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Missouri House Bill HB668

Missouri 2023 Regular Session

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22 FIRST REGULAR SESSION
33 SENATE COMMITTEE SUBSTITUTE FOR
44 HOUSE COMMITTEE SUBSTITUTE FOR
55 HOUSE BILL NO. 668
66 102ND GENERAL ASSEMBLY
77 0934S.03C KRISTINA MARTIN, Secretary
88 AN ACT
99 To amend chapters 135 and 620, RSMo, by adding thereto five new sections relating to financial
1010 incentives for employers.
1111
1212 Be it enacted by the General Assembly of the State of Missouri, as follows:
1313 Section A. Chapters 135 and 620, RSMo, are amended by 1
1414 adding thereto five new sections, to be known as sections 2
1515 135.1310, 135.1325, 135.1350, 620.2500, and 620.2550, to read 3
1616 as follows:4
1717 135.1310. 1. This section shall be known and may be 1
1818 cited as the "Child Care Contribution Tax Credit Act". 2
1919 2. For purposes of this section, the following terms 3
2020 shall mean: 4
2121 (1) "Child care", the same as defined in section 5
2222 210.201; 6
2323 (2) "Child care desert", a census tract that h as a 7
2424 poverty rate of at least twenty percent or a median family 8
2525 income of less than eighty percent of the statewide average 9
2626 and where at least five hundred people or thirty -three 10
2727 percent of the population are located at least one -half mile 11
2828 away from a child care provider in urbanized areas or at 12
2929 least ten miles away in rural areas; 13
3030 (3) "Child care provider", a child care provider as 14
3131 defined in section 210.201 that is licensed pursuant to 15 SCS HCS HB 668 2
3232 section 210.221, or that is unlicensed and that is 16
3333 registered with the department of elementary and secondary 17
3434 education; 18
3535 (4) "Contribution", an eligible donation of cash, 19
3636 stock, bonds or other marketable securities, or real 20
3737 property; 21
3838 (5) "Department", the Missouri department of economic 22
3939 development; 23
4040 (6) "Person related to the taxpayer", an individual 24
4141 connected with the taxpayer by blood, adoption, or marriage, 25
4242 or an individual, corporation, partnership, limited 26
4343 liability company, trust, or association controlled by, or 27
4444 under the control of, the taxpayer directly, or through an 28
4545 individual, corporation, limited liability company, 29
4646 partnership, trust, or association under the control of the 30
4747 taxpayer; 31
4848 (7) "Rural area", a town or community within the state 32
4949 that is not within a metro politan statistical area and has a 33
5050 population of six thousand or fewer inhabitants as 34
5151 determined by the last preceding federal decennial census or 35
5252 any unincorporated area not within a metropolitan 36
5353 statistical area; 37
5454 (8) "State tax liability", in t he case of a business 38
5555 taxpayer, any liability incurred by such taxpayer pursuant 39
5656 to chapter 143 and chapter 148, exclusive of the provisions 40
5757 relating to the withholding of tax as provided for in 41
5858 sections 143.191 to 143.265 and related provisions, and i n 42
5959 the case of an individual taxpayer, any liability incurred 43
6060 by such taxpayer pursuant to chapter 143; 44
6161 (9) "Tax credit", a credit against the taxpayer's 45
6262 state tax liability; 46 SCS HCS HB 668 3
6363 (10) "Taxpayer", a corporation as defined in section 47
6464 143.441 or 143.471, any charitable organization that is 48
6565 exempt from federal income tax and whose Missouri unrelated 49
6666 business taxable income, if any, would be subject to the 50
6767 state income tax imposed under chapter 143, or individuals 51
6868 or partnerships subject to the st ate income tax imposed by 52
6969 the provisions of chapter 143. 53
7070 3. For all tax years beginning on or after January 1, 54
7171 2023, a taxpayer may claim the tax credit authorized in this 55
7272 section against the taxpayer's state tax liability for the 56
7373 tax year in which a verified contribution was made in an 57
7474 amount equal to up to seventy -five percent of the verified 58
7575 contribution to a child care provider. The minimum amount 59
7676 of any tax credit issued shall not be less than one hundred 60
7777 dollars and shall not exceed two hundred thousand dollars 61
7878 per tax year. 62
7979 (1) The child care provider receiving a contribution 63
8080 shall, within sixty days of the date it received the 64
8181 contribution, issue the taxpayer a contribution verification 65
8282 and file a copy of the contribution ver ification with the 66
8383 department. The contribution verification shall be in the 67
8484 form established by the department and shall include the 68
8585 taxpayer's name, taxpayer's state or federal tax 69
8686 identification number or last four digits of the taxpayer's 70
8787 Social Security number, amount of tax credit, amount of 71
8888 contribution, legal name and address of the child care 72
8989 provider receiving the tax credit, the child care provider's 73
9090 federal employer identification number, the child care 74
9191 provider's departmental vendor n umber or license number, and 75
9292 the date the child care provider received the contribution 76
9393 from the taxpayer. The contribution verification shall 77 SCS HCS HB 668 4
9494 include a signed attestation stating the child care provider 78
9595 will use the contribution solely to promote chi ld care. 79
9696 (2) The failure of the child care provider to timely 80
9797 issue the contribution verification to the taxpayer or file 81
9898 it with the department shall entitle the taxpayer to a 82
9999 refund of the contribution from the child care provider. 83
100100 4. A donation is eligible when: 84
101101 (1) The donation is used directly by a child care 85
102102 provider to promote child care for children twelve years of 86
103103 age or younger, including by acquiring or improving child 87
104104 care facilities, equipment, or services, or improving staff 88
105105 salaries, staff training, or the quality of child care; 89
106106 (2) The donation is made to a child care provider in 90
107107 which the taxpayer or a person related to the taxpayer does 91
108108 not have a direct financial interest; and 92
109109 (3) The donation is not made in exchange for care of a 93
110110 child or children in the case of an individual taxpayer that 94
111111 is not an employer making a contribution on behalf of its 95
112112 employees. 96
113113 5. A child care provider that uses the contribution 97
114114 for an ineligible purpose shall r epay to the department the 98
115115 value of the tax credit for the contribution amount used for 99
116116 an ineligible purpose. 100
117117 6. The tax credits authorized by this section shall 101
118118 not be refundable and shall not be transferred, sold, or 102
119119 otherwise conveyed. Any amount of approved tax credits that 103
120120 a taxpayer is prohibited by this subsection from using for 104
121121 the tax year in which the credit is first claimed may be 105
122122 carried back to the taxpayer's immediately prior tax year 106
123123 and carried forward to the taxpayer's subse quent tax year 107
124124 for up to five succeeding tax years. 108 SCS HCS HB 668 5
125125 7. Notwithstanding any provision of subsection 6 of 109
126126 this section to the contrary, a taxpayer that is exempt, 110
127127 under 26 U.S.C. Section 501(c)(3), and any amendments 111
128128 thereto, from all or part of th e federal income tax shall be 112
129129 eligible for a refund of its tax credit issued under this 113
130130 section, without regard to whether it has incurred any state 114
131131 tax liability. Such exempt taxpayer may claim a refund of 115
132132 the tax credit on its tax return required to be filed under 116
133133 the provisions of chapter 143, exclusive of the return for 117
134134 the withholding of tax under sections 143.191 to 143.265. 118
135135 If such exempt taxpayer is not required to file a tax return 119
136136 under the provisions of chapter 143, the exempt taxpayer may 120
137137 claim a refund of the tax credit on a refund claim form 121
138138 prescribed by the department of revenue. The department of 122
139139 revenue shall prescribe such forms, instructions, and rules 123
140140 as it deems appropriate to carry out the provisions of this 124
141141 subsection. 125
142142 8. (1) The cumulative amount of tax credits 126
143143 authorized pursuant to this section shall not exceed twenty 127
144144 million dollars for each calendar year. The department 128
145145 shall approve tax credit applications on a first -come, first- 129
146146 served basis until the cumulative tax credit authorization 130
147147 limit is reached for the calendar year. A taxpayer shall 131
148148 apply to the department for the child care contribution tax 132
149149 credit by submitting a copy of the contribution verification 133
150150 provided by a child care provider to such taxpayer. Upon 134
151151 receipt of the contribution verification, the department 135
152152 shall issue a tax credit certificate to the applicant. 136
153153 (2) If the maximum amount of tax credits allowed in 137
154154 any calendar year as provided pursuant to subdivision (1) of 138
155155 this subsection is authorized, the maximum amount of tax 139
156156 credits allowed pursuant to subdivision (1) of this 140 SCS HCS HB 668 6
157157 subsection shall be increased by fifteen percent, provided 141
158158 that all such increases in the allowable amount of tax 142
159159 credits shall be reserved for contributions made to child 143
160160 care providers located in a child care desert. The director 144
161161 of the department shall publish such adjusted amount. 145
162162 9. The tax credits allowed under this section shall be 146
163163 considered a domestic and social tax credit unde r 147
164164 subdivision (5) of subsection 2 of section 135.800. 148
165165 10. All action and communication undertaken or 149
166166 required under this section shall be exempt from section 150
167167 105.1500. 151
168168 11. The department may promulgate rules to implement 152
169169 and administer the provisions of this section. Any rule or 153
170170 portion of a rule, as that term is defined in section 154
171171 536.010, that is created pursuant to the authority delegated 155
172172 in this section shall become effective only if it complies 156
173173 with and is subject to all of the pro visions of chapter 536 157
174174 and, if applicable, section 536.028. This section and 158
175175 chapter 536 are nonseverable and if any of the powers vested 159
176176 with the general assembly pursuant to chapter 536 to review, 160
177177 to delay the effective date, or to disapprove and an nul a 161
178178 rule are subsequently held unconstitutional, then the grant 162
179179 of rulemaking authority and any rule proposed or adopted 163
180180 after August 28, 2023, shall be invalid and void. 164
181181 12. Pursuant to section 23.253 of the Missouri sunset 165
182182 act: 166
183183 (1) The program authorized under this section shall 167
184184 expire on December 31, 2029, unless reauthorized by the 168
185185 general assembly; 169
186186 (2) The act shall terminate on September first of the 170
187187 calendar year immediately following the calendar year in 171
188188 which the program authorized under this section is sunset; 172 SCS HCS HB 668 7
189189 (3) If such program is reauthorized, the program 173
190190 authorized under this act shall automatically sunset six 174
191191 years after the effective date of the reauthorization of 175
192192 this section; and 176
193193 (4) The provisions of this subsection shall not be 177
194194 construed to limit or in any way impair the department of 178
195195 revenue's ability to redeem tax credits authorized on or 179
196196 before the date the program authorized pursuant to this 180
197197 section expires or a taxpayer's ability to redee m such tax 181
198198 credits. 182
199199 135.1325. 1. This section shall be known and may be 1
200200 cited as the "Employer Provided Child Care Assistance Tax 2
201201 Credit Act". 3
202202 2. For purposes of this section, the following terms 4
203203 shall mean: 5
204204 (1) "Child care desert", a census tract that has a 6
205205 poverty rate of at least twenty percent or a median family 7
206206 income of less than eighty percent of the statewide average 8
207207 and where at least five hundred people or thirty -three 9
208208 percent of the population are located at least one-half mile 10
209209 away from a child care provider in urbanized areas or at 11
210210 least ten miles away in rural areas; 12
211211 (2) "Child care facility", a child care facility as 13
212212 defined in section 210.201 that is licensed pursuant to 14
213213 section 210.221, or t hat is unlicensed and that is 15
214214 registered with the department of elementary and secondary 16
215215 education; 17
216216 (3) "Department", the Missouri department of economic 18
217217 development; 19
218218 (4) "Employer matching contribution", a contribution 20
219219 made by the taxpayer to a cafeteria plan, as that term is 21
220220 used in 26 U.S.C. Section 125, of an employee of the 22 SCS HCS HB 668 8
221221 taxpayer, which matches a dollar amount or percentage of the 23
222222 employee's contribution to the cafeteria plan. "Employer 24
223223 matching contribution" shall not include t he amount of any 25
224224 salary reduction or other compensation foregone by the 26
225225 employee in connection with the cafeteria plan; 27
226226 (5) "Qualified child care expenditure", an amount paid 28
227227 of reasonable costs incurred that meet any of the following: 29
228228 (a) To acquire, construct, rehabilitate, or expand 30
229229 property that will be, or is, used as part of a child care 31
230230 facility that is either operated by the taxpayer or 32
231231 contracted with by the taxpayer and which does not 33
232232 constitute part of the principal residence o f the taxpayer 34
233233 or any employee of the taxpayer; 35
234234 (b) For the operating costs of a child care facility 36
235235 of the taxpayer, including costs relating to the training of 37
236236 employees, scholarship programs, and for compensation to 38
237237 employees; 39
238238 (c) Under a contract with a child care facility to 40
239239 provide child care services to employees of the taxpayer; or 41
240240 (d) As an employer matching contribution, but only to 42
241241 the extent such employer matching contribution is restricted 43
242242 by the taxpayer solely for the taxpayer's employee to obtain 44
243243 child care services at a child care facility and is used for 45
244244 that purpose during the tax year; 46
245245 (6) "Rural area", a town or community within the state 47
246246 that is not within a metropolitan statistical area and has a 48
247247 population of six thousand or fewer inhabitants as 49
248248 determined by the last preceding federal decennial census or 50
249249 any unincorporated area not within a metropolitan 51
250250 statistical area; 52
251251 (7) "State tax liability", in the case of a business 53
252252 taxpayer, any liability incurred by such taxpayer pursuant 54 SCS HCS HB 668 9
253253 to the provisions of chapter 143 and chapter 148, exclusive 55
254254 of the provisions relating to the withholding of tax as 56
255255 provided for in sections 143.191 to 143.265 and related 57
256256 provisions, and in the case of an indi vidual taxpayer, any 58
257257 liability incurred by such taxpayer pursuant to the 59
258258 provisions of chapter 143; 60
259259 (8) "Tax credit", a credit against the taxpayer's 61
260260 state tax liability; 62
261261 (9) "Taxpayer", a corporation as defined in section 63
262262 143.441 or 143.471, any charitable organization that is 64
263263 exempt from federal income tax and whose Missouri unrelated 65
264264 business taxable income, if any, would be subject to the 66
265265 state income tax imposed under chapter 143, or individuals 67
266266 or partnerships subject to the state income tax imposed by 68
267267 the provisions of chapter 143. 69
268268 3. For all tax years beginning on or after January 1, 70
269269 2023, a taxpayer may claim a tax credit authorized in this 71
270270 section in an amount equal to thirty percent of the 72
271271 qualified child care expendi tures paid or incurred with 73
272272 respect to a child care facility. The maximum amount of any 74
273273 tax credit issued under this section shall not exceed two 75
274274 hundred thousand dollars per taxpayer per tax year. 76
275275 4. A facility shall not be treated as a child ca re 77
276276 facility with respect to a taxpayer unless the following 78
277277 conditions have been met: 79
278278 (1) Enrollment in the facility is open to employees of 80
279279 the taxpayer during the tax year; and 81
280280 (2) If the facility is the principal business of the 82
281281 taxpayer, at least thirty percent of the enrollees of such 83
282282 facility are dependents of employees of the taxpayer. 84
283283 5. The tax credits authorized by this section shall 85
284284 not be refundable or transferable. The tax credits shall 86 SCS HCS HB 668 10
285285 not be sold, assigned, or otherw ise conveyed. Any amount of 87
286286 approved tax credits that a taxpayer is prohibited by this 88
287287 subsection from using for the tax year in which the credit 89
288288 is first claimed may be carried back to the taxpayer's 90
289289 immediately prior tax year and carried forward to the 91
290290 taxpayer's subsequent tax year for up to five succeeding tax 92
291291 years. 93
292292 6. Notwithstanding any provision of subsection 5 of 94
293293 this section to the contrary, a taxpayer that is exempt, 95
294294 under 26 U.S.C. Section 501(c)(3), and any amendments 96
295295 thereto, from all or part of the federal income tax shall be 97
296296 eligible for a refund of its tax credit issued under this 98
297297 section, without regard to whether it has incurred any state 99
298298 tax liability. Such exempt taxpayer may claim a refund of 100
299299 the tax credit on its t ax return required to be filed under 101
300300 the provisions of chapter 143, exclusive of the return for 102
301301 the withholding of tax under sections 143.191 to 143.265. 103
302302 If such exempt taxpayer is not required to file a tax return 104
303303 under the provisions of chapter 143, the exempt taxpayer may 105
304304 claim a refund of the tax credit on a refund claim form 106
305305 prescribed by the department of revenue. The department of 107
306306 revenue shall prescribe such forms, instructions, and rules 108
307307 as it deems appropriate to carry out the provisions of this 109
308308 subsection. 110
309309 7. (1) The cumulative amount of tax credits 111
310310 authorized pursuant to this section shall not exceed twenty 112
311311 million dollars for each calendar year. The department 113
312312 shall approve tax credit applications on a first -come, first- 114
313313 served basis until the cumulative tax credit authorization 115
314314 limit is reached for the calendar year. 116
315315 (2) If the maximum amount of tax credits allowed in 117
316316 any calendar year as provided pursuant to subdivision (1) of 118 SCS HCS HB 668 11
317317 this subsection is authorized, the ma ximum amount of tax 119
318318 credits allowed pursuant to subdivision (1) of this 120
319319 subsection shall be increased by fifteen percent, provided 121
320320 that all such increases in the allowable amount of tax 122
321321 credits shall be reserved for qualified child care 123
322322 expenditures for child care facilities located in a child 124
323323 care desert. The director of the department shall publish 125
324324 such adjusted amount. 126
325325 8. A taxpayer who has claimed a tax credit under this 127
326326 section shall notify the department within sixty days of any 128
327327 cessation of operation, change in ownership, or agreement to 129
328328 assume recapture liability as such terms are defined by 26 130
329329 U.S.C. Section 45F, in the form and manner prescribed by 131
330330 department rule or instruction. If there is a cessation of 132
331331 operation or change i n ownership relating to a child care 133
332332 facility, the taxpayer shall repay the department the 134
333333 applicable recapture percentage of the credit allowed under 135
334334 this section, but this recapture amount shall be limited to 136
335335 the tax credit allowed under this section . The recapture 137
336336 amount shall be considered a tax liability arising on the 138
337337 tax payment due date for the tax year in which the cessation 139
338338 of operation, change in ownership, or agreement to assume 140
339339 recapture liability occurred and shall be assessed and 141
340340 collected under the same provisions that apply to a tax 142
341341 liability under chapter 143 or chapter 148. 143
342342 9. The tax credit allowed pursuant to this section 144
343343 shall be considered a domestic and social tax credit under 145
344344 subdivision (5) of subsection 2 of sect ion 135.800. 146
345345 10. All action and communication undertaken or 147
346346 required under this section shall be exempt from section 148
347347 105.1500. 149 SCS HCS HB 668 12
348348 11. The department may promulgate rules to implement 150
349349 and administer the provisions of this section. Any rule or 151
350350 portion of a rule, as that term is defined in section 152
351351 536.010, that is created pursuant to the authority delegated 153
352352 in this section shall become effective only if it complies 154
353353 with and is subject to all of the provisions of chapter 536 155
354354 and, if applicable, section 536.028. This section and 156
355355 chapter 536 are nonseverable and if any of the powers vested 157
356356 with the general assembly pursuant to chapter 536 to review, 158
357357 to delay the effective date, or to disapprove and annul a 159
358358 rule are subsequently held unconsti tutional, then the grant 160
359359 of rulemaking authority and any rule proposed or adopted 161
360360 after August 28, 2023, shall be invalid and void. 162
361361 12. Pursuant to section 23.253 of the Missouri sunset 163
362362 act: 164
363363 (1) The program authorized under this act shall ex pire 165
364364 on December 31, 2029, unless reauthorized by the general 166
365365 assembly; 167
366366 (2) The act shall terminate on September first of the 168
367367 calendar year immediately following the calendar year in 169
368368 which the program authorized under the act is sunset; 170
369369 (3) If such program is reauthorized, the program 171
370370 authorized under this act shall automatically sunset six 172
371371 years after the effective date of the reauthorization of the 173
372372 act; and 174
373373 (4) The provisions of this subsection shall not be 175
374374 construed to limit or in any way impair the department of 176
375375 revenue's ability to redeem tax credits authorized on or 177
376376 before the date the program authorized pursuant to this 178
377377 section expires or a taxpayer's ability to redeem such tax 179
378378 credits. 180 SCS HCS HB 668 13
379379 135.1350. 1. This section shall be known and may be 1
380380 cited as the "Child Care Providers Tax Credit Act". 2
381381 2. For purposes of this section, the following terms 3
382382 shall mean: 4
383383 (1) "Capital expenditures", expenses incurred by a 5
384384 child care provider, during the tax year for which a tax 6
385385 credit is claimed pursuant to this section, for the 7
386386 construction, renovation, or rehabilitation of a child care 8
387387 facility to the extent necessary to operate a child care 9
388388 facility and comply with applicable child care facility 10
389389 regulations promulgated by the department of elementary and 11
390390 secondary education; 12
391391 (2) "Child care desert", a census tract that has a 13
392392 poverty rate of at least twenty percent or a median family 14
393393 income of less than eighty percent of the statewide average 15
394394 and where at least five hundred people or thirty -three 16
395395 percent of the population are located at least one -half mile 17
396396 away from a child care provider in urbanized areas or at 18
397397 least ten miles away in rural areas; 19
398398 (3) "Child care facility", the same as defined in 20
399399 section 210.201; 21
400400 (4) "Child care provider", a child care provider as 22
401401 defined in section 210.201 that is licensed pursuant to 23
402402 section 210.221, or that is unlicensed and that is 24
403403 registered with the department of elementary and seconda ry 25
404404 education; 26
405405 (5) "Department", the department of elementary and 27
406406 secondary education; 28
407407 (6) "Employee", an employee, as that term is used in 29
408408 subsection 2 of section 143.191, of a child care provider 30
409409 who worked for the child care provider for an average of at 31
410410 least ten hours per week for at least a three -month period 32 SCS HCS HB 668 14
411411 during the tax year for which a tax credit is claimed 33
412412 pursuant to this section and who is not an immediate family 34
413413 member of the child care provider; 35
414414 (7) "Eligible employer withholding tax", the total 36
415415 amount of tax that the child care provider was required, 37
416416 under section 143.191, to deduct and withhold from the wages 38
417417 it paid to employees during the tax year for which the child 39
418418 care provider is claiming a tax credit purs uant to this 40
419419 section, to the extent actually paid; 41
420420 (8) "Rural area", a town or community within the state 42
421421 that is not within a metropolitan statistical area and has a 43
422422 population of six thousand or fewer inhabitants as 44
423423 determined by the last prece ding federal decennial census or 45
424424 any unincorporated area not within a metropolitan 46
425425 statistical area; 47
426426 (9) "State tax liability", any liability incurred by 48
427427 the taxpayer pursuant to the provisions of chapter 143, 49
428428 exclusive of the provisions relating to the withholding of 50
429429 tax as provided for in sections 143.191 to 143.265 and 51
430430 related provisions; 52
431431 (10) "Tax credit", a credit against the taxpayer's 53
432432 state tax liability; 54
433433 (11) "Taxpayer", a corporation as defined in section 55
434434 143.441 or 143.471, any charitable organization that is 56
435435 exempt from federal income tax and whose Missouri unrelated 57
436436 business taxable income, if any, would be subject to the 58
437437 state income tax imposed under chapter 143, or an individual 59
438438 or partnership subject to the state income tax imposed by 60
439439 the provisions of chapter 143. 61
440440 3. For all tax years beginning on or after January 1, 62
441441 2024, a child care provider with three or more employees may 63
442442 claim a tax credit authorized in this section in an amount 64 SCS HCS HB 668 15
443443 equal to the child care provider's eligible employer 65
444444 withholding tax, and may also claim a tax credit in an 66
445445 amount up to thirty percent of the child care provider's 67
446446 capital expenditures. No tax credit for capital 68
447447 expenditures shall be allowed if the capital expenditure s 69
448448 are less than one thousand dollars. The amount of any tax 70
449449 credit issued under this section shall not exceed two 71
450450 hundred thousand dollars per child care provider per tax 72
451451 year. 73
452452 4. To claim a tax credit authorized pursuant to this 74
453453 section, a child care provider shall submit to the 75
454454 department, for preliminary approval, an application for the 76
455455 tax credit on a form provided by the department and at such 77
456456 times as the department may require. If the child care 78
457457 provider is applying for a tax credit for capital 79
458458 expenditures, the child care provider shall present proof 80
459459 acceptable to the department that the child care provider's 81
460460 capital expenditures satisfy the requirements of subdivision 82
461461 (1) of subsection 2 of this section. Upon final approval of 83
462462 an application, the department shall issue the child care 84
463463 provider a certificate of tax credit. 85
464464 5. The tax credits authorized by this section shall 86
465465 not be refundable and shall not be transferred, sold, 87
466466 assigned, or otherwise conveyed. Any amount of credit that 88
467467 exceeds the child care provider's state tax liability for 89
468468 the tax year for which the tax credit is issued may be 90
469469 carried back to the child care provider's immediately prior 91
470470 tax year or carried forward to the child care provider's 92
471471 subsequent tax year for up to five succeeding tax years. 93
472472 6. Notwithstanding any provision of subsection 5 of 94
473473 this section to the contrary, a child care provider that is 95
474474 exempt, under 26 U.S.C. Section 501(c)(3), and any 96 SCS HCS HB 668 16
475475 amendments thereto, from all or part of the federal income 97
476476 tax shall be eligible for a refund of its tax credit issued 98
477477 under this section, without regard to whether it has 99
478478 incurred any state tax liability. Such exempt child care 100
479479 provider may claim a refund of the tax credit on its t ax 101
480480 return required to be filed under the provisions of chapter 102
481481 143, exclusive of the return for the withholding of tax 103
482482 under sections 143.191 to 143.265. If such exempt child 104
483483 care provider is not required to file a tax return under the 105
484484 provisions of chapter 143, the exempt child care provider 106
485485 may claim a refund of the tax credit on a refund claim form 107
486486 prescribed by the department of revenue. The department of 108
487487 revenue shall prescribe such forms, instructions, and rules 109
488488 as it deems appropriate to c arry out the provisions of this 110
489489 subsection. 111
490490 7. (1) The cumulative amount of tax credits 112
491491 authorized pursuant to this section shall not exceed twenty 113
492492 million dollars for each calendar year. The department 114
493493 shall approve tax credit applications on a first-come, first- 115
494494 served basis until the cumulative tax credit authorization 116
495495 limit is reached for the calendar year. 117
496496 (2) If the maximum amount of tax credits allowed in 118
497497 any calendar year as provided pursuant to subdivision (1) of 119
498498 this subsection is authorized, the maximum amount of tax 120
499499 credits allowed pursuant to subdivision (1) of this 121
500500 subsection shall be increased by fifteen percent, provided 122
501501 that all such increases in the allowable amount of tax 123
502502 credits shall be reserved for child care pr oviders located 124
503503 in a child care desert. The director of the department 125
504504 shall publish such adjusted amount. 126 SCS HCS HB 668 17
505505 8. The tax credit authorized by this section shall be 127
506506 considered a domestic and social tax credit under 128
507507 subdivision (5) of subsection 2 of section 135.800. 129
508508 9. All action and communication undertaken or required 130
509509 with respect to this section shall be exempt from section 131
510510 105.1500. Notwithstanding section 32.057 or any other tax 132
511511 confidentiality law to the contrary, the department of 133
512512 revenue may disclose tax information to the department for 134
513513 the purpose of the verification of a child care provider's 135
514514 eligible employer withholding tax under this section. 136
515515 10. The department may promulgate rules and adopt 137
516516 statements of policy, proc edures, forms and guidelines to 138
517517 implement and administer the provisions of this section. 139
518518 Any rule or portion of a rule, as that term is defined in 140
519519 section 536.010, that is created pursuant to the authority 141
520520 delegated in this section shall become effect ive only if it 142
521521 complies with and is subject to all of the provisions of 143
522522 chapter 536 and, if applicable, section 536.028. This 144
523523 section and chapter 536 are nonseverable and if any of the 145
524524 powers vested with the general assembly pursuant to chapter 146
525525 536 to review, to delay the effective date, or to disapprove 147
526526 and annul a rule are subsequently held unconstitutional, 148
527527 then the grant of rulemaking authority and any rule proposed 149
528528 or adopted after August 28, 2023, shall be invalid and void. 150
529529 11. Pursuant to section 23.253 of the Missouri sunset 151
530530 act: 152
531531 (1) The program authorized under this section shall 153
532532 expire on December 31, 2029, unless reauthorized by the 154
533533 general assembly; 155
534534 (2) The act shall terminate on September first of the 156
535535 calendar year immediately following the calendar year in 157
536536 which the program authorized under this section is sunset; 158 SCS HCS HB 668 18
537537 (3) If such program is reauthorized, the program 159
538538 authorized under this section shall automatically sunset six 160
539539 years after the effective date of the reauthorization of 161
540540 this section; and 162
541541 (4) The provisions of this subsection shall not be 163
542542 construed to limit or in any way impair the department of 164
543543 revenue's ability to redeem tax credits authorized on or 165
544544 before the date the program authorized pursuant to this 166
545545 section expires or a taxpayer's ability to redeem such tax 167
546546 credits. 168
547547 620.2500. 1. For purposes of this section, the 1
548548 following terms mean: 2
549549 (1) "Employee", any person employed by a qualifying 3
550550 employer or any person who is a prospective employee of a 4
551551 qualifying employer, provided such person is not an 5
552552 independent contractor; 6
553553 (2) "Health care-focused credential", a credential 7
554554 that demonstrates the competencies necessary to succeed in 8
555555 an occupation related to the delivery of health care 9
556556 services; 10
557557 (3) "Public body", the state of Missouri, any 11
558558 department, division, commission, board, or political 12
559559 subdivision thereof including, but not limited to, 13
560560 institutions of postsecondary education that offer re quired 14
561561 courses and training necessary for an employee to obtain 15
562562 upskill credentials. The term "public body" shall be 16
563563 construed to exclude any: 17
564564 (a) Facility that meets the definition of hospital in 18
565565 section 197.020; 19
566566 (b) Long-term care facility licensed under chapter 20
567567 198; or 21 SCS HCS HB 668 19
568568 (c) Public hospital established and maintained under 22
569569 chapter 205; 23
570570 (4) "Qualifying employer", any employer registered to 24
571571 do business in the state of Missouri, provided the employer 25
572572 is not a public body; 26
573573 (5) "Technology-focused credential", a credential that 27
574574 demonstrates the competencies necessary to succeed in an 28
575575 occupation that utilizes technology to develop, build, and 29
576576 deliver products and services; 30
577577 (6) "Training provider", any entity that pr ovides 31
578578 training in upskill credentials; 32
579579 (7) "Upskill credential", includes, but is not limited 33
580580 to: 34
581581 (a) Health care-focused credentials; 35
582582 (b) Technology-focused credentials; and 36
583583 (c) Any other credential indicated by a qualifying 37
584584 employer as necessary for improving the skills of its 38
585585 current and prospective employees. 39
586586 2. The department of economic development may 40
587587 distribute to any qualifying employer a reimbursement not to 41
588588 exceed two thousand dollars for each employee who obt ains 42
589589 upskill credentials, provided that no qualifying employer 43
590590 shall receive more than thirty thousand dollars under this 44
591591 section in any fiscal year. A qualifying employer shall 45
592592 submit an application for an award for such reimbursement as 46
593593 provided in this section in order to receive such funds. 47
594594 3. The department of economic development shall design 48
595595 an application form for qualifying employers to apply for an 49
596596 award for reimbursement. The application form shall contain 50
597597 all information that the department deems necessary to 51
598598 fulfill the provisions of this section. 52 SCS HCS HB 668 20
599599 4. (1) There is hereby created in the state treasury 53
600600 the "Upskill Credential Training Fund", which shall consist 54
601601 of moneys appropriated by the general assembly, which shall 55
602602 not exceed six million dollars per fiscal year. The state 56
603603 treasurer shall be custodian of the fund. In accordance 57
604604 with sections 30.170 and 30.180, the state treasurer may 58
605605 approve disbursements. The fund shall be a dedicated fund 59
606606 and, upon appropriati on, moneys in this fund shall be used 60
607607 solely as provided in this section. 61
608608 (2) Notwithstanding the provisions of section 33.080 62
609609 to the contrary, any moneys remaining in the fund at the end 63
610610 of the biennium shall not revert to the credit of the 64
611611 general revenue fund. 65
612612 (3) The state treasurer shall invest moneys in the 66
613613 fund in the same manner as other funds are invested. Any 67
614614 interest and moneys earned on such investments shall be 68
615615 credited to the fund. 69
616616 5. (1) The department of economic d evelopment shall 70
617617 evaluate all applications submitted by qualifying employers 71
618618 on a competitive basis using the following criteria: 72
619619 (a) The pledged average wage increase that employees 73
620620 or prospective employees will realize after obtaining the 74
621621 upskill credential in relation to the cost of obtaining the 75
622622 upskill credential; 76
623623 (b) The level of economic distress in the qualifying 77
624624 employer's region and the balance of awards made to the 78
625625 various regions of the state; and 79
626626 (c) The contribution made by the qualifying employer 80
627627 toward the cost of obtaining the upskill credential. 81
628628 (2) Applications shall be evaluated at the close of 82
629629 the application period, as determined by the department, and 83
630630 shall not be awarded on a first -come, first-served basis. 84 SCS HCS HB 668 21
631631 The department may make preliminary awards for reimbursement 85
632632 only after the application period has closed. 86
633633 (3) Except as provided in subdivision (4) of this 87
634634 subsection, in making awards under this section, the 88
635635 department shall reserve: 89
636636 (a) Thirty-three and one-third percent of the moneys 90
637637 in the upskill credential training fund to be awarded 91
638638 exclusively to qualifying employers with at least one but 92
639639 not more than fifty employees; and 93
640640 (b) Thirty-three and one-third percent of the moneys 94
641641 in the upskill credential training fund to be awarded 95
642642 exclusively to qualifying employers with at least fifty -one 96
643643 but not more than two hundred employees. 97
644644 (4) Any moneys reserved under paragraph (a) or (b) of 98
645645 subdivision (3) of this sub section that are not issued or 99
646646 awarded by March first of the fiscal year shall no longer be 100
647647 reserved and may be issued to any qualifying employer 101
648648 eligible for an award under this section. 102
649649 (5) Applications shall be considered during 103
650650 application periods as determined by the department. 104
651651 6. (1) Upon being given a preliminary award for 105
652652 reimbursement under this section, each qualifying employer 106
653653 shall sponsor a current or prospective employee to obtain an 107
654654 upskill credential within twelve months of the preliminary 108
655655 award. A current or prospective employee shall not commence 109
656656 the process of obtaining the upskill credential until after 110
657657 a preliminary award has been made. 111
658658 (2) Upon obtaining the upskill credential, the 112
659659 qualifying employer sha ll submit proof of the upskill 113
660660 credential to the department of economic development. 114
661661 (3) To receive the reimbursement, the qualifying 115
662662 employer shall provide to the department proof that the 116 SCS HCS HB 668 22
663663 individual who completed the upskill credential is a 117
664664 Missouri resident with a verifiable Missouri address. Such 118
665665 proof shall be submitted to the department in the manner 119
666666 requested by the department within six weeks of completing 120
667667 the upskill credential. 121
668668 (4) If the department is satisfied that the curren t or 122
669669 prospective employee has obtained the upskill credential 123
670670 based upon evidence provided under subdivision (2) of this 124
671671 subsection and the provisions of subdivision (3) of this 125
672672 subsection have been satisfied, the department shall grant 126
673673 the qualifying employer the reimbursement indicated in the 127
674674 preliminary award. 128
675675 7. Training providers shall not be eligible for awards 129
676676 issued under this section unless employees are trained by an 130
677677 outside training provider. 131
678678 8. The director of the department of economic 132
679679 development may promulgate all necessary rules and 133
680680 regulations for the administration of this section. Any 134
681681 rule or portion of a rule, as that term is defined in 135
682682 section 536.010, that is created under the authority 136
683683 delegated in this sectio n shall become effective only if it 137
684684 complies with and is subject to all of the provisions of 138
685685 chapter 536 and, if applicable, section 536.028. This 139
686686 section and chapter 536 are nonseverable and if any of the 140
687687 powers vested with the general assembly pursu ant to chapter 141
688688 536 to review, to delay the effective date, or to disapprove 142
689689 and annul a rule are subsequently held unconstitutional, 143
690690 then the grant of rulemaking authority and any rule proposed 144
691691 or adopted after August 28, 2023, shall be invalid and voi d. 145
692692 9. Under section 23.253 of the Missouri sunset act: 146
693693 (1) The provisions of the new program authorized under 147
694694 this section shall automatically sunset six years after the 148 SCS HCS HB 668 23
695695 effective date of this section unless reauthorized by an act 149
696696 of the general assembly; 150
697697 (2) If such program is reauthorized, the program 151
698698 authorized under this section shall automatically sunset 152
699699 twelve years after the effective date of the reauthorization 153
700700 of this section; and 154
701701 (3) This section shall terminate on Se ptember first of 155
702702 the calendar year immediately following the calendar year in 156
703703 which the program authorized under this section is sunset. 157
704704 620.2550. 1. The department of economic development 1
705705 shall distribute to any employer a one -time grant for the 2
706706 purpose of enhancing cybersecurity, subject to the 3
707707 requirements of this section. No employer shall receive 4
708708 more than one grant under this section. 5
709709 2. Grants distributed under this section shall not 6
710710 exceed ninety percent of the tot al cost of the cybersecurity 7
711711 enhancement. 8
712712 3. (1) In making grants to employers under this 9
713713 section, the department of economic development shall 10
714714 reserve fifty percent of the funding for qualifying 11
715715 employers with at least one but not more than fif ty 12
716716 employees. Any reserved amount not issued or awarded to an 13
717717 employer with at least one but not more than fifty employees 14
718718 by January first may be issued to an employer otherwise 15
719719 eligible for an award under this section. 16
720720 (2) Notwithstanding subd ivision (1) of this 17
721721 subsection, priority shall be given to any company 18
722722 contracting with the state for the purpose of protecting 19
723723 critical infrastructure. 20
724724 4. Subject to appropriation, no more than ten million 21
725725 dollars shall be distributed under this section in any 22 SCS HCS HB 668 24
726726 fiscal year. No more than fifteen thousand dollars shall be 23
727727 distributed to any one employer. 24
728728 5. (1) The department of economic development shall 25
729729 create an online application form as part of its website, 26
730730 which shall be the sole m eans of applying for grants under 27
731731 this section. Any employer seeking a grant under this 28
732732 section shall submit an application to the department using 29
733733 such form on the department's website. The employer shall 30
734734 submit documents showing how the employer pl ans to enhance 31
735735 cybersecurity, including plans for how the employer will 32
736736 cover the remaining costs for its cybersecurity enhancement. 33
737737 (2) In assessing an employer's plans for covering the 34
738738 remaining costs, the department shall consider only costs 35
739739 for the following: 36
740740 (a) Hardware; 37
741741 (b) Software, whether leased or purchased; 38
742742 (c) Contracts for an external cybersecurity provider; 39
743743 (d) Installation costs for cybersecurity; 40
744744 (e) Costs related to increased square footage in the 41
745745 employer's place of business; 42
746746 (f) Employee training costs; 43
747747 (g) New employee salaries; and 44
748748 (h) Existing employee salaries due to new 45
749749 cybersecurity duties. 46
750750 (3) Any employer applying for a grant shall submit 47
751751 documentation to the depar tment showing how grant funds will 48
752752 be used. 49
753753 6. The department shall prescribe the time of filing 50
754754 applications and supervise the processing thereof, provided 51
755755 that applications shall be accepted by the department 52
756756 beginning March 1, 2024. 53 SCS HCS HB 668 25
757757 7. The department shall select qualified recipients to 54
758758 receive grants and determine the manner and method of 55
759759 payment to the recipients. 56
760760 8. Any employer who receives a grant under this 57
761761 section shall submit documentation to the department no 58
762762 later than one year after the distribution showing how the 59
763763 grant funds were spent. 60
764764 9. In the case of employers with employees and 61
765765 locations in more than one state, grant funds distributed 62
766766 under this section shall be used only for locations in 63
767767 Missouri and employees residing in Missouri. 64
768768 10. For purposes of this section, the terms "enhancing 65
769769 cybersecurity" and "cybersecurity enhancement" mean: 66
770770 (1) Cybersecurity improvement investments; 67
771771 (2) Cybersecurity risk assessment costs; 68
772772 (3) Costs associated with cyber -attack prevention 69
773773 employee training programs; and 70
774774 (4) Costs associated with upskilling employees with 71
775775 cybersecurity-related certifications or credentials. 72
776776