FIRSTREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.235
103RDGENERALASSEMBLY
0712H.02C JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections32.115,135.341,135.460,and135.647,RSMo,andtoenactinlieuthereof
sixnewsectionsrelatingtotaxcreditsforimprovingcommunities.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections32.115,135.341,135.460,and135.647,RSMo,arerepealedand
2sixnewsectionsenactedinlieuthereof,tobeknownassections32.115,135.341,135.460,
3135.647,348.273,and348.274,toreadasfollows:
32.115.1.Thedepartmentofrevenueshallgrantataxcredit,tobeappliedinthe
2followingorderuntilused,against:
3 (1)Theannualtaxongrosspremiumreceiptsofinsurancecompaniesinchapter148;
4 (2)Thetaxonbanksdeterminedpursuanttosubdivision(2)ofsubsection2ofsection
5148.030;
6 (3)Thetaxonbanksdeterminedinsubdivision(1)ofsubsection2ofsection
7148.030;
8 (4)Thetaxonotherfinancialinstitutionsinchapter148;
9 (5)Thecorporationfranchisetaxinchapter147;
10 (6)Thestateincometaxinchapter143;and
11 (7)Theannualtaxongrossreceiptsofexpresscompaniesinchapter153.
12 2.Forproposalsapprovedpursuanttosection32.110:
13 (1)Theamountofthetaxcreditshallnotexceed[fifty] seventypercentofthetotal
14amountcontributedduringthetaxableyearbythebusinessfirmor,inthecaseofafinancial
15institution,whereapplicable,duringtherelevantincomeperiodinprogramsapproved
16pursuanttosection32.110;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (2)Exceptasprovidedinsubsection2or5ofthissection,ataxcreditofupto
18seventypercentmaybeallowedforcontributionstoprogramswhereactivitiesfallwithinthe
19scopeofspecialprogramprioritiesasdefinedwiththeapprovalofthegovernorinregulations
20promulgatedbythedirectorofthedepartmentofeconomicdevelopment;
21 (3)Exceptasprovidedinsubsection2or5ofthissection,thetaxcreditallowedfor
22contributionstoprogramslocatedinanycommunityshallbeequaltoseventypercentofthe
23totalamountcontributedwheresuchcommunityisacity,townorvillagewhichhasfifteen
24thousandorlessinhabitantsasofthelastdecennialcensusandislocatedinacountywhichis
25eitherlocatedin:
26 (a)Anareathatisnotpartofastandardmetropolitanstatisticalarea;
27 (b)Astandardmetropolitanstatisticalareabutsuchcountyhasonlyonecity,townor
28villagewhichhasmorethanfifteenthousandinhabitants;or
29 (c)Astandardmetropolitanstatisticalareaandasubstantialnumberofpersonsin
30suchcountyderivetheirincomefromagriculture.
31
32Suchcommunitymayalsobeinanunincorporatedareainsuchcountyasprovidedin
33subdivision(1),(2)or(3)ofthissubsection.Exceptinnocaseshallthetotaleconomic
34benefitofthecombinedfederalandstatetaxsavingstothetaxpayerexceedtheamount
35contributedbythetaxpayerduringthetaxyear;
36 (4)Suchtaxcreditallocation,equaltoseventypercentofthetotalamount
37contributed,shallnotexceedfourmilliondollarsinfiscalyear1999andsixmilliondollarsin
38fiscalyear2000andanysubsequentfiscalyear.Whenthemaximumdollarlimitonthe
39seventypercenttaxcreditallocationiscommitted,thetaxcreditallocationforsuchprograms
40shallthenbeequaltofiftypercentcreditofthetotalamountcontributed.Regulations
41establishingspecialprogramprioritiesaretobepromulgatedduringthefirstmonthofeach
42fiscalyearandatsuchtimesduringtheyearasthepublicinterestdictates.Suchcreditshall
43notexceedtwohundredandfiftythousanddollarsannuallyexceptasprovidedinsubdivision
44(5)ofthissubsection.Notaxcreditshallbeapprovedforanybank,bankandtrustcompany,
45insurancecompany,trustcompany,nationalbank,savingsassociation,orbuildingandloan
46associationforactivitiesthatareapartofitsnormalcourseofbusiness.Anytaxcreditnot
47usedintheperiodthecontributionwasmademaybecarriedoverthenextfivesucceeding
48calendarorfiscalyearsuntilthefullcredithasbeenclaimed.Exceptasotherwiseprovided
49forproposalsapprovedpursuanttosection32.111,32.112or32.117,innoeventshallthe
50totalamountofallothertaxcreditsallowedpursuanttosections32.100to32.125exceed
51thirty-twomilliondollarsinanyonefiscalyear,ofwhichsixmillionshallbecreditsallowed
52pursuanttosection135.460.Ifsixmilliondollarsincreditsarenotapproved,thenthe
53remainingcreditsmaybeusedforprogramsapprovedpursuanttosections32.100to32.125;
HCSHB235 2 54 (5)Thecreditmayexceedtwohundredfiftythousanddollarsannuallyandshallnot
55belimitedifcommunityservices,crimeprevention,education,jobtraining,physical
56revitalizationoreconomicdevelopment,asdefinedbysection32.105,isrenderedinanarea
57definedbyfederalorstatelawasanimpoverished,economicallydistressed,orblightedarea
58orasaneighborhoodexperiencingproblemsendangeringitsexistenceasaviableandstable
59neighborhood,orifthecommunityservices,crimeprevention,education,jobtraining,
60physicalrevitalizationoreconomicdevelopmentislimitedtoimpoverishedpersons.
61 3.Forproposalsapprovedpursuanttosection32.111:
62 (1)Theamountofthetaxcreditshallnotexceedfifty-fivepercentofthetotalamount
63investedinaffordablehousingassistanceactivitiesormarketratehousingindistressed
64communitiesasdefinedinsection135.530byabusinessfirm.Wheneversuchinvestmentis
65madeintheformofanequityinvestmentoraloan,asopposedtoadonationalone,taxcredits
66maybeclaimedonlywheretheloanorequityinvestmentisaccompaniedbyadonation
67whichiseligibleforfederalincometaxcharitablededuction,andwherethetotalvalueofthe
68taxcreditshereinplusthevalueofthefederalincometaxcharitabledeductionislessthanor
69equaltothevalueofthedonation.Anytaxcreditnotusedintheperiodforwhichthecredit
70wasapprovedmaybecarriedoverthenexttensucceedingcalendarorfiscalyearsuntilthe
71fullcredithasbeenallowed.Iftheaffordablehousingunitsormarketratehousingunitsin
72distressedcommunitiesforwhichataxisclaimedarewithinalargerstructure,partsofwhich
73arenotthesubjectofataxcreditclaim,thenexpendituresapplicabletotheentirestructure
74shallbereducedonaproratedbasisinproportiontotheratioofthenumberofsquarefeet
75devotedtotheaffordablehousingunitsormarketratehousingunitsindistressed
76communities,forpurposesofdeterminingtheamountofthetaxcredit.Thetotalamount
77oftaxcreditgrantedforprogramsapprovedpursuanttosection32.111forthefiscalyear
78beginningJuly1,1991,shallnotexceedtwomilliondollars,tobeincreasedbynomorethan
79twomilliondollarseachsucceedingfiscalyear,untilthetotaltaxcreditsthatmaybe
80approvedreachestenmilliondollarsinanyfiscalyear;
81 (2)Foranyyearduringthecomplianceperiodindicatedinthelanduserestriction
82agreement,theowneroftheaffordablehousingrentalunitsforwhichacreditisbeing
83claimedshallcertifytothecommissionthatalltenantsrentingclaimedunitsareincome
84eligibleforaffordablehousingunitsandthattherentalsforeachclaimedunitarein
85compliancewiththeprovisionsofsections32.100to32.125.Thecommissionisauthorized,
86initsdiscretion,toaudittherecordsandaccountsoftheownertoverifysuchcertification;
87 (3)Inthecaseofowner-occupiedaffordablehousingunits,thequalifyingowner
88occupantshall,beforetheendofthefirstyearinwhichcreditsareclaimed,certifytothe
89commissionthattheoccupantisincomeeligibleduringtheprecedingtwoyears,andatthe
90timeoftheinitialpurchasecontract,butnotthereafter.Thequalifyingowneroccupantshall
HCSHB235 3 91furthercertifytothecommission,beforetheendofthefirstyearinwhichcreditsareclaimed,
92thatduringthecomplianceperiodindicatedinthelanduserestrictionagreement,thecostof
93theaffordablehousingunittotheoccupantfortheclaimedunitcanreasonablybeprojectedto
94beincompliancewiththeprovisionsofsections32.100to32.125.Anysucceedingowner
95occupantacquiringtheaffordablehousingunitduringthecomplianceperiodindicatedinthe
96landuserestrictionagreementshallmakethesamecertification;
97 (4)Ifatanytimeduringthecomplianceperiodthecommissiondeterminesaproject
98forwhichaproposalhasbeenapprovedisnotincompliancewiththeapplicableprovisionsof
99sections32.100to32.125orrulespromulgatedtherefor,thecommissionmaywithinone
100hundredfiftydaysofnoticetotheownereitherseekinjunctiveenforcementactionagainstthe
101owner,orseeklegaldamagesagainsttheownerrepresentingthevalueofthetaxcredits,or
102forecloseonthelieninthelanduserestrictionagreement,sellingtheprojectatapublicsale,
103andpayingtotheownertheproceedsofthesale,lessthecostsofthesaleandlessthevalueof
104alltaxcreditsallowedherein.Thecommissionshallremittothedirectorofrevenuethe
105portionofthelegaldamagescollectedorthesaleproceedsrepresentingthevalueofthetax
106credits.However,exceptintheeventofintentionalfraudbythetaxpayer,theproposal's
107certificateofeligibilityfortaxcreditsshallnotberevoked.
108 4.Forproposalsapprovedpursuanttosection32.112,theamountofthetaxcredit
109shallnotexceedfifty-fivepercentofthetotalamountcontributedtoaneighborhood
110organizationbybusinessfirms.Anytaxcreditnotusedintheperiodforwhichthecreditwas
111approvedmaybecarriedoverthenexttensucceedingcalendarorfiscalyearsuntilthefull
112credithasbeenallowed.Thetotalamountoftaxcreditgrantedforprogramsapproved
113pursuanttosection32.112shallnotexceedonemilliondollarsforeachfiscalyear.
114 5.Thetotalamountoftaxcreditsusedformarketratehousingindistressed
115communitiespursuanttosections32.100to32.125shallnotexceedthirtypercentofthetotal
116amountofalltaxcreditsauthorizedpursuanttosections32.111and32.112.
135.341.1.Asusedinthissection,thefollowingtermsshallmean:
2 (1)"CASA",anentitywhichreceivesfundingfromthecourt-appointedspecial
3advocatefundestablishedundersection476.777,includinganassociationbasedinthisstate,
4affiliatedwithanationalassociation,organizedtoprovidesupporttoentitiesreceiving
5fundingfromthecourt-appointedspecialadvocatefund;
6 (2)"Childadvocacycenters",theregionalchildassessmentcenterslistedin
7subsection2ofsection210.001,includinganassociationbasedinthisstate,affiliatedwitha
8nationalassociation,andorganizedtoprovidesupporttoentitieslistedinsubsection2of
9section210.001;
10 (3)"Contribution",theamountofdonationtoaqualifiedagency;
HCSHB235 4 11 (4)"Crisiscarecenter",entitiescontractedwiththisstatewhichprovidetemporary
12careforchildrenwhoseagerangesfrombirththroughseventeenyearsofagewhoseparents
13orguardianareexperiencinganunexpectedandunstableorseriousconditionthatrequires
14immediateactionresultinginshort-termcare,usuallythreetofivecontinuous,uninterrupted
15days,forchildrenwhomaybeatriskforchildabuse,neglect,orinanemergencysituation;
16 (5)"Department",thedepartmentofrevenue;
17 (6)"Director",thedirectorofthedepartmentofrevenue;
18 (7)"Qualifiedagency",CASA,childadvocacycenters,oracrisiscarecenter;
19 (8)"Taxliability",thetaxdueunderchapter143otherthantaxeswithheldunder
20sections143.191to143.265.
21 2.ForalltaxyearsbeginningonorafterJanuary1,2013,ataxcreditmaybeclaimed
22inanamountequaltouptofiftypercentofaverifiedcontributiontoaqualifiedagencyand
23shallbenamedthechampionforchildrentaxcredit.Theminimumamountofanytaxcredit
24issuedshallnotbelessthanfiftydollarsandshallbeappliedtotaxesdueunderchapter143,
25excludingsections143.191to143.265.Acontributionverificationshallbeissuedtothe
26taxpayerbytheagencyreceivingthecontribution.Suchcontributionverificationshall
27includethetaxpayer'sname,SocialSecuritynumber,amountoftaxcredit,amountof
28contribution,thenameandaddressoftheagencyreceivingthecredit,andthedatethe
29contributionwasmade.Thetaxcreditprovidedunderthissubsectionshallbeinitiallyfiled
30fortheyearinwhichtheverifiedcontributionismade.
31 3.Thecumulativeamountofthetaxcreditsredeemedshallnotexceedonemillion
32dollarsforallfiscalyearsendingonorbeforeJune30,2019,andonemillionfivehundred
33thousanddollarsforallfiscalyearsbeginningonorafterJuly1,2019.Theamountavailable
34shallbeequallydividedamongthethreequalifiedagencies:CASA,childadvocacycenters,
35orcrisiscarecenters,tobeusedtowardstaxcreditsissued.Intheeventtaxcreditsclaimed
36underoneagencydonottotaltheallocatedamountforthatagency,theunusedportionforthat
37agencywillbemadeavailabletotheremainingagenciesequally.Intheeventthetotal
38amountoftaxcreditsclaimedforanyoneagencyexceedstheamountavailableforthat
39agency,theamountredeemedshallandwillbeapportionedequallytoalleligibletaxpayers
40claimingthecreditunderthatagency.
41 4.PriortoDecemberthirty-firstofeachyear,eachqualifiedagencyshallapplytothe
42departmentofsocialservicesinordertoverifytheirqualifiedagencystatus.Upona
43determinationthattheagencyiseligibletobeaqualifiedagency,thedepartmentofsocial
44servicesshallprovidealetterofeligibilitytosuchagency.NolaterthanFebruaryfirstof
45eachyear,thedepartmentofsocialservicesshallprovidealistofqualifiedagenciestothe
46departmentofrevenue.Alltaxcreditapplicationstoclaimthechampionforchildrentax
47creditshallbefiledbetweenJulyfirstandAprilfifteenthofeachfiscalyear,orasdirected
HCSHB235 5 48bysection143.851. Ataxpayershallapplyforthechampionforchildrentaxcreditby
49attachingacopyofthecontributionverificationprovidedbyaqualifiedagencytosuch
50taxpayer'sincometaxreturn.
51 5.Anyamountoftaxcreditwhichexceedsthetaxdueorwhichisappliedforand
52otherwiseeligibleforissuancebutnotissuedshallnotberefundedbutmaybecarriedoverto
53anysubsequenttaxyear,nottoexceedatotaloffiveyears.
54 6.Taxcreditsmaynotbeassigned,transferredorsold.
55 7.[(1)]Intheeventafullorpartialcreditdenial,dueto[lackofavailablefunds] the
56cumulativemaximumamountofcreditsbeingredeemedforthefiscalyear, causes[a
57balance-duenotice] anincometaxbalanceduetobe[generatedbythedepartmentof
58revenue,oranyotherredeemingagency] owedtothestatebythetaxpayer, thetaxpayer
59[will]shallnotbeheldliableforanyadditiontotax,penalty, orinterestonthatincometax
60balancedue,providedthebalanceispaid,orapprovedpaymentarrangementshavebeen
61made,withinsixtydaysfromissuanceofthenoticeofcreditdenial.
62 [(2)Intheeventthebalanceisnotpaidwithinsixtydaysfromthenoticeofdenial,
63theremainingbalanceshallbedueandpayableundertheprovisionsofchapter143.]
64 8.Thedepartmentmaypromulgatesuchrulesorregulationsasarenecessaryto
65administertheprovisionsofthissection.Anyruleorportionofarule,asthattermisdefined
66insection536.010,thatiscreatedundertheauthoritydelegatedinthissectionshallbecome
67effectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter536and,if
68applicable,section536.028.Thissectionandchapter536arenonseverableandifanyofthe
69powersvestedwiththegeneralassemblypursuanttochapter536toreview,todelaythe
70effectivedate,ortodisapproveandannularulearesubsequentlyheldunconstitutional,then
71thegrantofrulemakingauthorityandanyruleproposedoradoptedafterAugust28,2013,
72shallbeinvalidandvoid.
73 9.Pursuanttosection23.253,oftheMissourisunsetact:
74 (1)Theprogramauthorizedunderthissectionshallbereauthorizedasof[December
7531,2019] August28,2025, andshallexpireonDecember31,[2025] 2032, unless
76reauthorizedbythegeneralassembly;and
77 (2)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
78followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset;and
79 (3)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
80impairthedepartment'sabilitytoredeemtaxcreditsauthorizedonorbeforethedatethe
81programauthorizedunderthissectionexpiresorataxpayer'sabilitytoredeemsuchcredits.
82 10.BeginningonMarch29,2013,anyverifiedcontributiontoaqualifiedagency
83madeonorafterJanuary1,2013,shallbeeligiblefortaxcreditsasprovidedbythissection.
HCSHB235 6 135.460.1.Thissectionandsections620.1100and620.1103shallbeknownand
2maybecitedasthe"YouthOpportunitiesandViolencePreventionAct".
3 2.Asusedinthissection,theterm"taxpayer"shallincludecorporationsasdefinedin
4section143.441or143.471,anycharitableorganizationwhichisexemptfromfederalincome
5taxandwhoseMissouriunrelatedbusinesstaxableincome,ifany,wouldbesubjecttothe
6stateincometaximposedunderchapter143,andindividuals,individualproprietorshipsand
7partnerships.
8 3.Ataxpayershallbeallowedataxcreditagainstthetaxotherwiseduepursuantto
9chapter143,excludingwithholdingtaximposedbysections143.191to143.265,chapter147,
10chapter148,orchapter153inanamountequaltothirtypercentforpropertycontributions
11and[fifty] seventypercentformonetarycontributionsoftheamountsuchtaxpayer
12contributedtotheprogramsdescribedinsubsection5ofthissection,nottoexceedtwo
13hundredthousanddollarspertaxableyear,pertaxpayer;exceptasotherwiseprovidedin
14subdivision(5)ofsubsection5ofthissection.Thedepartmentofeconomicdevelopment
15shallprescribethemethodforclaimingthetaxcreditsallowedinthissection.Noruleor
16portionofarulepromulgatedundertheauthorityofthissectionshallbecomeeffectiveunless
17ithasbeenpromulgatedpursuanttotheprovisionsofchapter536.Allrulemakingauthority
18delegatedpriortoJune27,1997,isofnoforceandeffectandrepealed;however,nothingin
19thissectionshallbeinterpretedtorepealoraffectthevalidityofanyrulefiledoradopted
20priortoJune27,1997,ifsuchrulecompliedwiththeprovisionsofchapter536.The
21provisionsofthissectionandchapter536arenonseverableandifanyofthepowersvested
22withthegeneralassemblypursuanttochapter536,includingtheabilitytoreview,todelaythe
23effectivedate,ortodisapproveandannularuleorportionofarule,aresubsequentlyheld
24unconstitutional,thenthepurportedgrantofrulemakingauthorityandanyrulesoproposed
25andcontainedintheorderofrulemakingshallbeinvalidandvoid.
26 4.Thetaxcreditsallowedbythissectionshallbeclaimedbythetaxpayertooffset
27thetaxesthatbecomedueinthetaxpayer'staxperiodinwhichthecontributionwasmade.
28Anytaxcreditnotusedinsuchtaxperiodmaybecarriedoverthenextfivesucceedingtax
29periods.
30 5.Thetaxcreditallowedbythissectionmayonlybeclaimedformonetaryor
31propertycontributionstopublicorprivateprogramsauthorizedtoparticipatepursuanttothis
32sectionbythedepartmentofeconomicdevelopmentandmaybeclaimedforthe
33development,establishment,implementation,operation,andexpansionofthefollowing
34activitiesandprograms:
35 (1)Anadopt-a-schoolprogram.Componentsoftheadopt-a-schoolprogramshall
36includedonationsforschoolactivities,seminars,andfunctions;school-businessemployment
37programs;andthedonationofpropertyandequipmentofthecorporationtotheschool;
HCSHB235 7 38 (2)Expansionofprogramstoencourageschooldropoutstoreenterandcompletehigh
39schoolortocompleteagraduateequivalencydegreeprogram;
40 (3)Employmentprograms.Suchprogramsshallinitially,butnotexclusively,target
41unemployedyouthlivinginpovertyandyouthlivinginareaswithahighincidenceofcrime;
42 (4)Neworexistingyouthclubsorassociations;
43 (5)Employment/internship/apprenticeshipprogramsinbusinessortradesforpersons
44lessthantwentyyearsofage,inwhichcasethetaxcreditclaimedpursuanttothissection
45shallbeequaltoone-halfoftheamountpaidtotheinternorapprenticeinthattaxyear,except
46thatsuchcreditshallnotexceedtenthousanddollarsperperson;
47 (6)Mentorandrolemodelprograms;
48 (7)Drugandalcoholabusepreventiontrainingprogramsforyouth;
49 (8)Donationofpropertyorequipmentofthetaxpayertoschools,includingschools
50whichprimarilyeducatechildrenwhohavebeenexpelledfromotherschools,ordonationof
51thesametomunicipalities,ornot-for-profitcorporationsorothernot-for-profitorganizations
52whichofferprogramsdedicatedtoyouthviolencepreventionasauthorizedbythe
53department;
54 (9)Not-for-profit,privateorpublicyouthactivitycenters;
55 (10)Nonviolentconflictresolutionandmediationprograms;
56 (11)Youthoutreachandcounselingprograms.
57 6.Anyprogramauthorizedinsubsection5ofthissectionshall,atleastannually,
58submitareporttothedepartmentofeconomicdevelopmentoutliningthepurposeand
59objectivesofsuchprogram,thenumberofyouthserved,thespecificactivitiesprovided
60pursuanttosuchprogram,thedurationofsuchprogramandrecordedyouthattendancewhere
61applicable.
62 7.Thedepartmentofeconomicdevelopmentshall,atleastannuallysubmitareportto
63theMissourigeneralassemblylistingtheorganizationsparticipating,servicesofferedandthe
64numberofyouthservedastheresultoftheimplementationofthissection.
65 8.Thetaxcreditallowedbythissectionshallapplytoalltaxableyearsbeginning
66afterDecember31,1995.
67 9.Forthepurposesofthecreditsdescribedinthissection,inthecaseofacorporation
68describedinsection143.471,partnership,limitedliabilitycompanydescribedinsection
69347.015,cooperative,marketingenterprise,orpartnership,incomputingMissouri'stax
70liability,suchcreditsshallbeallowedtothefollowing:
71 (1)Theshareholdersofthecorporationdescribedinsection143.471;
72 (2)Thepartnersofthepartnership;
73 (3)Themembersofthelimitedliabilitycompany;and
74 (4)Individualmembersofthecooperativeormarketingenterprise.
HCSHB235 8 75
76Suchcreditsshallbeapportionedtotheentitiesdescribedinsubdivisions(1)and(2)ofthis
77subsectioninproportiontotheirshareofownershiponthelastdayofthetaxpayer'stax
78period.
135.647.1.Asusedinthissection,thefollowingtermsshallmean:
2 (1)"Localfoodpantry",anyfoodpantrythatis:
3 (a)Exemptfromtaxationundersection501(c)(3)oftheInternalRevenueCodeof
41986,asamended;and
5 (b)DistributingemergencyfoodsuppliestoMissourilow-incomepeoplewhowould
6otherwisenothaveaccesstofoodsuppliesintheareainwhichthetaxpayerclaimingthetax
7creditunderthissectionresides;
8 (2)"Localhomelessshelter",anyhomelessshelterthatis:
9 (a)ExemptfromtaxationunderSection501(c)(3)oftheInternalRevenueCodeof
101986,asamended;and
11 (b)Providingtemporarylivingarrangements,intheareainwhichthetaxpayer
12claimingthetaxcreditunderthissectionresides,forindividualsandfamilieswhootherwise
13lackafixed,regular,andadequatenighttimeresidenceandlacktheresourcesorsupport
14networkstoobtainotherpermanenthousing;
15 (3)"Localsoupkitchen",anysoupkitchenthatis:
16 (a)Exemptfromtaxationundersection501(c)(3)oftheInternalRevenueCodeof
171986,asamended;and
18 (b)Providingpreparedmealsthroughanestablishedcongregatefeedingoperationto
19needy,low-incomepersonsincluding,butnotlimitedto,homelesspersonsintheareain
20whichthetaxpayerclaimingthetaxcreditunderthissectionresides;
21 (4)"Taxpayer",anindividual,afirm,apartnerinafirm,corporation,orashareholder
22inanScorporationdoingbusinessinthisstateandsubjecttothestateincometaximposedby
23chapter143,excludingwithholdingtaximposedbysections143.191to143.265.
24 2.(1)BeginningonMarch29,2013,anydonationofcashorfoodmadetoalocal
25foodpantryonorafterJanuary1,2013,unlesssuchfoodisdonatedafterthefood'sexpiration
26date,shallbeeligiblefortaxcreditsasprovidedbythissection.
27 (2)BeginningonAugust28,2018,anydonationofcashorfoodmadetoalocalsoup
28kitchenorlocalhomelessshelteronorafterJanuary1,2018,unlesssuchfoodisdonatedafter
29thefood'sexpirationdate,shallbeeligibleforataxcreditasprovidedunderthissection.
30 (3)Anytaxpayerwhomakesadonationthatiseligibleforataxcreditunderthis
31sectionshallbeallowedacreditagainstthetaxotherwisedueunderchapter143,excluding
32withholdingtaximposedbysections143.191to143.265,inanamountequaltofiftypercent
33ofthevalueofthedonationsmadetotheextentsuchamountsthathavebeensubtractedfrom
HCSHB235 9 34federaladjustedgrossincomeorfederaltaxableincomeareaddedbackinthedetermination
35ofMissouriadjustedgrossincomeorMissouritaxableincomebeforethecreditcanbe
36claimed.Eachtaxpayerclaimingataxcreditunderthissectionshallfileanaffidavitwiththe
37incometaxreturnverifyingtheamountoftheircontributions.Theamountofthetaxcredit
38claimedshallnotexceedtheamountofthetaxpayer'sstatetaxliabilityforthetaxyearthat
39thecreditisclaimedandshallnotexceedtwothousandfivehundreddollarspertaxpayer
40claimingthecredit.Anyamountofcreditthatthetaxpayerisprohibitedbythissectionfrom
41claiminginataxyearshallnotberefundable,butmaybecarriedforwardtoanyofthe
42taxpayer'sthreesubsequenttaxyears.Notaxcreditgrantedunderthissectionshallbe
43transferred,sold,orassigned.Notaxpayershallbeeligibletoreceiveacreditpursuanttothis
44sectionifsuchtaxpayeremployspersonswhoarenotauthorizedtoworkintheUnitedStates
45underfederallaw.Notaxpayershallbeabletoclaimmorethanonecreditunderthissection
46forasingledonation.
47 3.(1)Thecumulativeamountoftaxcreditsunderthissectionwhichmaybe
48allocatedtoalltaxpayerscontributingtoalocalfoodpantry,localsoupkitchen,orlocal
49homelessshelterinanyonefiscalyearshallnotexceedonemillionsevenhundredfifty
50thousanddollars.Thedirectorofrevenueshallestablishaprocedurebywhichthecumulative
51amountoftaxcreditsisapportionedamongalltaxpayersclaimingthecreditbyAprilfifteenth
52ofthefiscalyear,orasdirectedbysection143.851,inwhichthetaxcreditisclaimed.To
53themaximumextentpossible,thedirectorofrevenueshallestablishtheproceduredescribed
54inthissubsectioninsuchamannerastoensurethattaxpayerscanclaimallthetaxcredits
55possibleuptothecumulativeamountoftaxcreditsavailableforthefiscalyear.
56 (2)Intheeventafullorpartialcreditdenial,duetothecumulativemaximum
57amountofcreditsbeingclaimedforthefiscalyear,causesataxbalanceduetobeowed
58tothestatebythetaxpayer,thetaxpayershallnotbeheldliableforanyadditiontotax,
59penalty,orinterestonthattaxbalancedue,providedthebalanceispaid,orapproved
60paymentarrangementshavebeenmade,withinsixtydaysfromissuanceofthenoticeof
61creditdenial.
62 4.Anylocalfoodpantry,localsoupkitchen,orlocalhomelesssheltermayacceptor
63rejectanydonationoffoodmadeunderthissectionforanyreason.Forpurposesofthis
64section,anydonationsoffoodacceptedbyalocalfoodpantry,localsoupkitchen,orlocal
65homelesssheltershallbevaluedatfairmarketvalue,oratwholesalevalueifthetaxpayer
66makingthedonationoffoodisaretailgrocerystore,foodbroker,wholesaler,orrestaurant.
67 5.Thedepartmentofrevenueshallpromulgaterulestoimplementtheprovisionsof
68thissection.Anyruleorportionofarule,asthattermisdefinedinsection536.010,thatis
69createdundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifitcomplies
70withandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section536.028.
HCSHB235 10 71Thissectionandchapter536arenonseverableandifanyofthepowersvestedwiththe
72generalassemblypursuanttochapter536toreview,todelaytheeffectivedate,orto
73disapproveandannularulearesubsequentlyheldunconstitutional,thenthegrantof
74rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2007,shallbeinvalid
75andvoid.
76 6.Undersection23.253oftheMissourisunsetact:
77 (1)TheprogramauthorizedunderthissectionshallbereauthorizedasofAugust28,
78[2018] 2025, andshallexpireonDecember31,[2026] 2032, unlessreauthorizedbythe
79generalassembly;and
80 (2)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
81followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset;and
82 (3)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
83impairataxpayer'sabilitytoredeemtaxcreditsauthorizedonorbeforethedatetheprogram
84authorizedunderthissectionexpires.
348.273.1.Thissectionandsection348.274shallbeknownandmaybecitedas
2the"MissouriAngelInvestmentIncentiveAct".
3 2.Asusedinthissectionandsection348.274,thefollowingtermsmean:
4 (1)"Cashinvestment",anymoneysormoney-equivalentcontributionin
5considerationofqualifiedsecurities;
6 (2)"Department",thedepartmentofeconomicdevelopment;
7 (3)"Designatedgeographicregions",thefollowingfourregions:
8 (a)Region1:CountiesofAndrew,Bates,Benton,Buchanan,Cass,Clay,Clinton,
9DeKalb,Gentry,Henry,Holt,Jackson,Johnson,Lafayette,Platte,Ray,andWorth;
10 (b)Region2:CountiesofFranklin,Jefferson,Lincoln,St.Charles,Warren,and
11St.Louis,andtheCityofSt.Louis;
12 (c)Region3:CountiesgeographicallynorthoftheMissouriRiver,excludingany
13countiesinregion1orregion2;and
14 (d)Region4:CountiesgeographicallysouthoftheMissouriRiver,excludingany
15countiesinregion1orregion2;
16 (4)"Investor",oneofthefollowingpersonsorentities:
17 (a)Anaturalpersonwhoisanaccreditedinvestorasdefinedunder17CFR
18230.501(a)(5)or230.501(a)(6),asineffectonJuly24,2013;
19 (b)Apermittedentityinvestorwhoisanaccreditedinvestorasdefinedunder17
20CFR230.501(a)(8)asineffectonJuly24,2013;or
21 (c)Anaturalpersonorpermittedentityinvestormakinganinvestmentwho
22qualifiesunderthefederalJumpstartOurBusinessStartups(JOBS)Act,Pub.L.112-
23106asineffectonApril5,2012.
HCSHB235 11 24
25Theterm"investor"shallnotincludeanypersonwhoservesasanexecutive,officer,or
26employeeofthebusinessinwhichanotherwisequalifiedcashinvestmentismade,and
27suchpersonshallnotqualifyfortheissuanceoftaxcreditsforsuchinvestment.
28However,aninvestorwhoservessolelyasadirectormayqualifyfortheissuanceoftax
29credits;
30 (5)"MTC",theMissouritechnologycorporationestablishedundersection
31348.251;
32 (6)"Owner",anynaturalpersonwhois,directlyorindirectly,apartner,
33stockholder,ormemberinapermittedentityinvestor;
34 (7)"Permittedentityinvestor",anygeneralpartnership;limitedpartnership;
35corporationthathasineffectavalidelectiontobetaxedasanScorporationunderthe
36InternalRevenueCodeof1986,asamended;revocablelivingtrust;nonprofit
37corporation;orlimitedliabilitycompanythathaselectedtobetaxedasa
38partnershipundertheInternalRevenueCodeof1986,asamended,andthatwas
39establishedandisoperatedforthepurposeofmakinginvestmentsinotherentities;
40 (8)"Qualifiedknowledge-basedcompany",acompanyengagedintheresearch,
41development,implementation,andcommercializationofinnovativetechnologies,
42products,andservicesforuseinthecommercialmarketplace;
43 (9)"QualifiedMissouribusiness",aMissouribusinessthatisapprovedasa
44qualifiedknowledge-basedcompanybytheMTCandmeetsatleastoneofthefollowing
45criteria:
46 (a)Anypartnership,association,limitedliabilitycompany,orcorporation
47domiciledinMissouri;or
48 (b)Anylimitedliabilitycompanyorcorporationthatisdomiciledoutsidethe
49stateofMissouributhasitsbusinessoperationslocatedprimarilyinMissouriordoes
50substantiallyallofsuchbusiness’sproductioninMissouri;
51 (10)"Qualifiedsecurities",acashinvestmentthroughanyformorcombination
52offormsoffinancialassistanceasprovidedunderthissubdivision.Suchformsof
53financialassistanceinclude,butarenotlimitedto:
54 (a)Anyformofequity,suchas:
55 a.Ageneralorlimitedpartnershipinterest;
56 b.Commonstock;
57 c.Simpleagreementforfutureequity(SAFE);or
58 d.Preferredstock,withoutregardtovotingrightsorsenioritypositionand
59regardlessofwhetherconvertibleintocommonstock;and
HCSHB235 12 60 (b)Anydebtinstrumentsubordinatetothegeneralcreditorsofthequalified
61MissouricompanydebtorthatrequiresnopaymentfromthequalifiedMissouri
62companydebtorandthatshallconverttosomeformofequitypriorto,orin
63conjunctionwith,thequalifiedMissouricompanyraisinganyadditionalfunds;
64 (11)"Ruralcounty",anycountyinthestateofMissouriwithfewerthanone
65hundredthousandinhabitants,andsuchtermshallbedeemedtoincludeboththefarm
66andnonfarmpopulationthereof.Thenumberofinhabitantsspecifiedinthis
67subdivisionshallbeincreasedbysixpercenteverytenyearsaftereachdecennial
68censusbeginningin2030;
69 (12)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,
70excludingwithholdingtaximposedbysections143.191to143.265,chapter147,or
71chapter148.
72 3.(1)ForalltaxyearsbeginningonorafterJanuary1,2026,ataxcreditshall
73beallowedforaninvestor'scashinvestmentinthequalifiedsecuritiesofaqualified
74Missouribusiness.Thecreditshallbeinatotalamountequaltofortypercentofsuch
75investor'scashinvestmentinanyqualifiedMissouribusiness,subjecttothelimitations
76setforthinthissubsection.Thecreditshallbeinatotalamountequaltofiftypercent
77wheretheinvestor'scashinvestmentinthequalifiedsecuritiesofaqualifiedMissouri
78businessareinaruralcounty.Iftheamountbywhichthatportionofthecreditallowed
79bythissectionexceedstheinvestor'staxliabilityinanyonetaxyear,theremaining
80portionofthecreditmaybecarriedforwardfiveyearsoruntilthetotalamountofthe
81creditisused,whicheveroccursfirst.Iftheinvestorisapermittedentityinvestor,the
82creditprovidedbythissectionshallbeclaimedbythepermittedentityinvestorin
83proportiontosuchowner'sequityinvestmentinthepermittedentityinvestor.
84 (2)Acashinvestmentinaqualifiedsecurityshallbedeemedtohavebeenmade
85onthedateofacquisitionofthequalifiedsecurity,assuchdateisdeterminedin
86accordancewiththeprovisionsoftheInternalRevenueCodeof1986,asamended.
87 (3)ThedepartmentandtheMTCshallnotallowtaxcreditsofmorethan
88seventy-fivethousanddollarsforasinglequalifiedMissouribusinessperinvestorwhois
89anaturalpersonorapermittedentityinvestorandshallnotallowatotalofthree
90hundredthousanddollarsintaxcreditsforasingletaxyearperinvestorwhoisa
91naturalpersonorapermittedentityinvestor.Notaxcreditauthorizedbythissectionor
92section348.274shallbeallowedforanycashinvestmentsinqualifiedsecuritiesmadein
93anyyearafterDecember31,2032.Thetotalamountoftaxcreditsthatmaybeallowed
94underthissectionshallnotexceedsixmilliondollarsduringeithercalendaryear2026
95or2027.Beginningincalendaryear2028,thetotalamountoftaxcreditsallowedunder
96thissectionshallbeannuallyincreasedbytwentypercentofthetotalamountoftax
HCSHB235 13 97creditsallowedintheimmediatelyprecedingcalendaryear,solongasthetotalamount
98oftaxcreditsallowedintheimmediatelyprecedingcalendaryearwasissuedduring
99suchcalendaryear.Foreachsuccessiveyearthereafter,ifthetotalamountoftax
100creditsallowedintheimmediatelyprecedingcalendaryearunderthissectionisissued,
101thetotalamountoftaxcreditsshallbeincreasedbyanadditionaltwentypercent.Such
102increaseoftwentypercentoftaxcreditsallowedshallcontinue,solongasthetotal
103amountoftaxcreditsallowedintheimmediatelyprecedingcalendaryearwas
104completelyissued.Thebalanceofunissuedtaxcreditsmaybecarriedoverforissuance
105infutureyearsbeforeDecember31,2034.Thebalanceofunissuedtaxcreditscarried
106over,ifany,shallnotbeusedinthecalculationofthetotalamountoftaxcreditsallowed
107inagivencalendaryear.
108 (4)Atthebeginningofeachcalendaryear,theMTCshallequallydesignatethe
109totalamountoftaxcreditsavailableduringthefirstsixmonthsofthatcalendaryearto
110eachdesignatedgeographicregion.Assoonaspracticableattheendofthefirstsix
111monthsofthatcalendaryear,theMTCshallprepareandissueareporttothedirector
112ofthedepartmentdesignatingalltaxcreditawardsforthatyeartodate,sothatthe
113departmentmayissuesuchtaxcreditsinaccordancewiththeprovisionsofthissection
114andsection348.274.
115 (5)Duringthelastsixmonthsofthecalendaryear,anyunissuedtaxcredits
116previouslyallocatedtoanydesignatedgeographicregionmaybeawardedatthe
117discretionoftheMTCtoaqualifiedMissouricompanyinanydesignatedgeographic
118regionthroughoutthestate.
119 4.(1)Beforeaninvestorisentitledtoreceivetaxcreditsunderthissectionand
120section348.274,suchinvestorshallhavemadeacashinvestmentinaqualifiedsecurity
121ofaqualifiedMissouribusiness.Thebusinessshallhavebeenapprovedasaqualified
122Missouribusinessbeforethedateonwhichthecashinvestmentwasmade.Tobe
123designatedasaqualifiedMissouribusiness,abusinessshallapplytotheMTC.
124 (2)Theapplicationbyabusinessshallbeintheformandsubstancerequiredby
125theMTCincoordinationwiththedepartmentbyandthroughitsserviceontheMTC
126boardofdirectorsbutshallincludeatleastthefollowing:
127 (a)Thenameofthebusinessandcertifiedcopiesoftheorganizational
128documentsofthebusiness;
129 (b)Abusinessplan,includingadescriptionofthebusinessandthemanagement,
130product,market,andfinancialplanofthebusiness;
131 (c)Astatementofthepotentialeconomicimpactofthebusiness,includingthe
132number,location,andtypesofjobsexpectedtobecreated;
HCSHB235 14 133 (d)Adescriptionofthequalifiedsecuritiestobeissued,theconsiderationtobe
134paidforthequalifiedsecurities,andtheamountofanytaxcreditsrequested;
135 (e)Astatementoftheamount,timing,andprojecteduseoftheproceedstobe
136raisedfromtheproposedsaleofqualifiedsecurities;and
137 (f)Suchotherinformationasmaybereasonablyrequested.
138 (3)ThedesignationofabusinessasaqualifiedMissouribusinessshallbemade
139bytheMTC,andeachqualifiedMissouribusinessshallannuallyapplytorenewsuch
140designation,tobeapprovedbytheMTC.AbusinessshallbesodesignatediftheMTC
141determines,basedupontheapplicationsubmittedbythebusinessandanyadditional
142informationprovidedinconnectionwithsuchapplicationorasreasonablyrequestedby
143theMTC,thatsuchbusinessmeetsestablishedcriteria,includingatleastthefollowing:
144 (a)Thebusinessshallnothavehadannualgrossrevenuesofmorethanfive
145milliondollarsinthemostrecenttaxyearofthebusiness;
146 (b)Businessesthatarenotbiosciencebusinessesshallhavebeeninoperationfor
147lessthanfiveyears,andbiosciencebusinessesshallhavebeeninoperationforlessthan
148tenyears;
149 (c)Theabilityofinvestorsinthebusinesstoreceivetaxcreditsforcash
150investmentsinqualifiedsecuritiesofthebusinessisbeneficialtoadvancingthegoalsof
151thissectionandsection348.274;
152 (d)Thebusinessshallnothaveownershipinterestsincluding,butnotlimitedto,
153commonorpreferredsharesofstockthatcanbetradedviaapublicstockexchange
154beforethedatethataqualifyinginvestmentismade;
155 (e)Thebusinessshallnotbeengagedprimarilyinanyoneormoreofthe
156followingenterprises:
157 a.Thebusinessofbanking,savingsandloanorlendinginstitutions,creditor
158finance,orfinancialbrokerageorinvestments;
159 b.Theprovisionofprofessionalservices,suchaslegal,accounting,or
160engineeringservices;however,contractresearchormanufacturingorganizations,
161sometimesreferredtoasCROsorCMOs,shallnotbesubjecttothisexclusion;
162 c.Governmental,charitable,religious,ortradeorganizations;
163 d.Theownership,development,brokerage,sales,orleasingofrealestate;
164 e.Insurance;
165 f.Construction,constructionmanagement,orcontracting;
166 g.Businessconsultingorbrokerage;
167 h.Anybusinessengagedprimarilyasapassivebusiness,havingirregularor
168noncontiguousoperations,orderivingsubstantiallyalloftheincomeofthebusiness
169frompassiveinvestmentsthatgenerateinterest,dividends,royalties,orcapitalgainsor
HCSHB235 15 170anybusinessarrangementstheeffectofwhichistoimmunizeaninvestorfromriskof
171loss;
172 i.Anyactivitythatisinviolationofthelaw;
173 j.Anybusinessraisingmoneysprimarilytopurchaserealestate,land,or
174fixtures;and
175 k.Anygambling-relatedbusiness;
176 (f)Thebusinesshasareasonablechanceofsuccess;
177 (g)Thebusinesshasthereasonablepotentialtocreatemeasurableemployment
178withintheregion,thisstate,orboth;
179 (h)Thebusinessisbasedonaninnovativetechnology,product,orservice
180designedtobeusedinthecommercialmarketplace;
181 (i)Theexistingownersofthebusinessandotherfoundershavemadeorare
182committedtomakingasubstantialfinancialortimecommitmenttothebusiness;
183 (j)Thesecuritiestobeissuedandpurchasedarequalifiedsecurities;
184 (k)Thebusinesshasthereasonablepotentialtoaddressneedsandopportunities
185specifictotheregion,thisstate,orboth;
186 (l)ThebusinesshasmadebindingcommitmentstotheMTCforadequate
187reportingoffinancialdata,includingarequirementforanannualreportor,ifrequired,
188anannualauditofthefinancialandoperationalrecordsofthebusiness;therightof
189accesstothefinancialrecordsofthebusiness;therightofthedepartmentandtheMTC
190torecordandpublishnormalandcustomarydataandinformationrelatedtothe
191issuanceoftaxcreditsthatarenototherwisedeterminedtobetradeorbusinesssecrets;
192andothersuchprotectionsasmaybeinthebestinterestofMissouritaxpayersto
193achievethegoalsofthissectionandsection348.274;and
194 (m)Thebusinessshallsatisfyallotherrequirementsofthissectionandsection
195348.274.
196 (4)AqualifiedMissouribusinessshallhavetheburdenofprooftodemonstrate
197thequalificationsofthebusinessunderthissection.
198 (5)TheMTCshallestablishanapplicationfeeforqualifiedMissouribusinesses
199andinvestorsortransferees.ThisfeeshallbeutilizedbyMTCtoadministerthisact,
200issuethetaxcredits,andreviewtheapplications.
348.274.1.(1)TheMTCisauthorizedtoallocatetaxcreditstoqualified
2Missouribusinesses,andthedepartmentisauthorizedtoissuetaxcreditstoinvestorsin
3suchqualifiedMissouribusinesses.Suchtaxcreditsshallbeallocatedtothosequalified
4Missouribusinessesthat,asdeterminedbytheMTC,aremostlikelytoprovidethe
5greatesteconomicbenefittotheregionorthestate,orboth.TheMTCmayallocate,
6andthedepartmentmayissue,wholeorpartialtaxcreditsinaccordancewiththereport
HCSHB235 16 7issuedtothedirectorofthedepartmentbasedontheMTC'sassessmentofthequalified
8Missouribusinesses.TheMTCmayconsidernumerousfactorsinsuchassessment
9including,butnotlimitedto,thequalityandexperienceofthemanagementteam,the
10sizeoftheestimatedmarketopportunity,theriskfromcurrentorfuturecompetition,
11theabilitytodefendintellectualproperty,thequalityandutilityofthebusinessmodel,
12andthequalityandreasonablenessoffinancialprojectionsforthebusiness.
13 (2)EachqualifiedMissouribusinessforwhichtheMTChasallocatedtaxcredits
14suchthatthedepartmentcanissuetaxcreditstotheinvestorsofsuchqualifiedMissouri
15businessshallsubmittotheMTCareportbeforesuchtaxcreditsareissued.Such
16reportshallincludethefollowing:
17 (a)Thename,address,andtaxpayeridentificationnumberofeachinvestorwho
18hasmadecashinvestmentinthequalifiedsecuritiesofthequalifiedMissouribusiness;
19 (b)Proofofsuchinvestment,includingcopiesofthesecurities'purchase
20agreementsandcancelledchecksorwire-transferreceipts;and
21 (c)Suchotherinformationasmaybereasonablyrequiredunderthissectionand
22section348.273orreasonablyrequestedbythedepartmentortheMTC.
23 2.(1)ThestateofMissouri,thedepartment,ortheMTCshallnotbeheldliable
24foranydamagestoanyinvestorthatmakesaninvestmentinanyqualifiedsecurityofa
25qualifiedMissouribusiness,anybusinessthatappliestobedesignatedasaqualified
26Missouribusinessandisdenied,oranyinvestorthatmakesaninvestmentinabusiness
27thatappliestobedesignatedasaqualifiedMissouribusinessandisdenied.
28 (2)EachqualifiedMissouribusinessshallhavetheobligationtonotifytheMTC,
29whichshallnotifythedirectorofthedepartment,ofanychangesinthequalificationsof
30thebusinessorintheeligibilityofinvestorstoclaimataxcreditforcashinvestmentina
31qualifiedsecurity.
32 (3)Thedirectorofthedepartment,incooperationwiththeMTC,shallprovide
33theinformationspecifiedundersubdivision(3)ofsubsection4ofthissectiontothe
34directorofthedepartmentofrevenueonanannualbasis.TheMTCshallconductan
35annualreviewoftheactivitiesundertakenunderthissectionandsection348.273to
36ensurethattaxcreditsissuedunderthissectionandsection348.273areissuedin
37compliancewiththeprovisionsofthissectionandsection348.273orrulesand
38regulationspromulgatedbytheMTCorthedepartmentwithrespecttothissectionand
39section348.273.ThereasonablecostsoftheannualreviewshallbepaidbytheMTC
40accordingtoareasonablefeescheduleadoptedbytheMTCincooperationwiththe
41departmentbyandthroughitsserviceontheMTCboardofdirectors.
42 (4)IftheMTCdeterminesthatabusinessisnotinsubstantialcompliancewith
43therequirementsunderthissectionandsection348.273tomaintainitsdesignation,the
HCSHB235 17 44departmentorMTC,bywrittennotice,mayinformthebusinessthatsuchbusinesswill
45loseitsdesignationasaqualifiedMissouribusinessonehundredtwentydaysfromthe
46dateofmailingofthenoticeunlesssuchbusinesscorrectsthedeficienciesandisonce
47againincompliancewiththerequirementsfordesignationandprovidestheMTCwith
48evidenceofcorrectingthedeficienciesastheMTCreasonablyrequests.
49 (5)Attheendoftheone-hundred-twenty-dayperiod,ifthequalifiedMissouri
50businessisstillnotinsubstantialcompliance,thedepartmentorMTCmaysendanotice
51oflossofdesignationtothebusiness,thedirectorofthedepartmentofrevenue,andto
52allknowninvestorsinthebusiness.
53 (6)AbusinessmayloseitsdesignationasaqualifiedMissouribusinessunder
54thissectionandsection348.273bymovingeitheritsheadquartersoutsideofMissourior
55asubstantialnumberofthejobscreatedinMissouritoalocationoutsideMissouri
56withintenyearsafterreceivingfinancialassistanceunderthissectionandsection
57348.273,providedthatnobusinessmayloseitsdesignationasaqualifiedMissouri
58businessunderthissectionandsection348.273ifsuchmoveisinconnectionwiththe
59acquisitionofthebusinessbysaleofallorsubstantiallyallofitsbusiness,whetherby
60merger,saleofstock,saleofassets,orotherwise.
61 (7)IntheeventthatabusinesslosesitsdesignationasaqualifiedMissouri
62business,suchbusinessshallbeprecludedfrombeingissuedanyadditionaltaxcredits
63availableunderthissectionandsection348.273withrespecttothebusiness,shallbe
64precludedfrombeingapprovedasaqualifiedMissouribusiness,andshallbesubjectto
65anappropriateclawbackprovisionthattheMTC,incooperationwiththedepartment
66byandthroughitsserviceontheMTCboardofdirectors,mayinstitute.
67 (8)InvestorswholawfullymakeaninvestmentinaqualifiedMissouribusiness
68shallnothaveissuedtaxcreditsdisallowedsolelyduetothebusinesssubsequentlylosing
69itsdesignationasaqualifiedMissouribusiness.Intheeventsuchqualifiedbusiness
70losesitsdesignationasaqualifiedMissouribusiness,theamountoftaxcreditsissued
71underthissectionandsection348.273shallbesubjecttoclawbackprovisionsfromthe
72qualifiedMissouribusiness,tobedeterminedbythedepartmentandtheMTCboardof
73directors.
74 (9)Theportionsofdocumentsandothermaterialssubmittedtothedepartment
75orMTCthatcontainconfidentialinformationshallbekeptconfidentialandshallbe
76maintainedinasecuredenvironment.Forthepurposesofthissectionandsection
77348.273,confidentialinformationshallinclude,butnotbelimitedto,suchportionsof
78tradesecrets,documents,anycustomerlists,andothermaterials;anyformula,
79compound,productiondata,orcompilationofinformationthatwillallowcertain
80individualswithinacommercialconcernusingsuchportionsofdocumentsandother
HCSHB235 18 81materialthemeanstofabricate,produce,orcompoundanarticleoftrade;orany
82servicehavingcommercialvaluethatgivestheuseranopportunitytoobtainabusiness
83advantageovercompetitorswhodonotknoworusesuchservice.
84 (10)ThedepartmentandtheMTCmayprepareandadoptprocedures,rules,
85andpublishedguidanceconcerningtheperformanceofthedutiesplaceduponeach
86respectiveentitybythissectionandsection348.273.
87 3.Anyinvestorwhomakesacashinvestmentinaqualifiedsecurityofa
88qualifiedMissouribusinessmaytransferthetaxcreditssuchinvestormayreceiveunder
89subsection3ofsection348.273toanynaturalperson.Solongastheinvestorhasnot
90claimedthetaxcreditagainsttheinvestor'sMissouriincometaxliability,such
91transfereemayclaimthetaxcreditagainstthetransferee'sMissouriincometaxliability
92asprovidedinsubdivision(1)ofsubsection3ofsection348.273,subjecttoall
93restrictionsandlimitationssetforthinthissectionandsection348.273.Documentation
94ofanytaxcredittransferunderthissectionshallbeprovidedbytheinvestorinthe
95mannerestablishedbytheMTCandthedepartmentbyandthroughitsserviceonthe
96MTCboardofdirectors.
97 4.(1)EachqualifiedMissouribusinessforwhichtaxcreditswereissuedunder
98thissectionandsection348.273shallreporttotheMTCannuallyonorbeforeFebruary
99first.TheMTCshallprovidecopiesofthereportstothedepartmentunderappropriate
100confidentialityagreementsasmaybenecessaryunderthecircumstances.Suchreports
101shallincludethefollowing:
102 (a)Thename,address,andtaxpayeridentificationnumberofeachinvestorwho
103hasmadeacashinvestmentinthequalifiedsecuritiesofthequalifiedMissouribusiness
104andhasreceivedtaxcreditsforthisinvestmentduringtheprecedingyear;
105 (b)Theamountsofcashinvestmentsbyeachinvestorandadescriptionofthe
106qualifiedsecuritiesissuedinconsiderationofsuchcashinvestments;and
107 (c)Suchotherinformationasmaybereasonablyrequiredunderthissectionand
108section348.273.
109 (2)TheMTCshallreportquarterlytothedirectorofthedepartmentonthe
110allocationofthetaxcreditsintheprecedingcalendarquarter.Suchreportsshall
111include:
112 (a)Thenumberofapplicationsreceived;
113 (b)Thenumberandratioofsuccessfulapplicationstounsuccessfulapplications;
114 (c)Theamountoftaxcreditsallocatedbutnotissuedinthepreviousquarter,
115includingwhatpercentagewasallocatedtoindividualsandwhatpercentagewas
116allocatedtoinvestmentfirms;and
117 (d)Suchotherinformationasreasonablyagreeduponfromtimetotime.
HCSHB235 19 118 (3)TheMTCandthedepartment,asapplicable,shallalsoreportannuallytothe
119governor,thedirectorofthedepartmentofeconomicdevelopment,thepresidentpro
120temporeofthesenate,andthespeakerofthehouseofrepresentatives,onorbefore
121Aprilfirst,ontheallocationandissuanceofthetaxcredits.Suchreportsshallinclude:
122 (a)Theamountoftaxcreditsissuedinthepreviousfiscalyear,includingwhat
123percentagewasissuedtoindividualsandwhatpercentagewasissuedtoinvestment
124firms;
125 (b)Thetypesofbusinessesthatbenefittedfromthetaxcredits;
126 (c)Theamountofallocatedbutunissuedtaxcreditsandtheinformationabout
127theunissuedtaxcreditssetforthinsubdivision(2)ofthissubsection;
128 (d)Anyaggregatejobcreationorcapitalinvestmentintheregionthatresulted
129fromtheuseofthetaxcreditsforaperiodoffiveyearsbeginningfromthedateon
130whichthetaxcreditswereawarded;
131 (e)Themannerinwhichthepurposeofthissectionandsection348.273hasbeen
132carriedoutwithregardtoadesignatedgeographicregion;
133 (f)Thetotalcashinvestmentsmadeforthepurchaseofqualifiedsecuritiesof
134qualifiedMissouribusinesseswithinthestateduringtheprecedingyearand
135cumulativelysincetheeffectivedateofthissectionandsection348.273;
136 (g)Anestimateofjobscreatedandjobspreservedbycashinvestmentsmadein
137qualifiedMissouribusinesseswithinthestate;
138 (h)Anestimateofthemultipliereffectontheeconomyofthecashinvestments
139madeunderthissectionandsection348.273;and
140 (i)Informationregardingwhatbusinessesderivingbenefitsfromthetaxcredits
141remainedinthedesignatedgeographicregion,whatbusinessesceasedbusiness,what
142businesseswerepurchased,andwhatbusinessesmayhavemovedoutofadesignated
143geographicregionorthestate.
144 (4)Anyviolationofthereportingrequirementsofthissubsectionbyaqualified
145MissouribusinessmaybegroundsforthelossofdesignationasaqualifiedMissouri
146business,andanysuchbusinessthatlosesitsdesignationasaqualifiedMissouri
147businessshallbesubjecttotherestrictionsuponlossofdesignationsetforthin
148subsection2ofthissection.
149 5.Notwithstandinganyprovisionofsection105.1500tothecontrary,any
150requirementtoprovideinformation,documents,orrecordsundersection348.273or
151348.274,andanyrequirementestablishedbytheMTCoranystateagencytoprovide
152information,documents,orrecordsforthepurposeofadministeringthesesections,
153shallbeexemptfromsection105.1500ofthepersonalprivacyprotectionact.
HCSHB235 20 154 6.Taxcreditsissuedundersection348.273or348.274shallbeclassifiedas
155"entrepreneurialtaxcredits"undersection135.800ofthetaxcreditaccountabilityact.
156 7.Section348.273andthissectionshallexpireonDecember31,2032.
âś”
HCSHB235 21