HB2170--RURALECONOMICDEVELOPMENT
SPONSOR: Gregory
Thisbillcreatesthe"MissouriRuralAccesstoCapitalAct".
Thisbillallowsinvestorstomakecapitalinvestmentsinarural
fund,asdefinedinthebill.Suchinvestorsshallbealloweda
taxcreditforaperiodofsixyearsbeginningwiththeyearthe
investormadeacapitalinvestment. Thetaxcreditshallbeequal
toapercentageofthecapitalinvestment. Thepercentageshallbe
zeroforthefirsttwoyears,and15%forthesubsequentfour
years.Taxcreditsshallnotberefundable,butmaybecarried
forwardtoanyofthefivesubsequenttaxyears.Nomorethan$16
millionintaxcreditsshallbeauthorizedinagivencalendar
year.
Aruralfundwishingtoacceptinvestmentsascapitalinvestments
shallapplytotheDepartmentofEconomicDevelopment. The
applicationshallinclude:
(1)Theamountofcapitalinvestmentrequested;
(2)Acopyoftheapplicant'slicenseasaruralbusinessorsmall
businessinvestmentcompany;
(3)Evidencethattheapplicanthasmadeatleast$100millionin
investmentsinnonpubliccompanieslocatedincountiesthroughout
theUnitedStateswithapopulationlessthan50,000;
(4)Evidencethattheapplicanthasmadeatleast$30millionin
investmentsinnonpubliccompanieslocatedinMissouri;
(5)Abusinessplanthatincludesarevenueimpactstatement
projectingstateandlocaltaxrevenuetobegeneratedbythe
applicant'sproposedqualifiedinvestments;and
(6)A$5,000nonrefundableapplicationfee.
TheDepartmentshallgrantordenyanapplicationwithin60daysof
receipt.TheDepartmentshalldenyanapplicationif:
(1)Suchapplicationisincompleteorinsufficient;
(2)Therevenueimpactassessmentdoesnotdemonstratethatthe
businessplanwillresultinapositiveeconomicimpactonthe
stateovera10yearperiod;or (3)TheDepartmenthasalreadyapprovedthemaximumamountof
capitalinvestmentauthority.
Ruralfundsshallusecapitalinvestmentsmadebyinvestorstomake
qualifiedinvestmentsineligiblebusinesses.Aneligiblebusiness
shall:
(1)Havefewerthan250employees;
(2)HaveaprincipalbusinessoperationinMissouri;
(3)Beengagedincertainindustries,asspecifiedinthebill;
and
(4)Notknowinglyemployanyindividualwhoisunlawfullypresent
inthiscountry,andislocatedorhascommittedtolocateina
ruralarea.
TheDepartmentmayrecapturetaxcreditsinthefollowingways:
(1)Iftheruralfunddoesnotinvest60%ofitscapital
investmentauthorityinqualifiedinvestmentswithintwoyearsof
thecreditallowancedate,asdefinedinthebill,and100%ofits
capitalinvestmentauthoritywithinthreeyears,providedthatat
least70%ofqualifiedinvestmentsshallbemadeineligible
businesseslocatedinruralareasoreligiblebusinessesthatare
alsoagribusinesses; nomorethan30%ofaqualifiedinvestment
shallbemadeineligiblebusinesseslocatedoutsideofarural
area;
(2)Iftheruralfundfailstomaintainqualifiedinvestments
equalto90%ofitscapitalinvestmentauthorityinyearsthree
throughsix,asdescribedinthebill,with70%ofsuchinvestments
ineligiblebusinesseslocatedinruralareasoreligible
businessesthatarealsoagribusinesses, providedthatnomorethan
30%ofaqualifiedinvestmentismadeineligiblebusinesses
locatedoutsideofaruralarea.Foreachyeartheruralfundfails
tomaintainsuchinvestments,theDepartmentmayrecapturecredits
equaltothepercentagedifferencebetween90%ofaruralfund's
capitalinvestmentauthorityandtheactualamountofqualified
investmentsmaintainedforsuchyear,asdescribedinthebill;
(3)Ifpriortoexitingtheprogramor30daysafterthesixth
year,whicheverisearliest,theruralfundmakesadistributionor
paymentthatresultsinthefundhavinglessthan100%ofits
capitalinvestmentauthorityinvestedinqualifiedinvestments;or
(4)Iftheruralfundviolatesprovisionsofthebill. Aneligiblebusinessthatreceivesaqualifiedinvestmentshall
not:
(1)Ownorhavetherighttoacquireanownershipinterestina
ruralfund;or
(2)Loantoorinvestinaruralfundwheretheproceedsofsucha
loanorinvestmentsareusedtofundorrefinancethepurchaseofa
capitalinvestment.
RuralfundsshallsubmitannualreportstotheDepartment,as
describedinthebill,andshallincludethefollowinginformation:
(1)Thenameandlocationofeacheligiblebusinessreceivinga
qualifiedinvestment;
(2)Bankstatementsofsuchruralfundevidencingeachqualified
investment;
(3)Acopyofthewrittenopinion,asdescribedinthebill,or
evidencethatsuchbusinesswasaneligiblebusinessatthetimeof
suchqualifiedinvestment;and
(4)Thetotalnumberofnewjobs,maintainedjobs,newpayroll,
maintainedpayroll,newrevenue,andmaintainedrevenuebyeach
eligiblebusinessreceivingaqualifiedinvestmentfromarural
fund;
(5)Arevenueimpactassessmentprojectingstateandlocaltax
revenuegeneratedandprojectedtobegenerated;and
(6)AnyotherinformationrequiredbytheDepartment,asspecified
inthebill.
Atanytimeafterthesixthanniversaryofthecapitalinvestment,
aruralfundmayapplytotheDepartmenttoexittheprogram.The
Departmentshallrespondtosuchapplicationwithin15days.Atthe
timearuralfundexitstheprogram,itshallberequiredtomakea
distributiontothestate,nottoexceed10%oftheamountoftax
creditsreceived,iftheamountofstateandlocaltaxbenefits
generatedbytheruralfund'squalifiedinvestmentsarelessthan
theamountoftaxcreditsdistributedtotheruralfund.
TheseprovisionsshallsunsetonAugust28,2030.