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SECOND REGULAR SESSION
SENATE BILL NO. 1336
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR WASHINGTON.
4342S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 99, RSMo, by adding thereto one new section relating to a tax credit for the
purchase of blighted property.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 99, RSMo, is amended by adding thereto 1
one new section, to be known as section 99.720, to read as 2
follows:3
99.720. 1. As used in this section, the following 1
terms mean: 2
(1) "Authority", a public body corporate and politic 3
created under section 99.330 or any other public body 4
exercising the powers, rights, and duties of such an 5
authority; 6
(2) "First-time home buyer", an individual with no 7
present ownership interest in a principal residence during 8
the three-year period ending on the date of the purchase of 9
the principal residence in which the individual is seeking a 10
tax credit under this section; 11
(3) "Purchase", any acquisition of property except for 12
acquisitions from a person related to the person acquiring 13
the property or related to the spouse of the person 14
acquiring the property. Persons shall be considered related 15
only if they are within the first or second degree of 16
consanguinity or if the relationship between such persons 17
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would result in the disallowance of losses under 26 U.S.C. 18
Section 267. 19
2. For all tax years beginning on or after January 1, 20
2027, any person meeting the requirements of subsection 3 of 21
this section and purchasing property meeting the 22
requirements of subsection 4 of this section shall be 23
eligible for a credit against the tax imposed under chapter 24
143, excluding withholding tax imposed under sections 25
143.191 to 143.265, in an amount equal to five thousand 26
dollars. The tax credit shall not be claimed more than 27
once, or by more than one person, for a particular property. 28
3. To be eligible for the tax credit provided under 29
this section, an applicant shall: 30
(1) Be a first-time home buyer; 31
(2) Enter into an agreement with the authority that 32
requires the applicant and any subsequent owner, except any 33
lender with a security interest, to use the purchased 34
property as a single-family, principal residence of the 35
owner for a period of at least two years following 36
rehabilitation of the property, unless the authority finds 37
such requirement to be a hardship for the owner-occupant; 38
(3) Purchase the property within one year prior to the 39
application date or produce a contract for the purchase of 40
the property requiring acquisition no later than six months 41
after the application date; and 42
(4) Have an income at the time of acquisition at or 43
below the income levels described under subdivision (2) of 44
section 32.105. 45
4. To be eligible for the tax credit authorized under 46
this section, a property shall: 47
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(1) Be eligible for a tax abatement certificate under 48
section 99.700 and have had an application for the same 49
submitted to the authority; 50
(2) Be vacant for at least six months prior to the 51
purchase by the applicant; 52
(3) Be blighted in part because the governing body, or 53
its subordinate department, of the municipality in which the 54
property is located has: 55
(a) Determined that, because of its deteriorated 56
physical condition, the property is a dangerous building and 57
thereby uninhabitable; or 58
(b) Issued property maintenance code violations, and 59
the property is still in violation; and 60
(4) Be likely to meet the definition of an affordable 61
housing unit as defined under section 32.105 for the two- 62
year period described under subdivision (2) of subsection 3 63
of this section. 64
5. The authority and the department of revenue may 65
prescribe rules to implement the provisions of this 66
section. The authority may require applicants to provide 67
evidence, in a form acceptable to the authority, that the 68
requirements of this section are satisfied. The authority, 69
upon finding that a taxpayer and the property are eligible 70
for the tax credit authorized under this section, shall 71
issue a certificate to the taxpayer evidencing the issuance 72
of the credit. If the authority finds the agreement 73
described under subdivision (2) of subsection 3 of this 74
section has been breached by the taxpayer, the authority 75
shall notify the department of revenue, which may, in its 76
discretion, seek recapture from the taxpayer of all or a 77
portion of the tax credit within four years of the issuance 78
of the certificate by the authority. Any rule or portion of 79
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a rule, as that term is defined in section 536.010, that is 80
created under the authority delegated in this section shall 81
become effective only if it complies with and is subject to 82
all of the provisions of chapter 536 and, if applicable, 83
section 536.028. This section and chapter 536 are 84
nonseverable and if any of the powers vested with the 85
general assembly pursuant to chapter 536 to review, to delay 86
the effective date, or to disapprove and annul a rule are 87
subsequently held unconstitutional, then the grant of 88
rulemaking authority and any rule proposed or adopted after 89
August 28, 2026, shall be invalid and void. 90
6. The tax credit authorized under this section shall 91
not be refundable. Any amount of credit that exceeds the 92
tax due for a taxpayer's tax year may be carried forward to 93
any of the taxpayer's five subsequent tax years. The tax 94
credit shall not be assignable. The taxpayer shall submit, 95
at the time of filing the taxpayer's return, the certificate 96
issued by the authority. In the case of failure to attach 97
the certificate, no credit under this section shall be 98
allowed for that year until the certificate is provided to 99
the department of revenue. 100
7. The tax credit authorized pursuant to this section 101
shall be considered a domestic and social tax credit for the 102
purposes of sections 135.800 to 135.830. 103
8. Pursuant to section 23.253 of the Missouri sunset 104
act: 105
(1) The program authorized pursuant to this section 106
shall automatically sunset six years after the effective 107
date of this section unless reauthorized by an act of the 108
general assembly; 109
(2) This section shall terminate on September first of 110
the calendar year immediately following the calendar year in 111
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which the program authorized pursuant to this section is 112
sunset; and 113
(3) The provisions of this subsection shall not be 114
construed to impair or impede the state's fulfillment of any 115
obligations, including the authorization, issuance, or 116
redemption of tax credits, incurred pursuant to this section 117
prior to the date the program authorized pursuant to this 118
section is sunset. 119
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