FIRSTREGULARSESSION
HOUSEBILLNO.1498
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEWELLENKAMP.
3112H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections135.478,135.481,135.484,and135.487,RSMo,andtoenactinlieu
thereoffournewsectionsrelatingtoataxcreditforcriticalrevitalizationproperty.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections135.478,135.481,135.484,and135.487,RSMo,arerepealed
2andfournewsectionsenactedinlieuthereof,tobeknownassections135.478,135.481,
3135.484,and135.487,toreadasfollows:
135.478.Asusedinsections135.481to135.487,thefollowingtermsmean:
2 (1)"Criticalrevitalizationarea",anareadefinedasaNationalRegister-listed
3historicdistrict;
4 (2)"Criticalrevitalizationproperty",anoccupiedpropertythatisrecognizedas
5acontributingresourceinaNationalRegister-listedhistoricdistrictandiszonedas
6residential,commercial,ormixeduse;
7 (3)"Department",thedepartmentofeconomicdevelopment;
8 [(2)](4)"Director",thedirectorofthedepartmentofeconomicdevelopment;
9 [(3)](5)"Distressedcommunity",asdefinedinsection135.530;
10 [(4)](6)"Eligiblecostsforcriticalrevitalizationproperties",expensesincurred
11forpropertyrenovation,includingsurveys,architecturalandengineeringservices,and
12constructioncostsrelatedtomaintenance,functionaluse,andpropertyviability;
13 (7)"Eligiblecostsforanewresidence",expensesincurredforpropertyacquisition,
14development,sitepreparationotherthandemolition,surveys,architecturalandengineering
15servicesandconstructionandallothernecessaryandincidentalexpensesincurredfor
16constructinganewmarketrateresidence,whichisorwillbeowner-occupied,whichisnot
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17replacinganationalregisterlistedorlocalhistoricstructure;exceptthat,costspaidforbythe
18taxpayerwithgrantsorforgivableloans,otherthantaxcredits,providedpursuanttostateor
19federalgovernmentalprogramsareineligible;
20 [(5)](8)"Eligiblecostsforrehabilitation",expensesincurredfortherenovationor
21rehabilitationofanexistingresidenceincludingsitepreparation,surveys,architecturaland
22engineeringservices,construction,modification,expansion,remodeling,structuralalteration,
23replacementsandalterations;exceptthat,costspaidforbythetaxpayerwithgrantsor
24forgivableloansotherthantaxcreditsprovidedpursuanttostateorfederalgovernmental
25programsareineligible;
26 [(6)](9)"Eligibleresidence",asingle-familyresidencefortyyearsofageorolder,
27locatedinthisstateandnotwithinadistressedcommunityasdefinedbysection135.530,
28whichisoccupiedorintendedtobeoroccupiedlong-termbytheownerorofferedforsaleat
29marketrateforowner-occupancyandwhichiseitherlocatedwithinaUnitedStatescensus
30blockgroupwhich,ifinametropolitanstatisticalarea,hasamedianhouseholdincomeofless
31thanninetypercent,butgreaterthanorequaltoseventypercentofthemedianhousehold
32incomeforthemetropolitanstatisticalareainwhichthecensusblockgroupislocated,or
33which,iflocatedwithinaUnitedStatescensusblockgroupinanonmetropolitanarea,hasa
34medianhouseholdincomeoflessthanninetypercent,butgreaterthanorequaltoseventy
35percentofthemedianhouseholdincomeforthenonmetropolitanareasinthestate;
36 [(7)](10)"Floodplain",anylandorareasusceptibletobeinginundatedbywater
37fromanysourceorlocatedinaonehundred-yearfloodplainareadeterminedbyFederal
38EmergencyManagementAgencymappingassubjecttoflooding;
39 (11)"Historicdistrict",ageographicallydefinedsectionofacommunitylisted
40ontheNationalRegisterthatisformallydesignatedassuchbytheNationalPark
41ServiceandtheStateHistoricPreservationOfficethatencompassesacommonly
42recognizeddowntownwhereacollectionofbuildings,structures,andsitespossess
43significanthistoricalorarchitecturalvalueandwhereeachpropertyaddstotheoverall
44characterofthearea;
45 [(8)](12)"Newresidence",aresidenceconstructedonlandwhichiflocatedwithina
46distressedcommunityhaseitherbeenvacantforatleasttwoyearsorisorwasoccupiedbya
47structurewhichhasbeencondemnedbythelocalentityinwhichthestructureislocatedor
48which,iflocatedoutsideofadistressedcommunitybutwithinacensusblockgroupas
49describedinsubdivision(6)or(10)ofthissection,eitherreplacesaresidencefortyyearsof
50ageorolderdemolishedforpurposesofconstructingareplacementresidence,orwhichis
51constructedonvacantpropertywhichhasbeenclassifiedfornotlessthanfortycontinuous
52yearsasresidentialorutility,commercial,railroadorotherrealpropertypursuanttoArticle
53X,Section4(b)oftheMissouriConstitution,asdefinedinsection137.016;exceptthat,no
HB1498 2 54newresidenceshallbeconstructedinafloodplainoronpropertyusedforagricultural
55purposes.Inadistressedcommunity,theterm"newresidence"shallincludecondominiums,
56owner-occupiedunitsorotherunitsintendedtobeowner-occupiedinmultipleunitstructures;
57 [(9)](13)"Project",newconstruction,rehabilitationorsubstantialrehabilitationofa
58residencethatqualifiesforataxcreditpursuanttosections135.475to135.487;
59 [(10)] (14)"Qualifyingresidence",asingle-familyresidence,fortyyearsofageor
60older,locatedinthisstatewhichisoccupiedorintendedtobeoccupiedlong-termbythe
61ownerorofferedforsaleatmarketrateforowner-occupancyandwhichislocatedina
62metropolitanstatisticalareaornonmetropolitanstatisticalareawithinaUnitedStatescensus
63blockgroupwhichhasamedianhouseholdincomeoflessthanseventypercentofthemedian
64householdincomeforthemetropolitanstatisticalareaornonmetropolitanarea,respectively,
65orwhichislocatedwithinadistressedcommunity.Aqualifyingresidenceshallincludea
66condominiumorresidencewithinamultipleresidentialstructureorastructurecontaining
67multiplesingle-familyresidenceswhichislocatedwithinadistressedcommunity;
68 [(11)](15)"Substantialrehabilitation",rehabilitationthecostsofwhichexceedfifty
69percentofeitherthepurchasepriceorthecostbasisofthestructureimmediatelypriorto
70rehabilitation;providedthat,thestructureisatleastfiftyyearsoldnotwithstandingany
71provisionofsections135.475to135.487tothecontrary;
72 [(12)] (16)"Taxliability",thetaxduepursuanttochapter143,147or148,otherthan
73taxeswithheldpursuanttosections143.191to143.265;
74 [(13)] (17)"Taxpayer",anyperson,partnership,corporation,trust,limitedliability
75company,oranycharitableorganizationwhichisexemptfromfederalincometaxandwhose
76Missouriunrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestateincometax
77imposedunderchapter143.
135.481.1.(1)Anytaxpayerwhoincurseligiblecostsforanewresidencelocatedin
2adistressedcommunityorwithinacensusblockgroupasdescribedinsubdivision(10)of
3section135.478,orforamultipleunitcondominiumdescribedinsubdivision(2)ofthis
4subsection,shallreceiveataxcreditequaltofifteenpercentofsuchcostsagainsthisorher
5taxliability.Thetaxcreditshallnotexceedfortythousanddollarspernewresidenceinany
6ten-yearperiod.
7 (2)Forthepurposesofthissection,a"multipleunitcondominium"isonethatis
8intendedtobeowneroccupied,whichisconstructedonpropertysubjecttoanindustrial
9developmentcontractasdefinedinsection100.310andwhichlieswithinanareawithacity
10zoningclassificationofurbanredevelopmentdistrictestablishedafterJanuary1,2000,and
11beforeDecember31,2001,andwhichisconstructedinconnectionwiththequalified
12rehabilitationofastructuremorethanninetyyearsoldeligibleforthehistoricstructures
HB1498 3 13rehabilitationtaxcreditdescribedinsections253.545to253.559,andisunderwayby
14January1,2000,andcompletedbyJanuary1,2002.
15 2.Anytaxpayerwhoincurseligiblecostsforanewresidencelocatedwithinacensus
16blockasdescribedinsubdivision(6)ofsection135.478shallreceiveataxcreditequalto
17fifteenpercentofsuchcostsagainsthisorhertaxliability.Thetaxcreditshallnotexceed
18twenty-fivethousanddollarspernewresidenceinanyten-yearperiod.
19 3.Anytaxpayerwhoisnotperformingsubstantialrehabilitationandwhoincurs
20eligiblecostsforrehabilitationofaneligibleresidenceoraqualifyingresidenceshallreceive
21ataxcreditequaltotwenty-fivepercentofsuchcostsagainsthisorhertaxliability.The
22minimumeligiblecostsforrehabilitationofaneligibleresidenceshallbetenthousand
23dollars.Theminimumeligiblecostsforrehabilitationofaqualifyingresidenceshallbefive
24thousanddollars.Thetaxcreditshallnotexceedtwenty-fivethousanddollarsinanyten-year
25period.
26 4.Anytaxpayerwhoincurseligiblecostsforsubstantialrehabilitationofaqualifying
27residenceshallreceiveataxcreditequaltothirty-fivepercentofsuchcostsagainsthisorher
28taxliability.Theminimumeligiblecostsforsubstantialrehabilitationofaqualifying
29residenceshallbetenthousanddollars.Thetaxcreditshallnotexceedseventythousand
30dollarsinanyten-yearperiod.
31 5.Anytaxpayerwhoincurseligiblecostsforrenovationofacritical
32revitalizationpropertyshallreceiveataxcreditequaltothirty-fivepercentofsuch
33costsagainsthisorhertaxliability.Theminimumeligiblecostsforrenovationofa
34criticalrevitalizationpropertyshallbefivethousanddollars.Thetaxcreditshallnot
35exceedonehundredthousanddollarsinanyten-yearperiod.
36 6.Ataxpayershallbeeligibletoreceivetaxcreditsfornewconstruction[or],
37rehabilitation, orrenovationpursuanttoonlyonesubsectionofthissection.
38 [6.]7.Notaxcreditshallbeissuedpursuanttothissectionforanystructurewhichis
39inviolationofanymunicipalorcountyproperty,maintenanceorzoningcode.
40 [7.]8.Notaxcreditshallbeissuedpursuanttosections135.475to135.487forthe
41constructionorrehabilitationofrentalproperty, exceptthattaxcreditsmaybeissued
42undersubsection5ofthissectionfortherenovationofrentalpropertyqualifyingas
43criticalrevitalizationproperty.
135.484.1.(1)BeginningJanuary1,2000,butendingDecember31,2025,tax
2creditsshallbeallowedpursuanttosection135.481inanamountnottoexceedsixteen
3milliondollarsperyear.Ofthistotalamountoftaxcreditsinanygivenyear,eightmillion
4dollarsshallbesetasideforprojectsinareasdescribedinsubdivision[(6)](9)ofsection
5135.478andeightmilliondollarsforprojectsinareasdescribedinsubdivision[(10)] (14)of
HB1498 4 6section135.478.Themaximumtaxcreditforaprojectconsistingofmultiple-unitqualifying
7residencesinadistressedcommunityshallnotexceedthreemilliondollars.
8 (2)BeginningJanuary1,2026,taxcreditsshallbeallowedpursuanttosection
9135.481inanamountnottoexceedsixteenmilliondollarsperyear.Ofthistotalamount
10oftaxcreditsinanygivenyear,onemilliondollarsshallbesetasideforprojectsinareas
11describedinsubdivision(9)ofsection135.478,sevenmilliondollarsshallbesetasidefor
12projectsinareasdescribedinsubdivision(1)ofsection135.478,andeightmilliondollars
13shallbesetasideforprojectsinareasdescribedinsubdivision(14)ofsection135.478.
14Themaximumtaxcreditforaprojectconsistingofmultiple-unitqualifyingresidences
15inadistressedcommunityshallnotexceedthreemilliondollars.
16 2.Anyamountofcreditwhichexceedsthetaxliabilityofataxpayerforthetaxyear
17inwhichthecreditisfirstclaimedmaybecarriedbacktoanyofthetaxpayer'sthreepriortax
18yearsandcarriedforwardtoanyofthetaxpayer'sfivesubsequenttaxyears.Acertificateof
19taxcreditissuedtoataxpayerbythedepartmentmaybeassigned,transferred,soldor
20otherwiseconveyed.Wheneveracertificateoftaxcreditisassigned,transferred,soldor
21otherwiseconveyed,anotarizedendorsementshallbefiledwiththedepartmentspecifying
22thenameandaddressofthenewownerofthetaxcreditandthevalueofthecredit.
23 3.Thetaxcreditsallowedpursuanttosections135.475to135.487maynotbe
24claimedinadditiontoanyotherstatetaxcredits,withtheexceptionofthehistoricstructures
25rehabilitationtaxcreditauthorizedpursuanttosections253.545to253.559,whichinsofaras
26sections135.475to135.487areconcernedmaybeclaimedonlyinconjunctionwiththetax
27creditallowedpursuanttosubsection4ofsection135.481.Inorderforataxpayereligiblefor
28thehistoricstructuresrehabilitationtaxcredittoclaimthetaxcreditallowedpursuantto
29subsection4ofsection135.481,thetaxpayermustcomplywiththerequirementsofsections
30253.545to253.559,andinsuchcases,theamountofthetaxcreditpursuanttosubsection4of
31section135.481shallbelimitedtothelesseroftwentypercentofthetaxpayer'seligiblecosts
32orfortythousanddollars.Notaxpayerawardedataxcreditundersections135.475to
33135.487fortherenovationofacriticalrevitalizationpropertyshallalsoreceiveacredit
34undersections253.545to253.559.
135.487.1.Toobtainanycreditallowedpursuanttosections135.475to135.487,a
2taxpayershallsubmittothedepartment,forpreliminaryapproval,anapplicationfortax
3credit.Thedirectorshall,uponfinalapprovalofanapplicationandpresentationof
4acceptableproofofsubstantialcompletionofconstruction,issuethetaxpayeracertificateof
5taxcredit.Thedirectorshallissueallcreditsallowedpursuanttosections135.475to135.487
6intheordertheapplicationsarereceived.Inthecaseofataxpayerotherthananowner-
7occupant,thedirectorshallnotdelaytheissuanceofataxcreditpursuanttosections135.475
8to135.487untilthesaleofaresidenceatmarketrateforowner-occupancy.Ataxpayer,
HB1498 5 9taxpayerotherthananowner-occupantwhoreceivesacertificateoftaxcreditpursuantto
10sections135.475to135.487shall,withinthirtydaysofthedateofthesaleofaresidence,
11furnishtothedirectorsatisfactoryproofthatsuchresidencewassoldatmarketratefor
12owner-occupancy.Ifthedirectorreasonablydeterminesthataresidencewasnotingoodfaith
13intendedforlong-termowneroccupancy,thedirectormakerevokeanytaxcreditsissuedand
14seekrecoveryofanytaxcreditsissuedpursuanttosection620.017.
15 2.Thedepartmentmaycooperatewithamunicipalityoracountyinwhichaproject
16islocatedtohelpidentifythelocationoftheproject,thetypeandeligibilityoftheproject,the
17estimatedcostoftheprojectandthecompletiondateoftheproject.
18 3.Thedepartmentshallestablishataxcreditapplicationprocessfortaxpayers
19whoincurredeligiblecostsfortherenovationofacriticalrevitalizationpropertythat
20allowsfortheevaluationofindividualpropertyapplicantsandfortheevaluationof
21localnonprofitorganizationapplicantsthatsupportmultiplepropertieswithinthesame
22historicdistrict.Thedepartmentshallpublishtheapplicationcycle,theevaluation
23criteria,andtheprocessforawardandoversightafterconsultationwithstatewideand
24localhistoricpreservationorganizations,communitydevelopers,andotherinterested
25parties.
26 4.Thedepartmentmaypromulgatesuchrulesorregulationsorissueadministrative
27guidelinesasarenecessarytoadministertheprovisionsofsections135.475to135.487.No
28ruleorportionofarulepromulgatedpursuanttotheauthorityofthissectionshallbecome
29effectiveunlessithasbeenpromulgatedpursuanttotheprovisionsofchapter536.
30 [4.]5.Thedepartmentshallconductannuallyacomprehensiveprogramevaluation
31illustratingwherethetaxcreditsallowedpursuanttosections135.475to135.487arebeing
32utilized,explainingtheeconomicimpactofsuchprogramandmakingrecommendationson
33appropriateprogrammodificationstoensuretheprogram'ssuccess.
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HB1498 6