SECONDREGULARSESSION
HOUSEBILLNO.2407
102NDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVESHARPE(4).
4191H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Toamendchapter620,RSMo,byaddingtheretofournewsectionsrelatingtoworkforce
housingtaxincentives,withpenaltyprovisions.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter620,RSMo,isamendedbyaddingtheretofournewsections,to
2beknownassections620.2022,620.2024,620.2026,and620.2028,toreadasfollows:
620.2022.1.Sections620.2022to620.2028shallbeknownandmaybecitedas
2the"WorkforceHousingTaxIncentivesProgram".
3 2.Asusedinsections620.2022to620.2028,thefollowingtermsmean:
4 (1)"Brownfieldsite",anabandoned,idled,orunderutilizedpropertywhere
5expansionorredevelopmentiscomplicatedbyrealorperceivedenvironmental
6contamination.A"brownfieldsite"includespropertycontiguouswiththesiteon
7whichthepropertyislocated.A"brownfieldsite"doesnotincludepropertythathas
8beenplaced,orisproposedforplacement,onthenationalprioritieslistestablished
9underthefederalComprehensiveEnvironmentalResponse,Compensation,and
10LiabilityAct,42U.S.C.Section9601etseq.;
11 (2)"Community",asmallcity,urbanarea,orcounty;
12 (3)"Department",theMissouridepartmentofeconomicdevelopment;
13 (4)"Disasterrecoveryhousingproject",aqualifiedhousingprojectlocatedina
14countythatisadeclaredstatedisasterasdefinedundersection190.275ordisasterarea
15asdefinedundersection184.805andiseligibleforFederalEmergencyManagement
16Agency(FEMA)IndividualAssistanceprogram;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (5)"Governingbody",theboard,thebody,orthepersonsinwhichthepowers
18ofapoliticalsubdivisionasabodycorporate,orotherwise,arevested;
19 (6)"Grayfieldsite",apropertymeetingthefollowingrequirements:
20 (a)Thepropertyhasbeendevelopedandhasinfrastructureinplacebutthe
21property’scurrentuseisoutdatedorpreventsabetterormoreefficientuseofthe
22property.Suchpropertyincludesvacant,blighted,obsolete,orotherwiseunderutilized
23property;and
24 (b)Theproperty’simprovementsandinfrastructureareatleasttwenty-five
25yearsoldandoneormoreofthefollowingconditionsexist:
26 a.Thirtypercentormoreofabuildinglocatedonthepropertythatisavailable
27foroccupancyhasbeenvacantorunoccupiedfortwelvemonthsormore;
28 b.Theassessedvalueoftheimprovementsonthepropertyhasdecreasedby
29twenty-fivepercentormore;
30 c.Thepropertyiscurrentlybeingusedasaparkinglot;or
31 d.Theimprovementsonthepropertynolongerexist;
32 (7)"Greenfieldsite",asitethatdoesnotmeetthedefinitionofabrownfieldsite
33orgrayfieldsite.Aprojectproposedatasitelocatedonpreviouslyundevelopedlandor
34agriculturallandshallbepresumedtobeagreenfieldsite;
35 (8)"Housingbusiness",abusinessthatisahousingdeveloper,housing
36contractor,ornonprofitorganizationthatcompletesahousingprojectinthestate;
37 (9)"Housingproject",aprojectlocatedinthisstatemeetingtherequirementsof
38section620.2024;
39 (10)"Multi-usebuilding",abuildingwhosestreet-levelgroundstoryisusedfor
40apurposeotherthanresidential,andwhoseupperstoryorstoriesarecurrentlyused
41primarilyforaresidentialpurpose,orwillbeusedprimarilyforaresidentialpurpose
42aftercompletionofthehousingprojectassociatedwiththebuilding;
43 (11)"Program",theworkforcehousingtaxincentivesprogramadministered
44undersections620.2022to620.2028;
45 (12)"Qualifiedrehabilitationproject",aprojectfortherehabilitationof
46propertyinthisstatethatmeetsthefollowingcriteria:
47 (a)Thepropertyisatleastoneofthefollowing:
48 a.PropertylistedontheNationalRegisterofHistoricPlacesoreligibleforsuch
49listing;
50 b.Propertydesignatedasofhistoricsignificancetoadistrictlistedinthe
51NationalRegisterofHistoricPlacesoreligibleforsuchdesignation;
52 c.Propertyordistrictdesignatedalocallandmarkbyacityorcounty
53ordinance;or
HB2407 2 54 d.Abarnconstructedpriorto1937;
55 (b)Thepropertymeetsthephysicalcriteriaandstandardsforrehabilitation
56establishedbythedepartmentbyrule.Totheextentapplicable,thephysicalstandards
57andcriteriashallbeconsistentwiththeUnitedStatesSecretaryoftheInterior’s
58StandardsforRehabilitation;and
59 (c)Theprojecthasqualifiedrehabilitationexpendituresthatmeetorexceedthe
60following:
61 a.Inthecaseofcommercialproperty,expenditurestotalingatleastfifty
62thousanddollarsorfiftypercentoftheassessedvalueoftheproperty,excludingthe
63land,priortorehabilitation,whicheverisless;or
64 b.Inthecaseofpropertyotherthancommercialpropertyincluding,butnot
65limitedto,barnsconstructedpriorto1937,expenditurestotalingatleasttwenty-five
66thousanddollarsortwenty-fivepercentoftheassessedvalue,excludingtheland,prior
67torehabilitation,whicheverisless;
68 (13)"Qualifyingnewinvestment",coststhataredirectlyrelatedtothe
69acquisition,repair,rehabilitation,orredevelopmentofahousingprojectinthisstate.A
70"qualifyingnewinvestment"includescoststhataredirectlyrelatedtonewconstruction
71ofdwellingunitsifthenewconstructionoccursinadistressedworkforcehousing
72community.Theamountofcoststhatmaybeusedtocompute"qualifyingnew
73investment"shallnotexceedthecostsusedforthefirstonehundredfiftythousand
74dollarsofvalueforeachdwellingunitthatispartofahousingproject.A"qualifying
75newinvestment"doesnotincludethefollowing:
76 (a)Theportionofthetotalcostofahousingprojectthatisfinancedbyfederal,
77state,orlocalgovernmenttaxcredits,grants,forgivableloans,orotherformsof
78financialassistancethatdonotrequirerepayment,excludingthetaxincentivesprovided
79undersections620.2022to620.2028;or
80 (b)Ifahousingprojectincludestherehabilitation,repair,orredevelopmentof
81anexistingmulti-usebuilding,theportionofthetotalacquisitioncostsofthemulti-use
82building,includingaproportionateshareofthetotalacquisitioncostsofthelandupon
83whichthemulti-usebuildingissituated,thatareattributabletothestreet-levelground
84storythatisusedforapurposethatisotherthanresidential;
85 (14)"Smallcity",acityorvillagethat:
86 (a)Isnotlocatedwhollywithinoneoftheeightmostpopulouscountiesinthe
87stateasdeterminedbythemostrecentdecennialcensus;or
88 (b)Iflocatedwhollywithinoneoftheeightmostpopulouscountiesas
89determinedbythemostrecentdecennialcensus,meetsbothofthefollowing:
90 a.Hastwothousandfivehundredorfewerinhabitants;and
HB2407 3 91 b.Experiencedlessthanthirtypercentagepointsofpopulationgrowthwhen
92comparingthemostrecentdecennialcensustothedecennialcensusimmediately
93precedingthemostrecentdecennialcensus;
94
95Theterm“smallcity”shallnotincludeanycitywithmorethanfourhundredthousand
96inhabitantsandlocatedinmorethanonecounty;
97 (15)"Taxcredit"or"taxcredits",acreditorcreditsissuedbythedepartment
98againstthetaxotherwisedueunderchapter143or148,excludingwithholdingtax
99imposedundersections143.191to143.265;
100 (16)"Taxincentive",astatemeasurethatisintendedtoencourageindividuals
101andbusinessestospendmoneysorsavemoneysbyreducingtheamountoftaxthatthey
102havetopayincluding,butnotlimitedto,taxcreditsandrefundsofsalesandusetax
103issuedunderthisprogram;
104 (17)"Urbanarea":
105 (a)Anycityormunicipality,exceptforasmallcity,thatiswhollylocatedwithin
106oneoftheeightmostpopulouscountiesinthestateasdeterminedbythemostrecent
107decennialcensus;or
108 (b)Anycitywithmorethanfourhundredthousandinhabitantsandlocatedin
109morethanonecounty.
620.2024.1.Toreceiveworkforcehousingtaxincentivesundersections
2620.2022to620.2028,aproposedhousingprojectshallmeetthefollowingrequirements:
3 (1)Thehousingprojectincludesatleastoneofthefollowing:
4 (a)Fourormoresingle-familydwellingunits,exceptforahousingproject
5locatedinasmallcity,thentwoormoresingle-familydwellingunits;
6 (b)Oneormoremultipledwellingunitbuildingseachcontainingthreeormore
7individualdwellingunits;or
8 (c)Twoormoredwellingunitslocatedintheupperstoryofanexistingmulti-use
9building;
10 (2)Thehousingprojectconsistsofanyofthefollowing:
11 (a)Rehabilitation,repair,orredevelopmentatabrownfieldorgrayfieldsitethat
12resultsinnewdwellingunits;
13 (b)Therehabilitation,repair,orredevelopmentofdilapidateddwellingunits;
14 (c)Therehabilitation,repair,orredevelopmentofdwellingunitslocatedinthe
15upperstoryofanexistingmulti-usebuilding;
16 (d)Forahousingprojectlocatedinasmallcitythatmeetsprogram
17requirementsunderparagraph(a)ofsubdivision(1)ofthissubsection,development
18atagreenfieldsite;or
HB2407 4 19 (e)Foradisasterrecoveryhousingprojectasdefinedundersection620.2022,
20developmentatagreenfieldsite;
21 (3)(a)Exceptasprovidedinparagraph(b)ofthissubdivision,theaverage
22dwellingunitcostshallnotexceedthemaximumamountestablishedbythedepartment
23foreachfiscalyearfortheapplicableprojecttypeandprojectlocation.Thedepartment
24shallestablishthemaximumaveragedwellingunitcostforahousingprojectthat
25includessingle-familydwellingunitsthatarelocatedinasmallcityandforahousing
26projectthatincludessingle-familydwellingunitsthatarelocatedinanurbanarea.The
27departmentshallestablishthemaximumaveragedwellingunitcostforahousing
28projectthatincludesmultipledwellingunitbuildingsandislocatedinasmallcityand
29forahousingprojectthatincludesmultipledwellingunitbuildingsandislocatedinan
30urbanarea.Inestablishingeachmaximumaveragedwellingunitcost,thedepartment
31shallprimarilyconsiderthemostrecentannualUnitedStatesCensusBureauBuilding
32PermitsSurveyandhistoricalprogramdata;
33 (b)Ifthehousingprojectinvolvestherehabilitation,repair,redevelopment,or
34preservationofpropertydescribedinsubdivision(12)ofsubsection2ofsection
35620.2022,theaveragedwellingunitcostshallnotexceedonehundredtwenty-five
36percentofthemaximumaveragedwellingunitcostestablishedbythedepartmentfor
37theapplicablehousingprojecttypeandhousingprojectlocationasprovidedin
38paragraph(a)ofthissubdivision;and
39 (4)Thedwellingunits,whencompletedandmadeavailableforoccupancy,meet
40theUnitedStatesDepartmentofHousingandUrbanDevelopment’shousingquality
41standardsassetforthin24CFR982andallapplicablelocalsafetystandards.
620.2026.1.(1)Ahousingbusinessseekingworkforcehousingtaxincentives
2providedundersection620.2028shallapplytothedepartmentinthemannerprescribed
3bythedepartment'srules.Thedepartmentmayacceptapplicationsduringoneormore
4annualapplicationperiodstobedeterminedbythedepartmentbyrule.
5 (2)Theapplicationshallincludethefollowing:
6 (a)Informationestablishinglocalparticipationinthehousingproject,including:
7 a.Aresolutioninsupportofthehousingprojectbythegoverningbodyofthe
8communitywherethehousingprojectwillbelocated;and
9 b.Documentationoflocalmatchingfundspledgedforthehousingprojectinan
10amountequaltoatleastonethousanddollarsperdwellingunitincluding,butnot
11limitedto,afundingagreementbetweenthehousingbusinessandthegoverningbodyof
12thecommunitywherethehousingprojectwillbelocated.Forpurposesofthis
13subparagraph,localmatchingfundsshallbeintheformofcashorcashequivalentsor
14intheformofalocalpropertytaxexemption,rebate,refund,orreimbursement;
HB2407 5 15 (b)Informationevidencinganagreementbetweenthebusinessandthe
16departmentspecifyingtherequirementsthatwillbemettoconfirmeligibilityandthe
17requirementsshallbemaintainedthroughouttheperiodoftheagreementinorderto
18retaintheincentivesorfinancialassistancereceived.Thedepartmentshallconsultwith
19thegoverningbodyofthecommunityduringnegotiationsrelatingtotheagreement.
20Theagreementshallcontainareportsubmittedtothedepartmentbyabusiness
21togetherwithitsapplicationdescribingallviolationsofenvironmentallaworworker
22safetylawwithinthelastfiveyears.If,uponreviewoftheapplication,thedepartment
23findsthatthebusinesshasarecordofviolationsofthelaw,statutes,rules,orregulations
24thattendtoshowaconsistentpattern,thedepartmentshallnotprovideincentivesor
25assistancetothebusinessunlessthedepartmentfindseitherthattheviolationsdidnot
26seriouslyaffectpublichealth,publicsafety,ortheenvironment,orifsuchviolationsdid
27seriouslyaffectpublichealth,publicsafety,ortheenvironment,thatmitigating
28circumstanceswerepresent;
29 (c)Informationshowingthetotalcostsandfundingsourcesofthehousing
30projectsufficienttoallowthedepartmenttoadequatelydeterminethefinancingthat
31willbeutilizedforthehousingproject,theactualcostofthedwellingunits,andthe
32amountofthequalifyingnewinvestment;and
33 (d)Anyotherinformationdeemednecessarybythedepartmenttoevaluatethe
34eligibilityandfinancialneedofthehousingprojectundertheprogram;
35
36Inadditiontocomplyingwiththeapplicablerequirementsunderthissubdivision,a
37housingbusinessapplyingfordisasterrecoveryhousingprojecttaxincentivesshallalso
38submitacertificationthattheapplicant’shousingprojectmeetsthedefinitionofa
39disasterrecoveryhousingproject,ifapplicable.Thehousingbusinessshallalsosubmit
40documentationthatprovidesevidencethatthequalifieddisasterrecoveryhousing
41projectisneededduetotheimpactofthedisasterthatisthesubjectofthemajor
42disasterdeclaration.
43 2.(1)Allcompletedapplicationsshallbereviewedandscoredonacompetitive
44basisbythedepartmentunderrulesadoptedbythedepartment.
45 (2)Uponreviewandscoringofallapplicationsreceivedduringanapplication
46period,thedepartmentmaymakeataxincentiveawardtoahousingproject,whichtax
47incentiveawardshallrepresentthemaximumamountoftaxincentivesthehousing
48projectmayqualifyforundertheprogram.Indeterminingataxincentiveaward,the
49departmentshallnotuseanamountofhousingprojectcoststhatexceedstheamount
50includedintheapplicationofthehousingbusiness.Taxincentiveawardsshallbe
51approvedbythedirectorofthedepartment.
HB2407 6 52 (3)Aftermakingataxincentiveaward,thedepartmentshallnotifythehousing
53businessofitstaxincentiveaward.Thenotificationshallincludetheamountoftax
54incentivesawardedundersection620.2028andastatementthatthehousingbusiness
55hasnorighttoreceiveataxincentivecertificateorclaimataxincentiveuntilall
56requirementsoftheprogram,includingallrequirementsimposedbytheagreement
57enteredintoundersubsection3ofthissection,aresatisfied.Theamountoftaxcredits
58includedonataxcreditcertificateissuedunderthissection,oraclaimforrefundof
59salesandusetaxes,shallbecontingentuponcompletionoftherequirementsunder
60subsection3ofthissection.
61 (4)Anapplicantthatdoesnotreceiveataxincentiveawardduringan
62applicationperiodmaymakeadditionalapplicationsduringsubsequentapplication
63periods.Suchapplicantshallberequiredtosubmitanewapplication,whichshallbe
64competitivelyreviewedandscoredinthesamemannerasotherapplicationsinthat
65applicationperiod.
66 3.(1)Uponreceiptofataxincentiveawardforthehousingproject,thehousing
67businessshallenterintoanagreementwiththedepartmentforthesuccessful
68completionofallrequirementsoftheprogram.Theagreementshallidentifythetax
69incentiveawardamount,thetaxincentiveawarddate,thehousingprojectcompletion
70deadline,andthetotalcostsofthehousingproject.
71 (2)Thefollowingcompliancecostfeesshallapplytoallagreementsenteredinto
72underthisprogramandshallbecollectedinamannerdeterminedbythedepartment:
73 (a)Theimpositionofaone-timecompliancecostfeeoffivehundreddollarstobe
74collectedbytheauthoritypriortotheissuanceofataxincentivecertificateorthe
75disbursementoffinancialassistance;and
76 (b)Theimpositionofacompliancecostfeeequaltoone-halfofonepercentof
77thevalueoftaxincentivesclaimedunderanagreementthathasanaggregatetax
78incentivevalueofonehundredthousanddollarsorgreater.Thedepartmentshall
79collectthefeefromthebusinessafterthetaxincentiveisclaimedbythebusinessfrom
80thedepartmentofrevenue.
81 (3)(a)Exceptasprovidedinparagraph(b)ofthissubdivision,ahousing
82businessshallcompleteitshousingprojectwithinthreeyearsfromthedatethehousing
83projectisregisteredbythedepartment.
84 (b)Thedepartment,mayforgoodcausewithinitsdiscretion,extendahousing
85project’scompletiondeadlinebyuptotwelvemonthsuponapplicationbythehousing
86business.Suchapplicationshallbemadepriortotheexpirationofthethree-year
87completiondeadlineinparagraph(a)ofthissubdivision.Thedepartmentmayapprove
88asecondextensionofuptotwelvemonthsifpriortotheexpirationofthefirsttwelve-
HB2407 7 89monthextensionthehousingbusinessappliesandsubstantiatestothesatisfactionofthe
90departmentthatthesecondextensioniswarrantedduetoextenuatingcircumstances
91outsidethecontrolofthehousingbusiness.Thedepartmentmaydeterminewhat
92qualifiesas"goodcause"andestablishbyruletheextenuatingcircumstancesthatwill
93qualifyforapprovalandanyadditionalinformationthatthedepartmentmayrequire
94forapprovalofsuchextension.Applicationsbyahousingbusinessshallbemadeinthe
95mannerandformprescribedbythedepartmentbyrule.
96 (4)Uponcompletionofahousingproject,ahousingbusinessshallsubmitthe
97followingtothedepartment:
98 (a)AnexaminationofthehousingprojectinaccordancewiththeAmerican
99InstituteofCertifiedPublicAccountants’StatementsonStandardsforAttestation
100Engagements,completedbyacertifiedpublicaccountantauthorizedtopracticeinthis
101state;
102 (b)Astatementofthefinalamountofthequalifyingnewinvestmentforthe
103housingproject;and
104 (c)Anyinformationthedepartmentdeemsnecessarytoensurecompliancewith
105theagreementsignedbythehousingbusinessunderparagraph(a),therequirementsof
106thisprogram,andrulesthedepartmentandthedepartmentofrevenueadoptunder
107subsection4ofsection620.2028.
108 (5)(a)Uponreviewoftheexamination,verificationoftheamountofthe
109qualifyingnewinvestment,andreviewofanyotherinformationsubmittedunder
110paragraph(c)ofsubdivision(4)ofthissubsection,thedepartmentshallnotifythe
111housingbusinessoftheamountthatthehousingbusinessmayclaimasarefundofthe
112salesandusetaxundersubsection2ofsection620.2028andshallissueataxcredit
113certificatetothehousingbusinessstatingtheamountofworkforcehousinginvestment
114taxcreditsundersubsection3ofsection620.2028theeligiblehousingbusinessmay
115claim.Thesumoftheamountthatthehousingbusinessmayclaimasarefundofthe
116salesandusetaxandtheamountofthetaxcreditcertificateshallnotexceedthetotal
117amountofthetaxincentiveaward.
118 (b)Ifuponreviewoftheexaminationinparagraph(a)ofsubdivision(4)ofthis
119subsectionthedepartmentdeterminesthatahousingprojecthasincurredprojectcosts
120inexcessoftheamountsubmittedintheapplicationmadeundersubsection1ofthis
121sectionandidentifiedintheagreement,thedepartmentshalldooneofthefollowing:
122 a.Ifthehousingprojectcostsdonotcausethehousingproject’saverage
123dwellingunitcosttoexceedtheapplicablemaximumamountauthorizedunder
124subdivision(3)ofsubsection1ofsection620.2024,thedepartmentshallconsiderthe
125agreementfulfilledandshallissueataxcreditcertificate;
HB2407 8 126 b.Ifthehousingprojectcostscausethehousingproject’saveragedwellingunit
127costtoexceedtheapplicablemaximumamountauthorizedundersubdivision(3)of
128subsection1ofsection620.2024,butdonotcausetheaveragedwellingunitcostto
129exceedonehundredfiftypercentofsuchapplicablemaximumamount,thedepartment
130shallconsidertheagreementfulfilledandshallissueataxcreditcertificate.Insuch
131case,thedepartmentshallreducethetaxincentiveawardandthecorresponding
132amountoftaxincentivestheeligiblehousingprojectshallclaimundersubsections2and
1333ofsection620.2028bythesamepercentagethatthehousingproject’saveragedwelling
134unitcostexceedstheapplicablemaximumamountundersubdivision(3)ofsubsection1
135ofsection620.2024,andsuchtaxincentivereductionshallbereflectedonthetaxcredit
136certificate.Ifthedepartmentissuesacertificateunderthissubparagraph,the
137departmentofrevenueshallacceptthecertificatenotwithstandingthatthehousing
138project’saveragedwellingunitcostsexceedthemaximumamountspecifiedin
139subdivision(3)ofsubsection1ofsection620.2024;or
140 c.Ifthehousingprojectcostscausethehousingproject’saveragedwellingunit
141costtoexceedonehundredfiftypercentoftheapplicablemaximumamountauthorized
142undersubdivision(3)ofsubsection1ofsection620.2024,thedepartmentshall
143determinetheeligiblehousingbusinesstobeindefaultundertheagreement,shall
144revokethetaxincentiveaward,andshallnotissueataxcreditcertificate.Thehousing
145businessshallnotbeallowedarefundofsalesandusetaxundersubsection2ofsection
146620.2028.
147 (6)Themaximumaggregateamountoftaxincentivesthatmaybeawardedand
148issuedundersection620.2028toahousingbusinessforahousingprojectshallnot
149exceedonemilliondollars.
150 (7)Ifahousingbusinessqualifiesforahigheramountoftaxincentivesunder
151section620.2028thanisallowedbythelimitationimposedundersubdivision(4)of
152subsection3ofthissection,thedepartmentandthehousingbusinessmaynegotiatean
153apportionmentofthereductionintaxincentivesbetweenthesalestaxrefundprovided
154insubsection2ofsection620.2028andtheworkforcehousinginvestmenttaxcredits
155providedinsubsection3ofsection620.2028,providedthetotalaggregateamountoftax
156incentivesaftertheapportionedreductiondoesnotexceedtheamountunder
157subdivision(4)ofsubsection3ofthissection.
158 (8)Thedepartmentshallissuetaxincentivesundertheprogramonafirst-come,
159first-servedbasisuntilthemaximumamountoftaxincentivesallocatedunder
160subdivision(4)ofsubsection5ofthissectionisreached.Thedepartmentshall
161maintainalistofhousingprojectsregisteredpriortoJanuary1,2025,andofhousing
162projectsawardedtaxincentivesonorafterJanuary1,2025,sothatifthemaximum
HB2407 9 163aggregateamountoftaxincentivesisreachedinagivenfiscalyear,suchregistered
164housingprojectsthatwerecompletedbutforwhichtaxincentiveswerenotissued,and
165suchhousingprojectsthatwerecompletedandareawardedtaxincentivesbutforwhich
166taxincentiveshavenotbeenissued,shallbeplacedonawaitlistintheorderthehousing
167projectswereregisteredorawardedtaxincentivesandshallbegivenpriorityfor
168receivingtaxincentivesinsucceedingfiscalyears.
169 4.(1)Thefailurebyahousingbusinessincompletingahousingprojectto
170complywithanyrequirementofthisprogramoranyofthetermsandobligationsofan
171agreemententeredintounderthissectionmayresultintherevocation,reduction,
172termination,orrescissionofthetaxincentiveawardortheapprovedtaxincentivesand
173maysubjectthehousingbusinesstotherepaymentorrecaptureoftaxincentives
174claimedundersection620.2028.
175 (2)Therepaymentorrecaptureoftaxincentivesunderthissectionshallbe
176accomplished,providedthattherepaymentofincentivesorfinancialassistancebythe
177businessifthebusinessdoesnotmeetanyoftherequirementsofthispartorthe
178resultingagreement.Therepaymentofincentivesunderthissubsectionshallbe
179consideredataxpaymentdueandpayabletothedepartmentofrevenuebyany
180taxpayerwhohasclaimedsuchincentives,andthefailuretomakesucharepayment
181maybetreatedbythedepartmentofrevenueinthesamemannerasafailuretopaythe
182taxshowndueorrequiredtobeshownduewiththefilingofareturnordepositform.
183Inaddition,thecountyshallhavetheauthoritytotakeactiontorecoverthevalueof
184propertytaxesnotcollectedasaresultoftheexemptionprovidedtothebusinessunder
185thisprogram.
186 5.(1)Notwithstandingsubsection1ofthissection,thedepartmentmayestablish
187adisasterrecoveryhousingprojectapplicationperiodfollowingthedeclarationofa
188majordisasterforadisasterareainMissouri.
189 (2)Uponreviewandscoringofallapplicationsreceivedduringadisaster
190recoveryapplicationperiod,thedepartmentmaymakeataxincentiveawardtoa
191disasterrecoveryhousingproject.Thetaxincentiveawardshallrepresentthe
192maximumamountoftaxincentivesthatthedisasterrecoveryhousingprojectmay
193qualifyforundertheprogram.Indeterminingataxincentiveaward,thedepartment
194shallnotuseanamountofhousingprojectcoststhatexceedstheamountincludedinthe
195applicationofthehousingbusiness.Taxincentiveawardsshallbeapprovedbythe
196directorofthedepartment.
197 (3)Thedepartmentshallissuetaxincentivesundertheprogramfordisaster
198recoveryhousingprojectsonafirst-come,first-servedbasisuntilthemaximumamount
199oftaxincentivesareallocated.Theaggregatecapforalltaxincentivesissuedfor
HB2407 10 200disasterrecoveryhousingprojectsunderthisprogramshallbethirty-fivemillion
201dollars.Ofthemoneysallocatedtodisasterrecoveryhousingprojects,seventeenmillion
202fivehundredthousanddollarsshallbereservedforallocationtoqualifiedhousing
203projectsinsmallcities.
204 (4)Allotherhousingprojectsunderthisprogramthatarenotdisasterrecovery
205housingprojectsshallbesubjecttoathirty-fivemilliondollarcap.
620.2028.1.Ahousingbusinessthathasenteredintoanagreementunder
2section620.2026iseligibletoreceivethetaxincentivesdescribedinsubsections2and3
3ofthissection.
4 2.(1)Ahousingbusinessmayclaimarefundofthesalesandusetaxespaid
5underchapter144priortothecompletionofthehousingprojectthataredirectly
6relatedtoahousingprojectandspecifiedintheagreement.
7 (2)Toreceivearefund,aclaimshallbefiledbythehousingbusinesswiththe
8departmentofrevenueasfollows:
9 (a)Thecontractororsubcontractorshallstateunderoath,onformsprovidedby
10thedepartmentofrevenue,theamountofsalesandusetaxespaidunderchapter144
11priortothecompletionofthehousingprojectthataredirectlyrelatedtoahousing
12projectandspecifiedintheagreement;
13 (b)Thecontractororsubcontractorshallfiletheformswiththehousing
14businessbeforefinalsettlementismade;and
15 (c)a.Thehousingbusinessshall,aftertheagreementcompletiondate,applyto
16thedepartmentofrevenueforanyrefundoftheamountofsalesandusetaxespaid
17underchapter144priortothecompletionofthehousingprojectthatweredirectly
18relatedtoahousingprojectandspecifiedintheagreement.Theapplicationshallbe
19madeinthemanneranduponformstobeprovidedbythedepartmentofrevenue.The
20departmentofrevenueshallaudittheclaimand,ifapproved,issuearefundtothe
21housingbusiness.Theapplicationshallbemadewithinoneyearaftertheagreement
22completiondate.Aclaimfiledbythehousingbusinessinaccordancewiththis
23subsectionshallnotbedeniedbyreasonofalimitationprovisionsetforthinchapter143
24or144;
25 b.Forpurposesofthisparagraph,"agreementcompletiondate"meansthedate
26onwhichthedepartmentnotifiesthedepartmentofrevenuethatallapplicable
27requirementsoftheagreemententeredintoundersubdivision(1)ofsubsection3of
28section620.2026,andallapplicablerequirementsofthisprogram,includingtherules
29thedepartmentandthedepartmentofrevenueadoptundersubsection4ofsection
30620.2028,aresatisfied;
31
HB2407 11 32Acontractororsubcontractorwhowillfullymakesafalseclaimunderoathinviolation
33oftheprovisionsofthissubsectionshallbeguiltyofamisdemeanorandinadditionto
34anyotherpenalty,thecontractororsubcontractorshallbeliableforthepaymentofthe
35taxandanyapplicablepenaltyandinterest.
36 3.(1)ForalltaxyearsbeginningonorafterJanuary1,2025,ahousingbusiness
37mayclaimataxcreditinanamountnottoexceedthefollowing:
38 (a)Forahousingprojectlocatedinanurbanarea,tenpercentofthequalifying
39newinvestmentofahousingprojectspecifiedintheagreement;
40 (b)Forahousingprojectlocatedinasmallcity,twentypercentofthequalifying
41newinvestmentofahousingprojectspecifiedintheagreement;and
42 (c)Foradisasterrecoveryhousingproject,twentypercentofthequalifyingnew
43investmentofahousingprojectspecifiedintheagreement.
44 (2)Anindividualwhoispartofthehousingbusinessmayclaimataxcredit
45underthissubsectionfromapartnership,limitedliabilitycompany,Scorporation,
46estate,ortrustelectingtohaveincometaxeddirectlytotheindividual.Theamount
47claimedbytheindividualshallbebasedupontheproratashareoftheindividual’s
48earningsfromthepartnership,limitedliabilitycompany,Scorporation,estate,ortrust.
49 (3)Anytaxcreditinexcessofthehousingbusinessorindividualtaxpayer’s
50liabilityforthetaxyearisnotrefundablebutmaybecreditedtothetaxliabilityforthe
51followingfiveyearsoruntildepleted,whicheverisearlier.
52 (4)(a)Toclaimataxcreditunderthissubsection,ataxpayershallincludeone
53ormoretaxcreditcertificateswiththetaxpayer’staxreturn.
54 (b)Thetaxcreditcertificateshallcontainthetaxpayer’sname,address,tax
55identificationnumber,theamountofthecredit,thenameoftheeligiblehousing
56business,anyotherinformationrequiredbythedepartmentofrevenue,andaplacefor
57thenameandtaxidentificationnumberofatransfereeandtheamountofthetaxcredit
58beingtransferred,ifapplicable.
59 (c)Thetaxcreditcertificate,unlessrescindedbythedepartment,shallbe
60acceptedbythedepartmentofrevenueaspaymentfortaxesforalltaxyearsbeginning
61onorafterJanuary1,2025,subjecttoanyconditionsorrestrictionsplacedbythe
62departmentuponthefaceofthetaxcreditcertificateandsubjecttothelimitationsof
63thisprogram.
64 (d)Taxcreditcertificatesissuedundersubdivision(5)ofsubsection3ofsection
65620.2026maybetransferredtoanyperson.Withinninetydaysoftransfer,the
66transfereeshallsubmitthetransferredtaxcreditcertificatetothedepartmentof
67revenuealongwithastatementcontainingthetransferee’sname,taxidentification
68number,andaddress;thedenominationthateachreplacementtaxcreditcertificateisto
HB2407 12 69carry;andanyotherinformationrequiredbythedepartmentofrevenue.However,tax
70creditcertificateamountsoflessthantheminimumamountestablishedbyruleofthe
71departmentshallnotbetransferable.
72 (e)Withinthirtydaysofreceivingthetransferredtaxcreditcertificateandthe
73transferee’sstatement,thedepartmentofrevenueshallissueoneormorereplacement
74taxcreditcertificatestothetransferee.Eachreplacementtaxcreditcertificateshall
75containtheinformationrequiredfortheoriginaltaxcreditcertificateandshallhavethe
76sameexpirationdatethatappearedonthetransferredtaxcreditcertificate.
77 (f)Ataxcreditshallnotbeclaimedbyatransfereeunderthissectionuntila
78replacementtaxcreditcertificateidentifyingthetransfereeastheproperholderhas
79beenissued.Thetransfereemayusetheamountofthetaxcredittransferredagainstthe
80transfereetaxpayer'sstatetaxliabilityforalltaxyearsbeginningonorafterJanuary1,
812025,underthesametermsandconditionsthatthetransferorwasallowed.Any
82considerationreceivedforthetransferofthetaxcreditshallnotbeincludedasincome
83underchapter143.Anyconsiderationpaidforthetransferofthetaxcreditshallnotbe
84deductedfromincomeunderchapter143.
85 (5)Forpurposesoftheindividualandcorporateincometaxesandthefranchise
86tax,theincreaseinthebasisofthepropertythatwouldotherwiseresultfromthe
87qualifyingnewinvestmentshallbereducedbytheamountofthetaxcreditcomputed
88underthissubsection.
89 (6)Notwithstandinganyprovisionofsection105.1500tothecontrary,any
90requirementtoprovideinformation,documents,orrecordsunderthissection,andany
91requirementestablishedbythedepartmenttoprovideinformation,documents,or
92recordsforthepurposeofadministeringandenforcingthissection,shallbeexempt
93fromsection105.1500.
94 4.Thedepartmentofeconomicdevelopmentandthedepartmentofrevenuemay
95promulgateallnecessaryrulesandregulationsfortheadministrationofsections
96620.2022to620.2028.Anyruleorportionofarule,asthattermisdefinedinsection
97536.010,shallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
98provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
99536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
100pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
101arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingdepartment
102andanyruleproposedoradoptedafterAugust28,2024,shallbeinvalidandvoid.
103 5.Undersection23.253oftheMissourisunsetact:
104 (1)Theprovisionsofthenewprogramauthorizedundersections620.2022to
105620.2028shallautomaticallysunsetonDecemberthirty-first,sixyearsaftertheeffective
HB2407 13 106dateofsections620.2022to620.2028unlessreauthorizedbyanactofthegeneral
107assembly;
108 (2)Ifsuchprogramisreauthorized,theprogramauthorizedundersections
109620.2022to620.2028shallautomaticallysunsetonDecemberthirty-first,sixyearsafter
110theeffectivedateofthereauthorizationofsections620.2022to620.2028;
111 (3)Sections620.2022to620.2028shallterminateonSeptemberfirstofthe
112calendaryearimmediatelyfollowingthecalendaryearinwhichtheprogramauthorized
113undersections620.2022to620.2028issunset;and
114 (4)Nothinginthissubsectionshallpreventataxpayerfromclaimingataxcredit
115properlyissuedbeforethisprogramwassunsetinataxyearaftertheprogramissunset.
✔
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