded to a qualified company under this subsection shall 42
not exceed the projected net fiscal benefit to the state, as 43
determined by the department, and shall not exceed the least 44
amount necessary to obtain the qualified company's 45
commitment to initiate the project. In determining the 46
amount of tax credits to award to a qualified company under 47
this subsection or a qualified manufacturing company under 48
subsection 3 of this section, the department shall consider 49
the following factors: 50
(1) The significance of the qualified company's need 51
for program benefits; 52
(2) The amount of projected net fiscal benefit to the 53
state of the project and the period in which the state would 54
realize such net fiscal benefit; 55
(3) The overall size and quality of the proposed 56
project, including the number of new jobs, new capital 57
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investment, manufacturing capital investment, proposed 58
wages, growth potential of the qualified company, the 59
potential multiplier effect of the project, and similar 60
factors; 61
(4) The financial stability and creditworthiness of 62
the qualified company; 63
(5) The level of economic distress in the area; 64
(6) An evaluation of the competitiveness of 65
alternative locations for the project facility, as 66
applicable; and 67
(7) The percent of local incentives committed. 68
3. (1) The department may award tax credits to a 69
qualified manufacturing company that makes a manufacturing 70
capital investment of at least five hundred million dollars 71
not more than three years following the department's 72
approval of a notice of intent and the execution of an 73
agreement that meets the requirements of subsection 4 of 74
this section. Such tax credits shall be issued no earlier 75
than January 1, 2023, and may be issued each year for a 76
period of five years. A qualified manufacturing company may 77
qualify for an additional five-year period under this 78
subsection if it makes an additional manufacturing capital 79
investment of at least two hundred fifty million dollars 80
within five years of the department's approval of the 81
original notice of intent. 82
(2) The maximum amount of tax credits that any one 83
qualified manufacturing company may receive under this 84
subsection shall not exceed five million dollars per 85
calendar year. The aggregate amount of tax credits awarded 86
to all qualified manufacturing companies under this 87
subsection shall not exceed ten million dollars per calendar 88
year. 89
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(3) If, at the project facility at any time during the 90
project period, the qualified manufacturing company 91
discontinues the manufacturing of the new product, or 92
discontinues the modification or expansion of an existing 93
product, and does not replace it with a subsequent or 94
additional new product or with a modification or expansion 95
of an existing product, the company shall immediately cease 96
receiving any benefit awarded under this subsection for the 97
remainder of the project period and shall forfeit all rights 98
to retain or receive any benefit awarded under this 99
subsection for the remainder of such period. 100
(4) Notwithstanding any other provision of law to the 101
contrary, any qualified manufacturing company that is 102
awarded benefits under this section shall not simultaneously 103
receive tax credits or exemptions under sections 100.700 to 104
100.850 for the jobs created or retained or capital 105
improvement that qualified for benefits under this section. 106
The provisions of subsection 5 of section 285.530 shall not 107
apply to a qualified manufacturing company that is awarded 108
benefits under this section. 109
4. Upon approval of a notice of intent to receive tax 110
credits under subsection 2, 3, 6, or 7 of this section, the 111
department and the qualified company shall enter into a 112
written agreement covering the applicable project period. 113
The agreement shall specify, at a minimum: 114
(1) The committed number of new jobs, new payroll, and 115
new capital investment, or the manufacturing capital 116
investment and committed percentage of retained jobs for 117
each year during the project period; 118
(2) The date or time period during which the tax 119
credits shall be issued, which may be immediately or over a 120
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period not to exceed two years from the date of approval of 121
the notice of intent; 122
(3) Clawback provisions, as may be required by the 123
department; 124
(4) Financial guarantee provisions as may be required 125
by the department, provided that financial guarantee 126
provisions shall be required by the department for tax 127
credits awarded under subsection 7 of this section; and 128
(5) Any other provisions the department may require. 129
5. In lieu of the benefits available under subsections 130
1 and 2 of this section, and in exchange for the 131
consideration provided by the new tax revenues and other 132
economic stimuli that will be generated by the new jobs 133
created by the program, a qualified company may, for a 134
period of five years from the date the new jobs are created, 135
or for a period of six years from the date the new jobs are 136
created if the qualified company is an existing Missouri 137
business, retain an amount equal to the withholding tax as 138
calculated under subdivision (38) of section 620.2005 from 139
the new jobs that would otherwise be withheld and remitted 140
by the qualified company under the provisions of sections 141
143.191 to 143.265 equal to: 142
(1) Six percent of new payroll for a period of five 143
years from the date the required number of new jobs were 144
created if the qualified company creates one hundred or more 145
new jobs and the average wage of the new payroll equals or 146
exceeds one hundred twenty percent of the county average 147
wage of the county in which the project facility is located; 148
or 149
(2) Seven percent of new payroll for a period of five 150
years from the date the required number of jobs were created 151
if the qualified company creates one hundred or more new 152
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jobs and the average wage of the new payroll equals or 153
exceeds one hundred forty percent of the county average wage 154
of the county in which the project facility is located. 155
The department shall issue a refundable tax credit for any 156
difference between the amount of benefit allowed under this 157
subsection and the amount of withholding tax retained by the 158
company, in the event the withholding tax is not sufficient 159
to provide the entire amount of benefit due to the qualified 160
company under this subsection. 161
6. In addition to the benefits available under 162
subsection 5 of this section, the department may award a 163
qualified company that satisfies the provisions of 164
subsection 5 of this section additional tax credits, issued 165
each year for a period of five years from the date the new 166
jobs are created, or for a period of six years from the date 167
the new jobs are created if the qualified company is an 168
existing Missouri business, in an amount equal to or less 169
than three percent of new payroll; provided that in no event 170
may the total amount of benefits awarded to a qualified 171
company under this section exceed nine percent of new 172
payroll in any calendar year. The amount of tax credits 173
awarded to a qualified company under this subsection shall 174
not exceed the projected net fiscal benefit to the state, as 175
determined by the department, and shall not exceed the least 176
amount necessary to obtain the qualified company's 177
commitment to initiate the project. In determining the 178
amount of tax credits to award to a qualified company under 179
this subsection, the department shall consider the factors 180
provided under subsection 2 of this section. 181
7. In lieu of the benefits available under subsections 182
1, 2, 5, and 6 of this section, and in exchange for the 183
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consideration provided by the new tax revenues and other 184
economic stimuli that will be generated by the new jobs and 185
new capital investment created by the program, the 186
department may award a qualified company that satisfies the 187
provisions of subdivision (1) of subsection 1 of this 188
section tax credits, issued within one year following the 189
qualified company's acceptance of the department's proposal 190
for benefits, in an amount equal to or less than nine 191
percent of new payroll. The amount of tax credits awarded 192
to a qualified company under this subsection shall not 193
exceed the projected net fiscal benefit to the state, as 194
determined by the department, and shall not exceed the least 195
amount necessary to obtain the qualified company's 196
commitment to initiate the project. In determining the 197
amount of tax credits to award to a qualified company under 198
this subsection, the department shall consider the factors 199
provided under subsection 2 of this section and the 200
qualified company's commitment to new capital investment and 201
new job creation within the state for a period of not less 202
than ten years. For the purposes of this subsection, each 203
qualified company shall have an average wage of the new 204
payroll that equals or exceeds one hundred percent of the 205
county average wage. Notwithstanding the provisions of 206
section 620.2020 to the contrary, this subsection shall 207
expire on June 30, 2025. 208
8. No benefits shall be available under this section 209
for any qualified company that has performed significant, 210
project-specific site work at the project facility, 211
purchased machinery or equipment related to the project, or 212
has publicly announced its intention to make new capital 213
investment or manufacturing capital investment at the 214
project facility prior to receipt of a proposal for benefits 215
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under this section or approval of its notice of intent, 216
whichever occurs first. 217
9. In lieu of any other benefits under this chapter, 218
the department of economic development may award a tax 219
credit to an industrial development authority for a 220
qualified military project in an amount equal to the 221
estimated withholding taxes associated with the part-time 222
and full-time civilian and military new jobs located at the 223
facility and directly impacted by the project. The amount 224
of the tax credit shall be calculated by multiplying: 225
(1) The average percentage of tax withheld, as 226
provided by the department of revenue to the department of 227
economic development; 228
(2) The average salaries of the jobs directly created 229
by the qualified military project; and 230
(3) The number of jobs directly created by the 231
qualified military project. 232
If the amount of the tax credit represents the least amount 233
necessary to accomplish the qualified military project, the 234
tax credits may be issued, but no tax credits shall be 235
issued for a term longer than fifteen years. No qualified 236
military project shall be eligible for tax credits under 237
this subsection unless the department of economic 238
development determines the qualified military project shall 239
achieve a net positive fiscal impact to the state. 240
620.2020. 1. The department shall respond to a 1
written request, by or on behalf of a qualified company or 2
qualified military project, for a proposed benefit award 3
under the provisions of this program within five business 4
days of receipt of such request. The department shall 5
respond to a written request, by or on behalf of a qualified 6
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manufacturing company, for a proposed benefit award under 7
the provisions of this program within fifteen business days 8
of receipt of such request. Such response shall contain 9
either a proposal of benefits for the qualified company or 10
qualified military project, or a written response refusing 11
to provide such a proposal and stating the reasons for such 12
refusal. A qualified company or qualified military project 13
that intends to seek benefits under the program shall submit 14
to the department a notice of intent. The department shall 15
respond within thirty days to a notice of intent with an 16
approval or a rejection, provided that the department may 17
withhold approval or provide a contingent approval until it 18
is satisfied that proper documentation of eligibility has 19
been provided. The department shall certify or reject the 20
qualifying company's plan outlined in their notice of intent 21
as satisfying good faith efforts made to employ, at a 22
minimum, commensurate with the percentage of minority 23
populations in the state of Missouri, as reported in the 24
previous decennial census, the following: racial 25
minorities, contractors who are racial minorities, and 26
contractors that, in turn, employ at a minimum racial 27
minorities commensurate with the percentage of minority 28
populations in the state of Missouri, as reported in the 29
previous decennial census. Failure to respond on behalf of 30
the department shall result in the notice of intent being 31
deemed approved. A qualified company receiving approval for 32
program benefits may receive additional benefits for 33
subsequent new jobs at the same facility after the full 34
initial project period if the applicable minimum job 35
requirements are met. There shall be no limit on the number 36
of project periods a qualified company may participate in 37
the program, and a qualified company may elect to file a 38
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notice of intent to begin a new project period concurrent 39
with an existing project period if the applicable minimum 40
job requirements are achieved, the qualified company 41
provides the department with the required annual reporting, 42
and the qualified company is in compliance with this program 43
and any other state programs in which the qualified company 44
is currently or has previously participated. However, the 45
qualified company shall not receive any further program 46
benefits under the original approval for any new jobs 47
created after the date of the new notice of intent, and any 48
jobs created before the new notice of intent shall not be 49
included as new jobs for purposes of the benefit calculation 50
for the new approval. When a qualified company has filed 51
and received approval of a notice of intent and subsequently 52
files another notice of intent, the department shall apply 53
the definition of project facility under subdivision (24) of 54
section 620.2005 to the new notice of intent as well as all 55
previously approved notices of intent and shall determine 56
the application of the definitions of new job, new payroll, 57
project facility base employment, and project facility base 58
payroll accordingly. 59
2. Notwithstanding any provision of law to the 60
contrary, the benefits available to the qualified company 61
under any other state programs for which the company is 62
eligible and which utilize withholding tax from the new or 63
retained jobs of the company shall first be credited to the 64
other state program before the withholding retention level 65
applicable under this program will begin to accrue. If any 66
qualified company also participates in a job training 67
program utilizing withholding tax, the company shall retain 68
no withholding tax under this program, but the department 69
shall issue a refundable tax credit for the full amount of 70
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benefit allowed under this program. The calendar year 71
annual maximum amount of tax credits which may be issued to 72
a qualifying company that also participates in a job 73
training program shall be increased by an amount equivalent 74
to the withholding tax retained by that company under a jobs 75
training program. 76
3. A qualified company or qualified military project 77
receiving benefits under this program shall provide an 78
annual report of the number of jobs, along with minority 79
jobs created or retained, and such other information as may 80
be required by the department to document the basis for 81
program benefits available no later than ninety days prior 82
to the end of the qualified company's or industrial 83
development authority's tax year immediately following the 84
tax year for which the benefits provided under the program 85
are attributed. In such annual report, if the average wage 86
is below the applicable percentage of the county average 87
wage, the qualified company or qualified military project 88
has not maintained the employee insurance as required, if 89
the department after a review determines the qualifying 90
company fails to satisfy other aspects of their notice of 91
intent, including failure to make good faith efforts to 92
employ, at a minimum, commensurate with the percentage of 93
minority populations in the state of Missouri, as reported 94
in the previous decennial census, the following: racial 95
minorities, contractors who are racial minorities, and 96
contractors that, in turn, employ at a minimum racial 97
minorities commensurate with the percentage of minority 98
populations in the state of Missouri, as reported in the 99
previous decennial census, or if the number of jobs is below 100
the number required, the qualified company or qualified 101
military project shall not receive tax credits or retain the 102
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withholding tax for the balance of the project period. If a 103
statewide state of emergency exists for more than sixteen 104
months, a qualified company or industrial development 105
authority shall be entitled to a one-time suspension of 106
program deadlines equal to the number of months such 107
statewide state of emergency existed with any partial month 108
rounded to the next whole. During such suspension, the 109
qualified company or industrial development authority shall 110
not be entitled to retain any withholding tax as calculated 111
under subdivision (38) of section 620.2005 nor shall it earn 112
any awarded tax credit or receive any tax credit under the 113
program for the suspension period. The suspension period 114
shall run consecutively and be available to a qualified 115
company or industrial development authority that, during the 116
statewide state of emergency, submitted notice of intent 117
that was approved or that was in year one or a subsequent 118
year of benefits under a program agreement with the 119
department. The suspension period that runs consecutively 120
and may be available to a qualified company or industrial 121
development authority as provided in this subsection may 122
apply retroactively. Any qualified company or industrial 123
development authority requesting a suspension pursuant to 124
this subsection shall submit notice to the department on its 125
provided form identifying the requested start and end dates 126
of the suspension, not to exceed the maximum number of 127
months available under this subsection. Such notice shall 128
be submitted to the department not later than the end of the 129
twelfth month following the termination of the state of 130
emergency. No suspension period shall start later than the 131
date on which the state of emergency was terminated. The 132
department and the qualified company or the industrial 133
development authority shall enter into a program agreement 134
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or shall amend an existing program agreement, as applicable, 135
stating the deadlines following the suspension period and 136
updating the applicable wage requirements. Failure to 137
timely file the annual report required under this section 138
may result in the forfeiture of tax credits attributable to 139
the year for which the reporting was required and a 140
recapture of withholding taxes retained by the qualified 141
company or qualified military project during such year. 142
4. The department may withhold the approval of any 143
benefits under this program until it is satisfied that 144
proper documentation has been provided, and shall reduce the 145
benefits to reflect any reduction in full-time employees or 146
payroll. Upon approval by the department, the qualified 147
company may begin the retention of the withholding taxes 148
when it reaches the required number of jobs and the average 149
wage meets or exceeds the applicable percentage of county 150
average wage. Tax credits, if any, may be issued upon 151
satisfaction by the department that the qualified company 152
has exceeded the applicable percentage of county average 153
wage and the required number of jobs; provided that, tax 154
credits awarded under subsection 7 of section 620.2010 may 155
be issued following the qualified company's acceptance of 156
the department's proposal and pursuant to the requirements 157
set forth in the written agreement between the department 158
and the qualified company under subsection 4 of section 159
620.2010. 160
5. Any qualified company or qualified military project 161
approved for benefits under this program shall provide to 162
the department, upon request, any and all information and 163
records reasonably required to monitor compliance with 164
program requirements. This program shall be considered a 165
business recruitment tax credit under subdivision (3) of 166
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subsection 2 of section 135.800, and any qualified company 167
or qualified military project approved for benefits under 168
this program shall be subject to the provisions of sections 169
135.800 to 135.830. 170
6. Any taxpayer who is awarded benefits under this 171
program who knowingly hires individuals who are not allowed 172
to work legally in the United States shall immediately 173
forfeit such benefits and shall repay the state an amount 174
equal to any state tax credits already redeemed and any 175
withholding taxes already retained. 176
7. (1) The maximum amount of tax credits that may be 177
authorized under this program for any fiscal year shall be 178
limited as follows, less the amount of any tax credits 179
previously obligated for that fiscal year under any of the 180
tax credit programs referenced in subsection 14 of this 181
section: 182
(a) For the fiscal year beginning on July 1, 2013, but 183
ending on or before June 30, 2014, no more than one hundred 184
six million dollars in tax credits may be authorized; 185
(b) For the fiscal year beginning on July 1, 2014, but 186
ending on or before June 30, 2015, no more than one hundred 187
eleven million dollars in tax credits may be authorized; 188
(c) For fiscal years beginning on or after July 1, 189
2015, but ending on or before June 30, 2020, no more than 190
one hundred sixteen million dollars in tax credits may be 191
authorized for each fiscal year; and 192
(d) For all fiscal years beginning on or after July 1, 193
2020, no more than one hundred six million dollars in tax 194
credits may be authorized for each fiscal year. The 195
provisions of this paragraph shall not apply to tax credits 196
issued to qualified companies under a notice of intent filed 197
prior to July 1, 2020. 198
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(2) For all fiscal years beginning on or after July 1, 199
2020, in addition to the amount of tax credits that may be 200
authorized under paragraph (d) of subdivision (1) of this 201
subsection, an additional ten million dollars in tax credits 202
may be authorized for each fiscal year for the purpose of 203
the completion of infrastructure projects directly connected 204
with the creation or retention of jobs under the provisions 205
of sections 620.2000 to 620.2020 and an additional ten 206
million dollars in tax credits may be authorized for each 207
fiscal year for a qualified manufacturing company based on a 208
manufacturing capital investment as set forth in section 209
620.2010. 210
8. For all fiscal years beginning on or after July 1, 211
2020, the maximum total amount of withholding tax that may 212
be authorized for retention for the creation of new jobs 213
under the provisions of sections 620.2000 to 620.2020 by 214
qualified companies with a project facility base employment 215
of at least fifty shall not exceed seventy-five million 216
dollars for each fiscal year. The provisions of this 217
subsection shall not apply to withholding tax authorized for 218
retention for the creation of new jobs by qualified 219
companies with a project facility base employment of less 220
than fifty. 221
9. For tax credits for the creation of new jobs under 222
section 620.2010, the department shall allocate the annual 223
tax credits based on the date of the approval, reserving 224
such tax credits based on the department's best estimate of 225
new jobs and new payroll of the project, and any other 226
applicable factors in determining the amount of benefits 227
available to the qualified company or qualified military 228
project under this program; provided that, the department 229
may reserve up to twenty-one and one-half percent of the 230
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maximum annual amount of tax credits that may be authorized 231
under subsection 7 of this section for award under 232
subsection 7 of section 620.2010. However, the annual 233
issuance of tax credits shall be subject to annual 234
verification of actual payroll by the department or, for 235
qualified military projects, annual verification of average 236
salary for the jobs directly created by the qualified 237
military project. Any authorization of tax credits shall 238
expire if, within two years from the date of commencement of 239
operations, or approval if applicable, the qualified company 240
has failed to meet the applicable minimum job requirements. 241
The qualified company may retain authorized amounts from the 242
withholding tax under the project once the applicable 243
minimum job requirements have been met for the duration of 244
the project period. No benefits shall be provided under 245
this program until the qualified company or qualified 246
military project meets the applicable minimum new job 247
requirements or, for benefits awarded under subsection 7 of 248
section 620.2010, until the qualified company has satisfied 249
the requirements set forth in the written agreement between 250
the department and the qualified company under subsection 4 251
of section 620.2010. In the event the qualified company or 252
qualified military project does not meet the applicable 253
minimum new job requirements, the qualified company or 254
qualified military project may submit a new notice of intent 255
or the department may provide a new approval for a new 256
project of the qualified company or qualified military 257
project at the project facility or other facilities. 258
10. Tax credits provided under this program may be 259
claimed against taxes otherwise imposed by chapters 143 and 260
148, and may not be carried forward, but shall be claimed 261
within one year of the close of the [taxable] tax year for 262
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which they were issued. Tax credits provided under this 263
program may be transferred, sold, or assigned by filing a 264
notarized endorsement thereof with the department that names 265
the transferee, the amount of tax credit transferred, and 266
the value received for the credit, as well as any other 267
information reasonably requested by the department. For a 268
qualified company with flow-through tax treatment to its 269
members, partners, or shareholders, the tax credit shall be 270
allowed to members, partners, or shareholders in proportion 271
to their share of ownership on the last day of the qualified 272
company's tax period. 273
11. Prior to the issuance of tax credits or the 274
qualified company beginning to retain withholding taxes, the 275
department shall verify through the department of revenue 276
and any other applicable state department that the tax 277
credit applicant does not owe any delinquent income, sales, 278
or use tax or interest or penalties on such taxes, or any 279
delinquent fees or assessments levied by any state 280
department and through the department of commerce and 281
insurance that the applicant does not owe any delinquent 282
insurance taxes or other fees. Such delinquency shall not 283
affect the approval, except that any tax credits issued 284
shall be first applied to the delinquency and any amount 285
issued shall be reduced by the applicant's tax delinquency. 286
If the department of revenue, the department of commerce and 287
insurance, or any other state department concludes that a 288
taxpayer is delinquent after June fifteenth but before July 289
first of any year and the application of tax credits to such 290
delinquency causes a tax deficiency on behalf of the 291
taxpayer to arise, then the taxpayer shall be granted thirty 292
days to satisfy the deficiency in which interest, penalties, 293
and additions to tax shall be tolled. After applying all 294
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available credits toward a tax delinquency, the 295
administering agency shall notify the appropriate department 296
and that department shall update the amount of outstanding 297
delinquent tax owed by the applicant. If any credits remain 298
after satisfying all insurance, income, sales, and use tax 299
delinquencies, the remaining credits shall be issued to the 300
applicant, subject to the restrictions of other provisions 301
of law. 302
12. The director of revenue shall issue a refund to 303
the qualified company to the extent that the amount of tax 304
credits allowed under this program exceeds the amount of the 305
qualified company's tax liability under chapter 143 or 148. 306
13. An employee of a qualified company shall receive 307
full credit for the amount of tax withheld as provided in 308
section 143.211. 309
14. [Notwithstanding any provision of law to the 310
contrary, beginning August 28, 2013, no new benefits shall 311
be authorized for any project that had not received from the 312
department a proposal or approval for such benefits prior to 313
August 28, 2013, under the development tax credit program 314
created under sections 32.100 to 32.125, the rebuilding 315
communities tax credit program created under section 316
135.535, the enhanced enterprise zone tax credit program 317
created under sections 135.950 to 135.973, and the Missouri 318
quality jobs program created under sections 620.1875 to 319
620.1890. The provisions of this subsection shall not be 320
construed to limit or impair the ability of any 321
administering agency to authorize or issue benefits for any 322
project that had received an approval or a proposal from the 323
department under any of the programs referenced in this 324
subsection prior to August 28, 2013, or the ability of any 325
taxpayer to redeem any such tax credits or to retain any 326
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withholding tax under an approval issued prior to that 327
date. The provisions of this subsection shall not be 328
construed to limit or in any way impair the ability of any 329
governing authority to provide any local abatement or 330
designate a new zone under the enhanced enterprise zone 331
program created by sections 135.950 to 135.963. 332
Notwithstanding any provision of law to the contrary, no 333
qualified company that is awarded benefits under this 334
program shall: 335
(1) Simultaneously receive benefits under the programs 336
referenced in this subsection at the same capital 337
investment; or 338
(2) Receive benefits under the provisions of section 339
620.1910 for the same jobs. 340
15.] If any provision of sections 620.2000 to 620.2020 341
or application thereof to any person or circumstance is held 342
invalid, the invalidity shall not affect other provisions or 343
application of these sections which can be given effect 344
without the invalid provisions or application, and to this 345
end, the provisions of sections 620.2000 to 620.2020 are 346
hereby declared severable. 347
[16.] 15. By no later than January 1, 2014, and the 348
first day of each calendar quarter thereafter, the 349
department shall present a quarterly report to the general 350
assembly detailing the benefits authorized under this 351
program during the immediately preceding calendar quarter to 352
the extent such information may be disclosed under state and 353
federal law. The report shall include, at a minimum: 354
(1) A list of all approved and disapproved applicants 355
for each tax credit; 356
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(2) A list of the aggregate amount of new or retained 357
jobs that are directly attributable to the tax credits 358
authorized; 359
(3) A statement of the aggregate amount of new capital 360
investment directly attributable to the tax credits 361
authorized; 362
(4) Documentation of the estimated net state fiscal 363
benefit for each authorized project and, to the extent 364
available, the actual benefit realized upon completion of 365
such project or activity; and 366
(5) The department's response time for each request 367
for a proposed benefit award under this program. 368
[17.] 16. The department may adopt such rules, 369
statements of policy, procedures, forms, and guidelines as 370
may be necessary to carry out the provisions of sections 371
620.2000 to 620.2020. Any rule or portion of a rule, as 372
that term is defined in section 536.010, that is created 373
under the authority delegated in this section shall become 374
effective only if it complies with and is subject to all of 375
the provisions of chapter 536 and, if applicable, section 376
536.028. This section and chapter 536 are nonseverable and 377
if any of the powers vested with the general assembly 378
pursuant to chapter 536 to review, to delay the effective 379
date, or to disapprove and annul a rule are subsequently 380
held unconstitutional, then the grant of rulemaking 381
authority and any rule proposed or adopted after August 28, 382
2013, shall be invalid and void. 383
[18.] 17. Under section 23.253 of the Missouri sunset 384
act: 385
(1) The provisions of the program authorized under 386
sections 620.2000 to 620.2020 shall be reauthorized as of 387
August 28, 2018, and shall expire on August 28, 2030; and 388
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(2) If such program is reauthorized, the program 389
authorized under this section shall automatically sunset 390
twelve years after the effective date of the reauthorization 391
of sections 620.2000 to 620.2020; and 392
(3) Sections 620.2000 to 620.2020 shall terminate on 393
September first of the calendar year immediately following 394
the calendar year in which the program authorized under 395
sections 620.2000 to 620.2020 is sunset. 396
[99.1205. 1. This section shall be known 1
and may be cited as the "Distressed Areas Land 2
Assemblage Tax Credit Act". 3
2. As used in this section, the following 4
terms mean: 5
(1) "Acquisition costs", the purchase 6
price for the eligible parcel, costs of 7
environmental assessments, closing costs, real 8
estate brokerage fees, reasonable demolition 9
costs of vacant structures, and reasonable 10
maintenance costs incurred to maintain an 11
acquired eligible parcel for a period of five 12
years after the acquisition of such eligible 13
parcel. Acquisition costs shall not include 14
costs for title insurance and survey, attorney's 15
fees, relocation costs, fines, or bills from a 16
municipality; 17
(2) "Applicant", any person, firm, 18
partnership, trust, limited liability company, 19
or corporation which has: 20
(a) Incurred, within an eligible project 21
area, acquisition costs for the acquisition of 22
land sufficient to satisfy the requirements 23
under subdivision (8) of this subsection; and 24
(b) Been appointed or selected, pursuant 25
to a redevelopment agreement by a municipal 26
authority, as a redeveloper or similar 27
designation, under an economic incentive law, to 28
redevelop an urban renewal area or a 29
redevelopment area that includes all of an 30
eligible project area or whose redevelopment 31
plan or redevelopment area, which encompasses 32
all of an eligible project area, has been 33
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approved or adopted under an economic incentive 34
law. In addition to being designated the 35
redeveloper, the applicant shall have been 36
designated to receive economic incentives only 37
after the municipal authority has considered the 38
amount of the tax credits in adopting such 39
economic incentives as provided in subsection 8 40
of this section. The redevelopment agreement 41
shall provide that: 42
a. The funds generated through the use or 43
sale of the tax credits issued under this 44
section shall be used to redevelop the eligible 45
project area; 46
b. No more than seventy-five percent of 47
the urban renewal area identified in the urban 48
renewal plan or the redevelopment area 49
identified in the redevelopment plan may be 50
redeveloped by the applicant; and 51
c. The remainder of the urban renewal area 52
or the redevelopment area shall be redeveloped 53
by co-redevelopers or redevelopers to whom the 54
applicant has assigned its redevelopment rights 55
and obligations under the urban renewal plan or 56
the redevelopment plan; 57
(3) "Certificate", a tax credit 58
certificate issued under this section; 59
(4) "Condemnation proceedings", any action 60
taken by, or on behalf of, an applicant to 61
initiate an action in a court of competent 62
jurisdiction to use the power of eminent domain 63
to acquire a parcel within the eligible project 64
area. Condemnation proceedings shall include 65
any and all actions taken after the submission 66
of a notice of intended acquisition to an owner 67
of a parcel within the eligible project area by 68
a municipal authority or any other person or 69
entity under section 523.250; 70
(5) "Department", the Missouri department 71
of economic development; 72
(6) "Economic incentive laws", any 73
provision of Missouri law pursuant to which 74
economic incentives are provided to redevelopers 75
of a parcel or parcels to redevelop the land, 76
such as tax abatement or payments in lieu of 77
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taxes, or redevelopment plans or redevelopment 78
projects approved or adopted which include the 79
use of economic incentives to redevelop the 80
land. Economic incentive laws include, but are 81
not limited to, the land clearance for 82
redevelopment authority law under sections 83
99.300 to 99.660, the real property tax 84
increment allocation redevelopment act under 85
sections 99.800 to 99.865, the Missouri downtown 86
and rural economic stimulus act under sections 87
99.915 to 99.1060, and the downtown 88
revitalization preservation program under 89
sections 99.1080 to 99.1092; 90
(7) "Eligible parcel", a parcel: 91
(a) Which is located within an eligible 92
project area; 93
(b) Which is to be redeveloped; 94
(c) On which the applicant has not 95
commenced construction prior to November 28, 96
2007; 97
(d) Which has been acquired without the 98
commencement of any condemnation proceedings 99
with respect to such parcel brought by or on 100
behalf of the applicant. Any parcel acquired by 101
the applicant from a municipal authority shall 102
not constitute an eligible parcel; and 103
(e) On which all outstanding taxes, fines, 104
and bills levied by municipal governments that 105
were levied by the municipality during the time 106
period that the applicant held title to the 107
eligible parcel have been paid in full; 108
(8) "Eligible project area", an area which 109
shall have satisfied the following requirements: 110
(a) The eligible project area shall 111
consist of at least seventy-five acres and may 112
include parcels within its boundaries that do 113
not constitute an eligible parcel; 114
(b) At least eighty percent of the 115
eligible project area shall be located within a 116
Missouri qualified census tract area, as 117
designated by the United States Department of 118
Housing and Urban Development under 26 U.S.C. 119
Section 42, or within a distressed community as 120
that term is defined in section 135.530; 121
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(c) The eligible parcels acquired by the 122
applicant within the eligible project area shall 123
total at least fifty acres, which may consist of 124
contiguous and noncontiguous parcels; 125
(d) The average number of parcels per acre 126
in an eligible project area shall be four or 127
more; 128
(e) Less than five percent of the acreage 129
within the boundaries of the eligible project 130
area shall consist of owner-occupied residences 131
which the applicant has identified for 132
acquisition under the urban renewal plan or the 133
redevelopment plan pursuant to which the 134
applicant was appointed or selected as the 135
redeveloper or by which the person or entity was 136
qualified as an applicant under this section on 137
the date of the approval or adoption of such 138
plan; 139
(9) "Interest costs", interest, loan fees, 140
and closing costs. Interest costs shall not 141
include attorney's fees; 142
(10) "Maintenance costs", costs of 143
boarding up and securing vacant structures, 144
costs of removing trash, and costs of cutting 145
grass and weeds; 146
(11) "Municipal authority", any city, 147
town, village, county, public body corporate and 148
politic, political subdivision, or land trust of 149
this state established and authorized to own 150
land within the state; 151
(12) "Municipality", any city, town, 152
village, or county; 153
(13) "Parcel", a single lot or tract of 154
land, and the improvements thereon, owned by, or 155
recorded as the property of, one or more persons 156
or entities; 157
(14) "Redeveloped", the process of 158
undertaking and carrying out a redevelopment 159
plan or urban renewal plan pursuant to which the 160
conditions which provided the basis for an 161
eligible project area to be included in a 162
redevelopment plan or urban renewal plan are to 163
be reduced or eliminated by redevelopment or 164
rehabilitation; and 165
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(15) "Redevelopment agreement", the 166
redevelopment agreement or similar agreement 167
into which the applicant entered with a 168
municipal authority and which is the agreement 169
for the implementation of the urban renewal plan 170
or redevelopment plan pursuant to which the 171
applicant was appointed or selected as the 172
redeveloper or by which the person or entity was 173
qualified as an applicant under this section; 174
and such appointment or selection shall have 175
been approved by an ordinance of the governing 176
body of the municipality, or municipalities, or 177
in the case of any city not within a county, the 178
board of aldermen, in which the eligible project 179
area is located. The redevelopment agreement 180
shall include a time line for redevelopment of 181
the eligible project area. The redevelopment 182
agreement shall state that the named developer 183
shall be subject to the provisions of chapter 184
290. 185
3. Any applicant shall be entitled to a 186
tax credit against the taxes imposed under 187
chapters 143, 147, and 148, except for sections 188
143.191 to 143.265, in an amount equal to fifty 189
percent of the acquisition costs, and one 190
hundred percent of the interest costs incurred 191
for a period of five years after the acquisition 192
of an eligible parcel. No tax credits shall be 193
issued under this section until after January 1, 194
2008. 195
4. If the amount of such tax credit 196
exceeds the total tax liability for the year in 197
which the applicant is entitled to receive a tax 198
credit, the amount that exceeds the state tax 199
liability may be carried forward for credit 200
against the taxes imposed under chapters 143, 201
147, and 148 for the succeeding six years, or 202
until the full credit is used, whichever occurs 203
first. The applicant shall not be entitled to a 204
tax credit for taxes imposed under sections 205
143.191 to 143.265. Applicants entitled to 206
receive such tax credits may transfer, sell, or 207
assign the tax credits. Tax credits granted to 208
a partnership, a limited liability company taxed 209
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as a partnership, or multiple owners of property 210
shall be passed through to the partners, 211
members, or owners respectively pro rata or 212
pursuant to an executed agreement among the 213
partners, members, or owners documenting an 214
alternate distribution method. 215
5. A purchaser, transferee, or assignee of 216
the tax credits authorized under this section 217
may use acquired tax credits to offset up to one 218
hundred percent of the tax liabilities otherwise 219
imposed under chapters 143, 147, and 148, except 220
for sections 143.191 to 143.265. A seller, 221
transferor, or assignor shall perfect such 222
transfer by notifying the department in writing 223
within thirty calendar days following the 224
effective date of the transfer and shall provide 225
any information as may be required by the 226
department to administer and carry out the 227
provisions of this section. 228
6. To claim tax credits authorized under 229
this section, an applicant shall submit to the 230
department an application for a certificate. An 231
applicant shall identify the boundaries of the 232
eligible project area in the application. The 233
department shall verify that the applicant has 234
submitted a valid application in the form and 235
format required by the department. The 236
department shall verify that the municipal 237
authority held the requisite hearings and gave 238
the requisite notices for such hearings in 239
accordance with the applicable economic 240
incentive act, and municipal ordinances. On an 241
annual basis, an applicant may file for the tax 242
credit for the acquisition costs, and for the 243
tax credit for the interest costs, subject to 244
the limitations of this section. If an 245
applicant applying for the tax credit meets the 246
criteria required under this section, the 247
department shall issue a certificate in the 248
appropriate amount. If an applicant receives a 249
tax credit for maintenance costs as a part of 250
the applicant's acquisition costs, the 251
department shall post on its internet website 252
the amount and type of maintenance costs and a 253
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description of the redevelopment project for 254
which the applicant received a tax credit within 255
thirty days after the department issues the 256
certificate to the applicant. 257
7. The total aggregate amount of tax 258
credits authorized under this section shall not 259
exceed ninety-five million dollars. At no time 260
shall the annual amount of the tax credits 261
issued under this section exceed twenty million 262
dollars. If the tax credits that are to be 263
issued under this section exceed, in any year, 264
the twenty million dollar limitation, the 265
department shall either: 266
(1) Issue tax credits to the applicant in 267
the amount of twenty million dollars, if there 268
is only one applicant entitled to receive tax 269
credits in that year; or 270
(2) Issue the tax credits on a pro rata 271
basis to all applicants entitled to receive tax 272
credits in that year. Any amount of tax 273
credits, which an applicant is, or applicants 274
are, entitled to receive on an annual basis and 275
are not issued due to the twenty million dollar 276
limitation, shall be carried forward for the 277
benefit of the applicant or applicants to 278
subsequent years. 279
No tax credits provided under this section 280
shall be authorized after August 28, 2013. Any 281
tax credits which have been authorized on or 282
before August 28, 2013, but not issued, may be 283
issued, subject to the limitations provided 284
under this subsection, until all such authorized 285
tax credits have been issued. 286
8. Upon issuance of any tax credits 287
pursuant to this section, the department shall 288
report to the municipal authority the 289
applicant's name and address, the parcel numbers 290
of the eligible parcels for which the tax 291
credits were issued, the itemized acquisition 292
costs and interest costs for which tax credits 293
were issued, and the total value of the tax 294
credits issued. The municipal authority and the 295
state shall not consider the amount of the tax 296
credits as an applicant's cost, but shall 297
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include the tax credits in any sources and uses 298
and cost benefit analysis reviewed or created 299
for the purpose of awarding other economic 300
incentives. The amount of the tax credits shall 301
not be considered an applicant's cost in the 302
evaluation of the amount of any award of any 303
other economic incentives, but shall be 304
considered in measuring the reasonableness of 305
the rate of return to the applicant with respect 306
to such award of other economic incentives. The 307
municipal authority shall provide the report to 308
any relevant commission, board, or entity 309
responsible for the evaluation and 310
recommendation or approval of other economic 311
incentives to assist in the redevelopment of the 312
eligible project area. Tax credits authorized 313
under this section shall constitute 314
redevelopment tax credits, as such term is 315
defined under section 135.800, and shall be 316
subject to all provisions applicable to 317
redevelopment tax credits provided under 318
sections 135.800 to 135.830. 319
9. The department may promulgate rules to 320
implement the provisions of this section. Any 321
rule or portion of a rule, as that term is 322
defined in section 536.010, that is created 323
under the authority delegated in this section 324
shall become effective only if it complies with 325
and is subject to all of the provisions of 326
chapter 536 and, if applicable, section 327
536.028. This section and chapter 536 are 328
nonseverable and if any of the powers vested 329
with the general assembly pursuant to chapter 330
536 to review, to delay the effective date, or 331
to disapprove and annul a rule are subsequently 332
held unconstitutional, then the grant of 333
rulemaking authority and any rule proposed or 334
adopted after August 28, 2007, shall be invalid 335
and void.] 336
[135.313. 1. Any person, firm or 1
corporation who engages in the business of 2
producing charcoal or charcoal products in the 3
state of Missouri shall be eligible for a tax 4
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credit on income taxes otherwise due pursuant to 5
chapter 143, except sections 143.191 to 143.261, 6
as an incentive to implement safe and efficient 7
environmental controls. The tax credit shall be 8
equal to fifty percent of the purchase price of 9
the best available control technology equipment 10
connected with the production of charcoal in the 11
state of Missouri or, if the taxpayer 12
manufactures such equipment, fifty percent of 13
the manufacturing cost of the equipment, to and 14
including the year the equipment is put into 15
service. The credit may be claimed for a period 16
of eight years beginning with the 1998 calendar 17
year and is to be a tax credit against the tax 18
otherwise due. 19
2. Any amount of credit which exceeds the 20
tax due shall not be refunded but may be carried 21
over to any subsequent taxable year, not to 22
exceed seven years. 23
3. The charcoal producer may elect to 24
assign to a third party the approved tax 25
credit. Certification of assignment and other 26
appropriate forms must be filed with the 27
Missouri department of revenue and the 28
department of economic development. 29
4. When applying for a tax credit, the 30
charcoal producer specified in subsection 1 of 31
this section shall make application for the 32
credit to the division of environmental quality 33
of the department of natural resources. The 34
application shall identify the specific best 35
available control technology equipment and the 36
purchase price, or manufacturing cost of such 37
equipment. The director of the department of 38
natural resources is authorized to require 39
permits to construct prior to the installation 40
of best available control technology equipment 41
and other information which he or she deems 42
appropriate. 43
5. The director of the department of 44
natural resources in conjunction with the 45
department of economic development shall certify 46
to the department of revenue that the best 47
available control technology equipment meets the 48
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requirements to obtain a tax credit as specified 49
in this section.] 50
[135.500. 1. Sections 135.500 to 135.529 1
shall be known and may be cited as the "Missouri 2
Certified Capital Company Law". 3
2. As used in sections 135.500 to 135.529, 4
the following terms mean: 5
(1) "Affiliate of a certified company": 6
(a) Any person, directly or indirectly 7
owning, controlling or holding power to vote ten 8
percent or more of the outstanding voting 9
securities or other ownership interests of the 10
Missouri certified capital company; 11
(b) Any person ten percent or more of 12
whose outstanding voting securities or other 13
ownership interest are directly or indirectly 14
owned, controlled or held with power to vote by 15
the Missouri certified capital company; 16
(c) Any person directly or indirectly 17
controlling, controlled by, or under common 18
control with the Missouri certified capital 19
company; 20
(d) A partnership in which the Missouri 21
certified capital company is a general partner; 22
(e) Any person who is an officer, director 23
or agent of the Missouri certified capital 24
company or an immediate family member of such 25
officer, director or agent; 26
(2) "Applicable percentage", one hundred 27
percent; 28
(3) "Capital in a qualified Missouri 29
business", any debt, equity or hybrid security, 30
of any nature and description whatsoever, 31
including a debt instrument or security which 32
has the characteristics of debt but which 33
provides for conversion into equity or equity 34
participation instruments such as options or 35
warrants which are acquired by a Missouri 36
certified capital company or a qualified 37
investing entity as a result of a transfer of 38
cash to a business; 39
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(4) "Certified capital", an investment of 40
cash by an investor in a Missouri certified 41
capital company; 42
(5) "Certified capital company", any 43
partnership, corporation, trust or limited 44
liability company, whether organized on a profit 45
or not-for-profit basis, that is located, 46
headquartered and registered to conduct business 47
in Missouri that has as its primary business 48
activity, the investment of cash in qualified 49
Missouri businesses, and which is certified by 50
the department as meeting the criteria of 51
sections 135.500 to 135.529; 52
(6) "Department", the Missouri department 53
of economic development; 54
(7) "Director", the director of the 55
department of economic development or a person 56
acting under the supervision of the director; 57
(8) "Investor", any insurance company that 58
contributes cash; 59
(9) "Liquidating distribution", payments 60
to investors or to the certified capital company 61
from earnings; 62
(10) "Person", any natural person or 63
entity, including a corporation, general or 64
limited partnership, trust, limited liability 65
company, or any charitable organization which is 66
exempt from federal income tax and whose 67
Missouri unrelated business taxable income, if 68
any, would be subject to the state income tax 69
imposed under chapter 143; 70
(11) "Qualified distribution", any 71
distribution or payment to equity holders of a 72
certified capital company in connection with the 73
following: 74
(a) Reasonable costs and expenses of 75
forming, syndicating, managing and operating the 76
certified capital company; 77
(b) Management fees for managing and 78
operating the certified capital company; and 79
(c) Any increase in federal or state 80
taxes, penalties and interest, including those 81
related to state and federal income taxes, of 82
equity owners of a certified capital company 83
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which related to the ownership, management or 84
operation of a certified capital company; 85
(12) "Qualified investing entity", any 86
partnership, corporation, trust, or limited 87
liability company, whether organized on a for- 88
profit or not-for-profit basis, that: 89
(a) Is registered to do business in this 90
state; 91
(b) Is a wholly owned subsidiary of a 92
certified capital company or otherwise 93
affiliated with and under common control with a 94
certified capital company; and 95
(c) Has been designated as a qualified 96
investing entity by such certified capital 97
company. Such designation shall be effective 98
upon delivery by the certified capital company 99
of written notice of the designation to the 100
department. A qualified investing entity may 101
raise debt or equity capital for investment, but 102
such capital shall not be considered certified 103
capital. Any qualified investment made by a 104
qualified investing entity after the effective 105
date of this act shall be deemed to have been 106
made by a certified capital company that 107
designated the qualified investing entity as 108
such; provided that no qualified investment may 109
be deemed to have been made by more than one 110
certified capital company; 111
(13) "Qualified investment", the 112
investment of cash by a Missouri certified 113
capital company or a qualified investing entity 114
in such a manner as to acquire capital in a 115
qualified Missouri business; 116
(14) "Qualified Missouri business", an 117
independently owned and operated business, which 118
is headquartered and located in Missouri and 119
which is in need of venture capital and cannot 120
obtain conventional financing. Such business 121
shall have no more than two hundred employees, 122
eighty percent of which are employed in 123
Missouri. Such business shall be involved in 124
commerce for the purpose of manufacturing, 125
processing or assembling products, conducting 126
research and development, or providing services 127
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in interstate commerce, but excluding retail, 128
real estate, real estate development, insurance 129
and professional services provided by 130
accountants, lawyers or physicians. At the time 131
a certified capital company or qualified 132
investing entity makes an initial investment in 133
a business, such business shall be a small 134
business concern that meets the requirements of 135
the United States Small Business 136
Administration's qualification size standards 137
for its venture capital program, as defined in 138
Section 13 CFR 121.301(c) of the Small Business 139
Investment Act of 1958, as amended. Any 140
business which is classified as a qualified 141
Missouri business at the time of the first 142
investment in such business by a Missouri 143
certified capital company or qualified investing 144
entity shall, for a period of seven years from 145
the date of such first investment, remain 146
classified as a qualified Missouri business and 147
may receive follow-on investments from any 148
Missouri certified capital company or qualified 149
investing entity and such follow-on investments 150
shall be qualified investments even though such 151
business may not meet the other qualifications 152
of this subsection at the time of such follow-on 153
investments; 154
(15) "State premium tax liability", any 155
liability incurred by an insurance company 156
pursuant to the provisions of section 148.320, 157
148.340, 148.370 or 148.376, and any other 158
related provisions, which may impose a tax upon 159
the premium income of insurance companies after 160
January 1, 1997.] 161
[135.503. 1. Any investor that makes an 1
investment of certified capital shall, in the 2
year of investment, earn a vested credit against 3
state premium tax liability equal to the 4
applicable percentage of the investor's 5
investment of certified capital. An investor 6
shall be entitled to take up to ten percent of 7
the vested credit in any taxable year of the 8
investor. Any time after three years after 9
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August 28, 1996, the director, with the approval 10
of the commissioner of administration, may 11
reduce the applicable percentage on a 12
prospective basis. Any such reduction in the 13
applicable percentage by the director shall not 14
have any effect on credits against state premium 15
tax liability which have been claimed or will be 16
claimed by any investor with respect to credits 17
which have been earned and vested pursuant to an 18
investment of certified capital prior to the 19
effective date of any such change. 20
2. An insurance company claiming a state 21
premium tax credit earned through an investment 22
in a certified capital company shall not be 23
required to pay any additional retaliatory tax 24
levied pursuant to section 375.916 as a result 25
of claiming such credit. 26
3. The credit against state premium tax 27
liability which is described in subsection 1 of 28
this section may not exceed the state premium 29
tax liability of the investor for any taxable 30
year. All such credits against state premium 31
tax liability may be carried forward 32
indefinitely until the credits are utilized. 33
The maximum amount of certified capital in one 34
or more certified capital companies for which 35
earned and vested tax credits will be allowed in 36
any year to any one investor or its affiliates 37
shall be limited to ten million dollars. 38
4. Except as provided in subsection 5 of 39
this section, the aggregate amount of certified 40
capital for which earned and vested credits 41
against state premium tax liability are allowed 42
for all persons pursuant to sections 135.500 to 43
135.529 shall not exceed the following amounts: 44
for calendar year 1996, $0.00; for calendar year 45
1997, an amount which would entitle all Missouri 46
certified capital company investors to take 47
aggregate credits of five million dollars; and 48
for any year thereafter, an additional amount to 49
be determined by the director but not to exceed 50
aggregate credits of ten million dollars for any 51
year with the approval of the commissioner of 52
administration and reported to the general 53
SB 1188 194
assembly as provided in subsection 2 of section 54
33.282, provided that the amount so determined 55
shall not impair the ability of an investor with 56
earned and vested credits which have been 57
allowed in previous years to take them, pursuant 58
to subsection 1 of this section. During any 59
calendar year in which the limitation described 60
in this subsection will limit the amount of 61
certified capital for which earned and vested 62
credits against state premium tax liability are 63
allowed, certified capital for which credits are 64
allowed will be allocated in order of priority 65
based upon the date of filing of information 66
described in subdivision (1) of subsection 5 of 67
section 135.516. Certified capital limited in 68
any calendar year by the application of the 69
provisions of this subsection shall be allowed 70
and allocated in the immediately succeeding 71
calendar year in the order of priority set forth 72
in this subsection. The department shall make 73
separate allocations of certified capital for 74
which credits are allowed under the limitations 75
described in this subsection and under the 76
limitations described in subsection 5 of this 77
section. 78
5. In addition to the maximum amount 79
pursuant to subsection 4 of this section, the 80
aggregate amount of certified capital for which 81
earned and vested credits against state premium 82
tax liability are allowed for persons pursuant 83
to sections 135.500 to 135.529 shall be the 84
following: for calendar year 1999 and for any 85
year thereafter, an amount to be determined by 86
the director which would entitle all Missouri 87
certified capital company investors to take 88
aggregate credits not to exceed four million 89
dollars for any year with the approval of the 90
commissioner of administration and reported to 91
the general assembly as provided in subsection 2 92
of section 33.282, provided that the amount so 93
determined shall not impair the ability of an 94
investor with earned and vested credits which 95
have been allowed in previous years or pursuant 96
to the provisions of subsection 4 of this 97
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section to take them, pursuant to subsection 1 98
of this section. For purposes of any 99
requirement regarding the schedule of qualified 100
investments for certified capital for which 101
earned and vested credits against state premium 102
tax liability are allowed pursuant to this 103
subsection only, the definition of a "qualified 104
Missouri business" as set forth in subdivision 105
(14) of subsection 2 of section 135.500 means a 106
Missouri business that is located in a 107
distressed community as defined in section 108
135.530, and meets all of the requirements of 109
subdivision (14) of subsection 2 of section 110
135.500. During any calendar year in which the 111
limitation described in this subsection limits 112
the amount of additional certified capital for 113
which earned and vested credits against state 114
premium tax liability are allowed, additional 115
certified capital for which credits are allowed 116
shall be allocated in order of priority based 117
upon the date of filing of information described 118
in subdivision (1) of subsection 5 of section 119
135.516 with respect to such additional 120
certified capital. The department shall make 121
separate allocations of certified capital for 122
which credits are allowed under the limitations 123
described in this subsection and under the 124
limitations described in subsection 4 of this 125
section. No limitation applicable to any 126
certified capital company with respect to 127
certified capital for which credits are allowed 128
pursuant to subsection 4 of this section shall 129
limit the amount of certified capital for which 130
credits are allowed pursuant to this 131
subsection. No limitation applicable to any 132
certified capital company with respect to 133
certified capital for which credits are allowed 134
pursuant to this subsection shall limit the 135
amount of certified capital for which credits 136
are allowed pursuant to subsection 4 of this 137
section. 138
6. The department shall advise any 139
Missouri certified capital company, in writing, 140
within fifteen days after receiving the filing 141
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described in subdivision (1) of subsection 5 of 142
section 135.516 whether the limitations of 143
subsection 3 of this section then in effect will 144
be applicable with respect to the investments 145
and credits described in such filing with the 146
department.] 147
[135.505. A Missouri certified capital 1
company shall have a funding period of one year 2
from the date of receiving certification from 3
the director. All investments in the Missouri 4
certified capital company shall be made within 5
such three hundred sixty-five-day funding 6
period.] 7
[135.508. The department may certify 1
profit or not-for-profit entities which submit 2
an application to be designated as a Missouri 3
certified capital company. The department shall 4
review the organizational documents for each 5
applicant for certification and the business 6
history of the applicant, determine that the 7
Missouri certified capital company's cash, 8
marketable securities and other liquid assets 9
are at least five hundred thousand dollars, 10
determine that the liquid asset base for 11
certified companies is at least five hundred 12
thousand dollars at all times during the 13
company's participation in the program 14
authorized by sections 135.500 to 135.529, and 15
determine that the officers and the board of 16
directors, partners, trustees or managers are 17
thoroughly acquainted with the requirements of 18
sections 135.500 to 135.529. No insurance 19
company which receives tax credits permitted 20
under sections 135.500 to 135.529 for an 21
investment in a Missouri certified capital 22
company shall, individually or with or through 23
one or more affiliates, be a managing general 24
partner of or control the direction of 25
investments of that Missouri certified capital 26
company. Within seventy-five days of 27
application, the department shall either issue 28
the certification and notify the department of 29
revenue and the director of the department of 30
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commerce and insurance of such certification or 31
shall refuse the certification and communicate 32
in detail to the applicant the grounds for the 33
refusal, including the suggestions for the 34
removal of those grounds. The department shall 35
be responsible for the administration of the tax 36
credits authorized by sections 135.500 to 37
135.529. No rule or portion of a rule 38
promulgated under the authority of sections 39
135.500 to 135.529 shall become effective unless 40
it has been promulgated pursuant to the 41
provisions of chapter 536. All rulemaking 42
authority delegated prior to June 27, 1997, is 43
of no force and effect and repealed; however, 44
nothing in this section shall be interpreted to 45
repeal or affect the validity of any rule filed 46
or adopted prior to June 27, 1997, if such rule 47
complied with the provisions of chapter 536. 48
The provisions of this section and chapter 536 49
are nonseverable and if any of the powers vested 50
with the general assembly pursuant to chapter 51
536, including the ability to review, to delay 52
the effective date, or to disapprove and annul a 53
rule or portion of a rule, are subsequently held 54
unconstitutional, then the purported grant of 55
rulemaking authority and any rule so proposed 56
and contained in the order of rulemaking shall 57
be invalid and void.] 58
[135.516. 1. To continue to be certified, 1
a Missouri certified capital company shall make 2
qualified investments according to the following 3
schedule: 4
(1) Within two years after the date on 5
which a Missouri certified capital company is 6
designated as a Missouri certified capital 7
company at least twenty-five percent of its 8
certified capital shall be, or have been, placed 9
in qualified investments; 10
(2) Within three years after the date on 11
which a Missouri certified capital company is 12
designated as a Missouri certified capital 13
company at least forty percent of its certified 14
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capital shall be, or have been, placed in 15
qualified investments; 16
(3) Within four years after the date on 17
which a Missouri certified capital company is 18
designated as a Missouri certified capital 19
company, at least fifty percent of its total 20
certified capital shall be, or have been, placed 21
in qualified investments. A Missouri certified 22
capital company may not make an investment in an 23
affiliate of the certified capital company. For 24
the purposes of this subsection, if a legal 25
entity is not an affiliate before a certified 26
capital company initially invests in the entity, 27
it will not be an affiliate if a certified 28
capital company provides additional investment 29
in such entity subsequent to its initial 30
investment; 31
(4) A certified capital company, at least 32
fifteen working days prior to making what it 33
determines to be an initial qualified investment 34
in a specific qualified Missouri business, shall 35
certify to the department that the company in 36
which it or a qualified investing entity 37
proposes to invest is a qualified Missouri 38
business. The certified capital company shall 39
state the amount of capital it or a qualified 40
investing entity intends to invest and the name 41
of the business in which it or a qualified 42
investing entity intends to invest. The 43
certified capital company shall also provide to 44
the department an explanation of its 45
determination that the business meets the 46
definition of a qualified Missouri business. If 47
the department determines that the business does 48
not meet the definition of a qualified Missouri 49
business, it shall, within the fifteen-working- 50
day period prior to the making of the proposed 51
investment, notify the certified capital company 52
of its determination and an explanation 53
thereof. If the department fails to notify the 54
certified capital company with respect to the 55
proposed investment within the fifteen-working- 56
day period prior to the making of the proposed 57
investment, the company in which the certified 58
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capital company or a qualified investing entity 59
proposes to invest shall be deemed to be a 60
qualified Missouri business. If a certified 61
capital company fails to notify the department 62
prior to making an initial investment in a 63
business, the department may subsequently 64
determine that the business in which the 65
certified capital company or a qualified 66
investing entity invested was not a qualified 67
Missouri business even though the business, at 68
the time of the investment, met the requirements 69
of subdivision (15) of subsection 2 of section 70
135.500; 71
(5) All certified capital which is not 72
required to be placed in qualified investments 73
or which has been placed in qualified 74
investments and can be received by the company, 75
may be held or invested in such manner as the 76
Missouri certified capital company, in its 77
discretion, deems appropriate. The proceeds of 78
all certified capital which is received by a 79
certified capital company after it was 80
originally placed in qualified investments may 81
be placed again in qualified investments and 82
shall count toward any requirement in sections 83
135.500 to 135.529 with respect to placing 84
certified capital in qualified investments. 85
2. A certified capital company may make 86
qualified distributions at any time. In order 87
to make distributions, other than qualified 88
distributions, a certified capital company must 89
have made cumulative qualified investments, 90
including those made through a qualified 91
investing entity, in an amount cumulatively 92
equal to at least one hundred percent of its 93
certified capital. Cumulative distributions to 94
equity holders, other than qualified 95
distributions, in excess of the certified 96
capital company's original certified capital and 97
any additional capital contributions to the 98
certified capital company shall be subject to 99
audit by a nationally recognized certified 100
public accounting firm acceptable to the 101
department, at the expense of the certified 102
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capital company. The audit shall determine 103
whether aggregate cumulative distributions to 104
all investors and equity holders, other than 105
qualified distributions, when combined with all 106
tax credits utilized by investors pursuant to 107
sections 135.500 to 135.529, have resulted in an 108
annual internal rate of return of fifteen 109
percent computed on the sum of total original 110
certified capital of the certified capital 111
company and any additional capital contributions 112
to the certified capital company. Twenty-five 113
percent of distributions made, other than 114
qualified distributions, in excess of the amount 115
required to produce a fifteen percent annual 116
internal rate of return, as determined by the 117
audit, shall be payable by the certified capital 118
company to the Missouri development finance 119
board. Distributions or payments to debt 120
holders of a certified capital company, however, 121
may be made without restriction with respect to 122
debt owed to them by a certified capital 123
company. A debt holder that is also an investor 124
or equity holder of a certified capital company 125
may receive distributions or payments with 126
respect to such debt without restriction. 127
3. No qualified investment may be made at 128
a cost to a Missouri certified capital company 129
greater than fifteen percent of the total 130
certified capital under management of the 131
Missouri certified capital company at the time 132
of investment. 133
4. Documents and other materials submitted 134
by Missouri certified capital companies or by 135
businesses for purposes of the continuance of 136
certification may be deemed "closed records" 137
pursuant to the provisions of section 620.014. 138
5. Each Missouri certified capital company 139
shall report the following to the department: 140
(1) As soon as practicable after the 141
receipt of certified capital, the name of each 142
investor from which the certified capital was 143
received, the amount of each investor's 144
investment of certified capital and tax credits 145
computed without regard to any limitations under 146
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subsection 3 of section 135.503, and the date on 147
which the certified capital was received; 148
(2) On a quarterly basis, the amount of 149
the Missouri certified capital company's 150
certified capital at the end of the quarter, 151
whether or not the Missouri certified capital 152
company has invested, together with any 153
investments made by a qualified investing entity 154
that are deemed to have been made by the 155
certified capital company, more than fifteen 156
percent of the total certified capital under 157
management in any one company, and all qualified 158
investments that the Missouri certified capital 159
company has made or has been deemed to have been 160
made through a qualified investing entity; 161
(3) Each Missouri certified capital 162
company shall provide annual audited financial 163
statements to the department which include an 164
opinion of an independent certified public 165
accountant to the department within ninety days 166
of the close of the fiscal year. At the same 167
time, the certified capital company shall also 168
provide audited financial statements for any 169
qualified investing entity that has made 170
qualified investments on its behalf, unless the 171
financial results of such qualified investing 172
entity are included in the consolidated 173
financial statements of the certified capital 174
company. The audit shall address the methods of 175
operation and conduct of the business of the 176
Missouri certified capital company to determine 177
if the Missouri certified capital company is 178
complying with the statutes and program rules 179
and that the funds received by the Missouri 180
certified capital company have been invested as 181
required within the time limits provided by 182
sections 135.500 to 135.529.] 183
[135.517. In order for investments of a 1
qualifying investing entity to be counted as 2
qualified investments pursuant to sections 3
135.500 to 135.529, each such investment of a 4
qualifying investing entity must have received 5
prior approval from the department.] 6
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[135.520. 1. The division of finance 1
shall conduct an annual review of each Missouri 2
certified capital company and any qualified 3
investing entities designated by it to determine 4
if the Missouri certified capital company is 5
abiding by the requirements of certifications, 6
to advise the Missouri certified capital company 7
as to the certification status of its qualified 8
investments and to ensure that no investment has 9
been made in violation of sections 135.500 to 10
135.529. The cost of the annual review shall be 11
paid by each Missouri certified capital company 12
according to a reasonable fee schedule adopted 13
by the department. The division of finance 14
shall report its findings to the department as 15
soon as practicable following completion of the 16
audit. 17
2. Any material violation of sections 18
135.500 to 135.529 shall be grounds for 19
decertification under this section. If the 20
department determines that a company is not in 21
compliance with any requirements for continuing 22
in certification, it shall, by written notice, 23
inform the officers of the company and the board 24
of directors, managers, trustees or general 25
partners that they may be decertified in one 26
hundred twenty days from the date of mailing of 27
the notice, unless they correct the deficiencies 28
and are again in compliance with the 29
requirements for certification. 30
3. At the end of the one hundred twenty- 31
day grace period, if the Missouri certified 32
capital company is still not in compliance, the 33
department may send a notice of decertification 34
to the company and to the directors of the 35
department of revenue and department of commerce 36
and insurance. Decertification of a Missouri 37
certified capital company prior to the certified 38
capital company meeting all requirements of 39
subdivisions (1) to (3) of subsection 1 of 40
section 135.516 shall cause the recapture of all 41
premium tax credits previously claimed by an 42
investor and the forfeiture of all future 43
credits to be claimed by an investor with 44
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respect to its investment in the certified 45
capital company. Decertification of a Missouri 46
certified capital company after it has met all 47
requirements of subdivisions (1) to (3) of 48
subsection 1 of section 135.516 shall cause the 49
forfeiture of premium tax credits for the 50
taxable year of the investor in which the 51
decertification arose and for future taxable 52
years with no recapture of tax credits obtained 53
by an investor with respect to the investor's 54
tax years which ended before the decertification 55
occurred. Once a certified capital company has 56
made cumulative qualified investments, including 57
those made through a qualified investing entity 58
and deemed to have been made by the certified 59
capital company, in an amount equal to at least 60
one hundred percent of its certified capital, 61
all future premium tax credits to be claimed by 62
investors with respect to said certified capital 63
company pursuant to sections 135.500 to 135.529 64
shall be nonforfeitable. Once a certified 65
capital company has made cumulative qualified 66
investments, including those made through a 67
qualified investing entity and deemed to have 68
been made by the certified capital company, in 69
an amount equal to at least one hundred percent 70
of its certified capital and has met all other 71
requirements under sections 135.500 to 135.529, 72
it shall no longer be subject to regulation by 73
the department except with respect to the 74
payment of distributions to the Missouri 75
development finance board.] 76
[135.523. The department may revoke the 1
certification of a Missouri certified capital 2
company if any material representation to the 3
department in connection with the application 4
process proves to have been falsely made or if 5
the application materially violates any 6
requirement established by the department 7
pursuant to sections 135.500 to 135.529.] 8
[135.526. All investments for which tax 1
credits are claimed under the provisions of 2
sections 135.500 to 135.529 shall satisfy the 3
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conditions of being registered or specifically 4
exempt from registration by provisions or 5
regulations under chapter 409.] 6
[135.529. 1. The tax credit established 1
pursuant to sections 135.500 to 135.529 may be 2
sold or transferred in accordance with 3
regulations adopted by the department. Any such 4
sale or transfer shall not affect the time 5
schedule for taking the tax credit, as provided 6
in sections 135.500 to 135.529. Any premium tax 7
credits recaptured pursuant to section 135.520 8
shall be the liability of the taxpayer which 9
actually claimed the credit. In approving the 10
sale or transfer of the credit pursuant to this 11
section, the department may require the 12
transferor or the transferee or both the 13
transferor and the transferee to execute 14
guarantees or post bonds with respect to any 15
potential credit recapture. 16
2. No rule or portion of a rule 17
promulgated under the authority of sections 18
135.500 to 135.529 shall become effective unless 19
it has been promulgated pursuant to the 20
provisions of chapter 536. The department shall 21
make and promulgate emergency rules and 22
regulations consistent with the provisions of 23
sections 135.500 to 135.529 as are necessary or 24
useful to carry out the provisions of sections 25
135.500 to 135.529, pursuant to section 536.025. 26
3. Every final order, decision, license or 27
other official act of the director pursuant to 28
sections 135.500 to 135.529 is subject to 29
administrative review in accordance with chapter 30
621.] 31
[135.535. 1. A corporation, limited 1
liability corporation, partnership or sole 2
proprietorship, which moves its operations from 3
outside Missouri or outside a distressed 4
community into a distressed community, or which 5
commences operations in a distressed community 6
on or after January 1, 1999, and in either case 7
has more than seventy-five percent of its 8
employees at the facility in the distressed 9
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community, and which has fewer than one hundred 10
employees for whom payroll taxes are paid, and 11
which is a manufacturing, biomedical, medical 12
devices, scientific research, animal research, 13
computer software design or development, 14
computer programming, including internet, web 15
hosting, and other information technology, 16
wireless or wired or other telecommunications or 17
a professional firm shall receive a forty 18
percent credit against income taxes owed 19
pursuant to chapter 143, 147 or 148, other than 20
taxes withheld pursuant to sections 143.191 to 21
143.265, for each of the three years after such 22
move, if approved by the department of economic 23
development, which shall issue a certificate of 24
eligibility if the department determines that 25
the taxpayer is eligible for such credit. The 26
maximum amount of credits per taxpayer set forth 27
in this subsection shall not exceed one hundred 28
twenty-five thousand dollars for each of the 29
three years for which the credit is claimed. 30
The department of economic development, by means 31
of rule or regulation promulgated pursuant to 32
the provisions of chapter 536, shall assign 33
appropriate North American Industry 34
Classification System numbers to the companies 35
which are eligible for the tax credits provided 36
for in this section. Such three-year credits 37
shall be awarded only one time to any company 38
which moves its operations from outside of 39
Missouri or outside of a distressed community 40
into a distressed community or to a company 41
which commences operations within a distressed 42
community. A taxpayer shall file an application 43
for certification of the tax credits for the 44
first year in which credits are claimed and for 45
each of the two succeeding taxable years for 46
which credits are claimed. 47
2. Employees of such facilities physically 48
working and earning wages for that work within a 49
distressed community whose employers have been 50
approved for tax credits pursuant to subsection 51
1 of this section by the department of economic 52
development for whom payroll taxes are paid 53
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shall also be eligible to receive a tax credit 54
against individual income tax, imposed pursuant 55
to chapter 143, equal to one and one-half 56
percent of their gross salary paid at such 57
facility earned for each of the three years that 58
the facility receives the tax credit provided by 59
this section, so long as they were qualified 60
employees of such entity. The employer shall 61
calculate the amount of such credit and shall 62
report the amount to the employee and the 63
department of revenue. 64
3. A tax credit against income taxes owed 65
pursuant to chapter 143, 147 or 148, other than 66
the taxes withheld pursuant to sections 143.191 67
to 143.265, in lieu of the credit against income 68
taxes as provided in subsection 1 of this 69
section, may be taken by such an entity in a 70
distressed community in an amount of forty 71
percent of the amount of funds expended for 72
computer equipment and its maintenance, medical 73
laboratories and equipment, research laboratory 74
equipment, manufacturing equipment, fiber optic 75
equipment, high speed telecommunications, wiring 76
or software development expense up to a maximum 77
of seventy-five thousand dollars in tax credits 78
for such equipment or expense per year per 79
entity and for each of three years after 80
commencement in or moving operations into a 81
distressed community. 82
4. A corporation, partnership or sole 83
partnership, which has no more than one hundred 84
employees for whom payroll taxes are paid, which 85
is already located in a distressed community and 86
which expends funds for such equipment pursuant 87
to subsection 3 of this section in an amount 88
exceeding its average of the prior two years for 89
such equipment, shall be eligible to receive a 90
tax credit against income taxes owed pursuant to 91
chapters 143, 147 and 148 in an amount equal to 92
the lesser of seventy-five thousand dollars or 93
twenty-five percent of the funds expended for 94
such additional equipment per such entity. Tax 95
credits allowed pursuant to this subsection or 96
subsection 1 of this section may be carried back 97
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to any of the three prior tax years and carried 98
forward to any of the next five tax years. 99
5. An existing corporation, partnership or 100
sole proprietorship that is located within a 101
distressed community and that relocates 102
employees from another facility outside of the 103
distressed community to its facility within the 104
distressed community, and an existing business 105
located within a distressed community that hires 106
new employees for that facility may both be 107
eligible for the tax credits allowed by 108
subsections 1 and 3 of this section. To be 109
eligible for such tax credits, such a business, 110
during one of its tax years, shall employ within 111
a distressed community at least twice as many 112
employees as were employed at the beginning of 113
that tax year. A business hiring employees 114
shall have no more than one hundred employees 115
before the addition of the new employees. This 116
subsection shall only apply to a business which 117
is a manufacturing, biomedical, medical devices, 118
scientific research, animal research, computer 119
software design or development, computer 120
programming or telecommunications business, or a 121
professional firm. 122
6. Tax credits shall be approved for 123
applicants meeting the requirements of this 124
section in the order that such applications are 125
received. Certificates of tax credits issued in 126
accordance with this section may be transferred, 127
sold or assigned by notarized endorsement which 128
names the transferee. 129
7. The tax credits allowed pursuant to 130
subsections 1, 2, 3, 4 and 5 of this section 131
shall be for an amount of no more than ten 132
million dollars for each year beginning in 133
1999. The total maximum credit for all entities 134
already located in distressed communities and 135
claiming credits pursuant to subsection 4 of 136
this section shall be seven hundred and fifty 137
thousand dollars. The department of economic 138
development in approving taxpayers for the 139
credit as provided for in subsection 6 of this 140
section shall use information provided by the 141
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department of revenue regarding taxes paid in 142
the previous year, or projected taxes for those 143
entities newly established in the state, as the 144
method of determining when this maximum will be 145
reached and shall maintain a record of the order 146
of approval. Any tax credit not used in the 147
period for which the credit was approved may be 148
carried over until the full credit has been 149
allowed. 150
8. A Missouri employer relocating into a 151
distressed community and having employees 152
covered by a collective bargaining agreement at 153
the facility from which it is relocating shall 154
not be eligible for the credits in subsection 1, 155
3, 4 or 5 of this section, and its employees 156
shall not be eligible for the credit in 157
subsection 2 of this section if the relocation 158
violates or terminates a collective bargaining 159
agreement covering employees at the facility, 160
unless the affected collective bargaining unit 161
concurs with the move. 162
9. Notwithstanding any provision of law to 163
the contrary, no taxpayer shall earn the tax 164
credits allowed in this section and the tax 165
credits otherwise allowed in section 135.110, or 166
the tax credits, exemptions, and refund 167
otherwise allowed in sections 135.200, 135.220, 168
135.225 and 135.245, respectively, for the same 169
business for the same tax period.] 170
[135.545. A taxpayer shall be allowed a 1
credit for taxes paid pursuant to chapter 143, 2
147 or 148 in an amount equal to fifty percent 3
of a qualified investment in transportation 4
development for aviation, mass transportation, 5
including parking facilities for users of mass 6
transportation, railroads, ports, including 7
parking facilities and limited access roads 8
within ports, waterborne transportation, bicycle 9
and pedestrian paths, or rolling stock located 10
in a distressed community as defined in section 11
135.530, and which are part of a development 12
plan approved by the appropriate local agency. 13
If the department of economic development 14
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determines the investment has been so approved, 15
the department shall grant the tax credit in 16
order of date received. A taxpayer may carry 17
forward any unused tax credit for up to ten 18
years and may carry it back for the previous 19
three years until such credit has been fully 20
claimed. Certificates of tax credit issued in 21
accordance with this section may be transferred, 22
sold or assigned by notarized endorsement which 23
names the transferee. The tax credits allowed 24
pursuant to this section shall be for an amount 25
of no more than ten million dollars for each 26
year. This credit shall apply to returns filed 27
for all taxable years beginning on or after 28
January 1, 1999. Any unused portion of the tax 29
credit authorized pursuant to this section shall 30
be available for use in the future by those 31
entities until fully claimed. For purposes of 32
this section, a "taxpayer" shall include any 33
charitable organization that is exempt from 34
federal income tax and whose Missouri unrelated 35
business taxable income, if any, would be 36
subject to the state income tax imposed under 37
chapter 143.] 38
[135.546. For all tax years beginning on 1
or after January 1, 2005, no tax credits shall 2
be approved, awarded, or issued to any person or 3
entity claiming any tax credit under section 4
135.545; if an organization has been allocated 5
credits for contribution-based credits prior to 6
January 1, 2005, the organization may issue such 7
credits prior to January 1, 2007, for qualified 8
contributions.] 9
[135.679. 1. This section shall be known 1
and may be cited as the "Qualified Beef Tax 2
Credit Act". 3
2. As used in this section, the following 4
terms mean: 5
(1) "Agricultural property", any real and 6
personal property, including but not limited to 7
buildings, structures, improvements, equipment, 8
and livestock, that is used in or is to be used 9
in this state by residents of this state for: 10
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(a) The operation of a farm or ranch; and 11
(b) Grazing, feeding, or the care of 12
livestock; 13
(2) "Authority", the agricultural and 14
small business development authority established 15
in chapter 348; 16
(3) "Backgrounded", any additional weight 17
at the time of the first qualifying sale, before 18
being finished, above the established baseline 19
weight; 20
(4) "Baseline weight", the average weight 21
in the immediate past two years of all beef 22
animals sold that are thirty months of age or 23
younger, categorized by sex. Baseline weight 24
for qualified beef animals that are physically 25
out-of-state but whose ownership is retained by 26
a resident of this state shall be established by 27
the average transfer weight in the immediate 28
past two years of all beef animals that are 29
thirty months of age or younger and that are 30
transferred out-of-state but whose ownership is 31
retained by a resident of this state, 32
categorized by sex. The established baseline 33
weight shall be effective for a period of three 34
years. If the taxpayer is a qualifying beef 35
animal producer with fewer than two years of 36
production, the baseline weight shall be 37
established by the available average weight in 38
the immediate past year of all beef animals sold 39
that are thirty months of age or younger, 40
categorized by sex. If the qualifying beef 41
animal producer has no previous production, the 42
baseline weight shall be established by the 43
authority; 44
(5) "Finished", the period from 45
backgrounded to harvest; 46
(6) "Qualifying beef animal", any beef 47
animal that is certified by the authority, that 48
was born in this state after August 28, 2008, 49
that was raised and backgrounded or finished in 50
this state by the taxpayer, excluding any beef 51
animal more than thirty months of age as 52
verified by certified written birth records; 53
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(7) "Qualifying sale", the first time a 54
qualifying beef animal is sold in this state 55
after the qualifying beef animal is 56
backgrounded, and a subsequent sale if the 57
weight of the qualifying beef animal at the time 58
of the subsequent sale is greater than the 59
weight of the qualifying beef animal at the time 60
of the first qualifying sale of such beef animal; 61
(8) "Tax credit", a credit against the tax 62
otherwise due under chapter 143, excluding 63
withholding tax imposed by sections 143.191 to 64
143.265, or otherwise due under chapter 147; 65
(9) "Taxpayer", any individual or entity 66
who: 67
(a) Is subject to the tax imposed in 68
chapter 143, excluding withholding tax imposed 69
by sections 143.191 to 143.265, or the tax 70
imposed in chapter 147; 71
(b) In the case of an individual, is a 72
resident of this state as verified by a 911 73
address or in the absence of a 911 system, a 74
physical address; and 75
(c) Owns or rents agricultural property 76
and principal place of business is located in 77
this state. 78
3. (1) For all tax years beginning on or 79
after January 1, 2009, but ending on or before 80
December 31, 2021, a taxpayer shall be allowed a 81
tax credit for the first qualifying sale and for 82
a subsequent qualifying sale of all qualifying 83
beef animals. 84
(2) The tax credit amount for the first 85
qualifying sale shall be ten cents per pound for 86
qualifying sale weights under six hundred pounds 87
and twenty-five cents per pound for qualifying 88
sale weights of six hundred pounds or greater, 89
shall be based on the backgrounded weight of all 90
qualifying beef animals at the time of the first 91
qualifying sale, and shall be calculated as 92
follows: 93
(a) If the qualifying sale weight is under 94
six hundred pounds, the qualifying sale weight 95
minus the baseline weight multiplied by ten 96
cents, as long as the qualifying sale weight is 97
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equal to or greater than one hundred pounds 98
above the baseline weight; or 99
(b) If the qualifying sale weight is six 100
hundred pounds or greater, the qualifying sale 101
weight minus the baseline weight multiplied by 102
twenty-five cents, as long as the qualifying 103
sale weight is equal to or greater than one 104
hundred pounds above the baseline weight. 105
(3) The tax credit amount for each 106
subsequent qualifying sale shall be ten cents 107
per pound for qualifying sale weights under six 108
hundred pounds and twenty-five cents per pound 109
for qualifying sale weights of six hundred 110
pounds or greater, shall be based on the 111
backgrounded weight of all qualifying beef 112
animals at the time of the subsequent qualifying 113
sale, and shall be calculated as follows: 114
(a) If the qualifying sale weight is under 115
six hundred pounds, the qualifying sale weight 116
minus the baseline weight multiplied by ten 117
cents, as long as the qualifying sale weight is 118
equal to or greater than one hundred pounds 119
above the baseline weight; or 120
(b) If the qualifying sale weight is six 121
hundred pounds or greater, the qualifying sale 122
weight minus the baseline weight multiplied by 123
twenty-five cents, as long as the qualifying 124
sale weight is equal to or greater than one 125
hundred pounds above the baseline weight. 126
The authority may waive no more than twenty- 127
five percent of the one-hundred-pound weight 128
gain requirement, but any such waiver shall be 129
based on a disaster declaration issued by the 130
U.S. Department of Agriculture. 131
4. The amount of the tax credit claimed 132
shall not exceed the amount of the taxpayer's 133
state tax liability for the tax year for which 134
the credit is claimed. No tax credit claimed 135
under this section shall be refundable. The tax 136
credit shall be claimed in the tax year in which 137
the qualifying sale of the qualifying beef 138
occurred, but any amount of credit that the 139
taxpayer is prohibited by this section from 140
claiming in a tax year may be carried forward to 141
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any of the taxpayer's four subsequent tax 142
years. The total amount of tax credits that any 143
taxpayer may claim shall not exceed fifteen 144
thousand dollars per year. No taxpayer shall be 145
allowed to claim tax credits under this section 146
for more than three years. The amount of tax 147
credits that may be issued to all eligible 148
applicants claiming tax credits authorized in 149
this section and section 135.686 in a calendar 150
year shall not exceed two million dollars. Tax 151
credits shall be issued on an as-received 152
application basis until the calendar year limit 153
is reached. Any credits not issued in any 154
calendar year shall expire and shall not be 155
issued in any subsequent years. 156
5. To claim the tax credit allowed under 157
this section, the taxpayer shall submit to the 158
authority an application for the tax credit on a 159
form provided by the authority and any 160
application fee imposed by the authority. The 161
application shall be filed with the authority at 162
the end of each calendar year in which a 163
qualified sale was made and for which a tax 164
credit is claimed under this section. The 165
application shall include any certified 166
documentation and information required by the 167
authority. All required information obtained by 168
the authority shall be confidential and not 169
disclosed except by court order, subpoena, or as 170
otherwise provided by law. If the taxpayer and 171
the qualified sale meet all criteria required by 172
this section and approval is granted by the 173
authority, the authority shall issue a tax 174
credit certificate in the appropriate amount. 175
Tax credit certificates issued under this 176
section may be assigned, transferred, sold, or 177
otherwise conveyed, and the new owner of the tax 178
credit certificate shall have the same rights in 179
the tax credit as the original taxpayer. 180
Whenever a tax credit certificate is assigned, 181
transferred, sold or otherwise conveyed, a 182
notarized endorsement shall be filed with the 183
authority specifying the name and address of the 184
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new owner of the tax credit certificate or the 185
value of the tax credit. 186
6. Any information provided under this 187
section shall be confidential information, to be 188
shared with no one except state and federal 189
animal health officials, except as provided in 190
subsection 5 of this section. 191
7. The authority shall, at least annually, 192
submit a report to the Missouri general assembly 193
reviewing the costs and benefits of the program 194
established under this section. 195
8. The authority may promulgate rules to 196
implement the provisions of this section. Any 197
rule or portion of a rule, as that term is 198
defined in section 536.010, that is created 199
under the authority delegated in this section 200
shall become effective only if it complies with 201
and is subject to all of the provisions of 202
chapter 536 and, if applicable, section 203
536.028. This section and chapter 536 are 204
nonseverable and if any of the powers vested 205
with the general assembly pursuant to chapter 206
536 to review, to delay the effective date, or 207
to disapprove and annul a rule are subsequently 208
held unconstitutional, then the grant of 209
rulemaking authority and any rule proposed or 210
adopted after August 28, 2007, shall be invalid 211
and void. 212
9. This section shall not be subject to 213
the Missouri sunset act, sections 23.250 to 214
23.298.] 215
[135.680. 1. As used in this section, the 1
following terms shall mean: 2
(1) "Adjusted purchase price", the product 3
of: 4
(a) The amount paid to the issuer of a 5
qualified equity investment for such qualified 6
equity investment; and 7
(b) The following fraction: 8
a. The numerator shall be the dollar 9
amount of qualified low-income community 10
investments held by the issuer in this state as 11
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of the credit allowance date during the 12
applicable tax year; and 13
b. The denominator shall be the total 14
dollar amount of qualified low-income community 15
investments held by the issuer in all states as 16
of the credit allowance date during the 17
applicable tax year; 18
c. For purposes of calculating the amount 19
of qualified low-income community investments 20
held by an issuer, an investment shall be 21
considered held by an issuer even if the 22
investment has been sold or repaid; provided 23
that the issuer reinvests an amount equal to the 24
capital returned to or recovered by the issuer 25
from the original investment, exclusive of any 26
profits realized, in another qualified low- 27
income community investment within twelve months 28
of the receipt of such capital. An issuer shall 29
not be required to reinvest capital returned 30
from qualified low-income community investments 31
after the sixth anniversary of the issuance of 32
the qualified equity investment, the proceeds of 33
which were used to make the qualified low-income 34
community investment, and the qualified low- 35
income community investment shall be considered 36
held by the issuer through the seventh 37
anniversary of the qualified equity investment's 38
issuance; 39
(2) "Applicable percentage", zero percent 40
for each of the first two credit allowance 41
dates, seven percent for the third credit 42
allowance date, and eight percent for the next 43
four credit allowance dates; 44
(3) "Credit allowance date", with respect 45
to any qualified equity investment: 46
(a) The date on which such investment is 47
initially made; and 48
(b) Each of the six anniversary dates of 49
such date thereafter; 50
(4) "Long-term debt security", any debt 51
instrument issued by a qualified community 52
development entity, at par value or a premium, 53
with an original maturity date of at least seven 54
years from the date of its issuance, with no 55
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acceleration of repayment, amortization, or 56
prepayment features prior to its original 57
maturity date, and with no distribution, 58
payment, or interest features related to the 59
profitability of the qualified community 60
development entity or the performance of the 61
qualified community development entity's 62
investment portfolio. The foregoing shall in no 63
way limit the holder's ability to accelerate 64
payments on the debt instrument in situations 65
where the issuer has defaulted on covenants 66
designed to ensure compliance with this section 67
or Section 45D of the Internal Revenue Code of 68
1986, as amended; 69
(5) "Qualified active low-income community 70
business", the meaning given such term in 71
Section 45D of the Internal Revenue Code of 72
1986, as amended; provided that any business 73
that derives or projects to derive fifteen 74
percent or more of its annual revenue from the 75
rental or sale of real estate shall not be 76
considered to be a qualified active low-income 77
community business; 78
(6) "Qualified community development 79
entity", the meaning given such term in Section 80
45D of the Internal Revenue Code of 1986, as 81
amended; provided that such entity has entered 82
into an allocation agreement with the Community 83
Development Financial Institutions Fund of the 84
U.S. Treasury Department with respect to credits 85
authorized by Section 45D of the Internal 86
Revenue Code of 1986, as amended, which includes 87
the state of Missouri within the service area 88
set forth in such allocation agreement; 89
(7) "Qualified equity investment", any 90
equity investment in, or long-term debt security 91
issued by, a qualified community development 92
entity that: 93
(a) Is acquired after September 4, 2007, 94
at its original issuance solely in exchange for 95
cash; 96
(b) Has at least eighty-five percent of 97
its cash purchase price used by the issuer to 98
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make qualified low-income community investments; 99
and 100
(c) Is designated by the issuer as a 101
qualified equity investment under this 102
subdivision and is certified by the department 103
of economic development as not exceeding the 104
limitation contained in subsection 2 of this 105
section. This term shall include any qualified 106
equity investment that does not meet the 107
provisions of paragraph (a) of this subdivision 108
if such investment was a qualified equity 109
investment in the hands of a prior holder; 110
(8) "Qualified low-income community 111
investment", any capital or equity investment 112
in, or loan to, any qualified active low-income 113
community business. With respect to any one 114
qualified active low-income community business, 115
the maximum amount of qualified low-income 116
community investments made in such business, on 117
a collective basis with all of its affiliates, 118
that may be used from the calculation of any 119
numerator described in subparagraph a. of 120
paragraph (b) of subdivision (1) of this 121
subsection shall be ten million dollars whether 122
issued to one or several qualified community 123
development entities; 124
(9) "Tax credit", a credit against the tax 125
otherwise due under chapter 143, excluding 126
withholding tax imposed in sections 143.191 to 127
143.265, or otherwise due under section 375.916 128
or chapter 147, 148, or 153; 129
(10) "Taxpayer", any individual or entity 130
subject to the tax imposed in chapter 143, 131
excluding withholding tax imposed in sections 132
143.191 to 143.265, or the tax imposed in 133
section 375.916 or chapter 147, 148, or 153. 134
2. A taxpayer that makes a qualified 135
equity investment earns a vested right to tax 136
credits under this section. On each credit 137
allowance date of such qualified equity 138
investment the taxpayer, or subsequent holder of 139
the qualified equity investment, shall be 140
entitled to a tax credit during the taxable year 141
including such credit allowance date. The tax 142
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credit amount shall be equal to the applicable 143
percentage of the adjusted purchase price paid 144
to the issuer of such qualified equity 145
investment. The amount of the tax credit 146
claimed shall not exceed the amount of the 147
taxpayer's state tax liability for the tax year 148
for which the tax credit is claimed. No tax 149
credit claimed under this section shall be 150
refundable or transferable. Tax credits earned 151
by a partnership, limited liability company, S- 152
corporation, or other pass-through entity may be 153
allocated to the partners, members, or 154
shareholders of such entity for their direct use 155
in accordance with the provisions of any 156
agreement among such partners, members, or 157
shareholders. Any amount of tax credit that the 158
taxpayer is prohibited by this section from 159
claiming in a taxable year may be carried 160
forward to any of the taxpayer's five subsequent 161
taxable years. The department of economic 162
development shall limit the monetary amount of 163
qualified equity investments permitted under 164
this section to a level necessary to limit tax 165
credit utilization at no more than twenty-five 166
million dollars of tax credits in any fiscal 167
year. Such limitation on qualified equity 168
investments shall be based on the anticipated 169
utilization of credits without regard to the 170
potential for taxpayers to carry forward tax 171
credits to later tax years. 172
3. The issuer of the qualified equity 173
investment shall certify to the department of 174
economic development the anticipated dollar 175
amount of such investments to be made in this 176
state during the first twelve-month period 177
following the initial credit allowance date. If 178
on the second credit allowance date, the actual 179
dollar amount of such investments is different 180
than the amount estimated, the department of 181
economic development shall adjust the credits 182
arising on the second allowance date to account 183
for such difference. 184
4. The department of economic development 185
shall recapture the tax credit allowed under 186
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this section with respect to such qualified 187
equity investment under this section if: 188
(1) Any amount of the federal tax credit 189
available with respect to a qualified equity 190
investment that is eligible for a tax credit 191
under this section is recaptured under Section 192
45D of the Internal Revenue Code of 1986, as 193
amended; or 194
(2) The issuer redeems or makes principal 195
repayment with respect to a qualified equity 196
investment prior to the seventh anniversary of 197
the issuance of such qualified equity 198
investment. Any tax credit that is subject to 199
recapture shall be recaptured from the taxpayer 200
that claimed the tax credit on a return. 201
5. The department of economic development 202
shall promulgate rules to implement the 203
provisions of this section, including recapture 204
provisions on a scaled proportional basis, and 205
to administer the allocation of tax credits 206
issued for qualified equity investments, which 207
shall be conducted on a first-come, first-serve 208
basis. Any rule or portion of a rule, as that 209
term is defined in section 536.010, that is 210
created under the authority delegated in this 211
section shall become effective only if it 212
complies with and is subject to all of the 213
provisions of chapter 536 and, if applicable, 214
section 536.028. This section and chapter 536 215
are nonseverable and if any of the powers vested 216
with the general assembly pursuant to chapter 217
536 to review, to delay the effective date, or 218
to disapprove and annul a rule are subsequently 219
held unconstitutional, then the grant of 220
rulemaking authority and any rule proposed or 221
adopted after September 4, 2007, shall be 222
invalid and void. 223
6. For fiscal years following fiscal year 224
2010, qualified equity investments shall not be 225
made under this section unless reauthorization 226
is made pursuant to this subsection. For all 227
fiscal years following fiscal year 2010, unless 228
the general assembly adopts a concurrent 229
resolution granting authority to the department 230
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of economic development to approve qualified 231
equity investments for the Missouri new markets 232
development program and clearly describing the 233
amount of tax credits available for the next 234
fiscal year, or otherwise complies with the 235
provisions of this subsection, no qualified 236
equity investments may be permitted to be made 237
under this section. The amount of available tax 238
credits contained in such a resolution shall not 239
exceed the limitation provided under subsection 240
2 of this section. In any year in which the 241
provisions of this section shall sunset pursuant 242
to subsection 7 of this section, reauthorization 243
shall be made by general law and not by 244
concurrent resolution. Nothing in this 245
subsection shall preclude a taxpayer who makes a 246
qualified equity investment prior to the 247
expiration of authority to make qualified equity 248
investments from claiming tax credits relating 249
to such qualified equity investment for each 250
applicable credit allowance date. 251
7. Under section 23.253 of the Missouri 252
sunset act: 253
(1) The provisions of the new program 254
authorized under this section shall 255
automatically sunset six years after September 256
4, 2007, unless reauthorized by an act of the 257
general assembly; and 258
(2) If such program is reauthorized, the 259
program authorized under this section shall 260
automatically sunset twelve years after the 261
effective date of the reauthorization of this 262
section; and 263
(3) This section shall terminate on 264
September first of the calendar year immediately 265
following the calendar year in which the program 266
authorized under this section is sunset. 267
However, nothing in this subsection shall 268
preclude a taxpayer who makes a qualified equity 269
investment prior to sunset of this section under 270
the provisions of section 23.253 from claiming 271
tax credits relating to such qualified equity 272
investment for each credit allowance date.] 273
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[135.682. 1. The director of the 1
department of economic development or the 2
director's designee shall issue letter rulings 3
regarding the tax credit program authorized 4
under section 135.680, subject to the terms and 5
conditions set forth in this section. The 6
director of the department of economic 7
development may impose additional terms and 8
conditions consistent with this section to 9
requests for letter rulings by regulation 10
promulgated under chapter 536. For the purposes 11
of this section, the term "letter ruling" means 12
a written interpretation of law to a specific 13
set of facts provided by the applicant 14
requesting a letter ruling. 15
2. The director or director's designee 16
shall respond to a request for a letter ruling 17
within sixty days of receipt of such request. 18
The applicant may provide a draft letter ruling 19
for the department's consideration. The 20
applicant may withdraw the request for a letter 21
ruling, in writing, prior to the issuance of the 22
letter ruling. The director or the director's 23
designee may refuse to issue a letter ruling for 24
good cause, but must list the specific reasons 25
for refusing to issue the letter ruling. Good 26
cause includes, but is not limited to: 27
(1) The applicant requests the director to 28
determine whether a statute is constitutional or 29
a regulation is lawful; 30
(2) The request involves a hypothetical 31
situation or alternative plans; 32
(3) The facts or issues presented in the 33
request are unclear, overbroad, insufficient, or 34
otherwise inappropriate as a basis upon which to 35
issue a letter ruling; and 36
(4) The issue is currently being 37
considered in a rulemaking procedure, contested 38
case, or other agency or judicial proceeding 39
that may definitely resolve the issue. 40
3. Letter rulings shall bind the director 41
and the director's agents and their successors 42
until such time as the taxpayer or its 43
shareholders, members, or partners, as 44
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applicable, claim all of such tax credits on a 45
Missouri tax return, subject to the terms and 46
conditions set forth in properly published 47
regulations. The letter ruling shall apply only 48
to the applicant. 49
4. Letter rulings issued under the 50
authority of this section shall not be a rule as 51
defined in section 536.010 in that it is an 52
interpretation issued by the department with 53
respect to a specific set of facts and intended 54
to apply only to that specific set of facts, and 55
therefore shall not be subject to the rulemaking 56
requirements of chapter 536. 57
5. Information in letter ruling requests 58
as described in section 620.014 shall be closed 59
to the public. Copies of letter rulings shall 60
be available to the public provided that the 61
applicant identifying information and otherwise 62
protected information is redacted from the 63
letter ruling as provided in subsection 1 of 64
section 610.024.] 65
[135.700. For all tax years beginning on 1
or after January 1, 1999, a grape grower or wine 2
producer shall be allowed a tax credit against 3
the state tax liability incurred pursuant to 4
chapter 143, exclusive of the provisions 5
relating to the withholding of tax as provided 6
in sections 143.191 to 143.265, in an amount 7
equal to twenty-five percent of the purchase 8
price of all new equipment and materials used 9
directly in the growing of grapes or the 10
production of wine in the state. Each grower or 11
producer shall apply to the department of 12
economic development and specify the total 13
amount of such new equipment and materials 14
purchased during the calendar year. The 15
department of economic development shall certify 16
to the department of revenue the amount of such 17
tax credit to which a grape grower or wine 18
producer is entitled pursuant to this section. 19
The provisions of this section notwithstanding, 20
a grower or producer may only apply for and 21
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receive the credit authorized by this section 22
for five tax periods.] 23
[135.710. 1. As used in this section, the 1
following terms mean: 2
(1) "Alternative fuel vehicle refueling 3
property", property in this state owned by an 4
eligible applicant and used for storing 5
alternative fuels and for dispensing such 6
alternative fuels into fuel tanks of motor 7
vehicles owned by such eligible applicant or 8
private citizens; 9
(2) "Alternative fuels", any motor fuel at 10
least seventy percent of the volume of which 11
consists of one or more of the following: 12
(a) Ethanol; 13
(b) Natural gas; 14
(c) Compressed natural gas, or CNG; 15
(d) Liquified natural gas, or LNG; 16
(e) Liquified petroleum gas, or LP gas, 17
propane, or autogas; 18
(f) Any mixture of biodiesel and diesel 19
fuel, without regard to any use of kerosene; 20
(g) Hydrogen; 21
(3) "Department", the department of 22
economic development; 23
(4) "Electric vehicle recharging 24
property", property in this state owned by an 25
eligible applicant and used for recharging 26
electric motor vehicles owned by such eligible 27
applicant or private citizens; 28
(5) "Eligible applicant", a business 29
entity or private citizen that is the owner of 30
an electric vehicle recharging property or an 31
alternative fuel vehicle refueling property; 32
(6) "Qualified Missouri contractor", a 33
contractor whose principal place of business is 34
located in Missouri and has been located in 35
Missouri for a period of not less than five 36
years; 37
(7) "Qualified property", an electric 38
vehicle recharging property or an alternative 39
fuel vehicle refueling property which, if 40
constructed after August 28, 2014, was 41
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constructed with at least fifty-one percent of 42
the costs being paid to qualified Missouri 43
contractors for the: 44
(a) Fabrication of premanufactured 45
equipment or process piping used in the 46
construction of such facility; 47
(b) Construction of such facility; and 48
(c) General maintenance of such facility 49
during the time period in which such facility 50
receives any tax credit under this section. 51
If no qualified Missouri contractor is 52
located within seventy-five miles of the 53
property, the requirement that fifty-one percent 54
of the costs shall be paid to qualified Missouri 55
contractors shall not apply. 56
2. For all tax years beginning on or after 57
January 1, 2015, but before January 1, 2018, any 58
eligible applicant who installs and operates a 59
qualified property shall be allowed a credit 60
against the tax otherwise due under chapter 143, 61
excluding withholding tax imposed by sections 62
143.191 to 143.265, or due under chapter 147 or 63
chapter 148 for any tax year in which the 64
applicant is constructing the qualified 65
property. The credit allowed in this section 66
per eligible applicant who is a private citizen 67
shall not exceed fifteen hundred dollars or per 68
eligible applicant that is a business entity 69
shall not exceed the lesser of twenty thousand 70
dollars or twenty percent of the total costs 71
directly associated with the purchase and 72
installation of any alternative fuel storage and 73
dispensing equipment or any recharging equipment 74
on any qualified property, which shall not 75
include the following: 76
(1) Costs associated with the purchase of 77
land upon which to place a qualified property; 78
(2) Costs associated with the purchase of 79
an existing qualified property; or 80
(3) Costs for the construction or purchase 81
of any structure. 82
3. Tax credits allowed by this section 83
shall be claimed by the eligible applicant at 84
the time such applicant files a return for the 85
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tax year in which the storage and dispensing or 86
recharging facilities were placed in service at 87
a qualified property, and shall be applied 88
against the income tax liability imposed by 89
chapter 143, chapter 147, or chapter 148 after 90
all other credits provided by law have been 91
applied. The cumulative amount of tax credits 92
which may be claimed by eligible applicants 93
claiming all credits authorized in this section 94
shall not exceed one million dollars in any 95
calendar year, subject to appropriations. 96
4. If the amount of the tax credit exceeds 97
the eligible applicant's tax liability, the 98
difference shall not be refundable. Any amount 99
of credit that an eligible applicant is 100
prohibited by this section from claiming in a 101
taxable year may be carried forward to any of 102
such applicant's two subsequent taxable years. 103
Tax credits allowed under this section may be 104
assigned, transferred, sold, or otherwise 105
conveyed. 106
5. Any qualified property, for which an 107
eligible applicant receives tax credits under 108
this section, which ceases to sell alternative 109
fuel or recharge electric vehicles shall cause 110
the forfeiture of such eligible applicant's tax 111
credits provided under this section for the 112
taxable year in which the qualified property 113
ceased to sell alternative fuel or recharge 114
electric vehicles and for future taxable years 115
with no recapture of tax credits obtained by an 116
eligible applicant with respect to such 117
applicant's tax years which ended before the 118
sale of alternative fuel or recharging of 119
electric vehicles ceased. 120
6. The director of revenue shall establish 121
the procedure by which the tax credits in this 122
section may be claimed, and shall establish a 123
procedure by which the cumulative amount of tax 124
credits is apportioned equally among all 125
eligible applicants claiming the credit. To the 126
maximum extent possible, the director of revenue 127
shall establish the procedure described in this 128
subsection in such a manner as to ensure that 129
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eligible applicants can claim all the tax 130
credits possible up to the cumulative amount of 131
tax credits available for the taxable year. No 132
eligible applicant claiming a tax credit under 133
this section shall be liable for any interest or 134
penalty for filing a tax return after the date 135
fixed for filing such return as a result of the 136
apportionment procedure under this subsection. 137
7. Any eligible applicant desiring to 138
claim a tax credit under this section shall 139
submit the appropriate application for such 140
credit with the department. The application for 141
a tax credit under this section shall include 142
any information required by the department. The 143
department shall review the applications and 144
certify to the department of revenue each 145
eligible applicant that qualifies for the tax 146
credit. 147
8. The department and the department of 148
revenue may promulgate rules to implement the 149
provisions of this section. Any rule or portion 150
of a rule, as that term is defined in section 151
536.010, that is created under the authority 152
delegated in this section shall become effective 153
only if it complies with and is subject to all 154
of the provisions of chapter 536 and, if 155
applicable, section 536.028. This section and 156
chapter 536 are nonseverable and if any of the 157
powers vested with the general assembly pursuant 158
to chapter 536 to review, to delay the effective 159
date, or to disapprove and annul a rule are 160
subsequently held unconstitutional, then the 161
grant of rulemaking authority and any rule 162
proposed or adopted after August 28, 2008, shall 163
be invalid and void. 164
9. The provisions of section 23.253 of the 165
Missouri sunset act notwithstanding: 166
(1) The provisions of the new program 167
authorized under this section shall 168
automatically sunset three years after December 169
31, 2014, unless reauthorized by an act of the 170
general assembly; and 171
(2) If such program is reauthorized, the 172
program authorized under this section shall 173
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automatically sunset six years after the 174
effective date of the reauthorization of this 175
section; and 176
(3) This section shall terminate on 177
December thirty-first of the calendar year 178
immediately following the calendar year in which 179
the program authorized under this section is 180
sunset; and 181
(4) The provisions of this subsection 182
shall not be construed to limit or in any way 183
impair the department's ability to redeem tax 184
credits authorized on or before the date the 185
program authorized under this section expires or 186
a taxpayer's ability to redeem such tax credits.] 187
[135.766. An eligible small business, as 1
defined in Section 44 of the Internal Revenue 2
Code, shall be allowed a credit against the tax 3
otherwise due pursuant to chapter 143, not 4
including sections 143.191 to 143.265, in an 5
amount equal to any amount paid by the eligible 6
small business to the United States Small 7
Business Administration as a guaranty fee 8
pursuant to obtaining Small Business 9
Administration guaranteed financing and to 10
programs administered by the United States 11
Department of Agriculture for rural development 12
or farm service agencies. No tax credits 13
provided under this section shall be authorized 14
on or after the thirtieth day following the 15
effective date of this act. The provisions of 16
this subsection shall not be construed to limit 17
or in any way impair the department's ability to 18
issue tax credits authorized prior to the 19
thirtieth day following the effective date of 20
this act, or a taxpayer's ability to redeem such 21
tax credits.] 22
[135.950. The following terms, whenever 1
used in sections 135.950 to 135.970 mean: 2
(1) "Average wage", the new payroll 3
divided by the number of new jobs; 4
(2) "Blighted area", the same meaning as 5
defined pursuant to section 99.805; 6
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(3) "Board", an enhanced enterprise zone 7
board established pursuant to section 135.957; 8
(4) "Commencement of commercial 9
operations" shall be deemed to occur during the 10
first taxable year for which the new business 11
facility is first put into use by the taxpayer 12
in the enhanced business enterprise in which the 13
taxpayer intends to use the new business 14
facility; 15
(5) "County average wage", the average 16
wages in each county as determined by the 17
department for the most recently completed full 18
calendar year. However, if the computed county 19
average wage is above the statewide average 20
wage, the statewide average wage shall be deemed 21
the county average wage for such county for the 22
purpose of determining eligibility. The 23
department shall publish the county average wage 24
for each county at least annually. 25
Notwithstanding the provisions of this 26
subdivision to the contrary, for any taxpayer 27
that in conjunction with their project is 28
relocating employees from a Missouri county with 29
a higher county average wage, such taxpayer 30
shall obtain the endorsement of the governing 31
body of the community from which jobs are being 32
relocated or the county average wage for their 33
project shall be the county average wage for the 34
county from which the employees are being 35
relocated; 36
(6) "Department", the department of 37
economic development; 38
(7) "Director", the director of the 39
department of economic development; 40
(8) "Employee", a person employed by the 41
enhanced business enterprise that is scheduled 42
to work an average of at least one thousand 43
hours per year, and such person at all times has 44
health insurance offered to him or her, which is 45
partially paid for by the employer; 46
(9) "Enhanced business enterprise", an 47
industry or one of a cluster of industries that 48
is either: 49
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(a) Identified by the department as 50
critical to the state's economic security and 51
growth; or 52
(b) Will have an impact on industry 53
cluster development, as identified by the 54
governing authority in its application for 55
designation of an enhanced enterprise zone and 56
approved by the department; but excluding 57
gambling establishments (NAICS industry group 58
7132), retail trade (NAICS sectors 44 and 45), 59
educational services (NAICS sector 61), 60
religious organizations (NAICS industry group 61
8131), public administration (NAICS sector 92), 62
and food and drinking places (NAICS subsector 63
722), however, notwithstanding provisions of 64
this section to the contrary, headquarters or 65
administrative offices of an otherwise excluded 66
business may qualify for benefits if the offices 67
serve a multistate territory. In the event a 68
national, state, or regional headquarters 69
operation is not the predominant activity of a 70
project facility, the new jobs and investment of 71
such headquarters operation is considered 72
eligible for benefits under this section if the 73
other requirements are satisfied. Service 74
industries may be eligible only if a majority of 75
its annual revenues will be derived from out of 76
the state; 77
(10) "Existing business facility", any 78
facility in this state which was employed by the 79
taxpayer claiming the credit in the operation of 80
an enhanced business enterprise immediately 81
prior to an expansion, acquisition, addition, or 82
replacement; 83
(11) "Facility", any building used as an 84
enhanced business enterprise located within an 85
enhanced enterprise zone, including the land on 86
which the facility is located and all machinery, 87
equipment, and other real and depreciable 88
tangible personal property acquired for use at 89
and located at or within such facility and used 90
in connection with the operation of such 91
facility; 92
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(12) "Facility base employment", the 93
greater of the number of employees located at 94
the facility on the date of the notice of 95
intent, or for the twelve-month period prior to 96
the date of the notice of intent, the average 97
number of employees located at the facility, or 98
in the event the project facility has not been 99
in operation for a full twelve-month period, the 100
average number of employees for the number of 101
months the facility has been in operation prior 102
to the date of the notice of intent; 103
(13) "Facility base payroll", the total 104
amount of taxable wages paid by the enhanced 105
business enterprise to employees of the enhanced 106
business enterprise located at the facility in 107
the twelve months prior to the notice of intent, 108
not including the payroll of owners of the 109
enhanced business enterprise unless the enhanced 110
business enterprise is participating in an 111
employee stock ownership plan. For the purposes 112
of calculating the benefits under this program, 113
the amount of base payroll shall increase each 114
year based on the consumer price index or other 115
comparable measure, as determined by the 116
department; 117
(14) "Governing authority", the body 118
holding primary legislative authority over a 119
county or incorporated municipality; 120
(15) "Megaproject", any manufacturing or 121
assembling facility, approved by the department 122
for construction and operation within an 123
enhanced enterprise zone, which satisfies the 124
following: 125
(a) The new capital investment is 126
projected to exceed three hundred million 127
dollars over a period of eight years from the 128
date of approval by the department; 129
(b) The number of new jobs is projected to 130
exceed one thousand over a period of eight years 131
beginning on the date of approval by the 132
department; 133
(c) The average wage of new jobs to be 134
created shall exceed the county average wage; 135
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(d) The taxpayer shall offer health 136
insurance to all new jobs and pay at least 137
eighty percent of such insurance premiums; and 138
(e) An acceptable plan of repayment, to 139
the state, of the tax credits provided for the 140
megaproject has been provided by the taxpayer; 141
(16) "NAICS", the 1997 edition of the 142
North American Industry Classification System as 143
prepared by the Executive Office of the 144
President, Office of Management and Budget. Any 145
NAICS sector, subsector, industry group or 146
industry identified in this section shall 147
include its corresponding classification in 148
subsequent federal industry classification 149
systems; 150
(17) "New business facility", a facility 151
that does not produce or generate electrical 152
energy from a renewable energy resource and 153
satisfies the following requirements: 154
(a) Such facility is employed by the 155
taxpayer in the operation of an enhanced 156
business enterprise. Such facility shall not be 157
considered a new business facility in the hands 158
of the taxpayer if the taxpayer's only activity 159
with respect to such facility is to lease it to 160
another person or persons. If the taxpayer 161
employs only a portion of such facility in the 162
operation of an enhanced business enterprise, 163
and leases another portion of such facility to 164
another person or persons or does not otherwise 165
use such other portions in the operation of an 166
enhanced business enterprise, the portion 167
employed by the taxpayer in the operation of an 168
enhanced business enterprise shall be considered 169
a new business facility, if the requirements of 170
paragraphs (b), (c), and (d) of this subdivision 171
are satisfied; 172
(b) Such facility is acquired by, or 173
leased to, the taxpayer after December 31, 2004. 174
A facility shall be deemed to have been acquired 175
by, or leased to, the taxpayer after December 176
31, 2004, if the transfer of title to the 177
taxpayer, the transfer of possession pursuant to 178
a binding contract to transfer title to the 179
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taxpayer, or the commencement of the term of the 180
lease to the taxpayer occurs after December 31, 181
2004; 182
(c) If such facility was acquired by the 183
taxpayer from another taxpayer and such facility 184
was employed immediately prior to the 185
acquisition by another taxpayer in the operation 186
of an enhanced business enterprise, the 187
operation of the same or a substantially similar 188
enhanced business enterprise is not continued by 189
the taxpayer at such facility; and 190
(d) Such facility is not a replacement 191
business facility, as defined in subdivision 192
(27) of this section; 193
(18) "New business facility employee", an 194
employee of the taxpayer in the operation of a 195
new business facility during the taxable year 196
for which the credit allowed by section 135.967 197
is claimed, except that truck drivers and rail 198
and barge vehicle operators and other operators 199
of rolling stock for hire shall not constitute 200
new business facility employees; 201
(19) "New business facility investment", 202
the value of real and depreciable tangible 203
personal property, acquired by the taxpayer as 204
part of the new business facility, which is used 205
by the taxpayer in the operation of the new 206
business facility, during the taxable year for 207
which the credit allowed by 135.967 is claimed, 208
except that trucks, truck-trailers, truck 209
semitrailers, rail vehicles, barge vehicles, 210
aircraft and other rolling stock for hire, 211
track, switches, barges, bridges, tunnels, and 212
rail yards and spurs shall not constitute new 213
business facility investments. The total value 214
of such property during such taxable year shall 215
be: 216
(a) Its original cost if owned by the 217
taxpayer; or 218
(b) Eight times the net annual rental 219
rate, if leased by the taxpayer. The net annual 220
rental rate shall be the annual rental rate paid 221
by the taxpayer less any annual rental rate 222
received by the taxpayer from subrentals. The 223
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new business facility investment shall be 224
determined by dividing by twelve the sum of the 225
total value of such property on the last 226
business day of each calendar month of the 227
taxable year. If the new business facility is 228
in operation for less than an entire taxable 229
year, the new business facility investment shall 230
be determined by dividing the sum of the total 231
value of such property on the last business day 232
of each full calendar month during the portion 233
of such taxable year during which the new 234
business facility was in operation by the number 235
of full calendar months during such period; 236
(20) "New job", the number of employees 237
located at the facility that exceeds the 238
facility base employment less any decrease in 239
the number of the employees at related 240
facilities below the related facility base 241
employment. No job that was created prior to 242
the date of the notice of intent shall be deemed 243
a new job; 244
(21) "Notice of intent", a form developed 245
by the department which is completed by the 246
enhanced business enterprise and submitted to 247
the department which states the enhanced 248
business enterprise's intent to hire new jobs 249
and request benefits under such program; 250
(22) "Related facility", a facility 251
operated by the enhanced business enterprise or 252
a related company in this state that is directly 253
related to the operation of the project facility; 254
(23) "Related facility base employment", 255
the greater of: 256
(a) The number of employees located at all 257
related facilities on the date of the notice of 258
intent; or 259
(b) For the twelve-month period prior to 260
the date of the notice of intent, the average 261
number of employees located at all related 262
facilities of the enhanced business enterprise 263
or a related company located in this state; 264
(24) "Related taxpayer": 265
(a) A corporation, partnership, trust, or 266
association controlled by the taxpayer; 267
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(b) An individual, corporation, 268
partnership, trust, or association in control of 269
the taxpayer; or 270
(c) A corporation, partnership, trust or 271
association controlled by an individual, 272
corporation, partnership, trust or association 273
in control of the taxpayer. "Control of a 274
corporation" shall mean ownership, directly or 275
indirectly, of stock possessing at least fifty 276
percent of the total combined voting power of 277
all classes of stock entitled to vote, "control 278
of a partnership or association" shall mean 279
ownership of at least fifty percent of the 280
capital or profits interest in such partnership 281
or association, and "control of a trust" shall 282
mean ownership, directly or indirectly, of at 283
least fifty percent of the beneficial interest 284
in the principal or income of such trust; 285
ownership shall be determined as provided in 286
Section 318 of the Internal Revenue Code of 287
1986, as amended; 288
(25) "Renewable energy generation zone", 289
an area which has been found, by a resolution or 290
ordinance adopted by the governing authority 291
having jurisdiction of such area, to be a 292
blighted area and which contains land, 293
improvements, or a lock and dam site which is 294
unutilized or underutilized for the production, 295
generation, conversion, and conveyance of 296
electrical energy from a renewable energy 297
resource; 298
(26) "Renewable energy resource", shall 299
include: 300
(a) Wind; 301
(b) Solar thermal sources or photovoltaic 302
cells and panels; 303
(c) Dedicated crops grown for energy 304
production; 305
(d) Cellulosic agricultural residues; 306
(e) Plant residues; 307
(f) Methane from landfills, agricultural 308
operations, or wastewater treatment; 309
(g) Thermal depolymerization or pyrolysis 310
for converting waste material to energy; 311
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(h) Clean and untreated wood such as 312
pallets; 313
(i) Hydroelectric power, which shall 314
include electrical energy produced or generated 315
by hydroelectric power generating equipment, as 316
such term is defined in section 137.010; 317
(j) Fuel cells using hydrogen produced by 318
one or more of the renewable resources provided 319
in paragraphs (a) to (i) of this subdivision; or 320
(k) Any other sources of energy, not 321
including nuclear energy, that are certified as 322
renewable by rule by the department of economic 323
development; 324
(27) "Replacement business facility", a 325
facility otherwise described in subdivision (17) 326
of this section, hereafter referred to in this 327
subdivision as "new facility", which replaces 328
another facility, hereafter referred to in this 329
subdivision as "old facility", located within 330
the state, which the taxpayer or a related 331
taxpayer previously operated but discontinued 332
operating on or before the close of the first 333
taxable year for which the credit allowed by 334
this section is claimed. A new facility shall 335
be deemed to replace an old facility if the 336
following conditions are met: 337
(a) The old facility was operated by the 338
taxpayer or a related taxpayer during the 339
taxpayer's or related taxpayer's taxable period 340
immediately preceding the taxable year in which 341
commencement of commercial operations occurs at 342
the new facility; and 343
(b) The old facility was employed by the 344
taxpayer or a related taxpayer in the operation 345
of an enhanced business enterprise and the 346
taxpayer continues the operation of the same or 347
substantially similar enhanced business 348
enterprise at the new facility. Notwithstanding 349
the preceding provisions of this subdivision, a 350
facility shall not be considered a replacement 351
business facility if the taxpayer's new business 352
facility investment, as computed in subdivision 353
(19) of this section, in the new facility during 354
the tax period for which the credits allowed in 355
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section 135.967 are claimed exceed one million 356
dollars and if the total number of employees at 357
the new facility exceeds the total number of 358
employees at the old facility by at least two; 359
(28) "Same or substantially similar 360
enhanced business enterprise", an enhanced 361
business enterprise in which the nature of the 362
products produced or sold, or activities 363
conducted, are similar in character and use or 364
are produced, sold, performed, or conducted in 365
the same or similar manner as in another 366
enhanced business enterprise.] 367
[135.953. 1. For purposes of sections 1
135.950 to 135.970, an area shall meet the 2
following criteria in order to qualify as an 3
enhanced enterprise zone: 4
(1) The area shall be a blighted area, 5
have pervasive poverty, unemployment and general 6
distress; and 7
(2) At least sixty percent of the 8
residents living in the area have incomes below 9
ninety percent of the median income of all 10
residents: 11
(a) Within the state of Missouri, 12
according to the last decennial census or other 13
appropriate source as approved by the director; 14
or 15
(b) Within the county or city not within a 16
county in which the area is located, according 17
to the last decennial census or other 18
appropriate source as approved by the director; 19
and 20
(3) The resident population of the area 21
shall be at least five hundred but not more than 22
one hundred thousand at the time of designation 23
as an enhanced enterprise zone if the area lies 24
within a metropolitan statistical area, as 25
established by the United States Census Bureau, 26
or if the area does not lie within a 27
metropolitan statistical area, the resident 28
population of the area at the time of 29
designation shall be at least five hundred but 30
not more than forty thousand inhabitants. If 31
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the population of the jurisdiction of the 32
governing authority does not meet the minimum 33
population requirements set forth in this 34
subdivision, the population of the area must be 35
at least fifty percent of the population of the 36
jurisdiction. However, no enhanced enterprise 37
zone shall be created which consists of the 38
total area within the political boundaries of a 39
county; 40
(4) The level of unemployment of persons, 41
according to the most recent data available from 42
the United States Bureau of Census and approved 43
by the director, within the area is equal to or 44
exceeds the average rate of unemployment for: 45
(a) The state of Missouri over the 46
previous twelve months; or 47
(b) The county or city not within a county 48
over the previous twelve months; and 49
(5) No finding of blight under this 50
chapter shall be used to meet the conditions for 51
blight under any other statute of this state. 52
2. Notwithstanding the requirements of 53
subsection 1 of this section to the contrary, an 54
enhanced enterprise zone may be established in 55
an area located within a county for which public 56
and individual assistance has been requested by 57
the governor pursuant to Section 401 of the 58
Robert T. Stafford Disaster Relief and Emergency 59
Assistance Act, 42 U.S.C. 5121, et seq., for an 60
emergency proclaimed by the governor pursuant to 61
section 44.100 due to a natural disaster of 62
major proportions, if the area to be designated 63
is blighted and sustained severe damage as a 64
result of such natural disaster, as determined 65
by the state emergency management agency. An 66
application for designation as an enhanced 67
enterprise zone pursuant to this subsection 68
shall be made before the expiration of one year 69
from the date the governor requested federal 70
relief for the area sought to be designated. 71
3. Notwithstanding the requirements of 72
subsection 1 of this section to the contrary, an 73
enhanced enterprise zone may be designated in a 74
county of declining population if it meets the 75
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requirements of subdivisions (1), (3) and either 76
(2) or (4) of subsection 1 of this section. For 77
the purposes of this subsection, a "county of 78
declining population" is one that has lost one 79
percent or more of its population as 80
demonstrated by comparing the most recent 81
decennial census population to the next most 82
recent decennial census population for the 83
county. 84
4. In addition to meeting the requirements 85
of subsection 1, 2, or 3 of this section, an 86
area, to qualify as an enhanced enterprise zone, 87
shall be demonstrated by the governing authority 88
to have either: 89
(1) The potential to create sustainable 90
jobs in a targeted industry; or 91
(2) A demonstrated impact on local 92
industry cluster development. 93
5. Notwithstanding the requirements of 94
subsections 1 and 4 of this section to the 95
contrary, a renewable energy generation zone may 96
be designated as an enhanced enterprise zone if 97
the renewable energy generation zone meets the 98
criteria set forth in subdivision (25) of 99
section 135.950.] 100
[135.957. 1. A governing authority 1
planning to seek designation of an enhanced 2
enterprise zone shall establish an enhanced 3
enterprise zone board. The number of members on 4
the board shall be seven. One member of the 5
board shall be appointed by the school district 6
or districts located within the area proposed 7
for designation as an enhanced enterprise zone. 8
One member of the board shall be appointed by 9
other affected taxing districts. The remaining 10
five members shall be chosen by the chief 11
elected official of the county or municipality. 12
2. The school district member and the 13
affected taxing district member shall each have 14
initial terms of five years. Of the five 15
members appointed by the chief elected official, 16
two shall have initial terms of four years, two 17
shall have initial terms of three years, and one 18
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shall have an initial term of two years. 19
Thereafter, members shall serve terms of five 20
years. Each commissioner shall hold office 21
until a successor has been appointed. All 22
vacancies shall be filled in the same manner as 23
the original appointment. For inefficiency or 24
neglect of duty or misconduct in office, a 25
member of the board may be removed by the 26
applicable appointing authority. 27
3. A majority of the members shall 28
constitute a quorum of such board for the 29
purpose of conducting business and exercising 30
the powers of the board and for all other 31
purposes. Action may be taken by the board upon 32
a vote of a majority of the members present. 33
4. The members of the board annually shall 34
elect a chair from among the members. 35
5. The role of the board shall be to 36
conduct the activities necessary to advise the 37
governing authority on the designation of an 38
enhanced enterprise zone and any other advisory 39
duties as determined by the governing 40
authority. The role of the board after the 41
designation of an enhanced enterprise zone shall 42
be review and assessment of zone activities as 43
it relates to the annual reports as set forth in 44
section 135.960.] 45
[135.960. 1. Any governing authority that 1
desires to have any portion of a city or 2
unincorporated area of a county under its 3
control designated as an enhanced enterprise 4
zone shall hold a public hearing for the purpose 5
of obtaining the opinion and suggestions of 6
those persons who will be affected by such 7
designation. 8
2. After a public hearing is held as 9
required in subsection 1 of this section, the 10
governing authority may, by a majority vote of 11
the members of the governing authority, adopt an 12
ordinance or resolution designating a specific 13
area as an enhanced enterprise zone. Such 14
ordinance shall include, in addition to a 15
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description of the physical, social, and 16
economic characteristics of the area: 17
(1) A plan to provide adequate police 18
protection within the area; 19
(2) A specific and practical process for 20
individual businesses to obtain waivers from 21
burdensome local regulations, ordinances, and 22
orders which serve to discourage economic 23
development within the area to be designated an 24
enhanced enterprise zone, except that such 25
waivers shall not substantially endanger the 26
health or safety of the employees of any such 27
business or the residents of the area; 28
(3) A description of what other specific 29
actions will be taken to support and encourage 30
private investment within the area; 31
(4) A plan to ensure that resources are 32
available to assist area residents to 33
participate in increased development through 34
self-help efforts and in ameliorating any 35
negative effects of designation of the area as 36
an enhanced enterprise zone; 37
(5) A statement describing the projected 38
positive and negative effects of designation of 39
the area as an enhanced enterprise zone; 40
(6) A specific plan to provide assistance 41
to any person or business dislocated as a result 42
of activities within the enhanced enterprise 43
zone. Such plan shall determine the need of 44
dislocated persons for relocation assistance; 45
provide, prior to displacement, information 46
about the type, location, and price of 47
comparable housing or commercial property; 48
provide information concerning state and federal 49
programs for relocation assistance and provide 50
other advisory services to displaced persons. 51
Public agencies may choose to provide assistance 52
under the Uniform Relocation and Real Property 53
Acquisition Act, 42 U.S.C. Section 4601, et 54
seq., to meet the requirements of this 55
subdivision; and 56
(7) A description or plan that 57
demonstrates the requirements of subsection 4 of 58
section 135.953. 59
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3. An enhanced enterprise zone designation 60
shall expire in twenty-five years. 61
4. Each designated enhanced enterprise 62
zone board shall report to the director on an 63
annual basis regarding the status of the zone 64
and business activity within the zone.] 65
[135.963. 1. Improvements made to real 1
property as such term is defined in section 2
137.010 which are made in an enhanced enterprise 3
zone subsequent to the date such zone or 4
expansion thereto was designated may, upon 5
approval of an authorizing resolution or 6
ordinance by the governing authority having 7
jurisdiction of the area in which the 8
improvements are made, be exempt, in whole or in 9
part, from assessment and payment of ad valorem 10
taxes of one or more affected political 11
subdivisions. Improvements made to real 12
property, as such term is defined in section 13
137.010, which are locally assessed and in a 14
renewable energy generation zone designated as 15
an enhanced enterprise zone, subsequent to the 16
date such enhanced enterprise zone or expansion 17
thereto was designated, may, upon approval of an 18
authorizing resolution or ordinance by the 19
governing authority having jurisdiction of the 20
area in which the improvements are made, be 21
exempt, in whole or in part, from assessment and 22
payment of ad valorem taxes of one or more 23
affected political subdivisions. In addition to 24
enhanced business enterprises, a speculative 25
industrial or warehouse building constructed by 26
a public entity or a private entity if the land 27
is leased by a public entity may be subject to 28
such exemption. 29
2. Such authorizing resolution shall 30
specify the percent of the exemption to be 31
granted, the duration of the exemption to be 32
granted, and the political subdivisions to which 33
such exemption is to apply and any other terms, 34
conditions, or stipulations otherwise required. 35
A copy of the resolution shall be provided to 36
the director within thirty calendar days 37
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following adoption of the resolution by the 38
governing authority. 39
3. No exemption shall be granted until the 40
governing authority holds a public hearing for 41
the purpose of obtaining the opinions and 42
suggestions of residents of political 43
subdivisions to be affected by the exemption 44
from property taxes. The governing authority 45
shall send, by certified mail, a notice of such 46
hearing to each political subdivision in the 47
area to be affected and shall publish notice of 48
such hearing in a newspaper of general 49
circulation in the area to be affected by the 50
exemption at least twenty days prior to the 51
hearing but not more than thirty days prior to 52
the hearing. Such notice shall state the time, 53
location, date, and purpose of the hearing. 54
4. Notwithstanding subsection 1 of this 55
section, at least one-half of the ad valorem 56
taxes otherwise imposed on subsequent 57
improvements to real property located in an 58
enhanced enterprise zone of enhanced business 59
enterprises or speculative industrial or 60
warehouse buildings as indicated in subsection 1 61
of this section shall become and remain exempt 62
from assessment and payment of ad valorem taxes 63
of any political subdivision of this state or 64
municipality thereof, if said political 65
subdivision or municipality levies ad valorem 66
taxes, for a period of not less than ten years 67
following the date such improvements were 68
assessed, provided the improved properties are 69
used for enhanced business enterprises. The 70
exemption for speculative buildings is subject 71
to the approval of the governing authority for a 72
period not to exceed two years if the building 73
is owned by a private entity and five years if 74
the building is owned or ground leased by a 75
public entity. This shall not preclude the 76
building receiving an exemption for the 77
remaining time period established by the 78
governing authority if it was occupied by an 79
enhanced business enterprise. The two- and five- 80
year time periods indicated for speculative 81
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buildings shall not be an addition to the local 82
abatement time period for such facility. 83
5. No exemption shall be granted for a 84
period more than twenty-five years, provided, 85
however, that during the ten years prior to the 86
expiration of an enhanced enterprise zone no 87
exemption shall be granted for a period of more 88
than ten years. 89
6. The provisions of subsection 1 of this 90
section shall not apply to improvements made to 91
real property begun prior to August 28, 2004. 92
7. The abatement referred to in this 93
section shall not relieve the assessor or other 94
responsible official from ascertaining the 95
amount of the equalized assessed value of all 96
taxable property annually as required by section 97
99.855, 99.957, or 99.1042 and shall not have 98
the effect of reducing the payments in lieu of 99
taxes referred to in subdivision (2) of 100
subsection 1 of section 99.845, subdivision (2) 101
of subsection 3 of section 99.957, or 102
subdivision (2) of subsection 3 of section 103
99.1042 unless such reduction is set forth in 104
the plan approved by the governing body of the 105
municipality pursuant to subdivision (1) of 106
subsection 1 of section 99.820, section 99.942, 107
or section 99.1027.] 108
[135.967. 1. A taxpayer who establishes a 1
new business facility may, upon approval by the 2
department, be allowed a credit, each tax year 3
for up to ten tax years, in an amount determined 4
as set forth in this section, against the tax 5
imposed by chapter 143, excluding withholding 6
tax imposed by sections 143.191 to 143.265. No 7
taxpayer shall receive multiple ten-year periods 8
for subsequent expansions at the same facility. 9
2. Notwithstanding any provision of law to 10
the contrary, any taxpayer who establishes a new 11
business facility in an enhanced enterprise zone 12
and is awarded state tax credits under this 13
section may not also receive tax credits under 14
sections 135.100 to 135.150, sections 135.200 to 15
135.286, or section 135.535, and may not 16
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simultaneously receive tax credits under 17
sections 620.1875 to 620.1890 at the same 18
facility. 19
3. No credit shall be issued pursuant to 20
this section unless: 21
(1) The number of new business facility 22
employees engaged or maintained in employment at 23
the new business facility for the taxable year 24
for which the credit is claimed equals or 25
exceeds two; and 26
(2) The new business facility investment 27
for the taxable year for which the credit is 28
claimed equals or exceeds one hundred thousand 29
dollars. 30
4. The annual amount of credits allowed 31
for an approved enhanced business enterprise 32
shall be the lesser of: 33
(1) The annual amount authorized by the 34
department for the enhanced business enterprise, 35
which shall be limited to the projected state 36
economic benefit, as determined by the 37
department; or 38
(2) The sum calculated based upon the 39
following: 40
(a) A credit of four hundred dollars for 41
each new business facility employee employed 42
within an enhanced enterprise zone; 43
(b) An additional credit of four hundred 44
dollars for each new business facility employee 45
who is a resident of an enhanced enterprise zone; 46
(c) An additional credit of four hundred 47
dollars for each new business facility employee 48
who is paid by the enhanced business enterprise 49
a wage that exceeds the average wage paid within 50
the county in which the facility is located, as 51
determined by the department; and 52
(d) A credit equal to two percent of new 53
business facility investment within an enhanced 54
enterprise zone. 55
5. Prior to January 1, 2007, in no event 56
shall the department authorize more than four 57
million dollars annually to be issued for all 58
enhanced business enterprises. After December 59
31, 2006, in no event shall the department 60
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authorize more than twenty-four million dollars 61
annually to be issued for all enhanced business 62
enterprises. 63
6. If a facility, which does not 64
constitute a new business facility, is expanded 65
by the taxpayer, the expansion shall be 66
considered eligible for the credit allowed by 67
this section if: 68
(1) The taxpayer's new business facility 69
investment in the expansion during the tax 70
period in which the credits allowed in this 71
section are claimed exceeds one hundred thousand 72
dollars and if the number of new business 73
facility employees engaged or maintained in 74
employment at the expansion facility for the 75
taxable year for which credit is claimed equals 76
or exceeds two, and the total number of 77
employees at the facility after the expansion is 78
at least two greater than the total number of 79
employees before the expansion; and 80
(2) The taxpayer's investment in the 81
expansion and in the original facility prior to 82
expansion shall be determined in the manner 83
provided in subdivision (19) of section 135.950. 84
7. The number of new business facility 85
employees during any taxable year shall be 86
determined by dividing by twelve the sum of the 87
number of individuals employed on the last 88
business day of each month of such taxable 89
year. If the new business facility is in 90
operation for less than the entire taxable year, 91
the number of new business facility employees 92
shall be determined by dividing the sum of the 93
number of individuals employed on the last 94
business day of each full calendar month during 95
the portion of such taxable year during which 96
the new business facility was in operation by 97
the number of full calendar months during such 98
period. For the purpose of computing the credit 99
allowed by this section in the case of a 100
facility which qualifies as a new business 101
facility under subsection 6 of this section, and 102
in the case of a new business facility which 103
satisfies the requirements of paragraph (c) of 104
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subdivision (17) of section 135.950, or 105
subdivision (25) of section 135.950, the number 106
of new business facility employees at such 107
facility shall be reduced by the average number 108
of individuals employed, computed as provided in 109
this subsection, at the facility during the 110
taxable year immediately preceding the taxable 111
year in which such expansion, acquisition, or 112
replacement occurred and shall further be 113
reduced by the number of individuals employed by 114
the taxpayer or related taxpayer that was 115
subsequently transferred to the new business 116
facility from another Missouri facility and for 117
which credits authorized in this section are not 118
being earned, whether such credits are earned 119
because of an expansion, acquisition, 120
relocation, or the establishment of a new 121
facility. 122
8. In the case where a new business 123
facility employee who is a resident of an 124
enhanced enterprise zone for less than a twelve- 125
month period is employed for less than a twelve- 126
month period, the credits allowed by paragraph 127
(b) of subdivision (2) of subsection 4 of this 128
section shall be determined by multiplying four 129
hundred dollars by a fraction, the numerator of 130
which is the number of calendar days during the 131
taxpayer's tax year for which such credits are 132
claimed, in which the employee was a resident of 133
an enhanced enterprise zone, and the denominator 134
of which is three hundred sixty-five. 135
9. For the purpose of computing the credit 136
allowed by this section in the case of a 137
facility which qualifies as a new business 138
facility pursuant to subsection 6 of this 139
section, and in the case of a new business 140
facility which satisfies the requirements of 141
paragraph (c) of subdivision (17) of section 142
135.950 or subdivision (25) of section 135.950, 143
the amount of the taxpayer's new business 144
facility investment in such facility shall be 145
reduced by the average amount, computed as 146
provided in subdivision (19) of section 135.950 147
for new business facility investment, of the 148
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investment of the taxpayer, or related taxpayer 149
immediately preceding such expansion or 150
replacement or at the time of acquisition. 151
Furthermore, the amount of the taxpayer's new 152
business facility investment shall also be 153
reduced by the amount of investment employed by 154
the taxpayer or related taxpayer which was 155
subsequently transferred to the new business 156
facility from another Missouri facility and for 157
which credits authorized in this section are not 158
being earned, whether such credits are earned 159
because of an expansion, acquisition, 160
relocation, or the establishment of a new 161
facility. 162
10. For a taxpayer with flow-through tax 163
treatment to its members, partners, or 164
shareholders, the credit shall be allowed to 165
members, partners, or shareholders in proportion 166
to their share of ownership on the last day of 167
the taxpayer's tax period. 168
11. Credits may not be carried forward but 169
shall be claimed for the taxable year during 170
which commencement of commercial operations 171
occurs at such new business facility, and for 172
each of the nine succeeding taxable years for 173
which the credit is issued. 174
12. Certificates of tax credit authorized 175
by this section may be transferred, sold, or 176
assigned by filing a notarized endorsement 177
thereof with the department that names the 178
transferee, the amount of tax credit 179
transferred, and the value received for the 180
credit, as well as any other information 181
reasonably requested by the department. The 182
sale price cannot be less than seventy-five 183
percent of the par value of such credits. 184
13. The director of revenue shall issue a 185
refund to the taxpayer to the extent that the 186
amount of credits allowed in this section 187
exceeds the amount of the taxpayer's income tax. 188
14. Prior to the issuance of tax credits, 189
the department shall verify through the 190
department of revenue, or any other state 191
department, that the tax credit applicant does 192
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not owe any delinquent income, sales, or use tax 193
or interest or penalties on such taxes, or any 194
delinquent fees or assessments levied by any 195
state department and through the department of 196
commerce and insurance that the applicant does 197
not owe any delinquent insurance taxes. Such 198
delinquency shall not affect the authorization 199
of the application for such tax credits, except 200
that the amount of credits issued shall be 201
reduced by the applicant's tax delinquency. If 202
the department of revenue or the department of 203
commerce and insurance, or any other state 204
department, concludes that a taxpayer is 205
delinquent after June fifteenth but before July 206
first of any year and the application of tax 207
credits to such delinquency causes a tax 208
deficiency on behalf of the taxpayer to arise, 209
then the taxpayer shall be granted thirty days 210
to satisfy the deficiency in which interest, 211
penalties, and additions to tax shall be 212
tolled. After applying all available credits 213
toward a tax delinquency, the administering 214
agency shall notify the appropriate department, 215
and that department shall update the amount of 216
outstanding delinquent tax owed by the 217
applicant. If any credits remain after 218
satisfying all insurance, income, sales, and use 219
tax delinquencies, the remaining credits shall 220
be issued to the applicant, subject to the 221
restrictions of other provisions of law.] 222
[135.968. 1. A taxpayer who establishes a 1
megaproject, approved by the department, within 2
an enhanced enterprise zone shall, in exchange 3
for the consideration provided by new tax 4
revenues and other economic stimuli that will be 5
generated from the new jobs created by the 6
megaproject, be allowed an income tax credit 7
equal to the percentage of actual new annual 8
payroll of the taxpayer attributable to 9
employees directly related to the manufacturing 10
and assembly process and administration, as 11
provided under subsection 4 of this section. A 12
taxpayer seeking approval of a megaproject shall 13
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submit an application to the department. The 14
department shall not approve any megaproject 15
after December 31, 2008. The department shall 16
not approve any credits for megaprojects to be 17
issued prior to January 1, 2013, and in no event 18
shall the department authorize more than forty 19
million dollars to be issued annually for all 20
megaprojects. The total amount of credits 21
issued under this section shall not exceed two 22
hundred forty million dollars. 23
2. In considering applications for 24
approval of megaprojects, the department may 25
approve an application if: 26
(1) The taxpayer's project is financially 27
sound and the taxpayer has adequately 28
demonstrated an ability to successfully 29
undertake and complete the megaproject. This 30
determination shall be supported by a 31
professional third-party market feasibility 32
analysis conducted on behalf of the state by a 33
firm with direct experience with the industry of 34
the proposed megaproject, and by a professional 35
third-party financial analysis of the taxpayer's 36
ability to complete the project; 37
(2) The taxpayer's plan of repayment to 38
the state of the amount of tax credits provided 39
is reasonable and sound; 40
(3) The taxpayer's megaproject will create 41
new jobs that were not jobs previously performed 42
by employees of the taxpayer or a related 43
taxpayer in Missouri; 44
(4) Local taxing entities are providing a 45
significant level of incentives for the 46
megaproject relative to the projected new local 47
tax revenues created by the megaproject; 48
(5) There is at least one other state or 49
foreign country that the taxpayer verifies is 50
being considered for the project, and receiving 51
megaproject tax credits is a major factor in the 52
taxpayer's decision to go forward with the 53
project and not receiving the credit will result 54
in the taxpayer not creating new jobs in 55
Missouri; 56
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(6) The megaproject will be located in an 57
enhanced enterprise zone which constitutes an 58
economic or social liability and a detriment to 59
the public health, safety, morals, or welfare in 60
its present condition and use; 61
(7) The completion of the megaproject will 62
serve an essential public municipal purpose by 63
creating a substantial number of new jobs for 64
citizens, increasing their purchasing power, 65
improving their living conditions, and relieving 66
the demand for unemployment and welfare 67
assistance thereby promoting the economic 68
development of the enhanced enterprise zone, the 69
municipality, and the state; and 70
(8) The creation of new jobs will assist 71
the state in providing the services needed to 72
protect the health, safety, and social and 73
economic well-being of the citizens of the state. 74
3. Prior to final approval of an 75
application, a binding contract shall be 76
executed between the taxpayer and the department 77
of economic development which shall include, but 78
not be limited to: 79
(1) A repayment plan providing for cash 80
payment to the state general revenue fund which 81
shall result in a positive internal rate of 82
return to the state and fully comply with the 83
provisions of the World Trade Organization 84
Agreement on Subsidies and Countervailing 85
Measures. The rate of return shall be 86
commercially reasonable and, over the life of 87
the project, exceed one hundred and fifty 88
percent of the state's borrowing costs based on 89
the AAA-rated twenty-year tax-exempt bond rate 90
average over a twenty-year borrowing period. 91
The rate shall be verified by a professional 92
third-party financial analysis; 93
(2) The taxpayer's obligation to construct 94
a facility of at least one million square feet 95
within five years from the date of approval; 96
(3) A requirement that the issuance of tax 97
credits authorized under this section shall 98
cease and the taxpayer shall immediately submit 99
payment, to the state general revenue fund, in 100
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an amount equal to all credits previously issued 101
less any amounts previously repaid, increased by 102
an additional amount that shall provide the 103
state a reasonable rate of return, in the event 104
the taxpayer: 105
(a) Fails to construct a facility of at 106
least one million square feet within five years 107
of the date of approval; 108
(b) Fails to make a scheduled payment as 109
required by the repayment plan; or 110
(c) Fails to compensate new jobs at rate 111
equal to or in excess of the county average wage 112
or fails to offer health insurance to all such 113
new jobs and pay at least eighty percent of such 114
premiums; and 115
(4) A requirement that the department 116
shall suspend issuance of tax credits authorized 117
under this section if, at any point, the total 118
amount of tax credits issued less the total 119
amount of repayments received equals one hundred 120
and fifty-five million dollars. 121
4. Upon approval of an application by the 122
department, tax credits shall be issued annually 123
for a period not to exceed eight years from the 124
commencement of commercial operations of the 125
megaproject. The eight-year period for the 126
issuance of megaproject tax credits may extend 127
beyond the expiration of the enhanced enterprise 128
zone. The maximum percentage of the annual 129
payroll of the taxpayer for new jobs located at 130
the megaproject which may be approved or issued 131
by the department for tax credits shall not 132
exceed: 133
(1) Eighty percent for the first three 134
years that tax credits will be issued for the 135
megaproject; 136
(2) Sixty percent for the next two 137
subsequent years; 138
(3) Fifty percent for the next two 139
subsequent years; and 140
(4) Thirty percent for the remaining year. 141
In no event shall the department issue more 142
than forty million dollars annually in 143
megaproject tax credits to any taxpayer. In any 144
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given year, the amount of tax credits issued 145
shall be the lesser of forty million dollars, 146
the applicable annual payroll percentage, or the 147
amount of tax credits remaining unissued under 148
the two hundred forty million dollar limitation 149
on megaproject tax credit issuance provided 150
under subsection 1 of this section. 151
5. Tax credits issued under this section 152
may be claimed against the tax imposed by 153
chapter 143, excluding withholding tax imposed 154
by sections 143.191 to 143.265. For taxpayers 155
with flow-through tax treatment of its members, 156
partners, or shareholders, the credit shall be 157
allowed to members, partners, or shareholders in 158
proportion to their share of ownership on the 159
last day of the taxpayer's tax period. The 160
director of revenue shall issue a refund to a 161
taxpayer to the extent the amount of credits 162
allowed in this section exceeds the amount of 163
the taxpayer's income tax liability in the year 164
redemption is authorized. An owner of tax 165
credits issued under this section shall not be 166
required to have any Missouri income tax 167
liability in order to redeem such tax credits 168
and receive a refund. The director of revenue 169
shall prepare a form to permit the owner of such 170
tax credits to obtain a refund. 171
6. Certificates of tax credits authorized 172
under this section may be transferred, sold, or 173
assigned by filing a notarized endorsement 174
thereof with the department that names the 175
transferee, the amount of tax credit 176
transferred, and the value received for the 177
credit, as well as any other information 178
reasonably requested by the department. Upon 179
such transfer, sale, or assignment, the 180
transferee shall be the owner of such tax 181
credits entitled to claim the tax credits or any 182
refunds with respect thereto issued to the 183
taxpayer. Tax credits may not be carried 184
forward past the year of issuance. Tax credits 185
authorized by this section may not be pledged or 186
used to secure any bonds or other indebtedness 187
issued by the state or any political subdivision 188
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of the state. Once such tax credits have been 189
issued, nothing shall prohibit the owner of the 190
tax credits from pledging the tax credits to any 191
lender or other third party. 192
7. Any taxpayer issued tax credits under 193
this section shall provide an annual report to 194
the department and the house and senate 195
appropriations committees of the number of new 196
jobs located at the megaproject, the new annual 197
payroll of such new jobs, and such other 198
information as may be required by the department 199
to document the basis for benefits under this 200
section. The department may withhold the 201
approval of the annual issuance of any tax 202
credits until it is satisfied that proper 203
documentation has been provided, and shall 204
reduce the tax credits to reflect any reduction 205
in new payroll. If the department determines 206
the average wage is below the county average 207
wage, or the taxpayer has not maintained 208
employee health insurance as required, the 209
taxpayer shall not receive tax credits for that 210
year. 211
8. Notwithstanding any provision of law to 212
the contrary, any taxpayer who is awarded tax 213
credits under this section shall not also 214
receive tax credits under sections 135.100 to 215
135.150, sections 135.200 to 135.286, section 216
135.535, or sections 620.1875 to 620.1890. 217
9. Any action brought in any court 218
contesting the approval of a megaproject and the 219
issuance of the tax credits, or any other action 220
undertaken pursuant to this section related to 221
such megaproject, shall be filed within ninety 222
days following approval of the megaproject by 223
the department. 224
10. Records and documents relating to a 225
proposed megaproject shall be deemed closed 226
records until such time as the application has 227
been approved. Provisions of this subsection to 228
the contrary notwithstanding, records containing 229
business plan information which may endanger the 230
competitiveness of the business shall remain 231
closed. 232
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11. Notwithstanding any provision of this 233
section to the contrary, no taxpayer who 234
receives megaproject tax credits authorized 235
under this section or any related taxpayer shall 236
employ, prior to January 1, 2022, directly: 237
(1) Any elected public official of this 238
state holding office as of January 1, 2008; 239
(2) Any director, deputy director, 240
division director, or employee directly involved 241
in negotiations between the department of 242
economic development and a taxpayer relative to 243
the megaproject who was employed as of January 244
1, 2008, by the department.] 245
[135.970. The department may adopt such 1
rules, statements of policy, procedures, forms, 2
and guidelines as may be necessary to carry out 3
the provisions of sections 135.950 to 135.970. 4
Any rule or portion of a rule, as that term is 5
defined in section 536.010, that is created 6
under the authority delegated in this section 7
shall become effective only if it complies with 8
and is subject to all of the provisions of 9
chapter 536 and, if applicable, section 10
536.028. This section and chapter 536 are 11
nonseverable and if any of the powers vested 12
with the general assembly pursuant to chapter 13
536 to review, to delay the effective date, or 14
to disapprove and annul a rule are subsequently 15
held unconstitutional, then the grant of 16
rulemaking authority and any rule proposed or 17
adopted after August 28, 2004, shall be invalid 18
and void.] 19
[135.973. After January 1, 2007, all 1
enterprise zones designated before January 1, 2
2006, shall be eligible to receive the tax 3
benefits under sections 135.950 to 135.970.] 4
[135.1125. 1. As used in this section, 1
the following terms shall mean: 2
(1) "Certificate", a tax credit 3
certificate issued under this section; 4
(2) "Department", the Missouri department 5
of social services; 6
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(3) "Eligible donation", a donation of 7
cash, stock, bonds or other marketable 8
securities, or real property made to an eligible 9
provider; 10
(4) "Eligible provider", an organization 11
that provides funding for unmet health, hunger, 12
and hygiene needs of children in school; 13
(5) "Taxpayer", a person, firm, partner in 14
a firm, corporation, or a shareholder in an S 15
corporation doing business in the state of 16
Missouri and subject to the state income tax 17
imposed in chapter 143, an insurance company 18
paying an annual tax on its gross premium 19
receipts in this state, any other financial 20
institution paying taxes to the state of 21
Missouri or any political subdivision of this 22
state under chapter 148, or any charitable 23
organization which is exempt from federal income 24
tax and whose Missouri unrelated business 25
taxable income, if any, would be subject to the 26
state income tax imposed under chapter 143. 27
2. For all taxable years beginning on or 28
after January 1, 2019, any taxpayer shall be 29
allowed a credit against the taxes otherwise due 30
under chapter 143 or 148, excluding withholding 31
tax under sections 143.191 to 143.265, in an 32
amount equal to fifty percent of the amount of 33
an eligible donation. The amount of the tax 34
credit claimed shall not exceed the amount of 35
the taxpayer's state income tax liability in the 36
tax year for which the credit is claimed. Any 37
amount of credit that the taxpayer is prohibited 38
by this section from claiming in a tax year 39
shall not be refundable, but may be carried 40
forward to any of the taxpayer's four subsequent 41
taxable years. 42
3. To claim the credit authorized in this 43
section, a provider may submit to the department 44
an application for the tax credit authorized by 45
this section on behalf of taxpayers. The 46
department shall verify that the provider has 47
submitted the following items accurately and 48
completely: 49
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(1) A valid application in the form and 50
format required by the department; 51
(2) A statement attesting to the eligible 52
donation received, which shall include the name 53
and taxpayer identification number of the 54
individual making the eligible donation, the 55
amount of the eligible donation, and the date 56
the eligible donation was received by the 57
provider; and 58
(3) A payment from the eligible provider 59
in an amount equal to fifty percent of the 60
eligible donation. 61
If the provider applying for the tax credit 62
meets all criteria required by this subsection, 63
the department shall issue a certificate in the 64
appropriate amount. 65
4. Tax credits issued under this section 66
may be assigned, transferred, sold, or otherwise 67
conveyed, and the new owner of the tax credit 68
shall have the same rights in the credit as the 69
taxpayer. Whenever a certificate is assigned, 70
transferred, sold, or otherwise conveyed, a 71
notarized endorsement shall be filed with the 72
department specifying the name and address of 73
the new owner of the tax credit or the value of 74
the credit. 75
5. The department shall promulgate rules 76
to implement the provisions of this section. 77
Any rule or portion of a rule, as that term is 78
defined in section 536.010, that is created 79
under the authority delegated in this section 80
shall become effective only if it complies with 81
and is subject to all of the provisions of 82
chapter 536 and, if applicable, section 83
536.028. This section and chapter 536 are 84
nonseverable and if any of the powers vested 85
with the general assembly pursuant to chapter 86
536 to review, to delay the effective date, or 87
to disapprove and annul a rule are subsequently 88
held unconstitutional, then the grant of 89
rulemaking authority and any rule proposed or 90
adopted after August 28, 2018, shall be invalid 91
and void. 92
SB 1188 257
6. Pursuant to section 23.253 of the 93
Missouri sunset act: 94
(1) The provisions of this section shall 95
automatically sunset six years after August 28, 96
2018, unless reauthorized by an act of the 97
general assembly; and 98
(2) If such program is reauthorized, the 99
program authorized under this section shall 100
automatically sunset twelve years after the 101
effective date of the reauthorization of this 102
section; and 103
(3) This section shall terminate on 104
September first of the calendar year immediately 105
following the calendar year in which the program 106
authorized under this section is sunset.] 107
[173.196. 1. Any business firm, as 1
defined in section 32.105, may make a donation 2
to the "Missouri Higher Education Scholarship 3
Donation Fund", which is hereby created in the 4
state treasury. A donating business firm shall 5
receive a tax credit as provided in this section 6
equal to fifty percent of the amount of the 7
donation, except that tax credits shall be 8
awarded each fiscal year in the order donations 9
are received and the amount of tax credits 10
authorized shall total no more than two hundred 11
and fifty thousand dollars for each fiscal year. 12
2. The department of revenue shall grant 13
tax credits approved under this section which 14
shall be applied in the order specified in 15
subsection 1 of section 32.115 until used. The 16
tax credits provided under this section shall be 17
refundable, and any tax credit not used in the 18
fiscal year in which approved may be carried 19
over the next five succeeding calendar or fiscal 20
years until the full credit has been claimed. 21
Notwithstanding any other law to the contrary, 22
any tax credits granted under this section may 23
be assigned, transferred, sold, or otherwise 24
conveyed without consent or approval. Such 25
taxpayer, hereinafter the assignor for purposes 26
of this section, may sell, assign, exchange, or 27
otherwise transfer earned tax credits: 28
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(1) For no less than seventy-five percent 29
of the par value of such credits; and 30
(2) In an amount not to exceed one hundred 31
percent of annual earned credits. 32
3. No tax credit authorized under this 33
section may be applied against any tax applied 34
in a tax year beginning prior to January 1, 1995. 35
4. All revenues credited to the fund shall 36
be used, subject to appropriations, to provide 37
scholarships authorized under sections 173.197 38
to 173.199, and for no other purpose. 39
5. For all tax years beginning on or after 40
January 1, 2005, no tax credits shall be 41
authorized, awarded, or issued to any person or 42
entity claiming any tax credit under this 43
section.] 44
[320.093. 1. Any person, firm or 1
corporation who purchases a dry fire hydrant, as 2
defined in section 320.273, or provides an 3
acceptable means of water storage for such dry 4
fire hydrant including a pond, tank or other 5
storage facility with the primary purpose of 6
fire protection within the state of Missouri, 7
shall be eligible for a credit on income taxes 8
otherwise due pursuant to chapter 143, except 9
sections 143.191 to 143.261, as an incentive to 10
implement safe and efficient fire protection 11
controls. The tax credit, not to exceed five 12
thousand dollars, shall be equal to fifty 13
percent of the cost in actual expenditure for 14
any new water storage construction, equipment, 15
development and installation of the dry hydrant, 16
including pipes, valves, hydrants and labor for 17
each such installation of a dry hydrant or new 18
water storage facility. The amount of the tax 19
credit claimed for in-kind contributions shall 20
not exceed twenty-five percent of the total 21
amount of the contribution for which the tax 22
credit is claimed. 23
2. Any amount of credit which exceeds the 24
tax due shall not be refunded but may be carried 25
over to any subsequent taxable year, not to 26
exceed seven years. The person, firm or 27
SB 1188 259
corporation may elect to assign to a third party 28
the approved tax credit. The certificate of 29
assignment and other appropriate forms shall be 30
filed with the Missouri department of revenue 31
and the department of economic development. 32
3. The person, firm or corporation shall 33
make application for the credit to the 34
department of economic development after 35
receiving approval of the state fire marshal. 36
The fire marshal shall establish by rule 37
promulgated pursuant to chapter 536 the 38
requirements to be met based on the National 39
Resources Conservation Service's Dry Hydrant 40
Standard. The state fire marshal or designated 41
local representative shall review and authorize 42
the construction and installation of any dry 43
fire hydrant site. Only approved dry fire 44
hydrant sites shall be eligible for tax credits 45
as indicated in this section. Under no 46
circumstance shall such authority deny any 47
entity the ability to provide a dry fire hydrant 48
site when tax credits are not requested. 49
4. The department of public safety shall 50
certify to the department of revenue that the 51
dry hydrant system meets the requirements to 52
obtain a tax credit as specified in subsection 5 53
of this section. 54
5. In order to qualify for a tax credit 55
under this section, a dry hydrant or new water 56
storage facility shall meet the following 57
minimum requirements: 58
(1) Each body of water or water storage 59
structure shall be able to provide two hundred 60
fifty gallons per minute for a continuous two- 61
hour period during a fifty-year drought or 62
freeze at a vertical lift of eighteen feet; 63
(2) Each dry hydrant shall be located 64
within twenty-five feet of an all-weather 65
roadway and shall be accessible to fire 66
protection equipment; 67
(3) Dry hydrants shall be located a 68
reasonable distance from other dry or 69
pressurized hydrants; and 70
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(4) The site shall provide a measurable 71
economic improvement potential for rural 72
development. 73
6. New credits shall not be awarded under 74
this section after August 28, 2010. The total 75
amount of all tax credits allowed pursuant to 76
this section is five hundred thousand dollars in 77
any one fiscal year as approved by the director 78
of the department of economic development. 79
7. Any rule or portion of a rule, as that 80
term is defined in section 536.010, that is 81
created under the authority delegated in this 82
section shall become effective only if it 83
complies with and is subject to all of the 84
provisions of chapter 536 and, if applicable, 85
section 536.028. This section and chapter 536 86
are nonseverable and if any of the powers vested 87
with the general assembly pursuant to chapter 88
536 to review, to delay the effective date or to 89
disapprove and annul a rule are subsequently 90
held unconstitutional, then the grant of 91
rulemaking authority and any rule proposed or 92
adopted after August 28, 2007, shall be invalid 93
and void.] 94
[348.300. As used in sections 348.300 to 1
348.318, the following terms mean: 2
(1) "Commercial activity located in 3
Missouri", any research, development, prototype 4
fabrication, and subsequent precommercialization 5
activity, or any activity related thereto, 6
conducted in Missouri for the purpose of 7
producing a service or a product or process for 8
manufacture, assembly or sale or developing a 9
service based on such a product or process by 10
any person, corporation, partnership, joint 11
venture, unincorporated association, trust or 12
other organization doing business in Missouri. 13
Subsequent to January 1, 1999, a commercial 14
activity located in Missouri shall mean only 15
such activity that is located within a 16
distressed community, as defined in section 17
135.530; 18
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(2) "Follow-up capital", capital provided 19
to a commercial activity located in Missouri in 20
which a qualified fund has previously invested 21
seed capital or start-up capital and which does 22
not exceed ten times the amount of such seed and 23
start-up capital; 24
(3) "Person", any individual, corporation, 25
partnership, or other entity, including any 26
charitable corporation which is exempt from 27
federal income tax and whose Missouri unrelated 28
business taxable income, if any, would be 29
subject to the state income tax imposed under 30
chapter 143; 31
(4) "Qualified contribution", cash 32
contribution to a qualified fund; 33
(5) "Qualified economic development 34
organization", any corporation organized under 35
the provisions of chapter 355 which has as of 36
January 1, 1991, obtained a contract with the 37
department of economic development to operate an 38
innovation center to promote, assist and 39
coordinate the research and development of new 40
services, products or processes in the state of 41
Missouri; and the Missouri technology 42
corporation organized pursuant to the provisions 43
of sections 348.250 to 348.275; 44
(6) "Qualified fund", any corporation, 45
partnership, joint venture, unincorporated 46
association, trust or other organization which 47
is established under the laws of Missouri after 48
December 31, 1985, which meets all of the 49
following requirements established by this 50
subdivision. The fund shall have as its sole 51
purpose and business the making of investments, 52
of which at least ninety percent of the dollars 53
invested shall be qualified investments. The 54
fund shall enter into a contract with one or 55
more qualified economic development 56
organizations which shall entitle the qualified 57
economic development organizations to receive 58
not less than ten percent of all distributions 59
of equity and dividends or other earnings of the 60
fund. Such contracts shall require the 61
qualified fund to transfer to the Missouri 62
SB 1188 262
technology corporation organized pursuant to the 63
provisions of sections 348.250 to 348.275 this 64
interest and make corresponding distributions 65
thereto in the event the qualified economic 66
development organization holding such interest 67
is dissolved or ceases to do business for a 68
period of one year or more; 69
(7) "Qualified investment", any investment 70
of seed capital, start-up capital, or follow-up 71
capital in any commercial activity located in 72
Missouri; 73
(8) "Seed capital", capital provided to a 74
commercial activity located in Missouri for 75
research, development and precommercialization 76
activities to prove a concept for a new product 77
or process or service, and for activities 78
related thereto; 79
(9) "Start-up capital", capital provided 80
to a commercial activity located in Missouri for 81
use in preproduction product development or 82
service development or initial marketing 83
thereof, and for activities related thereto; 84
(10) "State tax liability", any state tax 85
liability incurred by a taxpayer under the 86
provisions of chapters 143, 147 and 148, 87
exclusive of the provisions relating to the 88
withholding of tax as provided for in sections 89
143.191 to 143.265 and related provisions; 90
(11) "Uninvested capital", the amount of 91
any distribution, other than of earnings, by a 92
qualified fund made within five years of the 93
issuance of a certificate of tax credit as 94
provided by sections 348.300 to 348.318; or the 95
portion of all qualified contributions to a 96
qualified fund which are not invested as 97
qualified investments within five years of the 98
issuance of a certificate of tax credit as 99
provided by sections 348.300 to 348.318 to the 100
extent that the amount not so invested exceeds 101
ten percent of all such qualified contributions.] 102
[348.300. As used in sections 348.300 to 1
348.318, the following terms mean: 2
SB 1188 263
(1) "Commercial activity located in 3
Missouri", any research, development, prototype 4
fabrication, and subsequent precommercialization 5
activity, or any activity related thereto, 6
conducted in Missouri for the purpose of 7
producing a service or a product or process for 8
manufacture, assembly or sale or developing a 9
service based on such a product or process by 10
any person, corporation, partnership, joint 11
venture, unincorporated association, trust or 12
other organization doing business in Missouri. 13
Subsequent to January 1, 1999, a commercial 14
activity located in Missouri shall mean only 15
such activity that is located within a 16
distressed community, as defined in section 17
135.530; 18
(2) "Follow-up capital", capital provided 19
to a commercial activity located in Missouri in 20
which a qualified fund has previously invested 21
seed capital or start-up capital and which does 22
not exceed ten times the amount of such seed and 23
start-up capital; 24
(3) "Person", any individual, corporation, 25
partnership, or other entity, including any 26
charitable corporation which is exempt from 27
federal income tax and whose Missouri unrelated 28
business taxable income, if any, would be 29
subject to the state income tax imposed under 30
chapter 143; 31
(4) "Qualified contribution", cash 32
contribution to a qualified fund; 33
(5) "Qualified economic development 34
organization", any corporation organized under 35
the provisions of chapter 355 which has as of 36
January 1, 1991, obtained a contract with the 37
department of economic development to operate an 38
innovation center to promote, assist and 39
coordinate the research and development of new 40
services, products or processes in the state of 41
Missouri; and the Missouri technology 42
corporation organized pursuant to the provisions 43
of sections 348.253 to 348.266; 44
(6) "Qualified fund", any corporation, 45
partnership, joint venture, unincorporated 46
SB 1188 264
association, trust or other organization which 47
is established under the laws of Missouri after 48
December 31, 1985, which meets all of the 49
following requirements established by this 50
subdivision. The fund shall have as its sole 51
purpose and business the making of investments, 52
of which at least ninety percent of the dollars 53
invested shall be qualified investments. The 54
fund shall enter into a contract with one or 55
more qualified economic development 56
organizations which shall entitle the qualified 57
economic development organizations to receive 58
not less than ten percent of all distributions 59
of equity and dividends or other earnings of the 60
fund. Such contracts shall require the 61
qualified fund to transfer to the Missouri 62
technology corporation organized pursuant to the 63
provisions of sections 348.253 to 348.266 this 64
interest and make corresponding distributions 65
thereto in the event the qualified economic 66
development organization holding such interest 67
is dissolved or ceases to do business for a 68
period of one year or more; 69
(7) "Qualified investment", any investment 70
of seed capital, start-up capital, or follow-up 71
capital in any commercial activity located in 72
Missouri; 73
(8) "Seed capital", capital provided to a 74
commercial activity located in Missouri for 75
research, development and precommercialization 76
activities to prove a concept for a new product 77
or process or service, and for activities 78
related thereto; 79
(9) "Start-up capital", capital provided 80
to a commercial activity located in Missouri for 81
use in preproduction product development or 82
service development or initial marketing 83
thereof, and for activities related thereto; 84
(10) "State tax liability", any state tax 85
liability incurred by a taxpayer under the 86
provisions of chapters 143, 147 and 148, 87
exclusive of the provisions relating to the 88
withholding of tax as provided for in sections 89
143.191 to 143.265 and related provisions; 90
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(11) "Uninvested capital", the amount of 91
any distribution, other than of earnings, by a 92
qualified fund made within five years of the 93
issuance of a certificate of tax credit as 94
provided by sections 348.300 to 348.318; or the 95
portion of all qualified contributions to a 96
qualified fund which are not invested as 97
qualified investments within five years of the 98
issuance of a certificate of tax credit as 99
provided by sections 348.300 to 348.318 to the 100
extent that the amount not so invested exceeds 101
ten percent of all such qualified contributions.] 102
[348.302. 1. Any person who makes a 1
qualified contribution to a qualified fund shall 2
be entitled to receive a tax credit equal to 3
fifty percent of the amount of the qualified 4
contribution. The tax credit shall be evidenced 5
by a tax credit certificate in accordance with 6
the provisions of sections 348.300 to 348.318 7
and may be used to satisfy the state tax 8
liability of the owner of such certificate that 9
becomes due in the tax year in which the 10
qualified contribution is made, or in any of the 11
ten tax years thereafter. No person may receive 12
a tax credit pursuant to sections 348.300 to 13
348.318 unless that person presents a tax credit 14
certificate to the department of revenue for 15
payment of such state tax liability. 16
2. The amount of such qualified 17
contributions which can be made is limited so 18
that the aggregate of all tax credits authorized 19
under the provisions of sections 348.300 to 20
348.318 shall not exceed nine million dollars. 21
All tax credits authorized under the provisions 22
of this section may be transferred, sold or 23
assigned.] 24
[348.304. The total amount of credit 1
evidenced by certificates of tax credit issued 2
to taxpayers at the request of any one qualified 3
economic development organization shall not 4
exceed two million dollars; except that, this 5
two-million-dollar limitation shall not apply to 6
certificates of tax credit issued after January 7
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1, 1996. Prior to January 1, 1996, any 8
qualified economic development organization may 9
enter into a contractual agreement with any 10
other qualified economic development 11
organization to allocate to the latter any 12
portion of the two million dollars of tax 13
credits which it is authorized to issue to 14
taxpayers under the provisions of this section. 15
The certificate of tax credit may be issued in 16
one aggregate certificate or in a reasonable 17
number of multiple certificates in regard to one 18
qualified contribution. Any issued certificate 19
may be surrendered in exchange for new 20
certificates not to exceed in value the value of 21
the issued certificate. The number and 22
denomination of multiple certificates, if 23
issued, shall be determined by the director of 24
the department of economic development.] 25
[348.306. No person shall receive, by 1
issuance, transfer or assignment, certificates 2
of tax credit issued under the provisions of 3
sections 348.300 to 348.318 in an amount in 4
excess of one million dollars. Subject to the 5
provisions of this section, certificates of tax 6
credit issued in accordance with sections 7
348.300 to 348.318 may be transferred or 8
assigned by notarized endorsement thereof which 9
names the transferee.] 10
[348.308. 1. The director of the 1
department of economic development shall be 2
responsible for the administration and issuance 3
of the certificate of tax credits authorized by 4
sections 348.300 to 348.318. The director of 5
the department of economic development shall 6
issue a certificate of tax credit at the request 7
of any qualified economic development 8
organization. Each request shall include a true 9
copy of the documents creating the qualified 10
fund and the interest of the qualified economic 11
development organization in the qualified fund, 12
the name of the person who is to receive a 13
certificate of tax credit, the type of state tax 14
liability, as specified in subdivision (10) of 15
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section 348.300, against which the tax credit is 16
to be used, and the amount of the certificate of 17
tax credit to be issued to the person making the 18
qualified contribution. Each request shall be 19
acknowledged under oath by the person making the 20
qualified contribution and the president of the 21
qualified economic development organization. 22
2. In the event that two or more qualified 23
economic development organizations have an 24
interest in a qualified fund, either or both of 25
such qualified economic development 26
organizations may request issuance of 27
certificates of tax credit in accordance with 28
the provisions of sections 348.300 to 348.318 to 29
persons contributing to qualified funds.] 30
[348.310. The Missouri department of 1
revenue shall accept a certificate of tax credit 2
in lieu of other payment in such amount as is 3
equal to the lesser of the amount of the tax or 4
the remaining unused amount of the credit as 5
indicated on the certificate of tax credit; and 6
shall indicate on the certificate of tax credit 7
the amount of tax thereby paid, the date of such 8
payment, and the remainder of the unused credit 9
available to the taxpayer after such payment. 10
The certificate of tax credit shall be returned 11
to the director of the department of economic 12
development. The director of the department of 13
economic development shall issue a new 14
certificate to the proper owner for any unused 15
balance.] 16
[348.312. No provision of sections 348.300 1
to 348.318 shall be construed to require a 2
qualified economic development organization to 3
accept an interest in any fund, nor shall any 4
provision of sections 348.300 to 348.318 be 5
construed to limit or restrict the terms and 6
conditions on which a qualified economic 7
development organization may agree to accept an 8
interest in any fund.] 9
[348.316. 1. Each qualified fund, on or 1
before the due date of its federal income tax 2
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return, shall make a report for a period 3
corresponding to the qualified fund's federal 4
income tax year. The report shall be made on a 5
form required by the department of economic 6
development. It shall be verified by the 7
affidavit of the fund's president, or another 8
authorized officer, to the department of 9
economic development. It shall state the amount 10
of all uninvested capital, whether distributions 11
of equity or funds not invested in qualified 12
investments, and it shall contain other such 13
information as may be required by the director 14
of the department of economic development. 15
2. Upon the receipt of such returns, the 16
director of the department of economic 17
development shall verify the same and certify 18
the amount of tax due from the various funds to 19
the director of revenue within sixty days from 20
the date of the return. The director of revenue 21
shall send each qualified fund a notice of tax 22
due within thirty days of the date of 23
certification by the department of economic 24
development. The qualified fund shall pay the 25
tax as provided in the notice within thirty days 26
of the date of such notice.] 27
[348.318. Except as otherwise specifically 1
provided in sections 348.300 to 348.318, 2
interest and penalty provisions and procedural 3
matters under the provisions of sections 348.300 4
to 348.318 shall be determined pursuant to and 5
in the manner prescribed in the following 6
sections of the revised statutes of Missouri, 7
the state income tax law, governing similar 8
procedures thereunder: sections 143.271 to 9
143.301, 143.511, 143.551 to 143.571, 143.611 to 10
143.751, 143.771, 143.791 to 143.861, 143.881 to 11
143.971, and 143.986.] 12
[620.635. Sections 620.635 to 620.653 1
shall be known and may be cited as the "Missouri 2
New Enterprise Creation Act".] 3
[620.638. As used in sections 620.635 to 1
620.653, the following terms mean: 2
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(1) "Committed contributions", the total 3
amount of qualified contributions that are 4
committed to a qualifying fund by contractual 5
agreement; 6
(2) "Corporation", the Missouri technology 7
corporation as established pursuant to section 8
348.251; 9
(3) "Department", the department of 10
economic development; 11
(4) "Director", the director of the 12
department of economic development; 13
(5) "Follow-up capital", capital provided 14
to a qualified business in which a qualified 15
fund has previously invested seed capital or 16
start-up capital. No more than forty percent of 17
the qualified contributions to a qualified fund 18
may be used for follow-up capital, and no 19
qualified contributions which generate tax 20
credits before the second round of allocations 21
as authorized by section 620.650 shall be used 22
for follow-up capital investments; 23
(6) "Person", any individual, corporation, 24
partnership, limited liability company or other 25
entity, including any charitable organization 26
which is exempt from federal income tax and 27
whose Missouri unrelated business taxable 28
income, if any, would be subject to the state 29
income tax imposed under chapter 143; 30
(7) "Positive cash flow", total cash 31
receipts from sales or services, but not from 32
investments or loans, exceeding total cash 33
expenditures as calculated on a fiscal year 34
basis; 35
(8) "Qualified business", any 36
independently owned and operated business which 37
is headquartered and located in Missouri and 38
which is involved in or intends to be involved 39
in commerce for the purpose of manufacturing, 40
processing or assembling products, conducting 41
research and development, or providing services 42
in interstate commerce. Such a business shall 43
maintain its headquarters in Missouri for a 44
period of at least three years from the date of 45
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receipt of a qualified investment or be subject 46
to penalties pursuant to section 620.017; 47
(9) "Qualified contribution", cash 48
contributions to a qualified fund pursuant to 49
the terms of contractual agreements made between 50
the qualified fund and a qualified economic 51
development organization authorized by the 52
corporation to enter into such contracts; 53
(10) "Qualified economic development 54
organization", any corporation organized 55
pursuant to the provisions of chapter 355 that, 56
as of January 1, 1991, had obtained a contract 57
with the department to operate an innovation 58
center to promote, assist and coordinate the 59
research and development of new services, 60
products or processes in this state; 61
(11) "Qualified fund", a fund established 62
by any corporation, partnership, joint venture, 63
unincorporated association, trust or other 64
organization established pursuant to the laws of 65
Missouri and approved by the corporation; 66
(12) "Qualified investment", any 67
investment of seed capital, start-up capital or 68
follow-up capital in a qualified business that 69
does not cause more than ten percent of all the 70
qualified contributions to a qualified fund to 71
be invested in a single qualified business; 72
(13) "Seed capital", capital provided to a 73
qualified business for research, development and 74
precommercialization activities to prove a 75
concept for a new product, process or service, 76
and for activities related thereto; provided 77
that, seed capital shall not be provided to any 78
business which in a past fiscal year has 79
experienced a positive cash flow; 80
(14) "Start-up capital", capital provided 81
to a qualified business for use in preproduction 82
product development, service development or 83
initial marketing thereof; provided that, start- 84
up capital shall not be provided to any business 85
which has experienced a positive cash flow in a 86
past fiscal year; 87
(15) "Uninvested capital", that portion of 88
any qualified contribution to a qualified fund, 89
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other than management fees not to exceed three 90
percent per year of committed contributions, 91
qualified investments and other expenses or fees 92
authorized by the corporation, that is not 93
invested as a qualified investment within ten 94
years of its receipt.] 95
[620.641. The powers and duties of the 1
Missouri seed capital investment board shall be 2
transferred to the Missouri technology 3
corporation effective August 28, 2011, and the 4
Missouri seed capital investment board shall be 5
dissolved.] 6
[620.644. 1. The Missouri seed capital 1
and commercialization strategy shall be jointly 2
developed and approved by the boards of 3
directors of all of the qualified economic 4
development organizations and submitted as one 5
plan to the corporation for its approval. The 6
board shall not approve any qualified fund, 7
exclusive of the fund approved by the 8
corporation, unless such fund is described in 9
the Missouri seed capital and commercialization 10
strategy. The strategy shall include a proposal 11
for the establishment and operation of between 12
one and four qualified funds in Missouri, 13
including the fund approved by the corporation 14
pursuant to the provisions of section 620.653. 15
The initial strategy shall be submitted to the 16
board no later than July 1, 2000, and shall be 17
approved or rejected by the board within three 18
months of receipt. No tax credits authorized 19
pursuant to the provisions of sections 620.635 20
to 620.653 shall be awarded until such strategy 21
has been approved by the board, other than tax 22
credits authorized for qualified contributions 23
to the fund approved by the corporation. 24
2. The department shall authorize the use 25
of up to twenty million dollars in tax credits 26
by the approved qualified funds, in aggregate 27
pursuant to the provisions of section 620.650, 28
with not more than five million dollars of tax 29
credits being issued in any one year. 30
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3. The corporation shall approve the 31
professional managers employed by the qualified 32
funds according to criteria similar to that used 33
by the U.S. Small Business Administration's 34
Small Business Investment Corporation Program. 35
4. The department may promulgate any rules 36
and regulations necessary to administer the 37
provisions of sections 620.635 to 620.653. No 38
rule or regulation or portion of a rule or 39
regulation promulgated pursuant to the authority 40
of this section shall become effective unless it 41
has been promulgated pursuant to the provisions 42
of chapter 536. 43
5. The corporation shall report the 44
following to the department: 45
(1) As soon as practicable after the 46
receipt of a qualified contribution the name of 47
each person from which the qualified 48
contribution was received, the amount of each 49
contributor's qualified contribution and the tax 50
credits computed pursuant to this section; 51
(2) On a quarterly basis, the amount of 52
qualified investments made to any qualified 53
business; 54
(3) On a quarterly basis, verification 55
that the investment of seed capital, start-up 56
capital, or follow-up capital in a qualified 57
business does not direct more than ten percent 58
of all the qualified contributions to a 59
qualified fund to be invested in a single 60
qualifying business. 61
6. Each qualified fund shall provide 62
annual audited financial statements, including 63
the opinion of an independent certified public 64
accountant, to the department within ninety days 65
of the close of the state fiscal year. The 66
audit shall address the methods of operation and 67
conduct of the business of the qualified 68
economic development organization to determine 69
compliance with the statutes and program and 70
program rules and that the qualified 71
contributions received by the qualified fund 72
have been invested as required by this section.] 73
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[620.647. 1. The corporation may 1
authorize each qualified economic development 2
organization to enter into contractual 3
agreements with any qualified fund allowing such 4
qualified fund to offer tax credits authorized 5
pursuant to the provisions of sections 620.635 6
to 620.653 to those persons making qualified 7
contributions to the qualified fund. The 8
corporation shall establish policies and 9
procedures requiring each authorized qualified 10
economic development organization to secure from 11
each qualified fund and its investors the 12
maximum fund equity interest possible, as 13
dictated by market conditions, in exchange for 14
the use of the tax credits. All tax credits 15
authorized pursuant to sections 620.635 to 16
620.653 shall be administered by the department. 17
2. Each qualified fund shall enter into a 18
contract with one or more qualified economic 19
development organizations which shall entitle 20
all qualified economic development organizations 21
in existence at that time to receive and share 22
equally all distributions of equity and 23
dividends or other earnings of the fund that are 24
generated as a result of any equity interest 25
secured as a result of actions taken to comply 26
with subsection 1 of this section. Such 27
contracts shall require the qualified funds to 28
transfer to the corporation all distributions of 29
dividends or other earnings of the fund that are 30
owed to any qualified economic development 31
organization that has dissolved or has ceased 32
doing business for a period of one year or more. 33
3. All distributions of dividends, 34
earnings, equity or the like owed pursuant to 35
the provisions of sections 620.635 to 620.653 to 36
a qualified economic development organization by 37
any qualified fund shall be paid to the 38
qualified economic development organization. 39
The qualified economic development organization 40
shall use such payments solely for reinvestment 41
in qualified funds in order to provide ongoing 42
seed capital, start-up capital and follow-up 43
capital for Missouri businesses. No qualified 44
SB 1188 274
economic development organization may transfer 45
any dividends, earnings, equity or the like owed 46
it pursuant to sections 620.635 to 620.653 to 47
any other person or entity without the approval 48
of the corporation.] 49
[620.650. 1. The sole purpose of each 1
qualified fund is to make investments. One 2
hundred percent of investments made from 3
qualified contributions shall be qualified 4
investments. 5
2. Any person who makes a qualified 6
contribution to a qualified fund shall receive a 7
tax credit against the tax otherwise due 8
pursuant to chapter 143, chapter 147, or chapter 9
148, other than taxes withheld pursuant to 10
sections 143.191 to 143.265, in an amount equal 11
to one hundred percent of such person's 12
qualified contribution. 13
3. Such person shall submit to the 14
department an application for the tax credit on 15
a form provided by the department. The 16
department shall award tax credits in the order 17
the applications are received and based upon the 18
strategy approved by the corporation. Tax 19
credits issued pursuant to this section may be 20
claimed for the tax year in which the qualified 21
contribution is made or in any of the following 22
ten years, and may be assigned, transferred or 23
sold. 24
4. There is hereby imposed on each 25
qualified fund a tax equal to fifteen percent of 26
the qualified fund's uninvested capital at the 27
close of such qualified fund's tax year. For 28
purposes of tax computation, any distribution 29
made by a qualified fund during a tax year is 30
deemed made at the end of such tax year. Each 31
tax year, every qualified fund shall remit the 32
tax imposed by this section to the director of 33
the department of revenue for deposit in the 34
state treasury to the credit of the general 35
revenue fund.] 36
[620.653. The provisions of sections 1
620.635 to 620.650 to the contrary 2
SB 1188 275
notwithstanding, one qualified fund shall be 3
approved by the corporation as soon as 4
practicable after July 8, 1999. Such fund need 5
not be initially incorporated into the seed 6
capital and commercialization strategy until 7
after the appointment of the board. After the 8
appointment of the board, all powers exercised 9
by the corporation in relation to that fund 10
shall be transferred to the board. After the 11
dissolution of the board, all powers exercised 12
by the board shall be transferred to the 13
corporation. The corporation shall approve the 14
professional fund manager employed by the 15
qualified fund established by this section.] 16
[620.1875. Sections 620.1875 to 620.1890 1
shall be known and may be cited as the "Missouri 2
Quality Jobs Act".] 3
[620.1878. For the purposes of sections 1
620.1875 to 620.1890, the following terms shall 2
mean: 3
(1) "Approval", a document submitted by 4
the department to the qualified company that 5
states the benefits that may be provided by this 6
program; 7
(2) "Average wage", the new payroll 8
divided by the number of new jobs; 9
(3) "Commencement of operations", the 10
starting date for the qualified company's first 11
new employee, which must be no later than twelve 12
months from the date of the approval; 13
(4) "County average wage", the average 14
wages in each county as determined by the 15
department for the most recently completed full 16
calendar year. However, if the computed county 17
average wage is above the statewide average 18
wage, the statewide average wage shall be deemed 19
the county average wage for such county for the 20
purpose of determining eligibility. The 21
department shall publish the county average wage 22
for each county at least annually. 23
Notwithstanding the provisions of this 24
subdivision to the contrary, for any qualified 25
company that in conjunction with their project 26
SB 1188 276
is relocating employees from a Missouri county 27
with a higher county average wage, the company 28
shall obtain the endorsement of the governing 29
body of the community from which jobs are being 30
relocated or the county average wage for their 31
project shall be the county average wage for the 32
county from which the employees are being 33
relocated; 34
(5) "Department", the Missouri department 35
of economic development; 36
(6) "Director", the director of the 37
department of economic development; 38
(7) "Employee", a person employed by a 39
qualified company; 40
(8) "Full-time employee", an employee of 41
the qualified company that is scheduled to work 42
an average of at least thirty-five hours per 43
week for a twelve-month period, and one for 44
which the qualified company offers health 45
insurance and pays at least fifty percent of 46
such insurance premiums; 47
(9) "High-impact project", a qualified 48
company that, within two years from commencement 49
of operations, creates one hundred or more new 50
jobs; 51
(10) "Local incentives", the present value 52
of the dollar amount of direct benefit received 53
by a qualified company for a project facility 54
from one or more local political subdivisions, 55
but shall not include loans or other funds 56
provided to the qualified company that must be 57
repaid by the qualified company to the political 58
subdivision; 59
(11) "NAICS", the 1997 edition of the 60
North American Industry Classification System as 61
prepared by the Executive Office of the 62
President, Office of Management and Budget. Any 63
NAICS sector, subsector, industry group or 64
industry identified in this section shall 65
include its corresponding classification in 66
subsequent federal industry classification 67
systems; 68
(12) "New direct local revenue", the 69
present value of the dollar amount of direct net 70
SB 1188 277
new tax revenues of the local political 71
subdivisions likely to be produced by the 72
project over a ten-year period as calculated by 73
the department, excluding local earnings tax, 74
and net new utility revenues, provided the local 75
incentives include a discount or other direct 76
incentives from utilities owned or operated by 77
the political subdivision; 78
(13) "New investment", the purchase or 79
leasing of new tangible assets to be placed in 80
operation at the project facility, which will be 81
directly related to the new jobs; 82
(14) "New job", the number of full-time 83
employees located at the project facility that 84
exceeds the project facility base employment 85
less any decrease in the number of full-time 86
employees at related facilities below the 87
related facility base employment. No job that 88
was created prior to the date of the notice of 89
intent shall be deemed a new job. An employee 90
that spends less than fifty percent of the 91
employee's work time at the facility is still 92
considered to be located at a facility if the 93
employee receives his or her directions and 94
control from that facility, is on the facility's 95
payroll, one hundred percent of the employee's 96
income from such employment is Missouri income, 97
and the employee is paid at or above the state 98
average wage; 99
(15) "New payroll", the amount of taxable 100
wages of full-time employees, excluding owners, 101
located at the project facility that exceeds the 102
project facility base payroll. If full-time 103
employment at related facilities is below the 104
related facility base employment, any decrease 105
in payroll for full-time employees at the 106
related facilities below that related facility 107
base payroll shall also be subtracted to 108
determine new payroll; 109
(16) "Notice of intent", a form developed 110
by the department, completed by the qualified 111
company and submitted to the department which 112
states the qualified company's intent to hire 113
new jobs and request benefits under this program; 114
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(17) "Percent of local incentives", the 115
amount of local incentives divided by the amount 116
of new direct local revenue; 117
(18) "Program", the Missouri quality jobs 118
program provided in sections 620.1875 to 119
620.1890; 120
(19) "Project facility", the building used 121
by a qualified company at which the new jobs and 122
new investment will be located. A project 123
facility may include separate buildings that are 124
located within fifteen miles of each other or 125
within the same county such that their purpose 126
and operations are interrelated; 127
(20) "Project facility base employment", 128
the greater of the number of full-time employees 129
located at the project facility on the date of 130
the notice of intent or for the twelve-month 131
period prior to the date of the notice of 132
intent, the average number of full-time 133
employees located at the project facility. In 134
the event the project facility has not been in 135
operation for a full twelve-month period, the 136
average number of full-time employees for the 137
number of months the project facility has been 138
in operation prior to the date of the notice of 139
intent; 140
(21) "Project facility base payroll", the 141
total amount of taxable wages paid by the 142
qualified company to full-time employees of the 143
qualified company located at the project 144
facility in the twelve months prior to the 145
notice of intent, not including the payroll of 146
the owners of the qualified company unless the 147
qualified company is participating in an 148
employee stock ownership plan. For purposes of 149
calculating the benefits under this program, the 150
amount of base payroll shall increase each year 151
based on an appropriate measure, as determined 152
by the department; 153
(22) "Project period", the time period 154
that the benefits are provided to a qualified 155
company; 156
(23) "Qualified company", a firm, 157
partnership, joint venture, association, private 158
SB 1188 279
or public corporation whether organized for 159
profit or not, or headquarters of such entity 160
registered to do business in Missouri that is 161
the owner or operator of a project facility, 162
offers health insurance to all full-time 163
employees of all facilities located in this 164
state, and pays at least fifty percent of such 165
insurance premiums. For the purposes of 166
sections 620.1875 to 620.1890, the term 167
"qualified company" shall not include: 168
(a) Gambling establishments (NAICS 169
industry group 7132); 170
(b) Retail trade establishments (NAICS 171
sectors 44 and 45); 172
(c) Food and drinking places (NAICS 173
subsector 722); 174
(d) Public utilities (NAICS 221 including 175
water and sewer services); 176
(e) Any company that is delinquent in the 177
payment of any nonprotested taxes or any other 178
amounts due the state or federal government or 179
any other political subdivision of this state; 180
(f) Any company that has filed for or has 181
publicly announced its intention to file for 182
bankruptcy protection. However, a company that 183
has filed for or has publicly announced its 184
intention to file for bankruptcy between January 185
1, 2009, and December 31, 2009, may be a 186
qualified company provided that such company: 187
a. Certifies to the department that it 188
plans to reorganize and not to liquidate; and 189
b. After its bankruptcy petition has been 190
filed, it produces proof, in a form and at times 191
satisfactory to the department, that it is not 192
delinquent in filing any tax returns or making 193
any payment due to the state of Missouri, 194
including but not limited to all tax payments 195
due after the filing of the bankruptcy petition 196
and under the terms of the plan of 197
reorganization. 198
Any taxpayer who is awarded benefits under 199
this subsection and who files for bankruptcy 200
under Chapter 7 of the United States Bankruptcy 201
Code, Title 11 U.S.C., shall immediately notify 202
SB 1188 280
the department and shall forfeit such benefits 203
and shall repay the state an amount equal to any 204
state tax credits already redeemed and any 205
withholding taxes already retained; 206
(g) Educational services (NAICS sector 61); 207
(h) Religious organizations (NAICS 208
industry group 8131); 209
(i) Public administration (NAICS sector 210
92); 211
(j) Ethanol distillation or production; or 212
(k) Biodiesel production. 213
Notwithstanding any provision of this 214
section to the contrary, the headquarters or 215
administrative offices of an otherwise excluded 216
business may qualify for benefits if the offices 217
serve a multistate territory. In the event a 218
national, state, or regional headquarters 219
operation is not the predominant activity of a 220
project facility, the new jobs and investment of 221
such headquarters operation is considered 222
eligible for benefits under this section if the 223
other requirements are satisfied; 224
(24) "Qualified renewable energy sources" 225
shall not be construed to include ethanol 226
distillation or production or biodiesel 227
production; however, it shall include: 228
(a) Open-looped biomass; 229
(b) Close-looped biomass; 230
(c) Solar; 231
(d) Wind; 232
(e) Geothermal; and 233
(f) Hydropower; 234
(25) "Related company" means: 235
(a) A corporation, partnership, trust, or 236
association controlled by the qualified company; 237
(b) An individual, corporation, 238
partnership, trust, or association in control of 239
the qualified company; or 240
(c) Corporations, partnerships, trusts or 241
associations controlled by an individual, 242
corporation, partnership, trust or association 243
in control of the qualified company. As used in 244
this subdivision, "control of a corporation" 245
shall mean ownership, directly or indirectly, of 246
SB 1188 281
stock possessing at least fifty percent of the 247
total combined voting power of all classes of 248
stock entitled to vote, "control of a 249
partnership or association" shall mean ownership 250
of at least fifty percent of the capital or 251
profits interest in such partnership or 252
association, "control of a trust" shall mean 253
ownership, directly or indirectly, of at least 254
fifty percent of the beneficial interest in the 255
principal or income of such trust, and ownership 256
shall be determined as provided in Section 318 257
of the Internal Revenue Code of 1986, as amended; 258
(26) "Related facility", a facility 259
operated by the qualified company or a related 260
company located in this state that is directly 261
related to the operations of the project 262
facility; 263
(27) "Related facility base employment", 264
the greater of the number of full-time employees 265
located at all related facilities on the date of 266
the notice of intent or for the twelve-month 267
period prior to the date of the notice of 268
intent, the average number of full-time 269
employees located at all related facilities of 270
the qualified company or a related company 271
located in this state; 272
(28) "Related facility base payroll", the 273
total amount of taxable wages paid by the 274
qualified company to full-time employees of the 275
qualified company located at a related facility 276
in the twelve months prior to the filing of the 277
notice of intent, not including the payroll of 278
the owners of the qualified company unless the 279
qualified company is participating in an 280
employee stock ownership plan. For purposes of 281
calculating the benefits under this program, the 282
amount of related facility base payroll shall 283
increase each year based on an appropriate 284
measure, as determined by the department; 285
(29) "Rural area", a county in Missouri 286
with a population less than seventy-five 287
thousand or that does not contain an individual 288
city with a population greater than fifty 289
SB 1188 282
thousand according to the most recent federal 290
decennial census; 291
(30) "Small and expanding business 292
project", a qualified company that within two 293
years of the date of the approval creates a 294
minimum of twenty new jobs if the project 295
facility is located in a rural area or a minimum 296
of forty new jobs if the project facility is not 297
located in a rural area and creates fewer than 298
one hundred new jobs regardless of the location 299
of the project facility; 300
(31) "Tax credits", tax credits issued by 301
the department to offset the state income taxes 302
imposed by chapters 143 and 148, or which may be 303
sold or refunded as provided for in this program; 304
(32) "Technology business project", a 305
qualified company that within two years of the 306
date of the approval creates a minimum of ten 307
new jobs involved in the operations of a company: 308
(a) Which is a technology company, as 309
determined by a regulation promulgated by the 310
department under the provisions of section 311
620.1884 or classified by NAICS codes; 312
(b) Which owns or leases a facility which 313
produces electricity derived from qualified 314
renewable energy sources, or produces fuel for 315
the generation of electricity from qualified 316
renewable energy sources, but does not include 317
any company that has received the alcohol 318
mixture credit, alcohol credit, or small ethanol 319
producer credit pursuant to 26 U.S.C. Section 40 320
of the tax code in the previous tax year; 321
(c) Which researches, develops, or 322
manufactures power system technology for: 323
aerospace; space; defense; hybrid vehicles; or 324
implantable or wearable medical devices; or 325
(d) Which is a clinical molecular 326
diagnostic laboratory focused on detecting and 327
monitoring infections in immunocompromised 328
patient populations; 329
(33) "Withholding tax", the state tax 330
imposed by sections 143.191 to 143.265. For 331
purposes of this program, the withholding tax 332
SB 1188 283
shall be computed using a schedule as determined 333
by the department based on average wages.] 334
[620.1881. 1. The department of economic 1
development shall respond within thirty days to 2
a company who provides a notice of intent with 3
either an approval or a rejection of the notice 4
of intent. The department shall give preference 5
to qualified companies and projects targeted at 6
an area of the state which has recently been 7
classified as a disaster area by the federal 8
government. Failure to respond on behalf of the 9
department of economic development shall result 10
in the notice of intent being deemed an approval 11
for the purposes of this section. A qualified 12
company who is provided an approval for a 13
project shall be allowed a benefit as provided 14
in this program in the amount and duration 15
provided in this section. A qualified company 16
may receive additional periods for subsequent 17
new jobs at the same facility after the full 18
initial period if the minimum thresholds are met 19
as set forth in sections 620.1875 to 620.1890. 20
There is no limit on the number of periods a 21
qualified company may participate in the 22
program, as long as the minimum thresholds are 23
achieved and the qualified company provides the 24
department with the required reporting and is in 25
proper compliance for this program or other 26
state programs. A qualified company may elect 27
to file a notice of intent to start a new 28
project period concurrent with an existing 29
project period if the minimum thresholds are 30
achieved and the qualified company provides the 31
department with the required reporting and is in 32
proper compliance for this program and other 33
state programs; however, the qualified company 34
may not receive any further benefit under the 35
original approval for jobs created after the 36
date of the new notice of intent, and any jobs 37
created before the new notice of intent may not 38
be included as new jobs for the purpose of 39
benefit calculation in relation to the new 40
approval. When a qualified company has filed 41
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and received approval of a notice of intent and 42
subsequently files another notice of intent, the 43
department shall apply the definition of project 44
facility under subdivision (19) of section 45
620.1878 to the new notice of intent as well as 46
all previously approved notices of intent and 47
shall determine the application of the 48
definitions of new job, new payroll, project 49
facility base employment, and project facility 50
base payroll accordingly. 51
2. Notwithstanding any provision of law to 52
the contrary, any qualified company that is 53
awarded benefits under this program may not 54
simultaneously receive tax credits or exemptions 55
under sections 135.100 to 135.150, sections 56
135.200 to 135.286, section 135.535, or sections 57
135.900 to 135.906 at the same project 58
facility. The benefits available to the company 59
under any other state programs for which the 60
company is eligible and which utilize 61
withholding tax from the new jobs of the company 62
must first be credited to the other state 63
program before the withholding retention level 64
applicable under the Missouri quality jobs act 65
will begin to accrue. These other state 66
programs include, but are not limited to, the 67
Missouri works jobs training program under 68
sections 620.800 to 620.809, the real property 69
tax increment allocation redevelopment act, 70
sections 99.800 to 99.865, or the Missouri 71
downtown and rural economic stimulus act under 72
sections 99.915 to 99.980. If any qualified 73
company also participates in the Missouri works 74
jobs training program in sections 620.800 to 75
620.809, the company shall retain no withholding 76
tax, but the department shall issue a refundable 77
tax credit for the full amount of benefit 78
allowed under this subdivision. The calendar 79
year annual maximum amount of tax credits which 80
may be issued to a qualifying company that also 81
participates in the new job training program 82
shall be increased by an amount equivalent to 83
the withholding tax retained by that company 84
under the new jobs training program. However, 85
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if the combined benefits of the quality jobs 86
program and the new jobs training program exceed 87
the projected state benefit of the project, as 88
determined by the department of economic 89
development through a cost-benefit analysis, the 90
increase in the maximum tax credits shall be 91
limited to the amount that would not cause the 92
combined benefits to exceed the projected state 93
benefit. Any taxpayer who is awarded benefits 94
under this program who knowingly hires 95
individuals who are not allowed to work legally 96
in the United States shall immediately forfeit 97
such benefits and shall repay the state an 98
amount equal to any state tax credits already 99
redeemed and any withholding taxes already 100
retained. 101
3. The types of projects and the amount of 102
benefits to be provided are: 103
(1) Small and expanding business 104
projects: in exchange for the consideration 105
provided by the new tax revenues and other 106
economic stimuli that will be generated by the 107
new jobs created by the program, a qualified 108
company may retain an amount equal to the 109
withholding tax as calculated under subdivision 110
(33) of section 620.1878 from the new jobs that 111
would otherwise be withheld and remitted by the 112
qualified company under the provisions of 113
sections 143.191 to 143.265 for a period of 114
three years from the date the required number of 115
new jobs were created if the average wage of the 116
new payroll equals or exceeds the county average 117
wage or for a period of five years from the date 118
the required number of new jobs were created if 119
the average wage of the new payroll equals or 120
exceeds one hundred twenty percent of the county 121
average wage; 122
(2) Technology business projects: in 123
exchange for the consideration provided by the 124
new tax revenues and other economic stimuli that 125
will be generated by the new jobs created by the 126
program, a qualified company may retain an 127
amount equal to a maximum of five percent of new 128
payroll for a period of five years from the date 129
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the required number of jobs were created from 130
the withholding tax of the new jobs that would 131
otherwise be withheld and remitted by the 132
qualified company under the provisions of 133
sections 143.191 to 143.265 if the average wage 134
of the new payroll equals or exceeds the county 135
average wage. An additional one-half percent of 136
new payroll may be added to the five percent 137
maximum if the average wage of the new payroll 138
in any year exceeds one hundred twenty percent 139
of the county average wage in the county in 140
which the project facility is located, plus an 141
additional one-half percent of new payroll may 142
be added if the average wage of the new payroll 143
in any year exceeds one hundred forty percent of 144
the average wage in the county in which the 145
project facility is located. The department 146
shall issue a refundable tax credit for any 147
difference between the amount of benefit allowed 148
under this subdivision and the amount of 149
withholding tax retained by the company, in the 150
event the withholding tax is not sufficient to 151
provide the entire amount of benefit due to the 152
qualified company under this subdivision; 153
(3) High impact projects: in exchange for 154
the consideration provided by the new tax 155
revenues and other economic stimuli that will be 156
generated by the new jobs created by the 157
program, a qualified company may retain an 158
amount from the withholding tax of the new jobs 159
that would otherwise be withheld and remitted by 160
the qualified company under the provisions of 161
sections 143.191 to 143.265, equal to three 162
percent of new payroll for a period of five 163
years from the date the required number of jobs 164
were created if the average wage of the new 165
payroll equals or exceeds the county average 166
wage of the county in which the project facility 167
is located. For high-impact projects in a 168
facility located within two adjacent counties, 169
the new payroll shall equal or exceed the higher 170
county average wage of the adjacent counties. 171
The percentage of payroll allowed under this 172
subdivision shall be three and one-half percent 173
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of new payroll if the average wage of the new 174
payroll in any year exceeds one hundred twenty 175
percent of the county average wage in the county 176
in which the project facility is located. The 177
percentage of payroll allowed under this 178
subdivision shall be four percent of new payroll 179
if the average wage of the new payroll in any 180
year exceeds one hundred forty percent of the 181
county average wage in the county in which the 182
project facility is located. An additional one 183
percent of new payroll may be added to these 184
percentages if local incentives equal between 185
ten percent and twenty-four percent of the new 186
direct local revenue; an additional two percent 187
of new payroll is added to these percentages if 188
the local incentives equal between twenty-five 189
percent and forty-nine percent of the new direct 190
local revenue; or an additional three percent of 191
payroll is added to these percentages if the 192
local incentives equal fifty percent or more of 193
the new direct local revenue. The department 194
shall issue a refundable tax credit for any 195
difference between the amount of benefit allowed 196
under this subdivision and the amount of 197
withholding tax retained by the company, in the 198
event the withholding tax is not sufficient to 199
provide the entire amount of benefit due to the 200
qualified company under this subdivision; 201
(4) Job retention projects: a qualified 202
company may receive a tax credit for the 203
retention of jobs in this state, provided the 204
qualified company and the project meets all of 205
the following conditions: 206
(a) For each of the twenty-four months 207
preceding the year in which application for the 208
program is made the qualified company must have 209
maintained at least one thousand full-time 210
employees at the employer's site in the state at 211
which the jobs are based, and the average wage 212
of such employees must meet or exceed the county 213
average wage; 214
(b) The qualified company retained at the 215
project facility the level of full-time 216
employees that existed in the taxable year 217
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immediately preceding the year in which 218
application for the program is made; 219
(c) The qualified company is considered to 220
have a significant statewide effect on the 221
economy, and has been determined to represent a 222
substantial risk of relocation from the state by 223
the quality jobs advisory task force established 224
in section 620.1887; provided, however, until 225
such time as the initial at-large members of the 226
quality jobs advisory task force are appointed, 227
this determination shall be made by the director 228
of the department of economic development; 229
(d) The qualified company in the project 230
facility will cause to be invested a minimum of 231
seventy million dollars in new investment prior 232
to the end of two years or will cause to be 233
invested a minimum of thirty million dollars in 234
new investment prior to the end of two years and 235
maintain an annual payroll of at least seventy 236
million dollars during each of the years for 237
which a credit is claimed; and 238
(e) The local taxing entities shall 239
provide local incentives of at least fifty 240
percent of the new direct local revenues created 241
by the project over a ten-year period. 242
The quality jobs advisory task force may 243
recommend to the department of economic 244
development that appropriate penalties be 245
applied to the company for violating the 246
agreement. The amount of the job retention 247
credit granted may be equal to up to fifty 248
percent of the amount of withholding tax 249
generated by the full-time jobs at the project 250
facility for a period of five years. The 251
calendar year annual maximum amount of tax 252
credit that may be issued to any qualified 253
company for a job retention project or 254
combination of job retention projects shall be 255
seven hundred fifty thousand dollars per year, 256
but the maximum amount may be increased up to 257
one million dollars if such action is proposed 258
by the department and approved by the quality 259
jobs advisory task force established in section 260
620.1887; provided, however, until such time as 261
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the initial at-large members of the quality jobs 262
advisory task force are appointed, this 263
determination shall be made by the director of 264
the department of economic development. In 265
considering such a request, the task force shall 266
rely on economic modeling and other information 267
supplied by the department when requesting the 268
increased limit on behalf of the job retention 269
project. In no event shall the total amount of 270
all tax credits issued for the entire job 271
retention program under this subdivision exceed 272
three million dollars annually. Notwithstanding 273
the above, no tax credits shall be issued for 274
job retention projects approved by the 275
department after August 30, 2013; 276
(5) Small business job retention and flood 277
survivor relief: a qualified company may 278
receive a tax credit under sections 620.1875 to 279
620.1890 for the retention of jobs and flood 280
survivor relief in this state for each job 281
retained over a three-year period, provided that: 282
(a) The qualified company did not receive 283
any state or federal benefits, incentives, or 284
tax relief or abatement in locating its facility 285
in a flood plain; 286
(b) The qualified company and related 287
companies have fewer than one hundred employees 288
at the time application for the program is made; 289
(c) The average wage of the qualified 290
company's and related companies' employees must 291
meet or exceed the county average wage; 292
(d) All of the qualified company's and 293
related companies' facilities are located in 294
this state; 295
(e) The facilities at the primary business 296
site in this state have been directly damaged by 297
floodwater rising above the level of a five 298
hundred year flood at least two years, but fewer 299
than eight years, prior to the time application 300
is made; 301
(f) The qualified company made significant 302
efforts to protect the facilities prior to any 303
impending danger from rising floodwaters; 304
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(g) For each year it receives tax credits 305
under sections 620.1875 to 620.1890, the 306
qualified company and related companies 307
retained, at the company's facilities in this 308
state, at least the level of full-time, year- 309
round employees that existed in the taxable year 310
immediately preceding the year in which 311
application for the program is made; and 312
(h) In the years it receives tax credits 313
under sections 620.1875 to 620.1890, the company 314
cumulatively invests at least two million 315
dollars in capital improvements in facilities 316
and equipment located at such facilities that 317
are not located within a five hundred year flood 318
plain as designated by the Federal Emergency 319
Management Agency, and amended from time to 320
time. The amount of the small business job 321
retention and flood survivor relief credit 322
granted may be equal to up to one hundred 323
percent of the amount of withholding tax 324
generated by the full-time jobs at the project 325
facility for a period of three years. The 326
calendar year annual maximum amount of tax 327
credit that may be issued to any qualified 328
company for a small business job retention and 329
survivor relief project shall be two hundred 330
fifty thousand dollars per year, but the maximum 331
amount may be increased up to five hundred 332
thousand dollars if such action is proposed by 333
the department and approved by the quality jobs 334
advisory task force established in section 335
620.1887. In considering such a request, the 336
task force shall rely on economic modeling and 337
other information supplied by the department 338
when requesting an increase in the limit on 339
behalf of the small business job retention and 340
flood survivor relief project. In no event 341
shall the total amount of all tax credits issued 342
for the entire small business job retention and 343
flood survivor relief program under this 344
subdivision exceed five hundred thousand dollars 345
annually. Notwithstanding the provisions of 346
this subdivision to the contrary, no tax credits 347
shall be issued for small business job retention 348
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and flood survivor relief projects approved by 349
the department after August 30, 2010. 350
4. The qualified company shall provide an 351
annual report of the number of jobs and such 352
other information as may be required by the 353
department to document the basis for the 354
benefits of this program. The department may 355
withhold the approval of any benefits until it 356
is satisfied that proper documentation has been 357
provided, and shall reduce the benefits to 358
reflect any reduction in full-time employees or 359
new payroll. Upon approval by the department, 360
the qualified company may begin the retention of 361
the withholding taxes when it reaches the 362
minimum number of new jobs and the average wage 363
exceeds the county average wage. Tax credits, 364
if any, may be issued upon satisfaction by the 365
department that the qualified company has 366
exceeded the county average wage and the minimum 367
number of new jobs. In such annual report, if 368
the average wage is below the county average 369
wage, the qualified company has not maintained 370
the employee insurance as required, or if the 371
number of new jobs is below the minimum, the 372
qualified company shall not receive tax credits 373
or retain the withholding tax for the balance of 374
the benefit period. In the case of a qualified 375
company that initially filed a notice of intent 376
and received an approval from the department for 377
high-impact benefits and the minimum number of 378
new jobs in an annual report is below the 379
minimum for high-impact projects, the company 380
shall not receive tax credits for the balance of 381
the benefit period but may continue to retain 382
the withholding taxes if it otherwise meets the 383
requirements of a small and expanding business 384
under this program. 385
5. The maximum calendar year annual tax 386
credits issued for the entire program shall not 387
exceed eighty million dollars. Notwithstanding 388
any provision of law to the contrary, the 389
maximum annual tax credits authorized under 390
section 135.535 are hereby reduced from ten 391
million dollars to eight million dollars, with 392
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the balance of two million dollars transferred 393
to this program. There shall be no limit on the 394
amount of withholding taxes that may be retained 395
by approved companies under this program. 396
6. The department shall allocate the 397
annual tax credits based on the date of the 398
approval, reserving such tax credits based on 399
the department's best estimate of new jobs and 400
new payroll of the project, and the other 401
factors in the determination of benefits of this 402
program. However, the annual issuance of tax 403
credits is subject to the annual verification of 404
the actual new payroll. The allocation of tax 405
credits for the period assigned to a project 406
shall expire if, within two years from the date 407
of commencement of operations, or approval if 408
applicable, the minimum thresholds have not been 409
achieved. The qualified company may retain 410
authorized amounts from the withholding tax 411
under this section once the minimum new jobs 412
thresholds are met for the duration of the 413
project period. No benefits shall be provided 414
under this program until the qualified company 415
meets the minimum new jobs thresholds. In the 416
event the qualified company does not meet the 417
minimum new job threshold, the qualified company 418
may submit a new notice of intent or the 419
department may provide a new approval for a new 420
project of the qualified company at the project 421
facility or other facilities. 422
7. For a qualified company with flow- 423
through tax treatment to its members, partners, 424
or shareholders, the tax credit shall be allowed 425
to members, partners, or shareholders in 426
proportion to their share of ownership on the 427
last day of the qualified company's tax period. 428
8. Tax credits may be claimed against 429
taxes otherwise imposed by chapters 143 and 148, 430
and may not be carried forward but shall be 431
claimed within one year of the close of the 432
taxable year for which they were issued, except 433
as provided under subdivision (4) of subsection 434
3 of this section. 435
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9. Tax credits authorized by this section 436
may be transferred, sold, or assigned by filing 437
a notarized endorsement thereof with the 438
department that names the transferee, the amount 439
of tax credit transferred, and the value 440
received for the credit, as well as any other 441
information reasonably requested by the 442
department. 443
10. Prior to the issuance of tax credits, 444
the department shall verify through the 445
department of revenue, or any other state 446
department, that the tax credit applicant does 447
not owe any delinquent income, sales, or use tax 448
or interest or penalties on such taxes, or any 449
delinquent fees or assessments levied by any 450
state department and through the department of 451
commerce and insurance that the applicant does 452
not owe any delinquent insurance taxes. Such 453
delinquency shall not affect the authorization 454
of the application for such tax credits, except 455
that at issuance credits shall be first applied 456
to the delinquency and any amount issued shall 457
be reduced by the applicant's tax delinquency. 458
If the department of revenue or the department 459
of commerce and insurance, or any other state 460
department, concludes that a taxpayer is 461
delinquent after June fifteenth but before July 462
first of any year and the application of tax 463
credits to such delinquency causes a tax 464
deficiency on behalf of the taxpayer to arise, 465
then the taxpayer shall be granted thirty days 466
to satisfy the deficiency in which interest, 467
penalties, and additions to tax shall be 468
tolled. After applying all available credits 469
toward a tax delinquency, the administering 470
agency shall notify the appropriate department 471
and that department shall update the amount of 472
outstanding delinquent tax owed by the 473
applicant. If any credits remain after 474
satisfying all insurance, income, sales, and use 475
tax delinquencies, the remaining credits shall 476
be issued to the applicant, subject to the 477
restrictions of other provisions of law. 478
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11. Except as provided under subdivision 479
(4) of subsection 3 of this section, the 480
director of revenue shall issue a refund to the 481
qualified company to the extent that the amount 482
of credits allowed in this section exceeds the 483
amount of the qualified company's income tax. 484
12. An employee of a qualified company 485
will receive full credit for the amount of tax 486
withheld as provided in section 143.211. 487
13. If any provision of sections 620.1875 488
to 620.1890 or application thereof to any person 489
or circumstance is held invalid, the invalidity 490
shall not affect other provisions or application 491
of these sections which can be given effect 492
without the invalid provisions or application, 493
and to this end, the provisions of sections 494
620.1875 to 620.1890 are hereby declared 495
severable.] 496
[620.1884. The department may adopt such 1
rules, statements of policy, procedures, forms, 2
and guidelines as may be necessary to carry out 3
the provisions of sections 620.1875 to 4
620.1890. Any rule or portion of a rule, as 5
that term is defined in section 536.010, that is 6
created under the authority delegated in this 7
section shall become effective only if it 8
complies with and is subject to all of the 9
provisions of chapter 536 and, if applicable, 10
section 536.028. This section and chapter 536 11
are nonseverable and if any of the powers vested 12
with the general assembly pursuant to chapter 13
536 to review, to delay the effective date, or 14
to disapprove and annul a rule are subsequently 15
held unconstitutional, then the grant of 16
rulemaking authority and any rule proposed or 17
adopted after August 28, 2005, shall be invalid 18
and void.] 19
[620.1887. There is hereby created a 1
volunteer task force, to be known as the 2
"Quality Jobs Advisory Task Force", which shall 3
consist of the chairperson of the economic 4
development committee of the Missouri senate or 5
his or her designee, a member of the economic 6
SB 1188 295
development committee of the Missouri senate 7
appointed by the minority leader of the Missouri 8
senate, the chairperson of the economic 9
development committee of the Missouri house of 10
representatives or his or her designee, a member 11
of the economic development committee of the 12
Missouri house of representatives appointed by 13
the minority leader of the Missouri house of 14
representatives, the director of the department 15
of economic development or his or her designee, 16
and two members to be appointed by the governor 17
with the advice and consent of the senate.] 18
[620.1890. Prior to March first each year, 1
the department will provide a report on the 2
program to the general assembly including the 3
names of participating companies, location of 4
such companies, the annual amount of benefits 5
provided, the estimated net state fiscal impact 6
(direct and indirect new state taxes derived 7
from the project), the number of new jobs 8
created or jobs retained, the average wages of 9
each project, and the types of qualified 10
companies using the program.] 11
[620.2600. 1. This section shall be known 1
and may be cited as the "Innovation Campus Tax 2
Credit Act". 3
2. As used in this section, the following 4
terms mean: 5
(1) "Certificate", a tax credit 6
certificate issued under this section; 7
(2) "Department", the Missouri department 8
of economic development; 9
(3) "Eligible donation", donations 10
received from a taxpayer by innovation campuses 11
that are to be used solely for projects that 12
advance learning in the areas of science, 13
technology, engineering, and mathematics. 14
Eligible donations may include cash, publicly 15
traded stocks and bonds, and real estate that 16
shall and will be valued and documented 17
according to the rules promulgated by the 18
department of economic development; 19
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(4) "Innovation education campus" or 20
"innovation campus", as defined in section 21
178.1100, an educational partnership consisting 22
of at least one of each of the following 23
entities: 24
(a) A local Missouri high school or K-12 25
school district; 26
(b) A Missouri four-year public or private 27
higher education institution; 28
(c) A Missouri-based business or 29
businesses; and 30
(d) A Missouri two-year public higher 31
education institution or state technical college 32
of Missouri; 33
(5) "Taxpayer", any of the following 34
individuals or entities who make an eligible 35
donation to any innovation campus: 36
(a) A person, firm, partner in a firm, 37
corporation, or a shareholder in an S 38
corporation doing business in the state of 39
Missouri and subject to the state income tax 40
imposed in chapter 143; 41
(b) A corporation subject to the annual 42
corporation franchise tax imposed in chapter 147; 43
(c) An insurance company paying an annual 44
tax on its gross premium receipts in this state; 45
(d) Any other financial institution paying 46
taxes to the state of Missouri or any political 47
subdivisions of this state under chapter 148; 48
(e) An individual subject to the state 49
income tax imposed in chapter 143; 50
(f) Any charitable organization which is 51
exempt from federal income tax and whose 52
Missouri unrelated business taxable income, if 53
any, would be subject to the state income tax 54
imposed under chapter 143. 55
3. For all taxable years beginning on or 56
after January 1, 2015, any taxpayer shall be 57
allowed a credit against the taxes otherwise due 58
under chapters 147, 148, or 143, excluding 59
withholding tax imposed by sections 143.191 to 60
143.265, in an amount equal to fifty percent of 61
the amount of an eligible donation, subject to 62
the restrictions in this section. The amount of 63
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the tax credit claimed shall not exceed the 64
amount of the taxpayer's state income tax 65
liability in the tax year for which the credit 66
is claimed. Any amount of credit that the 67
taxpayer is prohibited by this section from 68
claiming in a tax year shall not be refundable, 69
but may be carried forward to any of the 70
taxpayer's four subsequent taxable years. 71
4. To claim the credit authorized in this 72
section, an innovation campus may submit to the 73
department an application for the tax credit 74
authorized by this section on behalf of 75
taxpayers. The department shall verify that the 76
innovation campus has submitted the following 77
items: 78
(1) A valid application in the form and 79
format required by the department; 80
(2) A statement attesting to the eligible 81
donation received, which shall include the name 82
and taxpayer identification number of the 83
individual or taxpayer making the eligible 84
donation, the amount of the eligible donation, 85
and the date the eligible donation was received 86
by the innovation campus; and 87
(3) Payment from the innovation campus 88
equal to the value of the tax credit for which 89
application is made. 90
If the innovation campus applying for the 91
tax credit meets all criteria required by this 92
subsection, the department shall issue a 93
certificate in the appropriate amount. 94
5. Tax credits issued under this section 95
may be assigned, transferred, sold, or otherwise 96
conveyed, and the new owner of the tax credit 97
shall have the same rights in the credit as the 98
taxpayer. Whenever a certificate is assigned, 99
transferred, sold, or otherwise conveyed, a 100
notarized endorsement shall be filed with the 101
department specifying the name and address of 102
the new owner of the tax credit and the value of 103
the credit. 104
6. The department may promulgate rules to 105
implement the provisions of this section. Any 106
rule or portion of a rule, as that term is 107
SB 1188 298
defined in section 536.010, that is created 108
under the authority delegated in this section 109
shall become effective only if it complies with 110
and is subject to all of the provisions of 111
chapter 536 and, if applicable, section 112
536.028. This section and chapter 536 are 113
nonseverable and if any of the powers vested 114
with the general assembly under and pursuant to 115
chapter 536 to review, to delay the effective 116
date, or to disapprove and annul a rule are 117
subsequently held unconstitutional, then the 118
grant of rulemaking authority and any rule 119
proposed or adopted after August 28, 2014, shall 120
be invalid and void. 121
7. Under section 23.253 of the Missouri 122
sunset act: 123
(1) The program authorized under this 124
section shall expire six years after August 28, 125
2014, unless reauthorized by an act of the 126
general assembly; and 127
(2) If such program is reauthorized, the 128
program authorized under this section shall 129
automatically sunset twelve years after August 130
28, 2014; and 131
(3) This section shall terminate on 132
September first of the calendar year immediately 133
following the calendar year in which the program 134
authorized under this section is sunset.] 135
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