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Missouri House Bill HB1488

Missouri 2024 Regular Session

Missouri House Bill HB1488 Compare Versions

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11 SECONDREGULARSESSION
2-[PERFECTED]
32 HOUSEBILLNO.1488
43 102NDGENERALASSEMBLY
54 INTRODUCEDBYREPRESENTATIVESHIELDS.
6-4055H.01P DANARADEMANMILLER,ChiefClerk
5+4055H.01I DANARADEMANMILLER,ChiefClerk
76 ANACT
87 Toamendchapter135,RSMo,byaddingtheretothreenewsectionsrelatingtotaxcreditsfor
98 childcare.
109 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
1110 SectionA.Chapter135,RSMo,isamendedbyaddingtheretothreenewsections,to
1211 2beknownassections135.1310,135.1325,and135.1350,toreadasfollows:
1312 135.1310.1.Thissectionshallbeknownandmaybecitedasthe"ChildCare
1413 2ContributionTaxCreditAct".
1514 3 2.Forpurposesofthissection,thefollowingtermsshallmean:
1615 4 (1)"Childcare",thesameasdefinedinsection210.201;
1716 5 (2)"Childcaredesert",acensustractthathasapovertyrateofatleasttwenty
1817 6percentoramedianfamilyincomeoflessthaneightypercentofthestatewideaverage
1918 7andwhereatleastfivehundredpeopleorthirty-threepercentofthepopulationare
2019 8locatedatleastone-halfmileawayfromachildcareproviderinurbanizedareasorat
2120 9leasttenmilesawayinruralareas;
2221 10 (3)"Childcareprovider",achildcareproviderasdefinedinsection210.201
2322 11thatislicensedpursuanttosection210.221,orthatisunlicensedandthatisregistered
2423 12withthedepartmentofelementaryandsecondaryeducation;
2524 13 (4)"Contribution",aneligibledonationofcash,stock,bondsorother
2625 14marketablesecurities,orrealproperty."Contribution"shallincludethereasonable
2726 15purchasepricepaidforanemployer'spurchaseofchildcarefromachildcareprovider
2827 16forthechildrenoftheemployer'semployees;
28+17 (5)"Department",theMissouridepartmentofeconomicdevelopment;
2929 EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
30-intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (5)"Department",theMissouridepartmentofeconomicdevelopment;
31-18 (6)"Intermediary",anonprofitorganizationthatis,oragreestobecome,
30+intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (6)"Intermediary",anonprofitorganizationthatis,oragreestobecome,
3231 19subjecttothejurisdictionofthisstateforthepurposesoftheadministrationand
3332 20enforcementofthissection,andthatdistributesfundsforthepurposesofsupportinga
3433 21childcareprovider;
3534 22 (7)"Personrelatedtothetaxpayer",anindividualconnectedwiththetaxpayer
3635 23byblood,adoption,ormarriage,oranindividual,corporation,partnership,limited
3736 24liabilitycompany,trust,orassociationcontrolledby,orunderthecontrolof,the
3837 25taxpayerdirectly,orthroughanindividual,corporation,limitedliabilitycompany,
3938 26partnership,trust,orassociationunderthecontrolofthetaxpayer;
4039 27 (8)"Ruralarea",atownorcommunitywithinthestatethatisnotwithina
4140 28metropolitanstatisticalareaandhasapopulationofsixthousandorfewerinhabitants
4241 29asdeterminedbythelastprecedingfederaldecennialcensusoranyunincorporated
4342 30areanotwithinametropolitanstatisticalarea;
4443 31 (9)"Statetaxliability",anyliabilityincurredbyataxpayerpursuanttochapter
4544 32143orchapter148,exclusiveoftheprovisionsrelatingtothewithholdingoftaxas
4645 33providedforinsections143.191to143.265andrelatedprovisions;
4746 34 (10)"Taxcredit",acreditagainstthetaxpayer'sstatetaxliability;
4847 35 (11)"Taxpayer",acorporationasdefinedinsection143.441or143.471,any
4948 36charitableorganizationthatisexemptfromfederalincometaxandwhoseMissouri
5049 37unrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestateincometax
5150 38imposedunderchapter143,orindividualsorpartnershipssubjecttothestateincome
5251 39taximposedbytheprovisionsofchapter143.
5352 40 3.ForalltaxyearsbeginningonorafterJanuary1,2025,ataxpayermayclaim
5453 41thetaxcreditauthorizedinthissectionagainstthetaxpayer'sstatetaxliabilityforthe
5554 42taxyearinwhichaverifiedcontributionwasmadeinanamountequaltoseventy-five
5655 43percentoftheverifiedcontributiontoachildcareproviderorintermediary.The
5756 44minimumamountofanytaxcreditissuedshallnotbelessthanonehundreddollarsand
5857 45shallnotexceedtwohundredthousanddollarspertaxyear.
5958 46 (1)Thechildcareproviderorintermediaryshallapplytothedepartmentto
6059 47participateintheprogramestablishedinthissection,usingaformprescribedbythe
6160 48department.Thedepartmentshalldetermineeligibilityandenterintoanagreement
6261 49thatmeetstherequirementofsection620.017withaneligiblechildcarefacilityor
6362 50intermediary.Onlycontributionstochildcareprovidersandintermediariesthathave
6463 51enteredintoanagreementwiththedepartmentmayreceiveataxcreditpursuanttothis
6564 52section.
66-HB1488 2 53 (2)Thechildcareproviderorintermediaryreceivingacontributionshall,
65+53 (2)Thechildcareproviderorintermediaryreceivingacontributionshall,
6766 54withinsixtydaysofthedateitreceivedthecontribution,fileacontributionverification
68-55withthedepartmentandissueacopyofthecontributionverificationtothetaxpayer.
67+HB1488 2 55withthedepartmentandissueacopyofthecontributionverificationtothetaxpayer.
6968 56Thecontributionverificationshallbeintheformestablishedbythedepartmentand
7069 57shallincludethetaxpayer'sname,taxpayer'sstateorfederaltaxidentificationnumber
7170 58orlastfourdigitsofthetaxpayer'sSocialSecuritynumber,amountoftaxcreditsought,
7271 59amountordescriptionofcontribution,legalnameandaddressofthechildcareprovider
7372 60receivingthetaxcredit,thechildcareprovider'sfederalemployeridentification
7473 61number,thechildcareprovider'sdepartmentofelementaryandsecondaryeducation
7574 62vendornumberorlicensenumber,thedatethechildcareproviderreceivedthe
7675 63contributionfromthetaxpayer,andanyotherinformationrequestedbythe
7776 64department.Thecontributionverificationshallincludeasignedattestationstating,
7877 65inthecaseofachildcareprovider,thatthechildcareproviderwillusethecontribution
7978 66solelytopromotechildcareand,inthecaseofanintermediary,thattheintermediary
8079 67willdistributethecontributionandanyincomethereoninfulltooneormorechildcare
8180 68providerswithintwoyearsofreceipt.
8281 69 (3)Thefailureofthechildcareproviderorintermediarytotimelyissuethe
8382 70contributionverificationtothetaxpayerorfileitwiththedepartmentshallentitlethe
8483 71taxpayertoarefundofthecontributionfromthechildcareproviderorintermediary.
8584 72 4.Acontribution,whetherreceivedfromthetaxpayerclaimingthetaxcredit
8685 73pursuanttothissectionorfromanintermediary,iseligiblewhen:
8786 74 (1)Thecontributionisuseddirectlybyachildcareprovidertopromotechild
8887 75careforchildrentwelveyearsofageoryounger,includingbyacquiringorimproving
8988 76childcarefacilities,equipment,orservices,staffsalaries,stafftraining,orimproving
9089 77thequalityofchildcare;
9190 78 (2)Thecontribution,ifmadetoanintermediary,isdistributedinfullbythe
9291 79intermediarywithintwoyearsofreceipttooneormorechildcareprovidersforthesole
9392 80purposeofpromotingchildcareforchildrentwelveyearsofageoryounger;
9493 81 (3)Thecontributionismadetoachildcareproviderorintermediaryinwhich
9594 82thetaxpayerorapersonrelatedtothetaxpayerdoesnothaveadirectfinancialinterest;
9695 83 (4)Thecontributionmadetoanintermediaryisnotdesignatedforachildcare
9796 84providerinwhichthetaxpayerorapersonrelatedtothetaxpayerhasadirectfinancial
9897 85interest;and
9998 86 (5)Thecontributionisnotmadeinexchangeforcareofachildorchildren,
10099 87unlessthecontributionismadebyanemployerinpurchasingchildcareforthechildren
101100 88oftheemployer'semployees.
102-HB1488 3 89 5.Achildcareproviderorintermediarythatusesthecontributionforan
101+89 5.Achildcareproviderorintermediarythatusesthecontributionforan
103102 90ineligiblepurposeshallrepaytothedepartmentthevalueofthetaxcreditforthe
104103 91contributionamountusedforanineligiblepurpose.Anintermediarythatacceptsa
105-92contributionandissuesataxpayeracontributionverificationisitselfpermanently
104+HB1488 3 92contributionandissuesataxpayeracontributionverificationisitselfpermanently
106105 93ineligibletoclaimorredeemataxcreditpursuanttothissection.
107106 94 6.(1)Thetaxcreditsauthorizedbythissectionshallnotberefundableandshall
108107 95notbetransferred,sold,orotherwiseconveyed.Anyamountofapprovedtaxcredits
109108 96thatataxpayerisprohibitedbythissubsectionfromusingforthetaxyearinwhichthe
110109 97creditisfirstclaimedmaybecarriedforwardtothetaxpayer'ssubsequenttaxyearfor
111110 98uptosixsucceedingtaxyears.
112111 99 (2)Inthecaseofataxpayerthathasorelectspass-throughtaxationpursuantto
113112 100federalincometaxlaw,thetaxcreditsissuedpursuanttothissectionshallbe
114113 101apportionedinproportiontotheshareofownershipofthetaxpayeronthelastdayof
115114 102thetaxpayer'staxperiodforwhichsuchtaxcreditswillbeissued,tothefollowing:
116115 103 (a)TheshareholdersoftheScorporation;
117116 104 (b)Thepartnersinapartnership;or
118117 105 (c)Themembersofalimitedliabilitycompanythathasorelectspass-through
119118 106taxationpursuanttofederalincometaxlaw.
120119 107 (3)Ataxpayershallnotclaimataxcreditpursuanttothissectionandatax
121120 108creditpursuanttosection135.1325forthesamecontributionorexpenditure.
122121 109 7.Notwithstandinganyprovisionofsubsection6ofthissectiontothecontrary,a
123122 110taxpayerthatisexempt,under26U.S.C.Section501(c)(3),andanyamendments
124123 111thereto,fromallorpartofthefederalincometaxshallbeeligibleforarefundofitstax
125124 112creditissuedunderthissection,withoutregardtowhetherithasincurredanystatetax
126125 113liability.Suchexempttaxpayermayclaimarefundofthetaxcreditonitstaxreturn
127126 114requiredtobefiledundertheprovisionsofchapter143,exclusiveofthereturnforthe
128127 115withholdingoftaxundersections143.191to143.265.Ifsuchexempttaxpayerisnot
129128 116requiredtofileataxreturnundertheprovisionsofchapter143,theexempttaxpayer
130129 117mayclaimarefundofthetaxcreditonarefundclaimformprescribedbythe
131130 118departmentofrevenue.Thedepartmentofrevenueshallprescribesuchforms,
132131 119instructions,andrulesasitdeemsappropriatetocarryouttheprovisionsofthis
133132 120subsection.
134133 121 8.(1)Theamountoftaxcreditsauthorizedpursuanttothissectionshallnot
135134 122exceedtwentymilliondollarsforeachcalendaryear.Thedepartmentshallapprovetax
136135 123creditapplicationsonafirst-come,first-servedbasisuntilthetaxcreditauthorization
137136 124limitisreachedforthecalendaryear.Ataxpayershallapplytothedepartmentforthe
138137 125childcarecontributiontaxcreditbysubmittingacopyofthecontributionverification
139-HB1488 4 126providedbyachildcareproviderorintermediarytosuchtaxpayer.Uponreceiptof
138+126providedbyachildcareproviderorintermediarytosuchtaxpayer.Uponreceiptof
140139 127suchcontributionverification,thedepartmentshallissueataxcreditcertificatetothe
141140 128taxpayer.
142-129 (2)Ifthemaximumamountoftaxcreditsallowedinanycalendaryearas
141+HB1488 4 129 (2)Ifthemaximumamountoftaxcreditsallowedinanycalendaryearas
143142 130providedpursuanttosubdivision(1)ofthissubsectionisauthorized,themaximum
144143 131amountoftaxcreditsallowedpursuanttosubdivision(1)ofthissubsectionshallbe
145144 132increasedbyfifteenpercent,providedthatallsuchincreasesintheallowableamountof
146145 133taxcreditsshallbereservedforcontributionsmadetochildcareproviderslocatedina
147146 134childcaredesert.Thedirectorofthedepartmentshallpublishsuchadjustedamount.
148147 135 9.Thetaxcreditsallowedunderthissectionshallbeconsideredadomesticand
149148 136socialtaxcreditundersubdivision(5)ofsubsection2ofsection135.800.
150149 137 10.Allactionandcommunicationundertakenorrequiredunderthissection
151150 138shallbeexemptfromsection105.1500.
152151 139 11.Thedepartmentmaypromulgaterulestoimplementandadministerthe
153152 140provisionsofthissection.Anyruleorportionofarule,asthattermisdefinedinsection
154153 141536.010,thatiscreatedpursuanttotheauthoritydelegatedinthissectionshallbecome
155154 142effectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,
156155 143ifapplicable,section536.028.Thissectionandchapter536arenonseverableandifany
157156 144ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,to
158157 145delaytheeffectivedate,ortodisapproveandannularulearesubsequentlyheld
159158 146unconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
160159 147adoptedafterAugust28,2024,shallbeinvalidandvoid.
161160 148 12.Pursuanttosection23.253oftheMissourisunsetact:
162161 149 (1)TheprogramauthorizedunderthissectionshallexpireonDecember31,
163162 1502030,unlessreauthorizedbythegeneralassembly;
164163 151 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissection
165164 152shallautomaticallysunsetsixyearsaftertheeffectivedateofthereauthorizationofthis
166165 153section;
167166 154 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
168167 155immediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthis
169168 156sectionissunset;and
170169 157 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
171170 158impairthedepartmentofrevenue'sabilitytoredeemtaxcreditsauthorizedonorbefore
172171 159thedatetheprogramauthorizedpursuanttothissectionexpiresorataxpayer'sability
173172 160toredeemsuchtaxcredits.
174173 135.1325.1.Thissectionshallbeknownandmaybecitedasthe"Employer
175174 2ProvidedChildCareAssistanceTaxCreditAct".
176-HB1488 5 3 2.Forpurposesofthissection,thefollowingtermsshallmean:
175+3 2.Forpurposesofthissection,thefollowingtermsshallmean:
177176 4 (1)"Childcaredesert",acensustractthathasapovertyrateofatleasttwenty
178177 5percentoramedianfamilyincomeoflessthaneightypercentofthestatewideaverage
179-6andwhereatleastfivehundredpeopleorthirty-threepercentofthepopulationare
178+HB1488 5 6andwhereatleastfivehundredpeopleorthirty-threepercentofthepopulationare
180179 7locatedatleastone-halfmileawayfromachildcareproviderinurbanizedareasorat
181180 8leasttenmilesawayinruralareas;
182181 9 (2)"Childcarefacility",achildcarefacilityasdefinedinsection210.201thatis
183182 10licensedpursuanttosection210.221,orthatisunlicensedandthatisregisteredwiththe
184183 11departmentofelementaryandsecondaryeducation;
185184 12 (3)"Childcareprovider",achildcareproviderasdefinedinsection210.201
186185 13thatislicensedpursuanttosection210.221,orthatisunlicensedandthatisregistered
187186 14withthedepartmentofelementaryandsecondaryeducation;
188187 15 (4)"Department",theMissouridepartmentofeconomicdevelopment;
189188 16 (5)"Employermatchingcontribution",acontributionmadebythetaxpayerto
190189 17acafeteriaplan,asthattermisusedin26U.S.C.Section125,ofanemployeeofthe
191190 18taxpayer,whichmatchesadollaramountorpercentageoftheemployee'scontribution
192191 19tothecafeteriaplan."Employermatchingcontribution"shallnotincludetheamount
193192 20ofanysalaryreductionorothercompensationforegonebytheemployeeinconnection
194193 21withthecafeteriaplan;
195194 22 (6)"Qualifiedchildcareexpenditure",anamountpaidofreasonablecosts
196195 23incurredthatmeetanyofthefollowing:
197196 24 (a)Toacquire,construct,rehabilitate,orexpandpropertythatwillbe,oris,
198197 25usedaspartofachildcarefacilitythatiseitheroperatedbythetaxpayerorcontracted
199198 26withbythetaxpayerandwhichdoesnotconstitutepartoftheprincipalresidenceofthe
200199 27taxpayeroranyemployeeofthetaxpayer;
201200 28 (b)Fortheoperatingcostsofachildcarefacilityofthetaxpayer,includingcosts
202201 29relatingtothetrainingofchildcareemployees,scholarshipprograms,andfor
203202 30compensationtochildcareemployees;or
204203 31 (c)Underacontractwithachildcarefacilitytoprovidechildcareservicesto
205204 32employeesofthetaxpayer;or
206205 33 (d)Asanemployermatchingcontribution,butonlytotheextentsuchemployer
207206 34matchingcontributionisrestrictedbythetaxpayersolelyforthetaxpayer'semployeeto
208207 35obtainchildcareservicesatachildcarefacilityandisusedforthatpurposeduringthe
209208 36taxyear;
210209 37 (7)"Ruralarea",atownorcommunitywithinthestatethatisnotwithina
211210 38metropolitanstatisticalareaandhasapopulationofsixthousandorfewerinhabitants
212-HB1488 6 39asdeterminedbythelastprecedingfederaldecennialcensusoranyunincorporated
211+39asdeterminedbythelastprecedingfederaldecennialcensusoranyunincorporated
213212 40areanotwithinametropolitanstatisticalarea;
214-41 (8)"Statetaxliability",anyliabilityincurredbythetaxpayerpursuanttothe
213+HB1488 6 41 (8)"Statetaxliability",anyliabilityincurredbythetaxpayerpursuanttothe
215214 42provisionsofchapter143orchapter148,exclusiveoftheprovisionsrelatingtothe
216215 43withholdingoftaxasprovidedforinsections143.191to143.265andrelatedprovisions;
217216 44 (9)"Taxcredit",acreditagainstthetaxpayer'sstatetaxliability;
218217 45 (10)"Taxpayer",acorporationasdefinedinsection143.441or143.471,any
219218 46charitableorganizationthatisexemptfromfederalincometaxandwhoseMissouri
220219 47unrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestateincometax
221220 48imposedunderchapter143,orindividualsorpartnershipssubjecttothestateincome
222221 49taximposedbytheprovisionsofchapter143.
223222 50 3.ForalltaxyearsbeginningonorafterJanuary1,2025,ataxpayerwithtwoor
224223 51moreemployeesmayclaimataxcreditauthorizedinthissectioninanamountequalto
225224 52thirtypercentofthequalifiedchildcareexpenditurespaidorincurredwithrespecttoa
226225 53childcarefacilityinordertoprovidechildcaretothetaxpayer'semployees.The
227226 54maximumamountofanytaxcreditissuedunderthissectionshallnotexceedtwo
228227 55hundredthousanddollarspertaxpayerpertaxyear.
229228 56 4.Afacilityshallnotbetreatedasachildcarefacilitywithrespecttoataxpayer
230229 57unlessenrollmentinthefacilityisopentothedependentsofemployeesofthetaxpayer
231230 58duringthetaxyear,providedthatthedependentsfallwithintheagerangeordinarily
232231 59caredforby,andonlyrequirealevelofcareordinarilyprovidedby,suchfacility.
233232 60 5.(1)Thetaxcreditsauthorizedbythissectionshallnotberefundableor
234233 61transferable.Thetaxcreditsshallnotbesold,assigned,orotherwiseconveyed.Any
235234 62amountofapprovedtaxcreditsthatataxpayerisprohibitedbythissubsectionfrom
236235 63usingforthetaxyearinwhichthecreditisfirstclaimedmaybecarriedforwardtothe
237236 64taxpayer'ssubsequenttaxyearforuptosixsucceedingtaxyears.
238237 65 (2)Inthecaseofataxpayerthathasorelectspass-throughtaxationpursuantto
239238 66federalincometaxlaw,thetaxcreditsissuedpursuanttothissectionshallbe
240239 67apportionedinproportiontotheshareofownershipofthetaxpayeronthelastdayof
241240 68thetaxpayer'staxperiodforwhichsuchtaxcreditswillbeissued,tothefollowing:
242241 69 (a)TheshareholdersoftheScorporation;
243242 70 (b)Thepartnersinapartnership;or
244243 71 (c)Themembersofalimitedliabilitycompanythathasorelectspass-through
245244 72taxationpursuanttofederalincometaxlaw.
246245 73 (3)Ataxpayershallnotclaimataxcreditpursuanttothissectionandatax
247246 74creditpursuanttosection135.1310or135.1350forthesamecontributionor
248247 75expenditure.
249-HB1488 7 76 6.Notwithstandinganyprovisionofsubsection5ofthissectiontothecontrary,a
248+76 6.Notwithstandinganyprovisionofsubsection5ofthissectiontothecontrary,a
250249 77taxpayerthatisexempt,under26U.S.C.Section501(c)(3),andanyamendments
251-78thereto,fromallorpartofthefederalincometaxshallbeeligibleforarefundofitstax
250+HB1488 7 78thereto,fromallorpartofthefederalincometaxshallbeeligibleforarefundofitstax
252251 79creditissuedunderthissection,withoutregardtowhetherithasincurredanystatetax
253252 80liability.Suchexempttaxpayermayclaimarefundofthetaxcreditonitstaxreturn
254253 81requiredtobefiledundertheprovisionsofchapter143,exclusiveofthereturnforthe
255254 82withholdingoftaxundersections143.191to143.265.Ifsuchexempttaxpayerisnot
256255 83requiredtofileataxreturnundertheprovisionsofchapter143,theexempttaxpayer
257256 84mayclaimarefundofthetaxcreditonarefundclaimformprescribedbythe
258257 85departmentofrevenue.Thedepartmentofrevenueshallprescribesuchforms,
259258 86instructions,andrulesasitdeemsappropriatetocarryouttheprovisionsofthis
260259 87subsection.
261260 88 7.(1)Theamountoftaxcreditsauthorizedpursuanttothissectionshallnot
262261 89exceedtwentymilliondollarsforeachcalendaryear.Thedepartmentshallapprovetax
263262 90creditapplicationsonafirst-come,first-servedbasisuntilthetaxcreditauthorization
264263 91limitisreachedforthecalendaryear.
265264 92 (2)Ifthemaximumamountoftaxcreditsallowedinanycalendaryearas
266265 93providedpursuanttosubdivision(1)ofthissubsectionisauthorized,themaximum
267266 94amountoftaxcreditsallowedpursuanttosubdivision(1)ofthissubsectionshallbe
268267 95increasedbyfifteenpercent,providedthatallsuchincreasesintheallowableamountof
269268 96taxcreditsshallbereservedforqualifiedchildcareexpendituresforchildcarefacilities
270269 97locatedinachildcaredesert.Thedirectorofthedepartmentshallpublishsuch
271270 98adjustedamount.
272271 99 8.Ataxpayerwhohasbeenissuedataxcreditunderthissectionshallnotifythe
273272 100departmentwithinsixtydaysofanycessationofoperation,changeinownership,or
274273 101agreementtoassumerecaptureliabilityassuchtermsaredefinedby26U.S.C.Section
275274 10245F,intheformandmannerprescribedbydepartmentruleorinstruction.Ifthereisa
276275 103cessationofoperationorchangeinownershiprelatingtoachildcarefacility,the
277276 104departmentmayrequirethetaxpayertorepaythedepartmentanamountequaltothe
278277 105creditissuedunderthissection,butthisrecaptureamountshallbelimitedtothetax
279278 106creditallowedunderthissection.Therecaptureamountshallbeconsideredatax
280279 107liabilityarisingonthetaxpaymentduedateforthetaxyearinwhichthecessationof
281280 108operation,changeinownership,oragreementtoassumerecaptureliabilityoccurred
282281 109andshallbeassessedandcollectedunderthesameprovisionsthatapplytoataxliability
283282 110underchapter143orchapter148,providedthatnointerestshallbeassessedagainstany
284283 111amountsrecapturedpursuanttothissubsection.
285-HB1488 8 112 9.Thetaxcreditallowedpursuanttothissectionshallbeconsideredadomestic
284+112 9.Thetaxcreditallowedpursuanttothissectionshallbeconsideredadomestic
286285 113andsocialtaxcreditundersubdivision(5)ofsubsection2ofsection135.800.
287-114 10.Allactionandcommunicationundertakenorrequiredunderthissection
286+HB1488 8 114 10.Allactionandcommunicationundertakenorrequiredunderthissection
288287 115shallbeexemptfromtheprovisionsofsection105.1500.
289288 116 11.Thedepartmentmaypromulgaterulestoimplementandadministerthe
290289 117provisionsofthissection.Anyruleorportionofarule,asthattermisdefinedinsection
291290 118536.010,thatiscreatedpursuanttotheauthoritydelegatedinthissectionshallbecome
292291 119effectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,
293292 120ifapplicable,section536.028.Thissectionandchapter536arenonseverableandifany
294293 121ofthepowersvestedwiththegeneralassemblypursuanttochapter536toreview,to
295294 122delaytheeffectivedate,ortodisapproveandannularulearesubsequentlyheld
296295 123unconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
297296 124adoptedafterAugust28,2024,shallbeinvalidandvoid.
298297 125 12.Pursuanttosection23.253oftheMissourisunsetact:
299298 126 (1)TheprogramauthorizedunderthisactshallexpireonDecember31,2030,
300299 127unlessreauthorizedbythegeneralassembly;
301300 128 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthisactshall
302301 129automaticallysunsetsixyearsaftertheeffectivedateofthereauthorizationofthis
303302 130section;
304303 131 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
305304 132immediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthis
306305 133sectionissunset;and
307306 134 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
308307 135impairthedepartmentofrevenue'sabilitytoredeemtaxcreditsauthorizedonorbefore
309308 136thedatetheprogramauthorizedpursuanttothissectionexpiresorataxpayer'sability
310309 137toredeemsuchtaxcredits.
311310 135.1350.1.Thissectionshallbeknownandmaybecitedasthe"ChildCare
312311 2ProvidersTaxCreditAct".
313312 3 2.Forpurposesofthissection,thefollowingtermsshallmean:
314313 4 (1)"Capitalexpenditures",expensesincurredbyachildcareprovider,during
315314 5thetaxyearforwhichataxcreditisclaimedpursuanttothissection,forthe
316315 6construction,renovation,orrehabilitationofachildcarefacilitytotheextentnecessary
317316 7tooperateachildcarefacilityandcomplywithapplicablechildcarefacilityregulations
318317 8promulgatedbythedepartmentofelementaryandsecondaryeducation;
319318 9 (2)"Childcaredesert",acensustractthathasapovertyrateofatleasttwenty
320319 10percentoramedianfamilyincomeoflessthaneightypercentofthestatewideaverage
321320 11andwhereatleastfivehundredpeopleorthirty-threepercentofthepopulationare
322-HB1488 9 12locatedatleastone-halfmileawayfromachildcareproviderinurbanizedareasorat
321+12locatedatleastone-halfmileawayfromachildcareproviderinurbanizedareasorat
323322 13leasttenmilesawayinruralareas;
324-14 (3)"Childcarefacility",achildcarefacilityasdefinedinsection210.201thatis
323+HB1488 9 14 (3)"Childcarefacility",achildcarefacilityasdefinedinsection210.201thatis
325324 15licensedpursuanttosection210.221,orthatisunlicensedandthatisregisteredwiththe
326325 16departmentofelementaryandsecondaryeducation;
327326 17 (4)"Childcareprovider",achildcareproviderasdefinedinsection210.201
328327 18thatislicensedpursuanttosection210.221,orthatisunlicensedandthatisregistered
329328 19withthedepartmentofelementaryandsecondaryeducation;
330329 20 (5)"Department",thedepartmentofelementaryandsecondaryeducation;
331330 21 (6)"Eligibleemployerwithholdingtax",thetotalamountoftaxthatthechild
332331 22careproviderwasrequired,undersection143.191,todeductandwithholdfromthe
333332 23wagesitpaidtoemployeesduringthetaxyearforwhichthechildcareprovideris
334333 24claimingataxcreditpursuanttothissection,totheextentactuallypaid."Eligible
335334 25employerwithholdingtax"shallnotincludeanyadditionalvoluntarywithholding
336335 26requestedbyanemployee;
337336 27 (7)"Employee",anemployee,asthattermisusedinsubsection2ofsection
338337 28143.191,ofachildcareproviderwhoworkedforthechildcareproviderforanaverage
339338 29ofatleasttenhoursperweekforatleastathree-monthperiodduringthetaxyearfor
340339 30whichataxcreditisclaimedpursuanttothissectionandwhoisnotanimmediate
341340 31familymemberofthechildcareprovider;
342341 32 (8)"Ruralarea",atownorcommunitywithinthestatethatisnotwithina
343342 33metropolitanstatisticalareaandhasapopulationofsixthousandorfewerinhabitants
344343 34asdeterminedbythelastprecedingfederaldecennialcensusoranyunincorporated
345344 35areanotwithinametropolitanstatisticalarea;
346345 36 (9)"Statetaxliability",anyliabilityincurredbythetaxpayerpursuanttothe
347346 37provisionsofchapter143,exclusiveoftheprovisionsrelatingtothewithholdingoftax
348347 38asprovidedforinsections143.191to143.265andrelatedprovisions;
349348 39 (10)"Taxcredit",acreditagainstthetaxpayer'sstatetaxliability;
350349 40 (11)"Taxpayer",acorporationasdefinedinsection143.441or143.471,any
351350 41charitableorganizationthatisexemptfromfederalincometaxandwhoseMissouri
352351 42unrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestateincometax
353352 43imposedunderchapter143,oranindividualorpartnershipsubjecttothestateincome
354353 44taximposedbytheprovisionsofchapter143.
355354 45 3.ForalltaxyearsbeginningonorafterJanuary1,2025,achildcareprovider
356355 46withthreeormoreemployeesmayclaimataxcreditauthorizedinthissectioninan
357356 47amountequaltothechildcareprovider'seligibleemployerwithholdingtax,andmay
358357 48alsoclaimataxcreditinanamountuptothirtypercentofthechildcareprovider's
359-HB1488 10 49capitalexpenditures.Notaxcreditforcapitalexpendituresshallbeallowedifthe
358+49capitalexpenditures.Notaxcreditforcapitalexpendituresshallbeallowedifthe
360359 50capitalexpendituresarelessthanonethousanddollars.Theamountofanytaxcredit
361-51issuedunderthissectionshallnotexceedtwohundredthousanddollarsperchildcare
360+HB1488 10 51issuedunderthissectionshallnotexceedtwohundredthousanddollarsperchildcare
362361 52providerpertaxyear.
363362 53 4.Toclaimataxcreditauthorizedpursuanttothissection,achildcareprovider
364363 54shallsubmittothedepartment,forpreliminaryapproval,anapplicationforthetax
365364 55creditonaformprovidedbythedepartmentandatsuchtimesasthedepartmentmay
366365 56require.Ifthechildcareproviderisapplyingforataxcreditforcapitalexpenditures,
367366 57thechildcareprovidershallpresentproofacceptabletothedepartmentthatthechild
368367 58careprovider'scapitalexpendituressatisfytherequirementsofsubdivision(1)of
369368 59subsection2ofthissection.Uponfinalapprovalofanapplication,thedepartmentshall
370369 60issuethechildcareprovideracertificateoftaxcredit.
371370 61 5.(1)Thetaxcreditsauthorizedbythissectionshallnotberefundableandshall
372371 62notbetransferred,sold,assigned,orotherwiseconveyed.Anyamountofcreditthat
373372 63exceedsthechildcareprovider'sstatetaxliabilityforthetaxyearforwhichthetax
374373 64creditisissuedmaybecarriedforwardtothechildcareprovider'ssubsequenttaxyear
375374 65foruptosixsucceedingtaxyears.
376375 66 (2)Inthecaseofataxpayerthathasorelectspass-throughtaxationpursuantto
377376 67federalincometaxlaw,thetaxcreditsissuedpursuanttothissectionshallbe
378377 68apportionedinproportiontotheshareofownershipofthetaxpayeronthelastdayof
379378 69thetaxpayer'staxperiodforwhichsuchtaxcreditswillbeissued,tothefollowing:
380379 70 (a)TheshareholdersoftheScorporation;
381380 71 (b)Thepartnersinapartnership;or
382381 72 (c)Themembersofalimitedliabilitycompanythathasorelectspass-through
383382 73taxationpursuanttofederalincometaxlaw.
384383 74 (3)Ataxpayershallnotclaimataxcreditpursuanttothissectionandatax
385384 75creditpursuanttosection135.1325forthesamecontributionorexpenditure.
386385 76 6.Notwithstandinganyprovisionofsubsection5ofthissectiontothecontrary,a
387386 77childcareproviderthatisexempt,under26U.S.C.Section501(c)(3),andany
388387 78amendmentsthereto,fromallorpartofthefederalincometaxshallbeeligiblefora
389388 79refundofitstaxcreditissuedunderthissection,withoutregardtowhetherithas
390389 80incurredanystatetaxliability.Suchexemptchildcareprovidermayclaimarefundof
391390 81thetaxcreditonitstaxreturnrequiredtobefiledundertheprovisionsofchapter143,
392391 82exclusiveofthereturnforthewithholdingoftaxundersections143.191to143.265.If
393392 83suchexemptchildcareproviderisnotrequiredtofileataxreturnundertheprovisions
394393 84ofchapter143,theexemptchildcareprovidermayclaimarefundofthetaxcreditona
395394 85refundclaimformprescribedbythedepartmentofrevenue.Thedepartmentof
396-HB1488 11 86revenueshallprescribesuchforms,instructions,andrulesasitdeemsappropriateto
395+86revenueshallprescribesuchforms,instructions,andrulesasitdeemsappropriateto
397396 87carryouttheprovisionsofthissubsection.
398-88 7.(1)Theamountoftaxcreditsauthorizedpursuanttothissectionshallnot
397+HB1488 11 88 7.(1)Theamountoftaxcreditsauthorizedpursuanttothissectionshallnot
399398 89exceedtwentymilliondollarsforeachcalendaryear.Thedepartmentshallapprovetax
400399 90creditapplicationsonafirst-come,first-servedbasisuntilthetaxcreditauthorization
401400 91limitisreachedforthecalendaryear.
402401 92 (2)Ifthemaximumamountoftaxcreditsallowedinanycalendaryearas
403402 93providedpursuanttosubdivision(1)ofthissubsectionisauthorized,themaximum
404403 94amountoftaxcreditsallowedpursuanttosubdivision(1)ofthissubsectionshallbe
405404 95increasedbyfifteenpercent,providedthatallsuchincreasesintheallowableamountof
406405 96taxcreditsshallbereservedforchildcareproviderslocatedinachildcaredesert.The
407406 97directorofthedepartmentshallpublishsuchadjustedamount.
408407 98 8.Thetaxcreditauthorizedbythissectionshallbeconsideredadomesticand
409408 99socialtaxcreditundersubdivision(5)ofsubsection2ofsection135.800.
410409 100 9.Allactionandcommunicationundertakenorrequiredwithrespecttothis
411410 101sectionshallbeexemptfromtheprovisionsofsection105.1500.Notwithstandingsection
412411 10232.057oranyothertaxconfidentialitylawtothecontrary,thedepartmentofrevenue
413412 103maydisclosetaxinformationtothedepartmentforthepurposeoftheverificationofa
414413 104childcareprovider'seligibleemployerwithholdingtaxunderthissection.
415414 105 10.Thedepartmentmaypromulgaterulesandadoptstatementsofpolicy,
416415 106procedures,forms,andguidelinestoimplementandadministertheprovisionsofthis
417416 107section.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
418417 108createdpursuanttotheauthoritydelegatedinthissectionshallbecomeeffectiveonlyif
419418 109itcomplieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,
420419 110section536.028.Thissectionandchapter536arenonseverableandifanyofthepowers
421420 111vestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
422421 112effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,
423422 113thenthegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust
424423 11428,2024,shallbeinvalidandvoid.
425424 115 11.Pursuanttosection23.253oftheMissourisunsetact:
426425 116 (1)TheprogramauthorizedunderthissectionshallexpireonDecember31,
427426 1172030,unlessreauthorizedbythegeneralassembly;
428427 118 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissection
429428 119shallautomaticallysunsetsixyearsaftertheeffectivedateofthereauthorizationofthis
430429 120section;
431-HB1488 12 121 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
430+121 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryear
432431 122immediatelyfollowingthecalendaryearinwhichtheprogramauthorizedunderthis
433432 123sectionissunset;and
434-124 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
433+HB1488 12 124 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
435434 125impairthedepartmentofrevenue'sabilitytoredeemtaxcreditsauthorizedonorbefore
436435 126thedatetheprogramauthorizedpursuanttothissectionexpiresorataxpayer'sability
437436 127toredeemsuchtaxcredits.
438437 âś”
439438 HB1488 13