FIRSTREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.682
103RDGENERALASSEMBLY
1798H.02C JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections32.115and135.460,RSMo,andtoenactinlieuthereoffournewsections
relatingtotaxcredits.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections32.115and135.460,RSMo,arerepealedandfournewsections
2enactedinlieuthereof,tobeknownassections32.115,135.460,348.273,and348.274,to
3readasfollows:
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;
HCSHB682 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
HCSHB682 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.
135.460.1.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
HCSHB682 4 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;
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;
HCSHB682 5 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.
75
76Suchcreditsshallbeapportionedtotheentitiesdescribedinsubdivisions(1)and(2)ofthis
77subsectioninproportiontotheirshareofownershiponthelastdayofthetaxpayer'stax
78period.
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:
HCSHB682 6 8 (a)Region1:CountiesofBates,Cass,Clay,Jackson,andPlatte;
9 (b)Region2:CountiesofFranklin,Jefferson,Lincoln,St.Charles,Warren,and
10St.Louis,andtheCityofSt.Louis;
11 (c)Region3:CountiesgeographicallynorthoftheMissouriRiver,excludingany
12countiesinregion1orregion2;and
13 (d)Region4:CountiesgeographicallysouthoftheMissouriRiver,excludingany
14countiesinregion1orregion2;
15 (4)"Investor",oneofthefollowingpersonsorentities:
16 (a)Anaturalpersonwhoisanaccreditedinvestorasdefinedunder17CFR
17230.501(a)(5)or230.501(a)(6),asineffectonJuly24,2013;
18 (b)Apermittedentityinvestorwhoisanaccreditedinvestorasdefinedunder17
19CFR230.501(a)(8)asineffectonJuly24,2013;or
20 (c)Anaturalpersonorpermittedentityinvestormakinganinvestmentwho
21qualifiesunderthefederalJumpstartOurBusinessStartups(JOBS)Act,Pub.L.112-
22106asineffectonApril5,2012.
23
24Theterm"investor"shallnotincludeanypersonwhoservesasanexecutive,officer,or
25employeeofthebusinessinwhichanotherwisequalifiedcashinvestmentismade,and
26suchpersonshallnotqualifyfortheissuanceoftaxcreditsforsuchinvestment.
27However,aninvestorwhoservessolelyasadirectormayqualifyfortheissuanceoftax
28credits;
29 (5)"MTC",theMissouritechnologycorporationestablishedundersection
30348.251;
31 (6)"Owner",anynaturalpersonwhois,directlyorindirectly,apartner,
32stockholder,ormemberinapermittedentityinvestor;
33 (7)"Permittedentityinvestor",anygeneralpartnership;limitedpartnership;
34corporationthathasineffectavalidelectiontobetaxedasanScorporationunderthe
35InternalRevenueCodeof1986,asamended;revocablelivingtrust;nonprofit
36corporation;orlimitedliabilitycompanythathaselectedtobetaxedasa
37partnershipundertheInternalRevenueCodeof1986,asamended,andthatwas
38establishedandisoperatedforthepurposeofmakinginvestmentsinotherentities;
39 (8)"Qualifiedknowledge-basedcompany",acompanyengagedintheresearch,
40development,implementation,andcommercializationofinnovativetechnologies,
41products,andservicesforuseinthecommercialmarketplace;
42 (9)"QualifiedMissouribusiness",aMissouribusinessthatisapprovedasa
43qualifiedknowledge-basedcompanybytheMTCandmeetsatleastoneofthefollowing
44criteria:
HCSHB682 7 45 (a)Anypartnership,association,limitedliabilitycompany,orcorporation
46domiciledinMissouri;or
47 (b)Anylimitedliabilitycompanyorcorporationthatisdomiciledoutsidethe
48stateofMissouributhasitsbusinessoperationslocatedprimarilyinMissouriordoes
49substantiallyallofsuchbusiness’sproductioninMissouri;
50 (10)"Qualifiedsecurities",acashinvestmentthroughanyformorcombination
51offormsoffinancialassistanceasprovidedunderthissubdivision.Suchformsof
52financialassistanceinclude,butarenotlimitedto:
53 (a)Anyformofequity,suchas:
54 a.Ageneralorlimitedpartnershipinterest;
55 b.Commonstock;
56 c.Simpleagreementforfutureequity(SAFE);or
57 d.Preferredstock,withoutregardtovotingrightsorsenioritypositionand
58regardlessofwhetherconvertibleintocommonstock;and
59 (b)Anydebtinstrumentsubordinatetothegeneralcreditorsofthequalified
60MissouricompanydebtorthatrequiresnopaymentfromthequalifiedMissouri
61companydebtorandthatshallconverttosomeformofequitypriorto,orin
62conjunctionwith,thequalifiedMissouricompanyraisinganyadditionalfunds;
63 (11)"Ruralcounty",anycountyinthestateofMissouriwithfewerthantwenty-
64fivethousandinhabitants,andsuchtermshallbedeemedtoincludeboththefarmand
65nonfarmpopulationthereof.Thenumberofinhabitantsspecifiedinthissubdivision
66shallbeincreasedbysixpercenteverytenyearsaftereachdecennialcensusbeginning
67in2030;
68 (12)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,
69excludingwithholdingtaximposedbysections143.191to143.265,chapter147,or
70chapter148.
71 3.(1)ForalltaxyearsbeginningonorafterJanuary1,2026,ataxcreditshall
72beallowedforaninvestor'scashinvestmentinthequalifiedsecuritiesofaqualified
73Missouribusiness.Thecreditshallbeinatotalamountequaltofortypercentofsuch
74investor'scashinvestmentinanyqualifiedMissouribusiness,subjecttothelimitations
75setforthinthissubsection.Thecreditshallbeinatotalamountequaltofiftypercent
76wheretheinvestor'scashinvestmentinthequalifiedsecuritiesofaqualifiedMissouri
77businessareinaruralcounty.Iftheamountbywhichthatportionofthecreditallowed
78bythissectionexceedstheinvestor'staxliabilityinanyonetaxyear,theremaining
79portionofthecreditmaybecarriedforwardfiveyearsoruntilthetotalamountofthe
80creditisused,whicheveroccursfirst.Iftheinvestorisapermittedentityinvestor,the
HCSHB682 8 81creditprovidedbythissectionshallbeclaimedbythepermittedentityinvestorin
82proportiontosuchowner'sequityinvestmentinthepermittedentityinvestor.
83 (2)Acashinvestmentinaqualifiedsecurityshallbedeemedtohavebeenmade
84onthedateofacquisitionofthequalifiedsecurity,assuchdateisdeterminedin
85accordancewiththeprovisionsoftheInternalRevenueCodeof1986,asamended.
86 (3)ThedepartmentandtheMTCshallnotallowtaxcreditsofmorethan
87seventy-fivethousanddollarsforasinglequalifiedMissouribusinessperinvestorwhois
88anaturalpersonorapermittedentityinvestorandshallnotallowatotalofthree
89hundredthousanddollarsintaxcreditsforasingletaxyearperinvestorwhoisa
90naturalpersonorapermittedentityinvestor.Notaxcreditauthorizedbythissectionor
91section348.274shallbeallowedforanycashinvestmentsinqualifiedsecuritiesmadein
92anyyearafterDecember31,2032.Thetotalamountoftaxcreditsthatmaybeallowed
93underthissectionshallnotexceedsixmilliondollarsduringeithercalendaryear2026
94or2027.Beginningincalendaryear2028,thetotalamountoftaxcreditsallowedunder
95thissectionshallbeannuallyincreasedbytwentypercentofthetotalamountoftax
96creditsallowedintheimmediatelyprecedingcalendaryear,solongasthetotalamount
97oftaxcreditsallowedintheimmediatelyprecedingcalendaryearwasissuedduring
98suchcalendaryear.Foreachsuccessiveyearthereafter,ifthetotalamountoftax
99creditsallowedintheimmediatelyprecedingcalendaryearunderthissectionisissued,
100thetotalamountoftaxcreditsshallbeincreasedbyanadditionaltwentypercent.Such
101increaseoftwentypercentoftaxcreditsallowedshallcontinue,solongasthetotal
102amountoftaxcreditsallowedintheimmediatelyprecedingcalendaryearwas
103completelyissued.Thebalanceofunissuedtaxcreditsmaybecarriedoverforissuance
104infutureyearsbeforeDecember31,2034.Thebalanceofunissuedtaxcreditscarried
105over,ifany,shallnotbeusedinthecalculationofthetotalamountoftaxcreditsallowed
106inagivencalendaryear.
107 (4)Atthebeginningofeachcalendaryear,theMTCshallequallydesignatethe
108totalamountoftaxcreditsavailableduringthefirstsixmonthsofthatcalendaryearto
109eachdesignatedgeographicregion.Assoonaspracticableattheendofthefirstsix
110monthsofthatcalendaryear,theMTCshallprepareandissueareporttothedirector
111ofthedepartmentdesignatingalltaxcreditawardsforthatyeartodate,sothatthe
112departmentmayissuesuchtaxcreditsinaccordancewiththeprovisionsofthissection
113andsection348.274.
114 (5)Duringthelastsixmonthsofthecalendaryear,anyunissuedtaxcredits
115previouslyallocatedtoanydesignatedgeographicregionmaybeawardedatthe
116discretionoftheMTCtoaqualifiedMissouricompanyinanydesignatedgeographic
117regionthroughoutthestate.
HCSHB682 9 118 4.(1)Beforeaninvestorisentitledtoreceivetaxcreditsunderthissectionand
119section348.274,suchinvestorshallhavemadeacashinvestmentinaqualifiedsecurity
120ofaqualifiedMissouribusiness.Thebusinessshallhavebeenapprovedasaqualified
121Missouribusinessbeforethedateonwhichthecashinvestmentwasmade.Tobe
122designatedasaqualifiedMissouribusiness,abusinessshallapplytotheMTC.
123 (2)Theapplicationbyabusinessshallbeintheformandsubstancerequiredby
124theMTCincoordinationwiththedepartmentbyandthroughitsserviceontheMTC
125boardofdirectorsbutshallincludeatleastthefollowing:
126 (a)Thenameofthebusinessandcertifiedcopiesoftheorganizational
127documentsofthebusiness;
128 (b)Abusinessplan,includingadescriptionofthebusinessandthemanagement,
129product,market,andfinancialplanofthebusiness;
130 (c)Astatementofthepotentialeconomicimpactofthebusiness,includingthe
131number,location,andtypesofjobsexpectedtobecreated;
132 (d)Adescriptionofthequalifiedsecuritiestobeissued,theconsiderationtobe
133paidforthequalifiedsecurities,andtheamountofanytaxcreditsrequested;
134 (e)Astatementoftheamount,timing,andprojecteduseoftheproceedstobe
135raisedfromtheproposedsaleofqualifiedsecurities;and
136 (f)Suchotherinformationasmaybereasonablyrequested.
137 (3)ThedesignationofabusinessasaqualifiedMissouribusinessshallbemade
138bytheMTC,andeachqualifiedMissouribusinessshallannuallyapplytorenewsuch
139designation,tobeapprovedbytheMTC.AbusinessshallbesodesignatediftheMTC
140determines,basedupontheapplicationsubmittedbythebusinessandanyadditional
141informationprovidedinconnectionwithsuchapplicationorasreasonablyrequestedby
142theMTC,thatsuchbusinessmeetsestablishedcriteria,includingatleastthefollowing:
143 (a)Thebusinessshallnothavehadannualgrossrevenuesofmorethanfive
144milliondollarsinthemostrecenttaxyearofthebusiness;
145 (b)Businessesthatarenotbiosciencebusinessesshallhavebeeninoperationfor
146lessthanfiveyears,andbiosciencebusinessesshallhavebeeninoperationforlessthan
147tenyears;
148 (c)Theabilityofinvestorsinthebusinesstoreceivetaxcreditsforcash
149investmentsinqualifiedsecuritiesofthebusinessisbeneficialtoadvancingthegoalsof
150thissectionandsection348.274;
151 (d)Thebusinessshallnothaveownershipinterestsincluding,butnotlimitedto,
152commonorpreferredsharesofstockthatcanbetradedviaapublicstockexchange
153beforethedatethataqualifyinginvestmentismade;
HCSHB682 10 154 (e)Thebusinessshallnotbeengagedprimarilyinanyoneormoreofthe
155followingenterprises:
156 a.Thebusinessofbanking,savingsandloanorlendinginstitutions,creditor
157finance,orfinancialbrokerageorinvestments;
158 b.Theprovisionofprofessionalservices,suchaslegal,accounting,or
159engineeringservices;however,contractresearchormanufacturingorganizations,
160sometimesreferredtoasCROsorCMOs,shallnotbesubjecttothisexclusion;
161 c.Governmental,charitable,religious,ortradeorganizations;
162 d.Theownership,development,brokerage,sales,orleasingofrealestate;
163 e.Insurance;
164 f.Construction,constructionmanagement,orcontracting;
165 g.Businessconsultingorbrokerage;
166 h.Anybusinessengagedprimarilyasapassivebusiness,havingirregularor
167noncontiguousoperations,orderivingsubstantiallyalloftheincomeofthebusiness
168frompassiveinvestmentsthatgenerateinterest,dividends,royalties,orcapitalgainsor
169anybusinessarrangementstheeffectofwhichistoimmunizeaninvestorfromriskof
170loss;
171 i.Anyactivitythatisinviolationofthelaw;
172 j.Anybusinessraisingmoneysprimarilytopurchaserealestate,land,or
173fixtures;and
174 k.Anygambling-relatedbusiness;
175 (f)Thebusinesshasareasonablechanceofsuccess;
176 (g)Thebusinesshasthereasonablepotentialtocreatemeasurableemployment
177withintheregion,thisstate,orboth;
178 (h)Thebusinessisbasedonaninnovativetechnology,product,orservice
179designedtobeusedinthecommercialmarketplace;
180 (i)Theexistingownersofthebusinessandotherfoundershavemadeorare
181committedtomakingasubstantialfinancialortimecommitmenttothebusiness;
182 (j)Thesecuritiestobeissuedandpurchasedarequalifiedsecurities;
183 (k)Thebusinesshasthereasonablepotentialtoaddressneedsandopportunities
184specifictotheregion,thisstate,orboth;
185 (l)ThebusinesshasmadebindingcommitmentstotheMTCforadequate
186reportingoffinancialdata,includingarequirementforanannualreportor,ifrequired,
187anannualauditofthefinancialandoperationalrecordsofthebusiness;therightof
188accesstothefinancialrecordsofthebusiness;therightofthedepartmentandtheMTC
189torecordandpublishnormalandcustomarydataandinformationrelatedtothe
190issuanceoftaxcreditsthatarenototherwisedeterminedtobetradeorbusinesssecrets;
HCSHB682 11 191andothersuchprotectionsasmaybeinthebestinterestofMissouritaxpayersto
192achievethegoalsofthissectionandsection348.274;and
193 (m)Thebusinessshallsatisfyallotherrequirementsofthissectionandsection
194348.274.
195 (4)AqualifiedMissouribusinessshallhavetheburdenofprooftodemonstrate
196thequalificationsofthebusinessunderthissection.
197 (5)TheMTCshallestablishanapplicationfeeforqualifiedMissouribusinesses
198andinvestorsortransferees.ThisfeeshallbeutilizedbyMTCtoadministerthisact,
199issuethetaxcredits,andreviewtheapplications.
348.274.1.(1)TheMTCisauthorizedtoallocatetaxcreditstoqualified
2Missouribusinesses,andthedepartmentisauthorizedtoissuetaxcreditstoinvestorsin
3suchqualifiedMissouribusinesses.Suchtaxcreditsshallbeallocatedtothosequalified
4Missouribusinessesthat,asdeterminedbytheMTC,aremostlikelytoprovidethe
5greatesteconomicbenefittotheregionorthestate,orboth.TheMTCmayallocate,
6andthedepartmentmayissue,wholeorpartialtaxcreditsinaccordancewiththereport
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.
HCSHB682 12 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
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
HCSHB682 13 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
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:
HCSHB682 14 102 (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.
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;
HCSHB682 15 138 (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.
154 6.Taxcreditsissuedundersection348.273or348.274shallbeclassifiedas
155"entrepreneurialtaxcredits"undersection135.800ofthetaxcreditaccountabilityact.
156 7.Section348.273andthissectionshallexpireonDecember31,2032.
âś”
HCSHB682 16