SECONDREGULARSESSION
[PERFECTED]
HOUSEBILLNO.1488
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVESHIELDS.
4055H.01P DANARADEMANMILLER,ChiefClerk
ANACT
Toamendchapter135,RSMo,byaddingtheretothreenewsectionsrelatingtotaxcreditsfor
childcare.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter135,RSMo,isamendedbyaddingtheretothreenewsections,to
2beknownassections135.1310,135.1325,and135.1350,toreadasfollows:
135.1310.1.Thissectionshallbeknownandmaybecitedasthe"ChildCare
2ContributionTaxCreditAct".
3 2.Forpurposesofthissection,thefollowingtermsshallmean:
4 (1)"Childcare",thesameasdefinedinsection210.201;
5 (2)"Childcaredesert",acensustractthathasapovertyrateofatleasttwenty
6percentoramedianfamilyincomeoflessthaneightypercentofthestatewideaverage
7andwhereatleastfivehundredpeopleorthirty-threepercentofthepopulationare
8locatedatleastone-halfmileawayfromachildcareproviderinurbanizedareasorat
9leasttenmilesawayinruralareas;
10 (3)"Childcareprovider",achildcareproviderasdefinedinsection210.201
11thatislicensedpursuanttosection210.221,orthatisunlicensedandthatisregistered
12withthedepartmentofelementaryandsecondaryeducation;
13 (4)"Contribution",aneligibledonationofcash,stock,bondsorother
14marketablesecurities,orrealproperty."Contribution"shallincludethereasonable
15purchasepricepaidforanemployer'spurchaseofchildcarefromachildcareprovider
16forthechildrenoftheemployer'semployees;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (5)"Department",theMissouridepartmentofeconomicdevelopment;
18 (6)"Intermediary",anonprofitorganizationthatis,oragreestobecome,
19subjecttothejurisdictionofthisstateforthepurposesoftheadministrationand
20enforcementofthissection,andthatdistributesfundsforthepurposesofsupportinga
21childcareprovider;
22 (7)"Personrelatedtothetaxpayer",anindividualconnectedwiththetaxpayer
23byblood,adoption,ormarriage,oranindividual,corporation,partnership,limited
24liabilitycompany,trust,orassociationcontrolledby,orunderthecontrolof,the
25taxpayerdirectly,orthroughanindividual,corporation,limitedliabilitycompany,
26partnership,trust,orassociationunderthecontrolofthetaxpayer;
27 (8)"Ruralarea",atownorcommunitywithinthestatethatisnotwithina
28metropolitanstatisticalareaandhasapopulationofsixthousandorfewerinhabitants
29asdeterminedbythelastprecedingfederaldecennialcensusoranyunincorporated
30areanotwithinametropolitanstatisticalarea;
31 (9)"Statetaxliability",anyliabilityincurredbyataxpayerpursuanttochapter
32143orchapter148,exclusiveoftheprovisionsrelatingtothewithholdingoftaxas
33providedforinsections143.191to143.265andrelatedprovisions;
34 (10)"Taxcredit",acreditagainstthetaxpayer'sstatetaxliability;
35 (11)"Taxpayer",acorporationasdefinedinsection143.441or143.471,any
36charitableorganizationthatisexemptfromfederalincometaxandwhoseMissouri
37unrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestateincometax
38imposedunderchapter143,orindividualsorpartnershipssubjecttothestateincome
39taximposedbytheprovisionsofchapter143.
40 3.ForalltaxyearsbeginningonorafterJanuary1,2025,ataxpayermayclaim
41thetaxcreditauthorizedinthissectionagainstthetaxpayer'sstatetaxliabilityforthe
42taxyearinwhichaverifiedcontributionwasmadeinanamountequaltoseventy-five
43percentoftheverifiedcontributiontoachildcareproviderorintermediary.The
44minimumamountofanytaxcreditissuedshallnotbelessthanonehundreddollarsand
45shallnotexceedtwohundredthousanddollarspertaxyear.
46 (1)Thechildcareproviderorintermediaryshallapplytothedepartmentto
47participateintheprogramestablishedinthissection,usingaformprescribedbythe
48department.Thedepartmentshalldetermineeligibilityandenterintoanagreement
49thatmeetstherequirementofsection620.017withaneligiblechildcarefacilityor
50intermediary.Onlycontributionstochildcareprovidersandintermediariesthathave
51enteredintoanagreementwiththedepartmentmayreceiveataxcreditpursuanttothis
52section.
HB1488 2 53 (2)Thechildcareproviderorintermediaryreceivingacontributionshall,
54withinsixtydaysofthedateitreceivedthecontribution,fileacontributionverification
55withthedepartmentandissueacopyofthecontributionverificationtothetaxpayer.
56Thecontributionverificationshallbeintheformestablishedbythedepartmentand
57shallincludethetaxpayer'sname,taxpayer'sstateorfederaltaxidentificationnumber
58orlastfourdigitsofthetaxpayer'sSocialSecuritynumber,amountoftaxcreditsought,
59amountordescriptionofcontribution,legalnameandaddressofthechildcareprovider
60receivingthetaxcredit,thechildcareprovider'sfederalemployeridentification
61number,thechildcareprovider'sdepartmentofelementaryandsecondaryeducation
62vendornumberorlicensenumber,thedatethechildcareproviderreceivedthe
63contributionfromthetaxpayer,andanyotherinformationrequestedbythe
64department.Thecontributionverificationshallincludeasignedattestationstating,
65inthecaseofachildcareprovider,thatthechildcareproviderwillusethecontribution
66solelytopromotechildcareand,inthecaseofanintermediary,thattheintermediary
67willdistributethecontributionandanyincomethereoninfulltooneormorechildcare
68providerswithintwoyearsofreceipt.
69 (3)Thefailureofthechildcareproviderorintermediarytotimelyissuethe
70contributionverificationtothetaxpayerorfileitwiththedepartmentshallentitlethe
71taxpayertoarefundofthecontributionfromthechildcareproviderorintermediary.
72 4.Acontribution,whetherreceivedfromthetaxpayerclaimingthetaxcredit
73pursuanttothissectionorfromanintermediary,iseligiblewhen:
74 (1)Thecontributionisuseddirectlybyachildcareprovidertopromotechild
75careforchildrentwelveyearsofageoryounger,includingbyacquiringorimproving
76childcarefacilities,equipment,orservices,staffsalaries,stafftraining,orimproving
77thequalityofchildcare;
78 (2)Thecontribution,ifmadetoanintermediary,isdistributedinfullbythe
79intermediarywithintwoyearsofreceipttooneormorechildcareprovidersforthesole
80purposeofpromotingchildcareforchildrentwelveyearsofageoryounger;
81 (3)Thecontributionismadetoachildcareproviderorintermediaryinwhich
82thetaxpayerorapersonrelatedtothetaxpayerdoesnothaveadirectfinancialinterest;
83 (4)Thecontributionmadetoanintermediaryisnotdesignatedforachildcare
84providerinwhichthetaxpayerorapersonrelatedtothetaxpayerhasadirectfinancial
85interest;and
86 (5)Thecontributionisnotmadeinexchangeforcareofachildorchildren,
87unlessthecontributionismadebyanemployerinpurchasingchildcareforthechildren
88oftheemployer'semployees.
HB1488 3 89 5.Achildcareproviderorintermediarythatusesthecontributionforan
90ineligiblepurposeshallrepaytothedepartmentthevalueofthetaxcreditforthe
91contributionamountusedforanineligiblepurpose.Anintermediarythatacceptsa
92contributionandissuesataxpayeracontributionverificationisitselfpermanently
93ineligibletoclaimorredeemataxcreditpursuanttothissection.
94 6.(1)Thetaxcreditsauthorizedbythissectionshallnotberefundableandshall
95notbetransferred,sold,orotherwiseconveyed.Anyamountofapprovedtaxcredits
96thatataxpayerisprohibitedbythissubsectionfromusingforthetaxyearinwhichthe
97creditisfirstclaimedmaybecarriedforwardtothetaxpayer'ssubsequenttaxyearfor
98uptosixsucceedingtaxyears.
99 (2)Inthecaseofataxpayerthathasorelectspass-throughtaxationpursuantto
100federalincometaxlaw,thetaxcreditsissuedpursuanttothissectionshallbe
101apportionedinproportiontotheshareofownershipofthetaxpayeronthelastdayof
102thetaxpayer'staxperiodforwhichsuchtaxcreditswillbeissued,tothefollowing:
103 (a)TheshareholdersoftheScorporation;
104 (b)Thepartnersinapartnership;or
105 (c)Themembersofalimitedliabilitycompanythathasorelectspass-through
106taxationpursuanttofederalincometaxlaw.
107 (3)Ataxpayershallnotclaimataxcreditpursuanttothissectionandatax
108creditpursuanttosection135.1325forthesamecontributionorexpenditure.
109 7.Notwithstandinganyprovisionofsubsection6ofthissectiontothecontrary,a
110taxpayerthatisexempt,under26U.S.C.Section501(c)(3),andanyamendments
111thereto,fromallorpartofthefederalincometaxshallbeeligibleforarefundofitstax
112creditissuedunderthissection,withoutregardtowhetherithasincurredanystatetax
113liability.Suchexempttaxpayermayclaimarefundofthetaxcreditonitstaxreturn
114requiredtobefiledundertheprovisionsofchapter143,exclusiveofthereturnforthe
115withholdingoftaxundersections143.191to143.265.Ifsuchexempttaxpayerisnot
116requiredtofileataxreturnundertheprovisionsofchapter143,theexempttaxpayer
117mayclaimarefundofthetaxcreditonarefundclaimformprescribedbythe
118departmentofrevenue.Thedepartmentofrevenueshallprescribesuchforms,
119instructions,andrulesasitdeemsappropriatetocarryouttheprovisionsofthis
120subsection.
121 8.(1)Theamountoftaxcreditsauthorizedpursuanttothissectionshallnot
122exceedtwentymilliondollarsforeachcalendaryear.Thedepartmentshallapprovetax
123creditapplicationsonafirst-come,first-servedbasisuntilthetaxcreditauthorization
124limitisreachedforthecalendaryear.Ataxpayershallapplytothedepartmentforthe
125childcarecontributiontaxcreditbysubmittingacopyofthecontributionverification
HB1488 4 126providedbyachildcareproviderorintermediarytosuchtaxpayer.Uponreceiptof
127suchcontributionverification,thedepartmentshallissueataxcreditcertificatetothe
128taxpayer.
129 (2)Ifthemaximumamountoftaxcreditsallowedinanycalendaryearas
130providedpursuanttosubdivision(1)ofthissubsectionisauthorized,themaximum
131amountoftaxcreditsallowedpursuanttosubdivision(1)ofthissubsectionshallbe
132increasedbyfifteenpercent,providedthatallsuchincreasesintheallowableamountof
133taxcreditsshallbereservedforcontributionsmadetochildcareproviderslocatedina
134childcaredesert.Thedirectorofthedepartmentshallpublishsuchadjustedamount.
135 9.Thetaxcreditsallowedunderthissectionshallbeconsideredadomesticand
136socialtaxcreditundersubdivision(5)ofsubsection2ofsection135.800.
137 10.Allactionandcommunicationundertakenorrequiredunderthissection
138shallbeexemptfromsection105.1500.
139 11.Thedepartmentmaypromulgaterulestoimplementandadministerthe
140provisionsofthissection.Anyruleorportionofarule,asthattermisdefinedinsection
141536.010,thatiscreatedpursuanttotheauthoritydelegatedinthissectionshallbecome
142effectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,
143ifapplicable,section536.028.Thissectionandchapter536arenonseverableandifany
144ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,to
145delaytheeffectivedate,ortodisapproveandannularulearesubsequentlyheld
146unconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
147adoptedafterAugust28,2024,shallbeinvalidandvoid.
148 12.Pursuanttosection23.253oftheMissourisunsetact:
149 (1)TheprogramauthorizedunderthissectionshallexpireonDecember31,
1502030,unlessreauthorizedbythegeneralassembly;
151 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissection
152shallautomaticallysunsetsixyearsaftertheeffectivedateofthereauthorizationofthis
153section;
154 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
155immediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthis
156sectionissunset;and
157 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
158impairthedepartmentofrevenue'sabilitytoredeemtaxcreditsauthorizedonorbefore
159thedatetheprogramauthorizedpursuanttothissectionexpiresorataxpayer'sability
160toredeemsuchtaxcredits.
135.1325.1.Thissectionshallbeknownandmaybecitedasthe"Employer
2ProvidedChildCareAssistanceTaxCreditAct".
HB1488 5 3 2.Forpurposesofthissection,thefollowingtermsshallmean:
4 (1)"Childcaredesert",acensustractthathasapovertyrateofatleasttwenty
5percentoramedianfamilyincomeoflessthaneightypercentofthestatewideaverage
6andwhereatleastfivehundredpeopleorthirty-threepercentofthepopulationare
7locatedatleastone-halfmileawayfromachildcareproviderinurbanizedareasorat
8leasttenmilesawayinruralareas;
9 (2)"Childcarefacility",achildcarefacilityasdefinedinsection210.201thatis
10licensedpursuanttosection210.221,orthatisunlicensedandthatisregisteredwiththe
11departmentofelementaryandsecondaryeducation;
12 (3)"Childcareprovider",achildcareproviderasdefinedinsection210.201
13thatislicensedpursuanttosection210.221,orthatisunlicensedandthatisregistered
14withthedepartmentofelementaryandsecondaryeducation;
15 (4)"Department",theMissouridepartmentofeconomicdevelopment;
16 (5)"Employermatchingcontribution",acontributionmadebythetaxpayerto
17acafeteriaplan,asthattermisusedin26U.S.C.Section125,ofanemployeeofthe
18taxpayer,whichmatchesadollaramountorpercentageoftheemployee'scontribution
19tothecafeteriaplan."Employermatchingcontribution"shallnotincludetheamount
20ofanysalaryreductionorothercompensationforegonebytheemployeeinconnection
21withthecafeteriaplan;
22 (6)"Qualifiedchildcareexpenditure",anamountpaidofreasonablecosts
23incurredthatmeetanyofthefollowing:
24 (a)Toacquire,construct,rehabilitate,orexpandpropertythatwillbe,oris,
25usedaspartofachildcarefacilitythatiseitheroperatedbythetaxpayerorcontracted
26withbythetaxpayerandwhichdoesnotconstitutepartoftheprincipalresidenceofthe
27taxpayeroranyemployeeofthetaxpayer;
28 (b)Fortheoperatingcostsofachildcarefacilityofthetaxpayer,includingcosts
29relatingtothetrainingofchildcareemployees,scholarshipprograms,andfor
30compensationtochildcareemployees;or
31 (c)Underacontractwithachildcarefacilitytoprovidechildcareservicesto
32employeesofthetaxpayer;or
33 (d)Asanemployermatchingcontribution,butonlytotheextentsuchemployer
34matchingcontributionisrestrictedbythetaxpayersolelyforthetaxpayer'semployeeto
35obtainchildcareservicesatachildcarefacilityandisusedforthatpurposeduringthe
36taxyear;
37 (7)"Ruralarea",atownorcommunitywithinthestatethatisnotwithina
38metropolitanstatisticalareaandhasapopulationofsixthousandorfewerinhabitants
HB1488 6 39asdeterminedbythelastprecedingfederaldecennialcensusoranyunincorporated
40areanotwithinametropolitanstatisticalarea;
41 (8)"Statetaxliability",anyliabilityincurredbythetaxpayerpursuanttothe
42provisionsofchapter143orchapter148,exclusiveoftheprovisionsrelatingtothe
43withholdingoftaxasprovidedforinsections143.191to143.265andrelatedprovisions;
44 (9)"Taxcredit",acreditagainstthetaxpayer'sstatetaxliability;
45 (10)"Taxpayer",acorporationasdefinedinsection143.441or143.471,any
46charitableorganizationthatisexemptfromfederalincometaxandwhoseMissouri
47unrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestateincometax
48imposedunderchapter143,orindividualsorpartnershipssubjecttothestateincome
49taximposedbytheprovisionsofchapter143.
50 3.ForalltaxyearsbeginningonorafterJanuary1,2025,ataxpayerwithtwoor
51moreemployeesmayclaimataxcreditauthorizedinthissectioninanamountequalto
52thirtypercentofthequalifiedchildcareexpenditurespaidorincurredwithrespecttoa
53childcarefacilityinordertoprovidechildcaretothetaxpayer'semployees.The
54maximumamountofanytaxcreditissuedunderthissectionshallnotexceedtwo
55hundredthousanddollarspertaxpayerpertaxyear.
56 4.Afacilityshallnotbetreatedasachildcarefacilitywithrespecttoataxpayer
57unlessenrollmentinthefacilityisopentothedependentsofemployeesofthetaxpayer
58duringthetaxyear,providedthatthedependentsfallwithintheagerangeordinarily
59caredforby,andonlyrequirealevelofcareordinarilyprovidedby,suchfacility.
60 5.(1)Thetaxcreditsauthorizedbythissectionshallnotberefundableor
61transferable.Thetaxcreditsshallnotbesold,assigned,orotherwiseconveyed.Any
62amountofapprovedtaxcreditsthatataxpayerisprohibitedbythissubsectionfrom
63usingforthetaxyearinwhichthecreditisfirstclaimedmaybecarriedforwardtothe
64taxpayer'ssubsequenttaxyearforuptosixsucceedingtaxyears.
65 (2)Inthecaseofataxpayerthathasorelectspass-throughtaxationpursuantto
66federalincometaxlaw,thetaxcreditsissuedpursuanttothissectionshallbe
67apportionedinproportiontotheshareofownershipofthetaxpayeronthelastdayof
68thetaxpayer'staxperiodforwhichsuchtaxcreditswillbeissued,tothefollowing:
69 (a)TheshareholdersoftheScorporation;
70 (b)Thepartnersinapartnership;or
71 (c)Themembersofalimitedliabilitycompanythathasorelectspass-through
72taxationpursuanttofederalincometaxlaw.
73 (3)Ataxpayershallnotclaimataxcreditpursuanttothissectionandatax
74creditpursuanttosection135.1310or135.1350forthesamecontributionor
75expenditure.
HB1488 7 76 6.Notwithstandinganyprovisionofsubsection5ofthissectiontothecontrary,a
77taxpayerthatisexempt,under26U.S.C.Section501(c)(3),andanyamendments
78thereto,fromallorpartofthefederalincometaxshallbeeligibleforarefundofitstax
79creditissuedunderthissection,withoutregardtowhetherithasincurredanystatetax
80liability.Suchexempttaxpayermayclaimarefundofthetaxcreditonitstaxreturn
81requiredtobefiledundertheprovisionsofchapter143,exclusiveofthereturnforthe
82withholdingoftaxundersections143.191to143.265.Ifsuchexempttaxpayerisnot
83requiredtofileataxreturnundertheprovisionsofchapter143,theexempttaxpayer
84mayclaimarefundofthetaxcreditonarefundclaimformprescribedbythe
85departmentofrevenue.Thedepartmentofrevenueshallprescribesuchforms,
86instructions,andrulesasitdeemsappropriatetocarryouttheprovisionsofthis
87subsection.
88 7.(1)Theamountoftaxcreditsauthorizedpursuanttothissectionshallnot
89exceedtwentymilliondollarsforeachcalendaryear.Thedepartmentshallapprovetax
90creditapplicationsonafirst-come,first-servedbasisuntilthetaxcreditauthorization
91limitisreachedforthecalendaryear.
92 (2)Ifthemaximumamountoftaxcreditsallowedinanycalendaryearas
93providedpursuanttosubdivision(1)ofthissubsectionisauthorized,themaximum
94amountoftaxcreditsallowedpursuanttosubdivision(1)ofthissubsectionshallbe
95increasedbyfifteenpercent,providedthatallsuchincreasesintheallowableamountof
96taxcreditsshallbereservedforqualifiedchildcareexpendituresforchildcarefacilities
97locatedinachildcaredesert.Thedirectorofthedepartmentshallpublishsuch
98adjustedamount.
99 8.Ataxpayerwhohasbeenissuedataxcreditunderthissectionshallnotifythe
100departmentwithinsixtydaysofanycessationofoperation,changeinownership,or
101agreementtoassumerecaptureliabilityassuchtermsaredefinedby26U.S.C.Section
10245F,intheformandmannerprescribedbydepartmentruleorinstruction.Ifthereisa
103cessationofoperationorchangeinownershiprelatingtoachildcarefacility,the
104departmentmayrequirethetaxpayertorepaythedepartmentanamountequaltothe
105creditissuedunderthissection,butthisrecaptureamountshallbelimitedtothetax
106creditallowedunderthissection.Therecaptureamountshallbeconsideredatax
107liabilityarisingonthetaxpaymentduedateforthetaxyearinwhichthecessationof
108operation,changeinownership,oragreementtoassumerecaptureliabilityoccurred
109andshallbeassessedandcollectedunderthesameprovisionsthatapplytoataxliability
110underchapter143orchapter148,providedthatnointerestshallbeassessedagainstany
111amountsrecapturedpursuanttothissubsection.
HB1488 8 112 9.Thetaxcreditallowedpursuanttothissectionshallbeconsideredadomestic
113andsocialtaxcreditundersubdivision(5)ofsubsection2ofsection135.800.
114 10.Allactionandcommunicationundertakenorrequiredunderthissection
115shallbeexemptfromtheprovisionsofsection105.1500.
116 11.Thedepartmentmaypromulgaterulestoimplementandadministerthe
117provisionsofthissection.Anyruleorportionofarule,asthattermisdefinedinsection
118536.010,thatiscreatedpursuanttotheauthoritydelegatedinthissectionshallbecome
119effectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,
120ifapplicable,section536.028.Thissectionandchapter536arenonseverableandifany
121ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,to
122delaytheeffectivedate,ortodisapproveandannularulearesubsequentlyheld
123unconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
124adoptedafterAugust28,2024,shallbeinvalidandvoid.
125 12.Pursuanttosection23.253oftheMissourisunsetact:
126 (1)TheprogramauthorizedunderthisactshallexpireonDecember31,2030,
127unlessreauthorizedbythegeneralassembly;
128 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthisactshall
129automaticallysunsetsixyearsaftertheeffectivedateofthereauthorizationofthis
130section;
131 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
132immediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthis
133sectionissunset;and
134 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
135impairthedepartmentofrevenue'sabilitytoredeemtaxcreditsauthorizedonorbefore
136thedatetheprogramauthorizedpursuanttothissectionexpiresorataxpayer'sability
137toredeemsuchtaxcredits.
135.1350.1.Thissectionshallbeknownandmaybecitedasthe"ChildCare
2ProvidersTaxCreditAct".
3 2.Forpurposesofthissection,thefollowingtermsshallmean:
4 (1)"Capitalexpenditures",expensesincurredbyachildcareprovider,during
5thetaxyearforwhichataxcreditisclaimedpursuanttothissection,forthe
6construction,renovation,orrehabilitationofachildcarefacilitytotheextentnecessary
7tooperateachildcarefacilityandcomplywithapplicablechildcarefacilityregulations
8promulgatedbythedepartmentofelementaryandsecondaryeducation;
9 (2)"Childcaredesert",acensustractthathasapovertyrateofatleasttwenty
10percentoramedianfamilyincomeoflessthaneightypercentofthestatewideaverage
11andwhereatleastfivehundredpeopleorthirty-threepercentofthepopulationare
HB1488 9 12locatedatleastone-halfmileawayfromachildcareproviderinurbanizedareasorat
13leasttenmilesawayinruralareas;
14 (3)"Childcarefacility",achildcarefacilityasdefinedinsection210.201thatis
15licensedpursuanttosection210.221,orthatisunlicensedandthatisregisteredwiththe
16departmentofelementaryandsecondaryeducation;
17 (4)"Childcareprovider",achildcareproviderasdefinedinsection210.201
18thatislicensedpursuanttosection210.221,orthatisunlicensedandthatisregistered
19withthedepartmentofelementaryandsecondaryeducation;
20 (5)"Department",thedepartmentofelementaryandsecondaryeducation;
21 (6)"Eligibleemployerwithholdingtax",thetotalamountoftaxthatthechild
22careproviderwasrequired,undersection143.191,todeductandwithholdfromthe
23wagesitpaidtoemployeesduringthetaxyearforwhichthechildcareprovideris
24claimingataxcreditpursuanttothissection,totheextentactuallypaid."Eligible
25employerwithholdingtax"shallnotincludeanyadditionalvoluntarywithholding
26requestedbyanemployee;
27 (7)"Employee",anemployee,asthattermisusedinsubsection2ofsection
28143.191,ofachildcareproviderwhoworkedforthechildcareproviderforanaverage
29ofatleasttenhoursperweekforatleastathree-monthperiodduringthetaxyearfor
30whichataxcreditisclaimedpursuanttothissectionandwhoisnotanimmediate
31familymemberofthechildcareprovider;
32 (8)"Ruralarea",atownorcommunitywithinthestatethatisnotwithina
33metropolitanstatisticalareaandhasapopulationofsixthousandorfewerinhabitants
34asdeterminedbythelastprecedingfederaldecennialcensusoranyunincorporated
35areanotwithinametropolitanstatisticalarea;
36 (9)"Statetaxliability",anyliabilityincurredbythetaxpayerpursuanttothe
37provisionsofchapter143,exclusiveoftheprovisionsrelatingtothewithholdingoftax
38asprovidedforinsections143.191to143.265andrelatedprovisions;
39 (10)"Taxcredit",acreditagainstthetaxpayer'sstatetaxliability;
40 (11)"Taxpayer",acorporationasdefinedinsection143.441or143.471,any
41charitableorganizationthatisexemptfromfederalincometaxandwhoseMissouri
42unrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestateincometax
43imposedunderchapter143,oranindividualorpartnershipsubjecttothestateincome
44taximposedbytheprovisionsofchapter143.
45 3.ForalltaxyearsbeginningonorafterJanuary1,2025,achildcareprovider
46withthreeormoreemployeesmayclaimataxcreditauthorizedinthissectioninan
47amountequaltothechildcareprovider'seligibleemployerwithholdingtax,andmay
48alsoclaimataxcreditinanamountuptothirtypercentofthechildcareprovider's
HB1488 10 49capitalexpenditures.Notaxcreditforcapitalexpendituresshallbeallowedifthe
50capitalexpendituresarelessthanonethousanddollars.Theamountofanytaxcredit
51issuedunderthissectionshallnotexceedtwohundredthousanddollarsperchildcare
52providerpertaxyear.
53 4.Toclaimataxcreditauthorizedpursuanttothissection,achildcareprovider
54shallsubmittothedepartment,forpreliminaryapproval,anapplicationforthetax
55creditonaformprovidedbythedepartmentandatsuchtimesasthedepartmentmay
56require.Ifthechildcareproviderisapplyingforataxcreditforcapitalexpenditures,
57thechildcareprovidershallpresentproofacceptabletothedepartmentthatthechild
58careprovider'scapitalexpendituressatisfytherequirementsofsubdivision(1)of
59subsection2ofthissection.Uponfinalapprovalofanapplication,thedepartmentshall
60issuethechildcareprovideracertificateoftaxcredit.
61 5.(1)Thetaxcreditsauthorizedbythissectionshallnotberefundableandshall
62notbetransferred,sold,assigned,orotherwiseconveyed.Anyamountofcreditthat
63exceedsthechildcareprovider'sstatetaxliabilityforthetaxyearforwhichthetax
64creditisissuedmaybecarriedforwardtothechildcareprovider'ssubsequenttaxyear
65foruptosixsucceedingtaxyears.
66 (2)Inthecaseofataxpayerthathasorelectspass-throughtaxationpursuantto
67federalincometaxlaw,thetaxcreditsissuedpursuanttothissectionshallbe
68apportionedinproportiontotheshareofownershipofthetaxpayeronthelastdayof
69thetaxpayer'staxperiodforwhichsuchtaxcreditswillbeissued,tothefollowing:
70 (a)TheshareholdersoftheScorporation;
71 (b)Thepartnersinapartnership;or
72 (c)Themembersofalimitedliabilitycompanythathasorelectspass-through
73taxationpursuanttofederalincometaxlaw.
74 (3)Ataxpayershallnotclaimataxcreditpursuanttothissectionandatax
75creditpursuanttosection135.1325forthesamecontributionorexpenditure.
76 6.Notwithstandinganyprovisionofsubsection5ofthissectiontothecontrary,a
77childcareproviderthatisexempt,under26U.S.C.Section501(c)(3),andany
78amendmentsthereto,fromallorpartofthefederalincometaxshallbeeligiblefora
79refundofitstaxcreditissuedunderthissection,withoutregardtowhetherithas
80incurredanystatetaxliability.Suchexemptchildcareprovidermayclaimarefundof
81thetaxcreditonitstaxreturnrequiredtobefiledundertheprovisionsofchapter143,
82exclusiveofthereturnforthewithholdingoftaxundersections143.191to143.265.If
83suchexemptchildcareproviderisnotrequiredtofileataxreturnundertheprovisions
84ofchapter143,theexemptchildcareprovidermayclaimarefundofthetaxcreditona
85refundclaimformprescribedbythedepartmentofrevenue.Thedepartmentof
HB1488 11 86revenueshallprescribesuchforms,instructions,andrulesasitdeemsappropriateto
87carryouttheprovisionsofthissubsection.
88 7.(1)Theamountoftaxcreditsauthorizedpursuanttothissectionshallnot
89exceedtwentymilliondollarsforeachcalendaryear.Thedepartmentshallapprovetax
90creditapplicationsonafirst-come,first-servedbasisuntilthetaxcreditauthorization
91limitisreachedforthecalendaryear.
92 (2)Ifthemaximumamountoftaxcreditsallowedinanycalendaryearas
93providedpursuanttosubdivision(1)ofthissubsectionisauthorized,themaximum
94amountoftaxcreditsallowedpursuanttosubdivision(1)ofthissubsectionshallbe
95increasedbyfifteenpercent,providedthatallsuchincreasesintheallowableamountof
96taxcreditsshallbereservedforchildcareproviderslocatedinachildcaredesert.The
97directorofthedepartmentshallpublishsuchadjustedamount.
98 8.Thetaxcreditauthorizedbythissectionshallbeconsideredadomesticand
99socialtaxcreditundersubdivision(5)ofsubsection2ofsection135.800.
100 9.Allactionandcommunicationundertakenorrequiredwithrespecttothis
101sectionshallbeexemptfromtheprovisionsofsection105.1500.Notwithstandingsection
10232.057oranyothertaxconfidentialitylawtothecontrary,thedepartmentofrevenue
103maydisclosetaxinformationtothedepartmentforthepurposeoftheverificationofa
104childcareprovider'seligibleemployerwithholdingtaxunderthissection.
105 10.Thedepartmentmaypromulgaterulesandadoptstatementsofpolicy,
106procedures,forms,andguidelinestoimplementandadministertheprovisionsofthis
107section.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
108createdpursuanttotheauthoritydelegatedinthissectionshallbecomeeffectiveonlyif
109itcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
110section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
111vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
112effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
113thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
11428,2024,shallbeinvalidandvoid.
115 11.Pursuanttosection23.253oftheMissourisunsetact:
116 (1)TheprogramauthorizedunderthissectionshallexpireonDecember31,
1172030,unlessreauthorizedbythegeneralassembly;
118 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissection
119shallautomaticallysunsetsixyearsaftertheeffectivedateofthereauthorizationofthis
120section;
HB1488 12 121 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
122immediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthis
123sectionissunset;and
124 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
125impairthedepartmentofrevenue'sabilitytoredeemtaxcreditsauthorizedonorbefore
126thedatetheprogramauthorizedpursuanttothissectionexpiresorataxpayer'sability
127toredeemsuchtaxcredits.
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