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SECOND REGULAR SESSION
SENATE BILL NO. 1406
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
5856S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 620, RSMo, by adding thereto one new section relating to incentives for
converting a business to produce certain chemicals, gases, metals, and minerals.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto 1
one new section, to be known as section 620.1641, to read as 2
follows:3
620.1641. 1. This section shall be known and may be 1
cited as the "Missouri Defense and Energy Independence Act". 2
2. As used in this section, the following terms mean: 3
(1) "Department", the Missouri department of economic 4
development; 5
(2) "Qualified amount", for a qualified company in a 6
given tax year, a portion of such qualified company's 7
qualified conversion costs, subject to the limitations 8
provided in this section; 9
(3) "Qualified company", a firm, partnership, joint 10
venture, association, private or public corporation 11
regardless of whether organized for profit, or headquarters 12
of such entity registered to do business in Missouri, that 13
is a nontraditional defense contractor, as such term is 14
defined in 10 U.S.C. Section 3014, as amended, and that 15
incurs qualified conversion costs; 16
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(4) "Qualified conversion costs", costs a qualified 17
company incurs in converting such company to produce 18
chemicals, metals, gases, or rare earth minerals that will 19
be used for projects designed to decrease or eliminate 20
reliance on foreign-produced chemicals, metals, gases, or 21
rare earth minerals used in the production of energy 22
projects or Department of Defense or successor agency 23
projects; 24
(5) "Tax credit", tax credits issued by the department 25
to offset the state taxes imposed by chapters 143 and 148, 26
excluding the withholding tax imposed under sections 143.191 27
to 143.265. 28
3. (1) For all tax years beginning on or after 29
January 1, 2027, a qualified company shall be allowed to 30
claim a tax credit against the qualified company's state tax 31
liability in an amount equal to the qualified company's 32
qualified amount, subject to the limitations provided in 33
this subsection. 34
(2) The total qualified amount a qualified company 35
shall be allowed to claim under this section shall not 36
exceed fifteen percent of the cumulative amount of tax 37
credits allowed under subsection 4 of this section. One- 38
fourth of such total qualified amount a qualified company is 39
eligible to receive shall be issued in each of the four tax 40
years immediately following the tax year for which the 41
qualified company claimed the tax credit. 42
4. The cumulative amount of tax credits allowed to all 43
taxpayers under this section shall not exceed forty million 44
dollars per tax year. If the amount of tax credits claimed 45
in a tax year under this section exceeds forty million 46
dollars, tax credits shall be allowed based on the order in 47
which they are claimed. 48
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5. (1) Tax credits issued under the provisions of 49
this section shall not be refundable. 50
(2) No tax credit claimed under this section shall be 51
carried forward to any subsequent tax year. 52
(3) Tax credits claimed pursuant to this section may 53
be assigned, transferred, sold, or otherwise conveyed. 54
6. (1) There is hereby created in the state treasury 55
the "Grants for Independence from Foreign Influence Fund", 56
which shall consist of at least ten million dollars 57
appropriated by the general assembly and any gifts, 58
contributions, grants, or bequests received from federal, 59
private, or other sources. The state treasurer shall be 60
custodian of the fund. In accordance with sections 30.170 61
and 30.180, the state treasurer may approve disbursements. 62
The fund shall be a dedicated fund and, upon appropriation, 63
moneys in the fund shall be used solely as provided in 64
subsection 7 of this section. 65
(2) Notwithstanding the provisions of section 33.080 66
to the contrary, any moneys remaining in the fund at the end 67
of the biennium shall not revert to the credit of the 68
general revenue fund. 69
(3) The state treasurer shall invest moneys in the 70
fund in the same manner as other funds are invested. Any 71
interest and moneys earned on such investments shall be 72
credited to the fund. 73
7. (1) The department shall develop and implement 74
grants for independence from foreign influence as provided 75
in this subsection. 76
(2) The department shall establish procedures for the 77
solicitation, evaluation, and approval of grant applications 78
received from a qualified company. A qualified company may 79
submit a grant application for the award of moneys for 80
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qualified conversion costs incurred by the qualified company 81
as provided in this subsection. 82
(3) The department shall evaluate each application and 83
approve or reject such application. Subject to 84
appropriations, upon approval of an application, the 85
department shall administer a grant award of moneys from the 86
grants for independence from foreign influence fund in an 87
amount not to exceed five hundred thousand dollars per grant 88
application. 89
(4) Moneys granted to a qualified company under this 90
section shall be used solely for qualified conversion costs 91
incurred before the completion of the conversion of the 92
qualified company. 93
8. The department shall promulgate all necessary rules 94
and regulations for the administration of this section 95
including, but not limited to, rules relating to the 96
verification of a qualified company's qualified amount and 97
qualified conversion costs. Any rule or portion of a rule, 98
as that term is defined in section 536.010, that is created 99
under the authority delegated in this section shall become 100
effective only if it complies with and is subject to all of 101
the provisions of chapter 536 and, if applicable, section 102
536.028. This section and chapter 536 are nonseverable and 103
if any of the powers vested with the general assembly 104
pursuant to chapter 536 to review, to delay the effective 105
date, or to disapprove and annul a rule are subsequently 106
held unconstitutional, then the grant of rulemaking 107
authority and any rule proposed or adopted after August 28, 108
2026, shall be invalid and void. 109
9. Pursuant to section 23.253 of the Missouri sunset 110
act: 111
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(1) The program authorized pursuant to this section 112
shall automatically sunset six years after the effective 113
date of this section unless reauthorized by an act of the 114
general assembly; 115
(2) This section shall terminate on September first of 116
the calendar year immediately following the calendar year in 117
which the program authorized pursuant to this section is 118
sunset; and 119
(3) The provisions of this subsection shall not be 120
construed to impair or impede the state's fulfillment of any 121
obligations, including the authorization, issuance, or 122
redemption of tax credits, incurred pursuant to this section 123
prior to the date the program authorized pursuant to this 124
section is sunset. 125
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