EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILLS NOS. 133 & 583
102ND GENERAL ASSEMBLY
0599S.04C KRISTINA MARTIN, Secretary
AN ACT
To repeal section 135.750, RSMo, and to enact in lieu thereof two new sections relating to tax
credits for the production of certain entertainment, with an effective date for a certain
section.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 135.750, RS Mo, is repealed and two new 1
sections enacted in lieu thereof, to be known as sections 2
135.750 and 135.753, to read as follows:3
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, t he following terms mean: 3
(1) ["Highly compensated individual", any individual 4
who receives compensation in excess of one million dollars 5
in connection with a single qualified film production 6
project] "Above-the-line individual", any individual hir ed 7
or credited on screen for a qualified motion media 8
production project as any type of producer, principal cast 9
that is at a screen actors guild schedule f and above 10
payment rate, screenwriter, and the director ; 11
(2) "Qualified [film] motion media production 12
project", any film[, video, commercial, or television 13
production] or series production, including videos, 14
commercials, video games, webisodes, music videos, content - 15 SCS HCS HBs 133 & 583 2
based mobile applications, virtual reality, augmented 16
reality, multi-media, and new media, as well as standalone 17
visual effects and post -production for such motion media 18
production project, as approved by the department of 19
economic development and the office of the Missouri film 20
commission, that features a statement and log o designated by 21
the department of economic development in the credits of the 22
completed production indicating that the project was filmed 23
in Missouri and that is under thirty minutes in length with 24
[an] expected [in-state expenditure budget ] qualifying 25
expenses in excess of fifty thousand dollars [,] or [that] is 26
over thirty minutes in length with [an] expected [in-state 27
expenditure budget] qualifying expenses in excess of one 28
hundred thousand dollars. Regardless of the production 29
costs, "qualified [film production] motion media project" 30
shall not include any: 31
(a) News or current events programming; 32
(b) Talk show; 33
(c) Production produced primarily for industrial, 34
corporate, or institutional purposes, and for internal use; 35
(d) Sports event or sports program; 36
(e) Gala presentation or awards show; 37
(f) Infomercial or any production that directly 38
solicits funds; 39
(g) Political ad; 40
(h) Production that is considered obscene, as defined 41
in section 573.010; 42
(3) "Qualifying expenses", the sum of the total amount 43
spent in this state for the following by a production 44
company in connection with a qualified [film] motion media 45
production project: 46 SCS HCS HBs 133 & 583 3
(a) Goods and services leased or purchased by the 47
production company. For goods with a purchase price of 48
twenty-five thousand dollars or more, the amount included in 49
qualifying expenses shall be the purchase price less the 50
fair market value of the goods at the time the production is 51
completed; 52
(b) Compensation and wages paid by the production 53
company on which the production company remitted withholding 54
payments to the department of revenue under chapter 143. 55
For purposes of this section, compensation and wages [shall 56
not include any amounts paid to a highly compensated 57
individual] paid to all above-the-line individuals shall be 58
limited to twenty-five percent of the overall qualifying 59
expenses; 60
(4) "Tax credit", a credit against the tax otherwise 61
due under chapter 143, excluding withhold ing tax imposed by 62
sections 143.191 to 143.265, or otherwise due under chapter 63
148; 64
(5) "Taxpayer", any individual, partnership, or 65
corporation as described in section 143.441, 143.471, or 66
section 148.370 that is subject to the tax imposed in 67
chapter 143, excluding withholding tax imposed by sections 68
143.191 to 143.265, or the tax imposed in chapter 148 or any 69
charitable organization which is exempt from federal income 70
tax and whose Missouri unrelated business taxable income, if 71
any, would be subject to the state income tax imposed under 72
chapter 143. 73
[2. For all taxable years beginning on or after 74
January 1, 1999, but ending on or before December 31, 2007, 75
a taxpayer shall be granted a tax credit for up to fifty 76
percent of the amount of investment in production or 77
production-related activities in any film production project 78 SCS HCS HBs 133 & 583 4
with an expected in-state expenditure budget in excess of 79
three hundred thousand dollars. For all taxable years 80
beginning on or after January 1, 2008, a taxpa yer shall be 81
allowed a tax credit for up to thirty -five percent of the 82
amount of qualifying expenses in a qualified film production 83
project. Each film production company shall be limited to 84
one qualified film production project per year. ] 85
3. (1) For all tax years beginning on or after 86
January 1, 2023, a taxpayer shall be allowed a tax credit 87
equal to twenty percent of qualifying expenses. 88
(2) An additional five percent may be earned for 89
qualifying expenses if at least fifty percent of the 90
qualified motion media production project is filmed in 91
Missouri. 92
(3) An additional five percent may be earned for 93
qualifying expenses if at least fifteen percent of the 94
qualified motion media production project that is filmed in 95
Missouri takes place in a rural or blighted area in Missouri. 96
(4) An additional five percent may be earned for 97
qualifying expenses if at least three departments of the 98
qualified motion media production hire a Missouri resident 99
ready to advance to the next lev el in a specialized craft 100
position or learn a new skillset. 101
(5) An additional five percent may be earned for 102
qualifying expenses if the department of economic 103
development determines that the script of the qualified 104
motion media production project positively markets a city or 105
region of the state, the entire state, or a tourist 106
attraction located in the state, and the qualified motion 107
media production provides no less than five high resolution 108
photographs containing cast with the rights cleared for 109
promotional use by the Missouri film commission, accompanied 110 SCS HCS HBs 133 & 583 5
by a list with the title of production, location, names, and 111
titles of the individuals shown in the photography and 112
photographer credit. 113
(6) The total dollar amount of tax credits a uthorized 114
pursuant to subdivision (1) of this subsection shall be 115
increased by ten percent for qualified film production 116
projects located in a county of the second, third, or fourth 117
class. 118
(7) Activities qualifying a taxpayer for the tax 119
credit pursuant to this subsection shall be approved by the 120
office of the Missouri film commission and the department of 121
economic development. 122
4. A qualified motion media production project shall 123
not be eligible for tax credits pursuant to this section 124
unless such project employs at least the following number of 125
Missouri registered apprentices or veterans residing in 126
Missouri with transferable skills: 127
(1) If the qualifying expenses are less than five 128
million dollars, two; 129
(2) If the qualifying expenses are at least five 130
million dollars but less than ten million dollars, three; 131
(3) If the qualifying expenses are at least ten 132
million dollars but less than fifteen million dollars, six; 133
or 134
(4) If the qualifying expenses are at le ast fifteen 135
million dollars, eight. 136
[3.] 5. Taxpayers shall apply for the [film] motion 137
media production tax credit by submitting an application to 138
the department of economic development, on a form provided 139
by the department. As part of the application, the expected 140
[in-state expenditures] qualifying expenses of the qualified 141
[film] motion media production project shall be documented. 142 SCS HCS HBs 133 & 583 6
In addition, the application shall include an economic 143
impact statement, showing the economic impact from th e 144
activities of the [film] qualified motion media production 145
project. Such economic impact statement shall indicate the 146
impact on the region of the state in which the [film] 147
qualified motion media production or production -related 148
activities are locat ed and on the state as a whole. Final 149
applications shall be accompanied by a report by a certified 150
public accountant licensed by the state of Missouri, 151
prepared at the expense of the applicant, attesting that the 152
amounts in the final application are q ualifying expenses. 153
[4. For all taxable years ending on or before December 154
31, 2007, tax credits certified pursuant to subsection 2 of 155
this section shall not exceed one million dollars per 156
taxpayer per year, and shall not exceed a total for all tax 157
credits certified of one million five hundred thousand 158
dollars per year.] 159
6. For all [taxable] tax years beginning on or after 160
January 1, [2008] 2023, the total amount of tax credits 161
[certified under subsection 1 of ] authorized by this section 162
for film production shall not exceed a total [for all tax 163
credits certified] of [four] eight million [five hundred 164
thousand] dollars per year, and the total amount of all tax 165
credits authorized by this section for series production 166
shall not exceed a total of eight million dollars per year . 167
Taxpayers may carry forward unused credits for up to five 168
tax periods, provided all such credits shall be claimed 169
within ten tax periods following the tax period in which the 170
[film] qualified motion media production or production - 171
related activities for which the credits are certified by 172
the department occurred. 173 SCS HCS HBs 133 & 583 7
[5.] 7. Notwithstanding any provision of law to the 174
contrary, any taxpayer may sell, assign, exchange, convey or 175
otherwise transfer tax credit s allowed in subsection [2] 3 176
of this section. The taxpayer acquiring the tax credits may 177
use the acquired credits to offset the tax liabilities 178
otherwise imposed by chapter 143, excluding withholding tax 179
imposed by sections 143.191 to 143.265, or cha pter 148. 180
Unused acquired credits may be carried forward for up to 181
five tax periods, provided all such credits shall be claimed 182
within ten tax periods following the tax period in which the 183
[film] qualified motion media production or production - 184
related activities for which the credits are certified by 185
the department occurred. 186
8. The tax credit authorized by this section shall be 187
considered a business recruitment tax credit, as defined in 188
section 135.800, and shall be subject to the provisions o f 189
sections 135.800 to 135.830. 190
9. The department of economic development may adopt 191
such rules, statements of policy, procedures, forms, and 192
guidelines as may be necessary to implement the provisions 193
of this section. Any rule or portion of a rule , as that 194
term is defined in section 536.010, that is created under 195
the authority delegated in this section shall become 196
effective only if it complies with and is subject to all of 197
the provisions of chapter 536 and, if applicable, section 198
536.028. This section and chapter 536 are nonseverable and 199
if any of the powers vested with the general assembly 200
pursuant to chapter 536 to review, to delay the effective 201
date, or to disapprove and annul a rule are subsequently 202
held unconstitutional, then the gra nt of rulemaking 203
authority and any rule proposed or adopted after August 28, 204
2023, shall be invalid and void. 205 SCS HCS HBs 133 & 583 8
[6.] 10. Under section 23.253 of the Missouri sunset 206
act: 207
(1) The provisions of the [new] program authorized 208
under this section sh all automatically sunset [six years 209
after November 28, 2007 ] on December 31, 2029 , unless 210
reauthorized by an act of the general assembly; and 211
(2) If such program is reauthorized, the program 212
authorized under this section shall automatically sunset on 213
December thirty-first, twelve years after the effective date 214
of the reauthorization of this section; and 215
(3) This section shall terminate on September first of 216
the calendar year immediately following the calendar year in 217
which the program aut horized under this section is sunset ; 218
and 219
(4) The provisions of this subsection shall not be 220
construed to limit or in any way impair the department's 221
ability to redeem tax credits authorized on or before the 222
date the program authorized pursuant t o this section 223
expires, or a taxpayer's ability to redeem such tax credits . 224
11. (1) Notwithstanding the provisions of subsection 225
10 of this section to the contrary, the provisions of this 226
section shall automatically terminate and expire one year 227
after the department of economic development determines that 228
all other state and local governments in the United States 229
of America have terminated or let lapse their tax credit or 230
other governmental incentive program for the film production 231
industry, regardless of whether such credits or programs are 232
now in effect or first commence after the effective date of 233
this section. The department of economic development shall 234
notify the revisor of statutes upon the department's 235
determination that the tax c redit authorized by this section 236
shall terminate pursuant to this subsection. 237 SCS HCS HBs 133 & 583 9
(2) The provisions of this subsection shall not be 238
construed to limit or in any way impair the ability of any 239
taxpayer that has met the requirements in this section prio r 240
to the termination of this section to participate in the 241
program authorized under this section. The provisions of 242
this section shall not be construed to limit or in any way 243
impair the department of revenue's ability to redeem tax 244
credits qualified for on or before the date the program 245
authorized pursuant to this section expires. 246
135.753. 1. This section shall be known and may be 1
cited as the "Entertainment Industry Jobs Act". 2
2. As used in this section, the following ter ms shall 3
mean: 4
(1) "Base investment", the aggregate funds actually 5
invested and expended by a Missouri taxpayer as a rehearsal 6
expense or tour expense pursuant to this section; 7
(2) "Concert", a ticketed live performance of music in 8
the physical presence of at least one thousand individuals 9
who view the performance live. For the purposes of this 10
subdivision, "ticketed" shall mean a concert where 11
individual tickets for attendance are offered for sale to 12
the public; 13
(3) "Concert tour equipment", stage, set, scenery, 14
design elements, automation, rigging, trusses, spotlights, 15
lighting, sound equipment, video equipment, special effects, 16
cases, communication devices, power distribution equipment, 17
backline and other miscellaneous equip ment, or supplies used 18
during a concert or rehearsal; 19
(4) "Department", the Missouri department of economic 20
development; 21
(5) "Expense", any expense, expenditure, cost, charge, 22
or other disbursement or spending of funds; 23 SCS HCS HBs 133 & 583 10
(6) "Facility", a site with one or more studios. 24
Multiple studios at a single location shall not be 25
considered separate facilities. A site may include one or 26
more buildings on the same property or properties within a 27
five-mile radius, provided that the properties' purpose and 28
operations are interrelated and are owned or operated by the 29
same owner or operator, as applicable; 30
(7) "Facility full-time equivalent employee", an 31
employee that is scheduled to work an average of at least 32
thirty-five hours per week and is located at the qualified 33
rehearsal facility, or a combination of two or more 34
employees that combined, work an average of at least thirty - 35
five hours per week and are located at the qualified 36
rehearsal facility. An employee shall be considered to be 37
located at the qualified rehearsal facility if such employee 38
spends fifty percent or more of the employee's work time at 39
the qualified rehearsal facility or at a nearby location 40
serving the qualified rehearsal facility, including a 41
warehouse, located in Missouri and owned by the same owner 42
or operator, as applicable, of the qualified rehearsal 43
facility. An employee that spends less than fifty percent 44
of the employee's work time at the qualified rehearsal 45
facility or nearby location shall be co nsidered to be 46
located at a qualified rehearsal facility if the employee 47
receives his or her directions and control from the 48
qualified rehearsal facility and is on the qualified 49
rehearsal facility's payroll; 50
(8) "Minimum rehearsal and tour requir ements", the 51
occurrence of all of the following during a rehearsal or 52
tour: 53
(a) The purchase or rental of concert tour equipment, 54
related services, or both, in an amount of at least one 55 SCS HCS HBs 133 & 583 11
million dollars from a Missouri vendor for use in the 56
rehearsal, on the tour, or both; 57
(b) A rehearsal at a qualified rehearsal facility for 58
a minimum of ten days; and 59
(c) The holding of at least two concerts in the state 60
of Missouri; 61
(9) "Missouri vendor", an individual or entity located 62
in and maintaining a place of business in this state. Only 63
transactions made through a Missouri location of a Missouri 64
vendor shall constitute a transaction with a Missouri vendor 65
for the purposes of this section; 66
(10) "Nonresident", the same meaning as defined 67
pursuant to section 143.101; 68
(11) "Pass-through entity", any incorporated or 69
unincorporated entity that has or elects pass -through 70
taxation under federal law, including, without limitation, a 71
partnership, S corporation, or unincorpora ted entity with or 72
that elects pass-through taxation; 73
(12) "Qualified rehearsal facility", a facility 74
primarily used for rehearsals located in this state and 75
which meets all of the following criteria: 76
(a) Has a minimum of twelve thousand fiv e hundred 77
square feet of column -free, unobstructed floor space in at 78
least one rehearsal studio in the facility; 79
(b) Has had a minimum of eight million dollars 80
invested in the facility in land or structure, or a 81
combination of land and structure; 82
(c) Has a permanent grid system with a capacity of a 83
minimum of five hundred thousand pounds in at least one 84
rehearsal studio in the facility; 85 SCS HCS HBs 133 & 583 12
(d) Has a height from floor to permanent grid of a 86
minimum of fifty feet in at least one rehearsa l studio in 87
the facility; 88
(e) Has at least one sliding or roll -up access door 89
with a minimum height of fourteen feet in the facility; 90
(f) Has a security system which includes seven -days-a- 91
week security cameras and the use of access control 92
identification badges; 93
(g) Has a service area with production offices, 94
catering, and dressing rooms with a minimum of five thousand 95
square feet; and 96
(h) Is owned or operated by an entity that employs, on 97
average on an annual basis, at least eighty facility full - 98
time equivalent employees; 99
A qualified rehearsal facility shall not include a facility 100
at which concerts are regularly held; 101
(13) "Resident", the same meaning as defined pursuant 102
to section 143.101; 103
(14) "Rehearsal", an event or series of events which 104
occur in preparation for a tour prior to the start of the 105
tour or during a tour when additional preparation may be 106
needed; 107
(15) "Rehearsal expenses", includes all of the 108
following when incurred or when such expense s will be 109
incurred during a rehearsal: 110
(a) Total aggregate payroll; 111
(b) Payment to a personal service corporation 112
representing individual talent; 113
(c) Payment to a pass-through entity representing 114
individual talent; 115 SCS HCS HBs 133 & 583 13
(d) Expenses related to construction, operations, 116
editing, photography, staging, lighting, wardrobe, and 117
accessories; 118
(e) The leasing of vehicles from a Missouri vendor; 119
(f) The transportation of people or concert tour 120
equipment to or from a train station , bus depot, airport, or 121
other transportation location, or from a residence or 122
business entity; 123
(g) Insurance coverage for an entire tour if the 124
insurance coverage is purchased or will be purchased through 125
an insurance agent that is a Missouri ve ndor; 126
(h) Food and lodging from a Missouri vendor; 127
(i) The purchase or rental of concert tour equipment 128
from a Missouri vendor; 129
(j) The rental of a qualified rehearsal facility; and 130
(k) Emergency or medical support services require d to 131
conduct a rehearsal; 132
(16) "Total aggregate payroll", the total sum expended 133
on salaries paid to resident employees, regardless of 134
whether such resident is working within or outside of this 135
state, or nonresident employees working within this state in 136
one or more tours or rehearsals, including, without 137
limitation, payments to a loan -out company. For the 138
purposes of this subdivision: 139
(a) With respect to a single employee, the portion of 140
any salary which exceeds two million dollars in the 141
aggregate for a single tour shall not be included when 142
calculating total aggregate payroll; 143
(b) All payments to a single employee and any legal 144
entity in which the employee has any direct or indirect 145
ownership interest shall be considered as having been paid 146 SCS HCS HBs 133 & 583 14
to the employee and shall be aggregated regardless of the 147
means of payment or distribution; and 148
(c) Total aggregate payroll shall include payments to 149
a loan-out company that has met its withholding tax 150
obligations as provided in this paragraph. The taxpayer 151
claiming the credit authorized pursuant to this section 152
shall withhold Missouri income tax at the rate imposed 153
pursuant to section 143.071 on all payments to loan -out 154
companies for services performed in Missouri. Any amounts 155
so withheld shall be deemed to have been withheld by the 156
loan-out company on wages paid to its employees for services 157
performed in Missouri, notwithstanding any exclusions under 158
Missouri law for short -term employment of nonresident 159
workers, out-of-state businesses, or otherwise. The amounts 160
so withheld shall be allocated to the loan -out company's 161
employees based on the payments made to the loan -out 162
company's employees for services performed in Missouri. For 163
the purposes of this section, loan -out company nonresident 164
employees performing services in Missouri shall be 165
considered taxable nonresidents and the loan -out company 166
shall be subject to income taxation in the taxable year in 167
which the loan-out company's employees perform services in 168
Missouri, notwithstanding any other provisions of chapter 169
143. Such withholding liability shall be subject to 170
penalties and interest in the same manner as the employee 171
withholding taxes imposed under chapter 143, and the 172
department of revenue shall pro vide by regulation the manner 173
in which such liability shall be assessed and collected; 174
(17) "Tour", a series of concerts or other 175
performances performed or to be performed by a musical or 176
other live performer, including at least one rehearsal, in 177
one or more locations over multiple days; 178 SCS HCS HBs 133 & 583 15
(18) "Tour expenses", expenses incurred or which will 179
be incurred during a tour including venues located in this 180
state, including: 181
(a) Total aggregate payroll; 182
(b) The transportation of people or concert tour 183
equipment to or from a train station, bus depot, airport, or 184
other transportation location, or from a residence or 185
business entity located in this state, or which is purchased 186
or will be purchased from a Missouri vendor; 187
(c) The leasing of vehicles provided by a Missouri 188
vendor; 189
(d) The purchasing or rental of facilities and 190
equipment from or through a Missouri vendor; 191
(e) Food and lodging which is incurred or will be 192
incurred from a Missouri vendor; 193
(f) Marketing or advertising a tour at venues located 194
within this state; 195
(g) Merchandise which is purchased or will be 196
purchased from a Missouri vendor and used on the tour; 197
(h) Payments made or that will be made to a personal 198
service corporation repr esenting individual talent if income 199
tax will be paid or accrued on the net income of the 200
corporation for the taxable year pursuant to chapter 143; and 201
(i) Payments made or that will be made to a pass - 202
through entity representing individual talent for which 203
withholding tax will be withheld by the pass -through entity 204
on the payment as required pursuant to chapter 143; 205
"Tour expenses" shall not include development expenses, 206
including the writing of music or lyrics, or any expenses 207
claimed by a taxpayer as rehearsal expenses. 208 SCS HCS HBs 133 & 583 16
3. (1) For all tax years beginning on or after 209
January 1, 2024, a taxpayer shall be allowed a tax credit 210
for rehearsal expenses and tour expenses incurred by the 211
taxpayer. The amount of the tax credit shall be equal to 212
thirty percent of the taxpayer's base investment, subject to 213
the limitations provided in subsection 6 of this section. 214
No tax credit shall be authorized for rehearsal expenses or 215
tour expenses related to a rehearsal or tour that does not 216
meet the minimum rehearsal and tour requirements. 217
(2) Tax credits issued pursuant to this section shall 218
not be refundable. Any amount of tax credit that exceeds 219
the tax liability for a taxpayer's tax year may be carried 220
forward to any of the taxpayer's fi ve subsequent taxable 221
years. 222
4. (1) Tax credits authorized pursuant to this 223
section may be transferred or sold in whole or in part by 224
the taxpayer that claimed the tax credit, provided that the 225
tax credit is transferred or sold to another Missou ri 226
taxpayer. 227
(2) A transferor may make one or more transfers or 228
sales of tax credits claimed in a taxable year, and such 229
transfers or sales may involve one or more transferees. 230
(3) A transferor shall submit to the department and to 231
the department of revenue a written notification of any 232
transfer or sale of tax credits within thirty days after the 233
transfer or sale of such tax credits. Such notification 234
shall include the amount of the transferor's unredeemed tax 235
credits prior to transfer, the tax credit identifying 236
certificate number or other relevant identifying 237
information, the remaining amount of unredeemed tax credits 238
after transfer, all tax identification numbers for each 239
transferee, the date of transfer, the amount transferred, 240 SCS HCS HBs 133 & 583 17
and any other information required by the department or the 241
department of revenue. 242
(4) The transfer or sale of a tax credit authorized 243
pursuant to this section shall not extend the time in which 244
such tax credit may be redeemed. The carry-forward period 245
for a tax credit that is transferred or sold shall begin on 246
the date on which the tax credit was originally issued. 247
(5) A transferee shall have only such rights to claim 248
and redeem the tax credit that was available to such 249
transferor at the time of the transfer, except for the 250
transfer use of the tax credit authorized in subdivision (1) 251
of this subsection. To the extent that such transferor did 252
not have rights to claim or redeem the tax credit at the 253
time of the transfer, the departmen t of revenue shall either 254
disallow the tax credit claimed by the transferee or 255
recapture the tax credit from the transferee. The 256
transferee's recourse shall be against such transferor. 257
(6) Tax credits shall not be transferred or sold for 258
less than sixty percent of the value of such tax credits. 259
(7) A taxpayer failing to comply with the provisions 260
of this subsection shall not be able to redeem a tax credit 261
until such taxpayer is in full compliance. 262
5. The tax credits authorized pursu ant to this section 263
shall be subject to the following conditions and limitations: 264
(1) The tax credit may be taken beginning with the 265
taxable year in which the taxpayer earning the tax credit 266
has met the requirements provided pursuant to this secti on. 267
For each year in which such taxpayer either claims or 268
transfers the tax credit, the taxpayer shall attach a 269
schedule to the taxpayer's Missouri income tax return which 270
shall include the following information: 271 SCS HCS HBs 133 & 583 18
(a) A description of the qualify ing activities and 272
expenses; 273
(b) A detailed listing of the employee names, Social 274
Security numbers, and Missouri wages when salaries are 275
included in the base investment; 276
(c) The amount of the tax credit claimed pursuant to 277
this section for the tax year; 278
(d) Any tax credit previously taken by the taxpayer 279
against Missouri income tax liabilities; 280
(e) The amount of the tax credit carried over from 281
prior years; 282
(f) The amount of the tax credit utilized by the 283
taxpayer claiming the tax credit in the current taxable 284
year; and 285
(g) The amount of the tax credit to be carried over to 286
subsequent tax years; 287
(2) In the initial tax year in which the taxpayer 288
claims the credit authorized pursuant to this section, the 289
taxpayer shall include a description of the qualifying 290
activities and expenses that demonstrates that the minimum 291
rehearsal and tour requirements are met; and 292
(3) Any taxpayer claiming, transferring, or selling a 293
tax credit pursuant to this section s hall be required to 294
reimburse the department of revenue for any department - 295
initiated audits relating to the tax credit. The provisions 296
of this subdivision shall not apply to routine tax audits of 297
a taxpayer which may include the review of the tax cred it 298
authorized pursuant to this section. 299
6. (1) The aggregate amount of tax credits that may 300
be authorized in a given fiscal year pursuant to this 301
section shall not exceed eight million dollars. If the 302
amount of tax credits applied for by taxpay ers exceeds such 303 SCS HCS HBs 133 & 583 19
amount, the department may, at its discretion, authorize 304
additional tax credits in an amount not to exceed two 305
million dollars in such fiscal year, provided that the 306
maximum amount of tax credits that may be authorized during 307
the subsequent fiscal year shall be reduced by the amount of 308
additional tax credits that the department authorizes. 309
(2) Notwithstanding the provisions of subdivision (1) 310
of subsection 3 of this section to the contrary, the amount 311
of tax credits claimed by a taxpayer pursuant to this 312
section during a fiscal year shall not exceed the following 313
amounts: 314
(a) If a taxpayer's base investment is less than four 315
million dollars, the taxpayer shall not be awarded more than 316
one million dollars in tax credit s in a fiscal year; 317
(b) If a taxpayer's base investment is at least four 318
million dollars but less than eight million dollars, the 319
taxpayer shall not be awarded more than two million dollars 320
in tax credits in a fiscal year; and 321
(c) If a taxpayer's base investment is at least eight 322
million dollars, the taxpayer shall not be awarded more than 323
three million dollars in tax credits in a fiscal year. 324
7. The department shall promulgate such rules and 325
regulations as are necessary to implement and administer the 326
provisions of this section. Any rule or portion of a rule, 327
as that term is defined in section 536.010, that is created 328
under the authority delegated in this section shall become 329
effective only if it complies with and is subject to all of 330
the provisions of chapter 536 and, if applicable, section 331
536.028. This section and chapter 536 are nonseverable and 332
if any of the powers vested with the general assembly 333
pursuant to chapter 536 to review, to delay the effective 334
date, or to disapprove and annul a rule are subsequently 335 SCS HCS HBs 133 & 583 20
held unconstitutional, then the grant of rulemaking 336
authority and any rule proposed or adopted after August 28, 337
2023, shall be invalid and void. 338
8. Pursuant to section 23.253 of the Missouri sunset 339
act: 340
(1) The program authorized pursuant to this section 341
shall automatically sunset on December 31, 2030, unless 342
reauthorized by an act of the general assembly; 343
(2) If such program is reauthorized, the program 344
authorized pursuant to this section shall automatically 345
sunset on December thirty -first, twelve years after the 346
effective date of the reauthorization; 347
(3) This section shall terminate on September first of 348
the calendar year immediately following the calendar year in 349
which the program authorized pursuant to this section is 350
sunset; and 351
(4) The provisions of this subsection shall not be 352
construed to limit or in any way impair the department's 353
ability to redeem tax credits authorized on or before the 354
date the program authorize d pursuant to this section expires 355
or a taxpayer's ability to redeem such tax credits. 356
9. (1) Notwithstanding the provisions of subsection 8 357
of this section, the provisions of this section shall 358
automatically terminate and expire ninety days afte r the 359
department determines that all other state and local 360
governments in the United States of America have terminated 361
or let lapse their tax credit or other governmental 362
incentive program for the music or performance entertainment 363
industries, regardless of whether such credits or programs 364
are now in effect or first commence after the effective date 365
of this section. The department shall notify the revisor of 366
statutes upon the department's determination that the tax 367 SCS HCS HBs 133 & 583 21
credit authorized by this sectio n shall terminate pursuant 368
to this subsection. 369
(2) The provisions of this subsection shall not be 370
construed to limit or in any way impair the ability of any 371
taxpayer that has met the requirements in this section prior 372
to the termination of this s ection to participate in the 373
program authorized under this section. The provisions of 374
this section shall not be construed to limit or in any way 375
impair the department's ability to redeem tax credits 376
qualified for on or before the date the program auth orized 377
pursuant to this section expires. 378
Section B. The enactment of section 135.753 of this 1
act shall become effective January 1, 2024. 2