FIRST REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 668
102ND GENERAL ASSEMBLY
0934S.03C KRISTINA MARTIN, Secretary
AN ACT
To amend chapters 135 and 620, RSMo, by adding thereto five new sections relating to financial
incentives for employers.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapters 135 and 620, RSMo, are amended by 1
adding thereto five new sections, to be known as sections 2
135.1310, 135.1325, 135.1350, 620.2500, and 620.2550, to read 3
as follows:4
135.1310. 1. This section shall be known and may be 1
cited as the "Child Care Contribution Tax Credit Act". 2
2. For purposes of this section, the following terms 3
shall mean: 4
(1) "Child care", the same as defined in section 5
210.201; 6
(2) "Child care desert", a census tract that h as a 7
poverty rate of at least twenty percent or a median family 8
income of less than eighty percent of the statewide average 9
and where at least five hundred people or thirty -three 10
percent of the population are located at least one -half mile 11
away from a child care provider in urbanized areas or at 12
least ten miles away in rural areas; 13
(3) "Child care provider", a child care provider as 14
defined in section 210.201 that is licensed pursuant to 15 SCS HCS HB 668 2
section 210.221, or that is unlicensed and that is 16
registered with the department of elementary and secondary 17
education; 18
(4) "Contribution", an eligible donation of cash, 19
stock, bonds or other marketable securities, or real 20
property; 21
(5) "Department", the Missouri department of economic 22
development; 23
(6) "Person related to the taxpayer", an individual 24
connected with the taxpayer by blood, adoption, or marriage, 25
or an individual, corporation, partnership, limited 26
liability company, trust, or association controlled by, or 27
under the control of, the taxpayer directly, or through an 28
individual, corporation, limited liability company, 29
partnership, trust, or association under the control of the 30
taxpayer; 31
(7) "Rural area", a town or community within the state 32
that is not within a metro politan statistical area and has a 33
population of six thousand or fewer inhabitants as 34
determined by the last preceding federal decennial census or 35
any unincorporated area not within a metropolitan 36
statistical area; 37
(8) "State tax liability", in t he case of a business 38
taxpayer, any liability incurred by such taxpayer pursuant 39
to chapter 143 and chapter 148, exclusive of the provisions 40
relating to the withholding of tax as provided for in 41
sections 143.191 to 143.265 and related provisions, and i n 42
the case of an individual taxpayer, any liability incurred 43
by such taxpayer pursuant to chapter 143; 44
(9) "Tax credit", a credit against the taxpayer's 45
state tax liability; 46 SCS HCS HB 668 3
(10) "Taxpayer", a corporation as defined in section 47
143.441 or 143.471, any charitable organization that is 48
exempt from federal income tax and whose Missouri unrelated 49
business taxable income, if any, would be subject to the 50
state income tax imposed under chapter 143, or individuals 51
or partnerships subject to the st ate income tax imposed by 52
the provisions of chapter 143. 53
3. For all tax years beginning on or after January 1, 54
2023, a taxpayer may claim the tax credit authorized in this 55
section against the taxpayer's state tax liability for the 56
tax year in which a verified contribution was made in an 57
amount equal to up to seventy -five percent of the verified 58
contribution to a child care provider. The minimum amount 59
of any tax credit issued shall not be less than one hundred 60
dollars and shall not exceed two hundred thousand dollars 61
per tax year. 62
(1) The child care provider receiving a contribution 63
shall, within sixty days of the date it received the 64
contribution, issue the taxpayer a contribution verification 65
and file a copy of the contribution ver ification with the 66
department. The contribution verification shall be in the 67
form established by the department and shall include the 68
taxpayer's name, taxpayer's state or federal tax 69
identification number or last four digits of the taxpayer's 70
Social Security number, amount of tax credit, amount of 71
contribution, legal name and address of the child care 72
provider receiving the tax credit, the child care provider's 73
federal employer identification number, the child care 74
provider's departmental vendor n umber or license number, and 75
the date the child care provider received the contribution 76
from the taxpayer. The contribution verification shall 77 SCS HCS HB 668 4
include a signed attestation stating the child care provider 78
will use the contribution solely to promote chi ld care. 79
(2) The failure of the child care provider to timely 80
issue the contribution verification to the taxpayer or file 81
it with the department shall entitle the taxpayer to a 82
refund of the contribution from the child care provider. 83
4. A donation is eligible when: 84
(1) The donation is used directly by a child care 85
provider to promote child care for children twelve years of 86
age or younger, including by acquiring or improving child 87
care facilities, equipment, or services, or improving staff 88
salaries, staff training, or the quality of child care; 89
(2) The donation is made to a child care provider in 90
which the taxpayer or a person related to the taxpayer does 91
not have a direct financial interest; and 92
(3) The donation is not made in exchange for care of a 93
child or children in the case of an individual taxpayer that 94
is not an employer making a contribution on behalf of its 95
employees. 96
5. A child care provider that uses the contribution 97
for an ineligible purpose shall r epay to the department the 98
value of the tax credit for the contribution amount used for 99
an ineligible purpose. 100
6. The tax credits authorized by this section shall 101
not be refundable and shall not be transferred, sold, or 102
otherwise conveyed. Any amount of approved tax credits that 103
a taxpayer is prohibited by this subsection from using for 104
the tax year in which the credit is first claimed may be 105
carried back to the taxpayer's immediately prior tax year 106
and carried forward to the taxpayer's subse quent tax year 107
for up to five succeeding tax years. 108 SCS HCS HB 668 5
7. Notwithstanding any provision of subsection 6 of 109
this section to the contrary, a taxpayer that is exempt, 110
under 26 U.S.C. Section 501(c)(3), and any amendments 111
thereto, from all or part of th e federal income tax shall be 112
eligible for a refund of its tax credit issued under this 113
section, without regard to whether it has incurred any state 114
tax liability. Such exempt taxpayer may claim a refund of 115
the tax credit on its tax return required to be filed under 116
the provisions of chapter 143, exclusive of the return for 117
the withholding of tax under sections 143.191 to 143.265. 118
If such exempt taxpayer is not required to file a tax return 119
under the provisions of chapter 143, the exempt taxpayer may 120
claim a refund of the tax credit on a refund claim form 121
prescribed by the department of revenue. The department of 122
revenue shall prescribe such forms, instructions, and rules 123
as it deems appropriate to carry out the provisions of this 124
subsection. 125
8. (1) The cumulative amount of tax credits 126
authorized pursuant to this section shall not exceed twenty 127
million dollars for each calendar year. The department 128
shall approve tax credit applications on a first -come, first- 129
served basis until the cumulative tax credit authorization 130
limit is reached for the calendar year. A taxpayer shall 131
apply to the department for the child care contribution tax 132
credit by submitting a copy of the contribution verification 133
provided by a child care provider to such taxpayer. Upon 134
receipt of the contribution verification, the department 135
shall issue a tax credit certificate to the applicant. 136
(2) If the maximum amount of tax credits allowed in 137
any calendar year as provided pursuant to subdivision (1) of 138
this subsection is authorized, the maximum amount of tax 139
credits allowed pursuant to subdivision (1) of this 140 SCS HCS HB 668 6
subsection shall be increased by fifteen percent, provided 141
that all such increases in the allowable amount of tax 142
credits shall be reserved for contributions made to child 143
care providers located in a child care desert. The director 144
of the department shall publish such adjusted amount. 145
9. The tax credits allowed under this section shall be 146
considered a domestic and social tax credit unde r 147
subdivision (5) of subsection 2 of section 135.800. 148
10. All action and communication undertaken or 149
required under this section shall be exempt from section 150
105.1500. 151
11. The department may promulgate rules to implement 152
and administer the provisions of this section. Any rule or 153
portion of a rule, as that term is defined in section 154
536.010, that is created pursuant to the authority delegated 155
in this section shall become effective only if it complies 156
with and is subject to all of the pro visions of chapter 536 157
and, if applicable, section 536.028. This section and 158
chapter 536 are nonseverable and if any of the powers vested 159
with the general assembly pursuant to chapter 536 to review, 160
to delay the effective date, or to disapprove and an nul a 161
rule are subsequently held unconstitutional, then the grant 162
of rulemaking authority and any rule proposed or adopted 163
after August 28, 2023, shall be invalid and void. 164
12. Pursuant to section 23.253 of the Missouri sunset 165
act: 166
(1) The program authorized under this section shall 167
expire on December 31, 2029, unless reauthorized by the 168
general assembly; 169
(2) The act shall terminate on September first of the 170
calendar year immediately following the calendar year in 171
which the program authorized under this section is sunset; 172 SCS HCS HB 668 7
(3) If such program is reauthorized, the program 173
authorized under this act shall automatically sunset six 174
years after the effective date of the reauthorization of 175
this section; and 176
(4) The provisions of this subsection shall not be 177
construed to limit or in any way impair the department of 178
revenue's ability to redeem tax credits authorized on or 179
before the date the program authorized pursuant to this 180
section expires or a taxpayer's ability to redee m such tax 181
credits. 182
135.1325. 1. This section shall be known and may be 1
cited as the "Employer Provided Child Care Assistance Tax 2
Credit Act". 3
2. For purposes of this section, the following terms 4
shall mean: 5
(1) "Child care desert", a census tract that has a 6
poverty rate of at least twenty percent or a median family 7
income of less than eighty percent of the statewide average 8
and where at least five hundred people or thirty -three 9
percent of the population are located at least one-half mile 10
away from a child care provider in urbanized areas or at 11
least ten miles away in rural areas; 12
(2) "Child care facility", a child care facility as 13
defined in section 210.201 that is licensed pursuant to 14
section 210.221, or t hat is unlicensed and that is 15
registered with the department of elementary and secondary 16
education; 17
(3) "Department", the Missouri department of economic 18
development; 19
(4) "Employer matching contribution", a contribution 20
made by the taxpayer to a cafeteria plan, as that term is 21
used in 26 U.S.C. Section 125, of an employee of the 22 SCS HCS HB 668 8
taxpayer, which matches a dollar amount or percentage of the 23
employee's contribution to the cafeteria plan. "Employer 24
matching contribution" shall not include t he amount of any 25
salary reduction or other compensation foregone by the 26
employee in connection with the cafeteria plan; 27
(5) "Qualified child care expenditure", an amount paid 28
of reasonable costs incurred that meet any of the following: 29
(a) To acquire, construct, rehabilitate, or expand 30
property that will be, or is, used as part of a child care 31
facility that is either operated by the taxpayer or 32
contracted with by the taxpayer and which does not 33
constitute part of the principal residence o f the taxpayer 34
or any employee of the taxpayer; 35
(b) For the operating costs of a child care facility 36
of the taxpayer, including costs relating to the training of 37
employees, scholarship programs, and for compensation to 38
employees; 39
(c) Under a contract with a child care facility to 40
provide child care services to employees of the taxpayer; or 41
(d) As an employer matching contribution, but only to 42
the extent such employer matching contribution is restricted 43
by the taxpayer solely for the taxpayer's employee to obtain 44
child care services at a child care facility and is used for 45
that purpose during the tax year; 46
(6) "Rural area", a town or community within the state 47
that is not within a metropolitan statistical area and has a 48
population of six thousand or fewer inhabitants as 49
determined by the last preceding federal decennial census or 50
any unincorporated area not within a metropolitan 51
statistical area; 52
(7) "State tax liability", in the case of a business 53
taxpayer, any liability incurred by such taxpayer pursuant 54 SCS HCS HB 668 9
to the provisions of chapter 143 and chapter 148, exclusive 55
of the provisions relating to the withholding of tax as 56
provided for in sections 143.191 to 143.265 and related 57
provisions, and in the case of an indi vidual taxpayer, any 58
liability incurred by such taxpayer pursuant to the 59
provisions of chapter 143; 60
(8) "Tax credit", a credit against the taxpayer's 61
state tax liability; 62
(9) "Taxpayer", a corporation as defined in section 63
143.441 or 143.471, any charitable organization that is 64
exempt from federal income tax and whose Missouri unrelated 65
business taxable income, if any, would be subject to the 66
state income tax imposed under chapter 143, or individuals 67
or partnerships subject to the state income tax imposed by 68
the provisions of chapter 143. 69
3. For all tax years beginning on or after January 1, 70
2023, a taxpayer may claim a tax credit authorized in this 71
section in an amount equal to thirty percent of the 72
qualified child care expendi tures paid or incurred with 73
respect to a child care facility. The maximum amount of any 74
tax credit issued under this section shall not exceed two 75
hundred thousand dollars per taxpayer per tax year. 76
4. A facility shall not be treated as a child ca re 77
facility with respect to a taxpayer unless the following 78
conditions have been met: 79
(1) Enrollment in the facility is open to employees of 80
the taxpayer during the tax year; and 81
(2) If the facility is the principal business of the 82
taxpayer, at least thirty percent of the enrollees of such 83
facility are dependents of employees of the taxpayer. 84
5. The tax credits authorized by this section shall 85
not be refundable or transferable. The tax credits shall 86 SCS HCS HB 668 10
not be sold, assigned, or otherw ise conveyed. Any amount of 87
approved tax credits that a taxpayer is prohibited by this 88
subsection from using for the tax year in which the credit 89
is first claimed may be carried back to the taxpayer's 90
immediately prior tax year and carried forward to the 91
taxpayer's subsequent tax year for up to five succeeding tax 92
years. 93
6. Notwithstanding any provision of subsection 5 of 94
this section to the contrary, a taxpayer that is exempt, 95
under 26 U.S.C. Section 501(c)(3), and any amendments 96
thereto, from all or part of the federal income tax shall be 97
eligible for a refund of its tax credit issued under this 98
section, without regard to whether it has incurred any state 99
tax liability. Such exempt taxpayer may claim a refund of 100
the tax credit on its t ax return required to be filed under 101
the provisions of chapter 143, exclusive of the return for 102
the withholding of tax under sections 143.191 to 143.265. 103
If such exempt taxpayer is not required to file a tax return 104
under the provisions of chapter 143, the exempt taxpayer may 105
claim a refund of the tax credit on a refund claim form 106
prescribed by the department of revenue. The department of 107
revenue shall prescribe such forms, instructions, and rules 108
as it deems appropriate to carry out the provisions of this 109
subsection. 110
7. (1) The cumulative amount of tax credits 111
authorized pursuant to this section shall not exceed twenty 112
million dollars for each calendar year. The department 113
shall approve tax credit applications on a first -come, first- 114
served basis until the cumulative tax credit authorization 115
limit is reached for the calendar year. 116
(2) If the maximum amount of tax credits allowed in 117
any calendar year as provided pursuant to subdivision (1) of 118 SCS HCS HB 668 11
this subsection is authorized, the ma ximum amount of tax 119
credits allowed pursuant to subdivision (1) of this 120
subsection shall be increased by fifteen percent, provided 121
that all such increases in the allowable amount of tax 122
credits shall be reserved for qualified child care 123
expenditures for child care facilities located in a child 124
care desert. The director of the department shall publish 125
such adjusted amount. 126
8. A taxpayer who has claimed a tax credit under this 127
section shall notify the department within sixty days of any 128
cessation of operation, change in ownership, or agreement to 129
assume recapture liability as such terms are defined by 26 130
U.S.C. Section 45F, in the form and manner prescribed by 131
department rule or instruction. If there is a cessation of 132
operation or change i n ownership relating to a child care 133
facility, the taxpayer shall repay the department the 134
applicable recapture percentage of the credit allowed under 135
this section, but this recapture amount shall be limited to 136
the tax credit allowed under this section . The recapture 137
amount shall be considered a tax liability arising on the 138
tax payment due date for the tax year in which the cessation 139
of operation, change in ownership, or agreement to assume 140
recapture liability occurred and shall be assessed and 141
collected under the same provisions that apply to a tax 142
liability under chapter 143 or chapter 148. 143
9. The tax credit allowed pursuant to this section 144
shall be considered a domestic and social tax credit under 145
subdivision (5) of subsection 2 of sect ion 135.800. 146
10. All action and communication undertaken or 147
required under this section shall be exempt from section 148
105.1500. 149 SCS HCS HB 668 12
11. The department may promulgate rules to implement 150
and administer the provisions of this section. Any rule or 151
portion of a rule, as that term is defined in section 152
536.010, that is created pursuant to the authority delegated 153
in this section shall become effective only if it complies 154
with and is subject to all of the provisions of chapter 536 155
and, if applicable, section 536.028. This section and 156
chapter 536 are nonseverable and if any of the powers vested 157
with the general assembly pursuant to chapter 536 to review, 158
to delay the effective date, or to disapprove and annul a 159
rule are subsequently held unconsti tutional, then the grant 160
of rulemaking authority and any rule proposed or adopted 161
after August 28, 2023, shall be invalid and void. 162
12. Pursuant to section 23.253 of the Missouri sunset 163
act: 164
(1) The program authorized under this act shall ex pire 165
on December 31, 2029, unless reauthorized by the general 166
assembly; 167
(2) The act shall terminate on September first of the 168
calendar year immediately following the calendar year in 169
which the program authorized under the act is sunset; 170
(3) If such program is reauthorized, the program 171
authorized under this act shall automatically sunset six 172
years after the effective date of the reauthorization of the 173
act; and 174
(4) The provisions of this subsection shall not be 175
construed to limit or in any way impair the department of 176
revenue's ability to redeem tax credits authorized on or 177
before the date the program authorized pursuant to this 178
section expires or a taxpayer's ability to redeem such tax 179
credits. 180 SCS HCS HB 668 13
135.1350. 1. This section shall be known and may be 1
cited as the "Child Care Providers Tax Credit Act". 2
2. For purposes of this section, the following terms 3
shall mean: 4
(1) "Capital expenditures", expenses incurred by a 5
child care provider, during the tax year for which a tax 6
credit is claimed pursuant to this section, for the 7
construction, renovation, or rehabilitation of a child care 8
facility to the extent necessary to operate a child care 9
facility and comply with applicable child care facility 10
regulations promulgated by the department of elementary and 11
secondary education; 12
(2) "Child care desert", a census tract that has a 13
poverty rate of at least twenty percent or a median family 14
income of less than eighty percent of the statewide average 15
and where at least five hundred people or thirty -three 16
percent of the population are located at least one -half mile 17
away from a child care provider in urbanized areas or at 18
least ten miles away in rural areas; 19
(3) "Child care facility", the same as defined in 20
section 210.201; 21
(4) "Child care provider", a child care provider as 22
defined in section 210.201 that is licensed pursuant to 23
section 210.221, or that is unlicensed and that is 24
registered with the department of elementary and seconda ry 25
education; 26
(5) "Department", the department of elementary and 27
secondary education; 28
(6) "Employee", an employee, as that term is used in 29
subsection 2 of section 143.191, of a child care provider 30
who worked for the child care provider for an average of at 31
least ten hours per week for at least a three -month period 32 SCS HCS HB 668 14
during the tax year for which a tax credit is claimed 33
pursuant to this section and who is not an immediate family 34
member of the child care provider; 35
(7) "Eligible employer withholding tax", the total 36
amount of tax that the child care provider was required, 37
under section 143.191, to deduct and withhold from the wages 38
it paid to employees during the tax year for which the child 39
care provider is claiming a tax credit purs uant to this 40
section, to the extent actually paid; 41
(8) "Rural area", a town or community within the state 42
that is not within a metropolitan statistical area and has a 43
population of six thousand or fewer inhabitants as 44
determined by the last prece ding federal decennial census or 45
any unincorporated area not within a metropolitan 46
statistical area; 47
(9) "State tax liability", any liability incurred by 48
the taxpayer pursuant to the provisions of chapter 143, 49
exclusive of the provisions relating to the withholding of 50
tax as provided for in sections 143.191 to 143.265 and 51
related provisions; 52
(10) "Tax credit", a credit against the taxpayer's 53
state tax liability; 54
(11) "Taxpayer", a corporation as defined in section 55
143.441 or 143.471, any charitable organization that is 56
exempt from federal income tax and whose Missouri unrelated 57
business taxable income, if any, would be subject to the 58
state income tax imposed under chapter 143, or an individual 59
or partnership subject to the state income tax imposed by 60
the provisions of chapter 143. 61
3. For all tax years beginning on or after January 1, 62
2024, a child care provider with three or more employees may 63
claim a tax credit authorized in this section in an amount 64 SCS HCS HB 668 15
equal to the child care provider's eligible employer 65
withholding tax, and may also claim a tax credit in an 66
amount up to thirty percent of the child care provider's 67
capital expenditures. No tax credit for capital 68
expenditures shall be allowed if the capital expenditure s 69
are less than one thousand dollars. The amount of any tax 70
credit issued under this section shall not exceed two 71
hundred thousand dollars per child care provider per tax 72
year. 73
4. To claim a tax credit authorized pursuant to this 74
section, a child care provider shall submit to the 75
department, for preliminary approval, an application for the 76
tax credit on a form provided by the department and at such 77
times as the department may require. If the child care 78
provider is applying for a tax credit for capital 79
expenditures, the child care provider shall present proof 80
acceptable to the department that the child care provider's 81
capital expenditures satisfy the requirements of subdivision 82
(1) of subsection 2 of this section. Upon final approval of 83
an application, the department shall issue the child care 84
provider a certificate of tax credit. 85
5. The tax credits authorized by this section shall 86
not be refundable and shall not be transferred, sold, 87
assigned, or otherwise conveyed. Any amount of credit that 88
exceeds the child care provider's state tax liability for 89
the tax year for which the tax credit is issued may be 90
carried back to the child care provider's immediately prior 91
tax year or carried forward to the child care provider's 92
subsequent tax year for up to five succeeding tax years. 93
6. Notwithstanding any provision of subsection 5 of 94
this section to the contrary, a child care provider that is 95
exempt, under 26 U.S.C. Section 501(c)(3), and any 96 SCS HCS HB 668 16
amendments thereto, from all or part of the federal income 97
tax shall be eligible for a refund of its tax credit issued 98
under this section, without regard to whether it has 99
incurred any state tax liability. Such exempt child care 100
provider may claim a refund of the tax credit on its t ax 101
return required to be filed under the provisions of chapter 102
143, exclusive of the return for the withholding of tax 103
under sections 143.191 to 143.265. If such exempt child 104
care provider is not required to file a tax return under the 105
provisions of chapter 143, the exempt child care provider 106
may claim a refund of the tax credit on a refund claim form 107
prescribed by the department of revenue. The department of 108
revenue shall prescribe such forms, instructions, and rules 109
as it deems appropriate to c arry out the provisions of this 110
subsection. 111
7. (1) The cumulative amount of tax credits 112
authorized pursuant to this section shall not exceed twenty 113
million dollars for each calendar year. The department 114
shall approve tax credit applications on a first-come, first- 115
served basis until the cumulative tax credit authorization 116
limit is reached for the calendar year. 117
(2) If the maximum amount of tax credits allowed in 118
any calendar year as provided pursuant to subdivision (1) of 119
this subsection is authorized, the maximum amount of tax 120
credits allowed pursuant to subdivision (1) of this 121
subsection shall be increased by fifteen percent, provided 122
that all such increases in the allowable amount of tax 123
credits shall be reserved for child care pr oviders located 124
in a child care desert. The director of the department 125
shall publish such adjusted amount. 126 SCS HCS HB 668 17
8. The tax credit authorized by this section shall be 127
considered a domestic and social tax credit under 128
subdivision (5) of subsection 2 of section 135.800. 129
9. All action and communication undertaken or required 130
with respect to this section shall be exempt from section 131
105.1500. Notwithstanding section 32.057 or any other tax 132
confidentiality law to the contrary, the department of 133
revenue may disclose tax information to the department for 134
the purpose of the verification of a child care provider's 135
eligible employer withholding tax under this section. 136
10. The department may promulgate rules and adopt 137
statements of policy, proc edures, forms and guidelines to 138
implement and administer the provisions of this section. 139
Any rule or portion of a rule, as that term is defined in 140
section 536.010, that is created pursuant to the authority 141
delegated in this section shall become effect ive only if it 142
complies with and is subject to all of the provisions of 143
chapter 536 and, if applicable, section 536.028. This 144
section and chapter 536 are nonseverable and if any of the 145
powers vested with the general assembly pursuant to chapter 146
536 to review, to delay the effective date, or to disapprove 147
and annul a rule are subsequently held unconstitutional, 148
then the grant of rulemaking authority and any rule proposed 149
or adopted after August 28, 2023, shall be invalid and void. 150
11. Pursuant to section 23.253 of the Missouri sunset 151
act: 152
(1) The program authorized under this section shall 153
expire on December 31, 2029, unless reauthorized by the 154
general assembly; 155
(2) The act shall terminate on September first of the 156
calendar year immediately following the calendar year in 157
which the program authorized under this section is sunset; 158 SCS HCS HB 668 18
(3) If such program is reauthorized, the program 159
authorized under this section shall automatically sunset six 160
years after the effective date of the reauthorization of 161
this section; and 162
(4) The provisions of this subsection shall not be 163
construed to limit or in any way impair the department of 164
revenue's ability to redeem tax credits authorized on or 165
before the date the program authorized pursuant to this 166
section expires or a taxpayer's ability to redeem such tax 167
credits. 168
620.2500. 1. For purposes of this section, the 1
following terms mean: 2
(1) "Employee", any person employed by a qualifying 3
employer or any person who is a prospective employee of a 4
qualifying employer, provided such person is not an 5
independent contractor; 6
(2) "Health care-focused credential", a credential 7
that demonstrates the competencies necessary to succeed in 8
an occupation related to the delivery of health care 9
services; 10
(3) "Public body", the state of Missouri, any 11
department, division, commission, board, or political 12
subdivision thereof including, but not limited to, 13
institutions of postsecondary education that offer re quired 14
courses and training necessary for an employee to obtain 15
upskill credentials. The term "public body" shall be 16
construed to exclude any: 17
(a) Facility that meets the definition of hospital in 18
section 197.020; 19
(b) Long-term care facility licensed under chapter 20
198; or 21 SCS HCS HB 668 19
(c) Public hospital established and maintained under 22
chapter 205; 23
(4) "Qualifying employer", any employer registered to 24
do business in the state of Missouri, provided the employer 25
is not a public body; 26
(5) "Technology-focused credential", a credential that 27
demonstrates the competencies necessary to succeed in an 28
occupation that utilizes technology to develop, build, and 29
deliver products and services; 30
(6) "Training provider", any entity that pr ovides 31
training in upskill credentials; 32
(7) "Upskill credential", includes, but is not limited 33
to: 34
(a) Health care-focused credentials; 35
(b) Technology-focused credentials; and 36
(c) Any other credential indicated by a qualifying 37
employer as necessary for improving the skills of its 38
current and prospective employees. 39
2. The department of economic development may 40
distribute to any qualifying employer a reimbursement not to 41
exceed two thousand dollars for each employee who obt ains 42
upskill credentials, provided that no qualifying employer 43
shall receive more than thirty thousand dollars under this 44
section in any fiscal year. A qualifying employer shall 45
submit an application for an award for such reimbursement as 46
provided in this section in order to receive such funds. 47
3. The department of economic development shall design 48
an application form for qualifying employers to apply for an 49
award for reimbursement. The application form shall contain 50
all information that the department deems necessary to 51
fulfill the provisions of this section. 52 SCS HCS HB 668 20
4. (1) There is hereby created in the state treasury 53
the "Upskill Credential Training Fund", which shall consist 54
of moneys appropriated by the general assembly, which shall 55
not exceed six million dollars per fiscal year. The state 56
treasurer shall be custodian of the fund. In accordance 57
with sections 30.170 and 30.180, the state treasurer may 58
approve disbursements. The fund shall be a dedicated fund 59
and, upon appropriati on, moneys in this fund shall be used 60
solely as provided in this section. 61
(2) Notwithstanding the provisions of section 33.080 62
to the contrary, any moneys remaining in the fund at the end 63
of the biennium shall not revert to the credit of the 64
general revenue fund. 65
(3) The state treasurer shall invest moneys in the 66
fund in the same manner as other funds are invested. Any 67
interest and moneys earned on such investments shall be 68
credited to the fund. 69
5. (1) The department of economic d evelopment shall 70
evaluate all applications submitted by qualifying employers 71
on a competitive basis using the following criteria: 72
(a) The pledged average wage increase that employees 73
or prospective employees will realize after obtaining the 74
upskill credential in relation to the cost of obtaining the 75
upskill credential; 76
(b) The level of economic distress in the qualifying 77
employer's region and the balance of awards made to the 78
various regions of the state; and 79
(c) The contribution made by the qualifying employer 80
toward the cost of obtaining the upskill credential. 81
(2) Applications shall be evaluated at the close of 82
the application period, as determined by the department, and 83
shall not be awarded on a first -come, first-served basis. 84 SCS HCS HB 668 21
The department may make preliminary awards for reimbursement 85
only after the application period has closed. 86
(3) Except as provided in subdivision (4) of this 87
subsection, in making awards under this section, the 88
department shall reserve: 89
(a) Thirty-three and one-third percent of the moneys 90
in the upskill credential training fund to be awarded 91
exclusively to qualifying employers with at least one but 92
not more than fifty employees; and 93
(b) Thirty-three and one-third percent of the moneys 94
in the upskill credential training fund to be awarded 95
exclusively to qualifying employers with at least fifty -one 96
but not more than two hundred employees. 97
(4) Any moneys reserved under paragraph (a) or (b) of 98
subdivision (3) of this sub section that are not issued or 99
awarded by March first of the fiscal year shall no longer be 100
reserved and may be issued to any qualifying employer 101
eligible for an award under this section. 102
(5) Applications shall be considered during 103
application periods as determined by the department. 104
6. (1) Upon being given a preliminary award for 105
reimbursement under this section, each qualifying employer 106
shall sponsor a current or prospective employee to obtain an 107
upskill credential within twelve months of the preliminary 108
award. A current or prospective employee shall not commence 109
the process of obtaining the upskill credential until after 110
a preliminary award has been made. 111
(2) Upon obtaining the upskill credential, the 112
qualifying employer sha ll submit proof of the upskill 113
credential to the department of economic development. 114
(3) To receive the reimbursement, the qualifying 115
employer shall provide to the department proof that the 116 SCS HCS HB 668 22
individual who completed the upskill credential is a 117
Missouri resident with a verifiable Missouri address. Such 118
proof shall be submitted to the department in the manner 119
requested by the department within six weeks of completing 120
the upskill credential. 121
(4) If the department is satisfied that the curren t or 122
prospective employee has obtained the upskill credential 123
based upon evidence provided under subdivision (2) of this 124
subsection and the provisions of subdivision (3) of this 125
subsection have been satisfied, the department shall grant 126
the qualifying employer the reimbursement indicated in the 127
preliminary award. 128
7. Training providers shall not be eligible for awards 129
issued under this section unless employees are trained by an 130
outside training provider. 131
8. The director of the department of economic 132
development may promulgate all necessary rules and 133
regulations for the administration of this section. Any 134
rule or portion of a rule, as that term is defined in 135
section 536.010, that is created under the authority 136
delegated in this sectio n shall become effective only if it 137
complies with and is subject to all of the provisions of 138
chapter 536 and, if applicable, section 536.028. This 139
section and chapter 536 are nonseverable and if any of the 140
powers vested with the general assembly pursu ant to chapter 141
536 to review, to delay the effective date, or to disapprove 142
and annul a rule are subsequently held unconstitutional, 143
then the grant of rulemaking authority and any rule proposed 144
or adopted after August 28, 2023, shall be invalid and voi d. 145
9. Under section 23.253 of the Missouri sunset act: 146
(1) The provisions of the new program authorized under 147
this section shall automatically sunset six years after the 148 SCS HCS HB 668 23
effective date of this section unless reauthorized by an act 149
of the general assembly; 150
(2) If such program is reauthorized, the program 151
authorized under this section shall automatically sunset 152
twelve years after the effective date of the reauthorization 153
of this section; and 154
(3) This section shall terminate on Se ptember first of 155
the calendar year immediately following the calendar year in 156
which the program authorized under this section is sunset. 157
620.2550. 1. The department of economic development 1
shall distribute to any employer a one -time grant for the 2
purpose of enhancing cybersecurity, subject to the 3
requirements of this section. No employer shall receive 4
more than one grant under this section. 5
2. Grants distributed under this section shall not 6
exceed ninety percent of the tot al cost of the cybersecurity 7
enhancement. 8
3. (1) In making grants to employers under this 9
section, the department of economic development shall 10
reserve fifty percent of the funding for qualifying 11
employers with at least one but not more than fif ty 12
employees. Any reserved amount not issued or awarded to an 13
employer with at least one but not more than fifty employees 14
by January first may be issued to an employer otherwise 15
eligible for an award under this section. 16
(2) Notwithstanding subd ivision (1) of this 17
subsection, priority shall be given to any company 18
contracting with the state for the purpose of protecting 19
critical infrastructure. 20
4. Subject to appropriation, no more than ten million 21
dollars shall be distributed under this section in any 22 SCS HCS HB 668 24
fiscal year. No more than fifteen thousand dollars shall be 23
distributed to any one employer. 24
5. (1) The department of economic development shall 25
create an online application form as part of its website, 26
which shall be the sole m eans of applying for grants under 27
this section. Any employer seeking a grant under this 28
section shall submit an application to the department using 29
such form on the department's website. The employer shall 30
submit documents showing how the employer pl ans to enhance 31
cybersecurity, including plans for how the employer will 32
cover the remaining costs for its cybersecurity enhancement. 33
(2) In assessing an employer's plans for covering the 34
remaining costs, the department shall consider only costs 35
for the following: 36
(a) Hardware; 37
(b) Software, whether leased or purchased; 38
(c) Contracts for an external cybersecurity provider; 39
(d) Installation costs for cybersecurity; 40
(e) Costs related to increased square footage in the 41
employer's place of business; 42
(f) Employee training costs; 43
(g) New employee salaries; and 44
(h) Existing employee salaries due to new 45
cybersecurity duties. 46
(3) Any employer applying for a grant shall submit 47
documentation to the depar tment showing how grant funds will 48
be used. 49
6. The department shall prescribe the time of filing 50
applications and supervise the processing thereof, provided 51
that applications shall be accepted by the department 52
beginning March 1, 2024. 53 SCS HCS HB 668 25
7. The department shall select qualified recipients to 54
receive grants and determine the manner and method of 55
payment to the recipients. 56
8. Any employer who receives a grant under this 57
section shall submit documentation to the department no 58
later than one year after the distribution showing how the 59
grant funds were spent. 60
9. In the case of employers with employees and 61
locations in more than one state, grant funds distributed 62
under this section shall be used only for locations in 63
Missouri and employees residing in Missouri. 64
10. For purposes of this section, the terms "enhancing 65
cybersecurity" and "cybersecurity enhancement" mean: 66
(1) Cybersecurity improvement investments; 67
(2) Cybersecurity risk assessment costs; 68
(3) Costs associated with cyber -attack prevention 69
employee training programs; and 70
(4) Costs associated with upskilling employees with 71
cybersecurity-related certifications or credentials. 72