Missouri 2024 Regular Session

Missouri Senate Bill SB742 Compare Versions

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Old	New	Differences
1	1
2	2	SECOND REGULAR SESSION
3	3	SENATE BILL NO. 742
4	4	102ND GENERAL ASSEMBLY
5	5	INTRODUCED BY SENATOR ARTHUR.
6	6	4064S.02I KRISTINA MARTIN, Secretary
7	7	AN ACT
8	8	To amend chapter 135, RSMo, by adding thereto three new sections relating to tax credits for child
9	9	care.
10	10
11	11	Be it enacted by the General Assembly of the State of Missouri, as follows:
12	12	Section A. Chapter 135, RSMo, is amended by adding there to 1
13	13	three new sections, to be known as sections 135.1310, 135.1325, 2
14	14	and 135.1350, to read as follows:3
15	15	135.1310. 1. This section shall be known and may be 1
16	16	cited as the "Child Care Contribution Tax Credit Act". 2
17	17	2. For purposes of this section, the following terms 3
18	18	shall mean: 4
19	19	(1) "Child care", the same as defined in section 5
20	20	210.201; 6
21	21	(2) "Child care desert", a census tract that has a 7
22	22	poverty rate of at least twenty percent or a median family 8
23	23	income of less than eighty percent of th e statewide average 9
24	24	and where at least five hundred people or thirty -three 10
25	25	percent of the population are located at least one -half mile 11
26	26	away from a child care provider in urbanized areas or at 12
27	27	least ten miles away in rural areas; 13
28	28	(3) "Child care provider", a child care provider as 14
29	29	defined in section 210.201 that is licensed pursuant to 15
30	30	section 210.221, or that is unlicensed and that is 16
31	31	registered with the department of elementary and secondary 17
32	32	education; 18 SB 742 2
33	33	(4) "Contribution", an eligible d onation of cash, 19
34	34	stock, bonds or other marketable securities, or real 20
35	35	property. "Contribution" shall include the reasonable 21
36	36	purchase price paid for an employer's purchase of child care 22
37	37	from a child care provider for the children of the 23
38	38	employer's employees; 24
39	39	(5) "Department", the Missouri department of economic 25
40	40	development; 26
41	41	(6) "Intermediary", a nonprofit organization that is, 27
42	42	or agrees to become, subject to the jurisdiction of this 28
43	43	state for the purposes of the administration and enforc ement 29
44	44	of this section, and that distributes funds for the purposes 30
45	45	of supporting a child care provider; 31
46	46	(7) "Person related to the taxpayer", an individual 32
47	47	connected with the taxpayer by blood, adoption, or marriage, 33
48	48	or an individual, corporation , partnership, limited 34
49	49	liability company, trust, or association controlled by, or 35
50	50	under the control of, the taxpayer directly, or through an 36
51	51	individual, corporation, limited liability company, 37
52	52	partnership, trust, or association under the control of the 38
53	53	taxpayer; 39
54	54	(8) "Rural area", a town or community within the state 40
55	55	that is not within a metropolitan statistical area and has a 41
56	56	population of six thousand or fewer inhabitants as 42
57	57	determined by the last preceding federal decennial census or 43
58	58	any unincorporated area not within a metropolitan 44
59	59	statistical area; 45
60	60	(9) "State tax liability", any liability incurred by a 46
61	61	taxpayer pursuant to chapter 143 or chapter 148, exclusive 47
62	62	of the provisions relating to the withholding of tax as 48
63	63	provided for in sections 143.191 to 143.265 and related 49
64	64	provisions; 50 SB 742 3
65	65	(10) "Tax credit", a credit against the taxpayer's 51
66	66	state tax liability; 52
67	67	(11) "Taxpayer", a corporation as defined in section 53
68	68	143.441 or 143.471, any charitable organization that is 54
69	69	exempt from federal income tax and whose Missouri unrelated 55
70	70	business taxable income, if any, would be subject to the 56
71	71	state income tax imposed under chapter 143, or individuals 57
72	72	or partnerships subject to the state income tax imposed by 58
73	73	the provisions of chap ter 143. 59
74	74	3. For all tax years beginning on or after January 1, 60
75	75	2025, a taxpayer may claim the tax credit authorized in this 61
76	76	section against the taxpayer's state tax liability for the 62
77	77	tax year in which a verified contribution was made in an 63
78	78	amount equal to seventy-five percent of the verified 64
79	79	contribution to a child care provider or intermediary. The 65
80	80	minimum amount of any tax credit issued shall not be less 66
81	81	than one hundred dollars and shall not exceed two hundred 67
82	82	thousand dollars per tax year . 68
83	83	(1) A child care provider or intermediary shall apply 69
84	84	to the department to participate in the program established 70
85	85	in this section, using a form prescribed by the department. 71
86	86	The department shall determine eligibility and enter into an 72
87	87	agreement that meets the requirements of section 620.017 73
88	88	with an eligible child care facility or intermediary. Only 74
89	89	contributions to child care providers and intermediaries 75
90	90	that have entered into an agreement with the department may 76
91	91	receive a tax credit pursu ant to this section. 77
92	92	(2) The child care provider or intermediary receiving 78
93	93	a contribution shall, within sixty days of the date it 79
94	94	received the contribution, file a contribution verification 80
95	95	with the department and issue a copy of the contribution 81
96	96	verification to the taxpayer. The contribution verification 82 SB 742 4
97	97	shall be in the form established by the department and shall 83
98	98	include the taxpayer's name, taxpayer's state or federal tax 84
99	99	identification number or last four digits of the taxpayer's 85
100	100	Social Security number, amount of tax credit sought, amount 86
101	101	or description of contribution, legal name and address of 87
102	102	the child care provider receiving the tax credit, the child 88
103	103	care provider's federal employer identification number, the 89
104	104	child care provider's department of elementary and secondary 90
105	105	education vendor number or license number, the date the 91
106	106	child care provider received the contribution from the 92
107	107	taxpayer, and any other information requested by the 93
108	108	department. The contribution verification shall include a 94
109	109	signed attestation stating, in the case of a child care 95
110	110	provider, that the child care provider will use the 96
111	111	contribution solely to promote child care and, in the case 97
112	112	of an intermediary, that the intermediary will distribute 98
113	113	the contribution and any income thereon in full to one or 99
114	114	more child care providers within two years of receipt. 100
115	115	(3) The failure of the child care provider or 101
116	116	intermediary to timely issue the contribution verification 102
117	117	to the taxpayer or file it with the departmen t shall entitle 103
118	118	the taxpayer to a refund of the contribution from the child 104
119	119	care provider or intermediary. 105
120	120	4. A contribution, whether received from the taxpayer 106
121	121	claiming the tax credit pursuant to this section or from an 107
122	122	intermediary, is eligible when: 108
123	123	(1) The contribution is used directly by the child 109
124	124	care provider to promote child care for children twelve 110
125	125	years of age or younger, including by acquiring or improving 111
126	126	child care facilities, equipment, or services, staff 112
127	127	salaries, staff training, or improving the quality of child 113
128	128	care; 114 SB 742 5
129	129	(2) The contribution, if made to an intermediary, is 115
130	130	distributed in full by the intermediary within two years of 116
131	131	receipt to one or more child care providers for the sole 117
132	132	purpose of promoting child c are for children twelve years of 118
133	133	age or younger; 119
134	134	(3) The contribution is made to a child care provider 120
135	135	or intermediary in which the taxpayer or a person related to 121
136	136	the taxpayer does not have a direct financial interest; 122
137	137	(4) The contribution made to an intermediary is not 123
138	138	designated for a child care provider in which the taxpayer 124
139	139	or a person related to the taxpayer has a direct financial 125
140	140	interest; and 126
141	141	(5) The contribution is not made in exchange for care 127
142	142	of a child or children, unles s the contribution is made by 128
143	143	an employer in purchasing child care for the children of the 129
144	144	employer's employees. 130
145	145	5. A child care provider or intermediary that uses the 131
146	146	contribution for an ineligible purpose shall repay to the 132
147	147	department the value of the tax credit for the contribution 133
148	148	amount used for such ineligible purpose. An intermediary 134
149	149	that accepts a contribution and issues a taxpayer a 135
150	150	contribution verification is itself permanently ineligible 136
151	151	to claim or redeem a tax credit pursuant to this section. 137
152	152	6. (1) The tax credits authorized by this section 138
153	153	shall not be refundable and shall not be transferred, sold, 139
154	154	or otherwise conveyed. Any amount of approved tax credits 140
155	155	that a taxpayer is prohibited by this subsection from using 141
156	156	for the tax year in which the credit is first claimed may be 142
157	157	carried forward to the taxpayer's subsequent tax year for up 143
158	158	to six succeeding tax years. 144
159	159	(2) In the case of a taxpayer that has or elects pass - 145
160	160	through taxation pursuant to federal income tax law, the tax 146 SB 742 6
161	161	credits issued pursuant to this section shall be apportioned 147
162	162	in proportion to the share of ownership of the taxpayer on 148
163	163	the last day of the taxpayer's tax period for which such tax 149
164	164	credits will be issued, to the following: 150
165	165	(a) The shareholders of the S corporation; 151
166	166	(b) The partners in a partnership; or 152
167	167	(c) The members of a limited liability company that 153
168	168	has or elects pass-through taxation pursuant to federal 154
169	169	income tax law. 155
170	170	(3) A taxpayer shall not claim a tax credit pursuant 156
171	171	to this section and a tax credit pursuant to section 157
172	172	135.1325 for the same contribution or expenditure. 158
173	173	7. Notwithstanding any provision of subsection 6 of 159
174	174	this section to the contrary, a taxpayer that is exempt, 160
175	175	under 26 U.S.C. Section 501(c)(3), and any amendments 161
176	176	thereto, from all or part of the federal income tax shall be 162
177	177	eligible for a refund of its tax credit issued under this 163
178	178	section, without regard to whether it has incurred any state 164
179	179	tax liability. Such exempt taxpayer may claim a refund of 165
180	180	the tax credit on its tax return required to be filed under 166
181	181	the provisions of chapter 143, exclusive of the return for 167
182	182	the withholding of tax under sections 143.191 to 143.265. 168
183	183	If such exempt taxpayer is not required to file a tax return 169
184	184	under the provisions of chapter 143, the exempt taxpayer may 170
185	185	claim a refund of the tax credit on a refund claim form 171
186	186	prescribed by the department of revenue. The department of 172
187	187	revenue shall prescribe such forms, instructions, and rules 173
188	188	as it deems appropriate to carry out the provisions of this 174
189	189	subsection. 175
190	190	8. (1) The amount of tax credits authorized pursuant 176
191	191	to this section shall not exceed twenty million dollars for 177
192	192	each calendar year. The department shall approve tax credit 178 SB 742 7
193	193	applications on a first -come, first-served basis until the 179
194	194	tax credit authorization limit is reached for the calendar 180
195	195	year. A taxpayer shall apply to the department for the 181
196	196	child care contribution tax credit by submitting a copy of 182
197	197	the contribution ver ification provided by a child care 183
198	198	provider or intermediary to such taxpayer. Upon receipt of 184
199	199	such contribution verification, the department shall issue a 185
200	200	tax credit certificate to the taxpayer. 186
201	201	(2) If the maximum amount of tax credits allowed in 187
202	202	any calendar year as provided pursuant to subdivision (1) of 188
203	203	this subsection is authorized, the maximum amount of tax 189
204	204	credits allowed pursuant to subdivision (1) of this 190
205	205	subsection shall be increased by fifteen percent, provided 191
206	206	that all such increas es in the allowable amount of tax 192
207	207	credits shall be reserved for contributions made to child 193
208	208	care providers located in a child care desert. The director 194
209	209	of the department shall publish such adjusted amount. 195
210	210	9. The tax credits allowed under this se ction shall be 196
211	211	considered a domestic and social tax credit under 197
212	212	subdivision (5) of subsection 2 of section 135.800. 198
213	213	10. All action and communication undertaken or 199
214	214	required under this section shall be exempt from section 200
215	215	105.1500. 201
216	216	11. The department may promulgate rules to implement 202
217	217	and administer the provisions of this section. Any rule or 203
218	218	portion of a rule, as that term is defined in section 204
219	219	536.010, that is created pursuant to the authority delegated 205
220	220	in this section shall become effe ctive only if it complies 206
221	221	with and is subject to all of the provisions of chapter 536 207
222	222	and, if applicable, section 536.028. This section and 208
223	223	chapter 536 are nonseverable and if any of the powers vested 209
224	224	with the general assembly pursuant to chapter 536 to review, 210 SB 742 8
225	225	to delay the effective date, or to disapprove and annul a 211
226	226	rule are subsequently held unconstitutional, then the grant 212
227	227	of rulemaking authority and any rule proposed or adopted 213
228	228	after August 28, 2024, shall be invalid and void. 214
229	229	12. Pursuant to section 23.253 of the Missouri sunset 215
230	230	act: 216
231	231	(1) The program authorized under this section shall 217
232	232	expire on December 31, 2030, unless reauthorized by the 218
233	233	general assembly; 219
234	234	(2) The act shall terminate on September first of the 220
235	235	calendar year immediately following the calendar year in 221
236	236	which the program authorized under this section is sunset; 222
237	237	(3) If such program is reauthorized, the program 223
238	238	authorized under this act shall automatically sunset six 224
239	239	years after the effective date of th e reauthorization of 225
240	240	this section; and 226
241	241	(4) The provisions of this subsection shall not be 227
242	242	construed to limit or in any way impair the department of 228
243	243	revenue's ability to redeem tax credits authorized on or 229
244	244	before the date the program authorized pu rsuant to this 230
245	245	section expires or a taxpayer's ability to redeem such tax 231
246	246	credits. 232
247	247	135.1325. 1. This section shall be known and may be 1
248	248	cited as the "Employer Provided Child Care Assistance Tax 2
249	249	Credit Act". 3
250	250	2. For purposes of this section, the following terms 4
251	251	shall mean: 5
252	252	(1) "Child care desert", a census tract that has a 6
253	253	poverty rate of at least twenty percent or a median family 7
254	254	income of less than eighty percent of the statewide average 8
255	255	and where at least five hundre d people or thirty-three 9
256	256	percent of the population are located at least one -half mile 10 SB 742 9
257	257	away from a child care provider in urbanized areas or at 11
258	258	least ten miles away in rural areas; 12
259	259	(2) "Child care facility", a child care facility as 13
260	260	defined in section 210.201 that is licensed pursuant to 14
261	261	section 210.221, or that is unlicensed and that is 15
262	262	registered with the department of elementary and secondary 16
263	263	education; 17
264	264	(3) "Child care provider", a child care provider as 18
265	265	defined in section 210.201 that is licensed pursuant to 19
266	266	section 210.221, or that is unlicensed and that is 20
267	267	registered with the department of elementary and secondary 21
268	268	education; 22
269	269	(4) "Department", the Missouri department of economic 23
270	270	development; 24
271	271	(5) "Employer matching cont ribution", a contribution 25
272	272	made by the taxpayer to a cafeteria plan, as that term is 26
273	273	used in 26 U.S.C. Section 125, of an employee of the 27
274	274	taxpayer, which matches a dollar amount or percentage of the 28
275	275	employee's contribution to the cafeteria plan. "Employer 29
276	276	matching contribution" shall not include the amount of any 30
277	277	salary reduction or other compensation foregone by the 31
278	278	employee in connection with the cafeteria plan; 32
279	279	(6) "Qualified child care expenditure", an amount paid 33
280	280	of reasonable costs incur red that meet any of the following: 34
281	281	(a) To acquire, construct, rehabilitate, or expand 35
282	282	property that will be, or is, used as part of a child care 36
283	283	facility that is either operated by the taxpayer or 37
284	284	contracted with by the taxpayer and which does no t 38
285	285	constitute part of the principal residence of the taxpayer 39
286	286	or any employee of the taxpayer; 40
287	287	(b) For the operating costs of a child care facility 41
288	288	of the taxpayer, including costs relating to the training of 42 SB 742 10
289	289	child care employees, scholarship prog rams, and for 43
290	290	compensation to child care employees; 44
291	291	(c) Under a contract with a child care facility to 45
292	292	provide child care services to employees of the taxpayer; or 46
293	293	(d) As an employer matching contribution, but only to 47
294	294	the extent such employe r matching contribution is restricted 48
295	295	by the taxpayer solely for the taxpayer's employee to obtain 49
296	296	child care services at a child care facility and is used for 50
297	297	that purpose during the tax year; 51
298	298	(7) "Rural area", a town or community within the stat e 52
299	299	that is not within a metropolitan statistical area and has a 53
300	300	population of six thousand or fewer inhabitants as 54
301	301	determined by the last preceding federal decennial census or 55
302	302	any unincorporated area not within a metropolitan 56
303	303	statistical area; 57
304	304	(8) "State tax liability", any liability incurred by 58
305	305	the taxpayer pursuant to the provisions of chapter 143 or 59
306	306	chapter 148, exclusive of the provisions relating to the 60
307	307	withholding of tax as provided for in sections 143.191 to 61
308	308	143.265 and related provisio ns; 62
309	309	(9) "Tax credit", a credit against the taxpayer's 63
310	310	state tax liability; 64
311	311	(10) "Taxpayer", a corporation as defined in section 65
312	312	143.441 or 143.471, any charitable organization that is 66
313	313	exempt from federal income tax and whose Missouri unrelat ed 67
314	314	business taxable income, if any, would be subject to the 68
315	315	state income tax imposed under chapter 143, or individuals 69
316	316	or partnerships subject to the state income tax imposed by 70
317	317	the provisions of chapter 143. 71
318	318	3. For all tax years beginning on or after January 1, 72
319	319	2025, a taxpayer with two or more employees may claim a tax 73
320	320	credit authorized in this section in an amount equal to 74 SB 742 11
321	321	thirty percent of the qualified child care expenditures paid 75
322	322	or incurred with respect to a child care facility in order 76
323	323	to provide child care to the taxpayer's employees. The 77
324	324	maximum amount of any tax credit issued under this section 78
325	325	shall not exceed two hundred thousand dollars per taxpayer 79
326	326	per tax year. 80
327	327	4. A facility shall not be treated as a child care 81
328	328	facility with respect to a taxpayer unless enrollment in the 82
329	329	facility is open to the dependents of employees of the 83
330	330	taxpayer during the tax year, provided that the dependents 84
331	331	fall within the age range ordinarily cared for by, and only 85
332	332	require a level of car e ordinarily provided by, such 86
333	333	facility. 87
334	334	5. (1) The tax credits authorized by this section 88
335	335	shall not be refundable or transferable. The tax credits 89
336	336	shall not be sold, assigned, or otherwise conveyed. Any 90
337	337	amount of approved tax credits that a t axpayer is prohibited 91
338	338	by this subsection from using for the tax year in which the 92
339	339	credit is first claimed may be carried forward to the 93
340	340	taxpayer's subsequent tax year for up to six succeeding tax 94
341	341	years. 95
342	342	(2) In the case of a taxpayer that has or e lects pass- 96
343	343	through taxation pursuant to federal income tax law, the tax 97
344	344	credits issued pursuant to this section shall be apportioned 98
345	345	in proportion to the share of ownership of the taxpayer on 99
346	346	the last day of the taxpayer's tax period for which such tax 100
347	347	credits will be issued, to the following: 101
348	348	(a) The shareholders of the S corporation; 102
349	349	(b) The partners in a partnership; or 103
350	350	(c) The members of a limited liability company that 104
351	351	has or elects pass-through taxation pursuant to federal 105
352	352	income tax law. 106 SB 742 12
353	353	(3) A taxpayer shall not claim a tax credit pursuant 107
354	354	to this section and a tax credit pursuant to section 108
355	355	135.1310 or 135.1350 for the same contribution or 109
356	356	expenditure. 110
357	357	6. Notwithstanding any provision of subsection 5 of 111
358	358	this section to the contrary, a taxpayer that is exempt, 112
359	359	under 26 U.S.C. Section 501(c)(3), and any amendments 113
360	360	thereto, from all or part of the federal income tax shall be 114
361	361	eligible for a refund of its tax credit issued under this 115
362	362	section, without regard to w hether it has incurred any state 116
363	363	tax liability. Such exempt taxpayer may claim a refund of 117
364	364	the tax credit on its tax return required to be filed under 118
365	365	the provisions of chapter 143, exclusive of the return for 119
366	366	the withholding of tax under sections 143 .191 to 143.265. 120
367	367	If such exempt taxpayer is not required to file a tax return 121
368	368	under the provisions of chapter 143, the exempt taxpayer may 122
369	369	claim a refund of the tax credit on a refund claim form 123
370	370	prescribed by the department of revenue. The department of 124
371	371	revenue shall prescribe such forms, instructions, and rules 125
372	372	as it deems appropriate to carry out the provisions of this 126
373	373	subsection. 127
374	374	7. (1) The amount of tax credits authorized pursuant 128
375	375	to this section shall not exceed twenty million dollars for 129
376	376	each calendar year. The department shall approve tax credit 130
377	377	applications on a first -come, first-served basis until the 131
378	378	tax credit authorization limit is reached for the calendar 132
379	379	year. 133
380	380	(2) If the maximum amount of tax credits allowed in 134
381	381	any calendar year as provided pursuant to subdivision (1) of 135
382	382	this subsection is authorized, the maximum amount of tax 136
383	383	credits allowed pursuant to subdivision (1) of this 137
384	384	subsection shall be increased by fifteen percent, provided 138 SB 742 13
385	385	that all such increases in the allowable amount of tax 139
386	386	credits shall be reserved for qualified child care 140
387	387	expenditures for child care facilities located in a child 141
388	388	care desert. The director of the department shall publish 142
389	389	such adjusted amount. 143
390	390	8. A taxpayer who has been i ssued a tax credit under 144
391	391	this section shall notify the department within sixty days 145
392	392	of any cessation of operation, change in ownership, or 146
393	393	agreement to assume recapture liability as such terms are 147
394	394	defined by 26 U.S.C. Section 45F, in the form and manne r 148
395	395	prescribed by department rule or instruction. If there is a 149
396	396	cessation of operation or change in ownership relating to a 150
397	397	child care facility, the department may require the taxpayer 151
398	398	to repay the department an amount equal to the credit issued 152
399	399	under this section, but this recapture amount shall be 153
400	400	limited to the tax credit allowed under this section. The 154
401	401	recapture amount shall be considered a tax liability arising 155
402	402	on the tax payment due date for the tax year in which the 156
403	403	cessation of operation, c hange in ownership, or agreement to 157
404	404	assume recapture liability occurred and shall be assessed 158
405	405	and collected under the same provisions that apply to a tax 159
406	406	liability under chapter 143 or chapter 148, provided that no 160
407	407	interest shall be assessed against an y amounts recaptured 161
408	408	pursuant to this subsection. 162
409	409	9. The tax credit allowed pursuant to this section 163
410	410	shall be considered a domestic and social tax credit under 164
411	411	subdivision (5) of subsection 2 of section 135.800. 165
412	412	10. All action and communicat ion undertaken or 166
413	413	required under this section shall be exempt from section 167
414	414	105.1500. 168
415	415	11. The department may promulgate rules to implement 169
416	416	and administer the provisions of this section. Any rule or 170 SB 742 14
417	417	portion of a rule, as that term is defined in se ction 171
418	418	536.010, that is created pursuant to the authority delegated 172
419	419	in this section shall become effective only if it complies 173
420	420	with and is subject to all of the provisions of chapter 536 174
421	421	and, if applicable, section 536.028. This section and 175
422	422	chapter 536 are nonseverable and if any of the powers vested 176
423	423	with the general assembly pursuant to chapter 536 to review, 177
424	424	to delay the effective date, or to disapprove and annul a 178
425	425	rule are subsequently held unconstitutional, then the grant 179
426	426	of rulemaking authorit y and any rule proposed or adopted 180
427	427	after August 28, 2024, shall be invalid and void. 181
428	428	12. Pursuant to section 23.253 of the Missouri sunset 182
429	429	act: 183
430	430	(1) The program authorized under this act shall expire 184
431	431	on December 31, 2030, unless reauthorized by the general 185
432	432	assembly; 186
433	433	(2) The act shall terminate on September first of the 187
434	434	calendar year immediately following the calendar year in 188
435	435	which the program authorized under the act is sunset; 189
436	436	(3) If such program is reauthorized, the program 190
437	437	authorized under this act shall automatically sunset six 191
438	438	years after the effective date of the reauthorization of the 192
439	439	act; and 193
440	440	(4) The provisions of this subsection shall not be 194
441	441	construed to limit or in any way impair the department of 195
442	442	revenue's ability to redeem tax credits authorized on or 196
443	443	before the date the program authorized pursuant to this 197
444	444	section expires or a taxpayer's ability to redeem such tax 198
445	445	credits. 199
446	446	135.1350. 1. This section shall be known and may be 1
447	447	cited as the "Child Care Providers Tax Credit Act". 2 SB 742 15
448	448	2. For purposes of this section, the following terms 3
449	449	shall mean: 4
450	450	(1) "Capital expenditures", expenses incurred by a 5
451	451	child care provider, during the tax year for which a tax 6
452	452	credit is claimed pursuan t to this section, for the 7
453	453	construction, renovation, or rehabilitation of a child care 8
454	454	facility to the extent necessary to operate a child care 9
455	455	facility and comply with applicable child care facility 10
456	456	regulations promulgated by the department of element ary and 11
457	457	secondary education; 12
458	458	(2) "Child care desert", a census tract that has a 13
459	459	poverty rate of at least twenty percent or a median family 14
460	460	income of less than eighty percent of the statewide average 15
461	461	and where at least five hundred people or thirt y-three 16
462	462	percent of the population are located at least one -half mile 17
463	463	away from a child care provider in urbanized areas or at 18
464	464	least ten miles away in rural areas; 19
465	465	(3) "Child care facility", a child care facility as 20
466	466	defined in section 210.201 that is licensed pursuant to 21
467	467	section 210.221, or that is unlicensed and that is 22
468	468	registered with the department of elementary and secondary 23
469	469	education; 24
470	470	(4) "Child care provider", a child care provider as 25
471	471	defined in section 210.201 that is licensed purs uant to 26
472	472	section 210.221, or that is unlicensed and that is 27
473	473	registered with the department of elementary and secondary 28
474	474	education; 29
475	475	(5) "Department", the department of elementary and 30
476	476	secondary education; 31
477	477	(6) "Employee", an employee, as that te rm is used in 32
478	478	subsection 2 of section 143.191, of a child care provider 33
479	479	who worked for the child care provider for an average of at 34 SB 742 16
480	480	least ten hours per week for at least a three -month period 35
481	481	during the tax year for which a tax credit is claimed 36
482	482	pursuant to this section and who is not an immediate family 37
483	483	member of the child care provider; 38
484	484	(7) "Eligible employer withholding tax", the total 39
485	485	amount of tax that the child care provider was required, 40
486	486	under section 143.191, to deduct and withhold from the wages 41
487	487	it paid to employees during the tax year for which the child 42
488	488	care provider is claiming a tax credit pursuant to this 43
489	489	section, to the extent actually paid. "Eligible employer 44
490	490	withholding tax" shall not include any additional voluntary 45
491	491	withholding requested by an employee; 46
492	492	(8) "Rural area", a town or community within the state 47
493	493	that is not within a metropolitan statistical area and has a 48
494	494	population of six thousand or fewer inhabitants as 49
495	495	determined by the last preceding federal decenn ial census or 50
496	496	any unincorporated area not within a metropolitan 51
497	497	statistical area; 52
498	498	(9) "State tax liability", any liability incurred by 53
499	499	the taxpayer pursuant to the provisions of chapter 143, 54
500	500	exclusive of the provisions relating to the withholding of 55
501	501	tax as provided for in sections 143.191 to 143.265 and 56
502	502	related provisions; 57
503	503	(10) "Tax credit", a credit against the taxpayer's 58
504	504	state tax liability; 59
505	505	(11) "Taxpayer", a corporation as defined in section 60
506	506	143.441 or 143.471, any charitable o rganization that is 61
507	507	exempt from federal income tax and whose Missouri unrelated 62
508	508	business taxable income, if any, would be subject to the 63
509	509	state income tax imposed under chapter 143, or an individual 64
510	510	or partnership subject to the state income tax imposed by 65
511	511	the provisions of chapter 143. 66 SB 742 17
512	512	3. For all tax years beginning on or after January 1, 67
513	513	2025, a child care provider with three or more employees may 68
514	514	claim a tax credit authorized in this section in an amount 69
515	515	equal to the child care provider's el igible employer 70
516	516	withholding tax, and may also claim a tax credit in an 71
517	517	amount up to thirty percent of the child care provider's 72
518	518	capital expenditures. No tax credit for capital 73
519	519	expenditures shall be allowed if the capital expenditures 74
520	520	are less than one thousand dollars. The amount of any tax 75
521	521	credit issued under this section shall not exceed two 76
522	522	hundred thousand dollars per child care provider per tax 77
523	523	year. 78
524	524	4. To claim a tax credit authorized pursuant to this 79
525	525	section, a child care provider sh all submit to the 80
526	526	department, for preliminary approval, an application for the 81
527	527	tax credit on a form provided by the department and at such 82
528	528	times as the department may require. If the child care 83
529	529	provider is applying for a tax credit for capital 84
530	530	expenditures, the child care provider shall present proof 85
531	531	acceptable to the department that the child care provider's 86
532	532	capital expenditures satisfy the requirements of subdivision 87
533	533	(1) of subsection 2 of this section. Upon final approval of 88
534	534	an application, the department shall issue the child care 89
535	535	provider a certificate of tax credit. 90
536	536	5. (1) The tax credits authorized by this section 91
537	537	shall not be refundable and shall not be transferred, sold, 92
538	538	assigned, or otherwise conveyed. Any amount of credit tha t 93
539	539	exceeds the child care provider's state tax liability for 94
540	540	the tax year for which the tax credit is issued may be 95
541	541	carried forward to the child care provider's subsequent tax 96
542	542	year for up to six succeeding tax years. 97 SB 742 18
543	543	(2) In the case of a taxpayer that has or elects pass - 98
544	544	through taxation pursuant to federal income tax law, the tax 99
545	545	credits issued pursuant to this section shall be apportioned 100
546	546	in proportion to the share of ownership of the taxpayer on 101
547	547	the last day of the taxpayer's tax period for w hich such tax 102
548	548	credits will be issued, to the following: 103
549	549	(a) The shareholders of the S corporation; 104
550	550	(b) The partners in a partnership; or 105
551	551	(c) The members of a limited liability company that 106
552	552	has or elects pass-through taxation pursuant to federal 107
553	553	income tax law. 108
554	554	(3) A taxpayer shall not claim a tax credit pursuant 109
555	555	to this section and a tax credit pursuant to section 110
556	556	135.1325 for the same contribution or expenditure. 111
557	557	6. Notwithstanding any provision of subsection 5 of 112
558	558	this section to the contrary, a child care provider that is 113
559	559	exempt, under 26 U.S.C. Section 501(c)(3), and any 114
560	560	amendments thereto, from all or part of the federal income 115
561	561	tax shall be eligible for a refund of its tax credit issued 116
562	562	under this section, without regard to whether it has 117
563	563	incurred any state tax liability. Such exempt child care 118
564	564	provider may claim a refund of the tax credit on its tax 119
565	565	return required to be filed under the provisions of chapter 120
566	566	143, exclusive of the return for the withholding of tax 121
567	567	under sections 143.191 to 143.265. If such exempt child 122
568	568	care provider is not required to file a tax return under the 123
569	569	provisions of chapter 143, the exempt child care provider 124
570	570	may claim a refund of the tax credit on a refund claim form 125
571	571	prescribed by the department of revenue. The department of 126
572	572	revenue shall prescribe such forms, instructions, and rules 127
573	573	as it deems appropriate to carry out the provisions of this 128
574	574	subsection. 129 SB 742 19
575	575	7. (1) The amount of tax credits authorized pursuant 130
576	576	to this section shall not exceed twenty million dollars for 131
577	577	each calendar year. The department shall approve tax credit 132
578	578	applications on a first -come, first-served basis until the 133
579	579	tax credit authorization limit is reached for the calendar 134
580	580	year. 135
581	581	(2) If the maximum amount of tax credits allowed in 136
582	582	any calendar year as provided pursuant to subdivision (1) of 137
583	583	this subsection is authorized, the maximum amount of tax 138
584	584	credits allowed pursuant to subdivision (1) of this 139
585	585	subsection shall be increased by fifteen p ercent, provided 140
586	586	that all such increases in the allowable amount of tax 141
587	587	credits shall be reserved for child care providers located 142
588	588	in a child care desert. The director of the department 143
589	589	shall publish such adjusted amount. 144
590	590	8. The tax credit autho rized by this section shall be 145
591	591	considered a domestic and social tax credit under 146
592	592	subdivision (5) of subsection 2 of section 135.800. 147
593	593	9. All action and communication undertaken or required 148
594	594	with respect to this section shall be exempt from section 149
595	595	105.1500. Notwithstanding section 32.057 or any other tax 150
596	596	confidentiality law to the contrary, the department of 151
597	597	revenue may disclose tax information to the department for 152
598	598	the purpose of the verification of a child care provider's 153
599	599	eligible employer wi thholding tax under this section. 154
600	600	10. The department may promulgate rules and adopt 155
601	601	statements of policy, procedures, forms and guidelines to 156
602	602	implement and administer the provisions of this section. 157
603	603	Any rule or portion of a rule, as that term is defined in 158
604	604	section 536.010, that is created pursuant to the authority 159
605	605	delegated in this section shall become effective only if it 160
606	606	complies with and is subject to all of the provisions of 161 SB 742 20
607	607	chapter 536 and, if applicable, section 536.028. This 162
608	608	section and chapter 536 are nonseverable and if any of the 163
609	609	powers vested with the general assembly pursuant to chapter 164
610	610	536 to review, to delay the effective date, or to disapprove 165
611	611	and annul a rule are subsequently held unconstitutional, 166
612	612	then the grant of rulema king authority and any rule proposed 167
613	613	or adopted after August 28, 2024, shall be invalid and void. 168
614	614	11. Pursuant to section 23.253 of the Missouri sunset 169
615	615	act: 170
616	616	(1) The program authorized under this section shall 171
617	617	expire on December 31, 2030, unl ess reauthorized by the 172
618	618	general assembly; 173
619	619	(2) The act shall terminate on September first of the 174
620	620	calendar year immediately following the calendar year in 175
621	621	which the program authorized under this section is sunset; 176
622	622	(3) If such program is reauth orized, the program 177
623	623	authorized under this section shall automatically sunset six 178
624	624	years after the effective date of the reauthorization of 179
625	625	this section; and 180
626	626	(4) The provisions of this subsection shall not be 181
627	627	construed to limit or in any way impair the department of 182
628	628	revenue's ability to redeem tax credits authorized on or 183
629	629	before the date the program authorized pursuant to this 184
630	630	section expires or a taxpayer's ability to redeem such tax 185
631	631	credits. 186
632	632	