Missouri 2025 Regular Session

Missouri Senate Bill SB35 Compare Versions

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Version 2 (New)

Old	New		Differences
1	1
2	2		FIRST REGULAR SESSION
3		-	[PERFECTED]
4		-	SENATE SUBSTITUTE FOR
5	3		SENATE COMMITTEE SUBSTITUTE FOR
6	4		SENATE BILL NO. 35
7	5		103RD GENERAL ASSEMBLY
8		-	INTRODUCED BY SENATOR ROBERTS.
9		-	0483S.05P KRISTINA MARTIN, Secretary
	6	+	0483S.03C KRISTINA MARTIN, Secretary
10	7		AN ACT
11	8		To amend chapter 99, RSMo, by adding thereto six new sections relating to tax credits for
12	9		downtown revitalization.
13	10
14	11		Be it enacted by the General Assembly of the State of Missouri, as follows:
15	12		Section A. Chapter 99, RSMo, is amended by adding thereto 1
16	13		six new sections, to be known as sections 99.720, 99.722, 2
17	14		99.724, 99.726, 99.728, and 99.730, to read as follows:3
18	15		99.720. 1. Sections 99.720 to 99.730 shall be known 1
19	16		and may be cited as the "Revitalizing Missouri Downtowns and 2
20	17		Main Streets Act". 3
21	18		2. As used in sections 99.720 to 99.730, the following 4
22	19		terms mean, unless the context requires otherwise: 5
23	20		(1) "Department", the Missouri department of economic 6
24	21		development; 7
25	22		(2) "Qualified conversion expenditures", any amo unt 8
26		-	properly chargeable to a capital account. The term 9
27		-	~~"qualified~~ conversion expenditures" shall not include: 10
	23	+	properly chargeable to capital account. The term "qualified 9
	24	+	conversion expenditures" shall not include: 10
28	25		(a) The cost of acquisition; 11
29	26		(b) Any expenditure attributable to the enlargement of 12
30	27		an existing building; or 13
31		-	(c) Tax-exempt properties; 14 ~~SS SCS SB 35 2~~
	28	+	(c) Tax-exempt properties; 14
32	29		(3) "Qualified converted building", any building and 15
33		-	its structural components if: 16
	30	+	its structural components if: 16 SCS SB 35 2
34	31		(a) Prior to conversion, such building was 17
35	32		nonresidential real property, as defined in 26 U.S.C. 18
36	33		Section 168(e)(2)(B), as amended, which was leased, or 19
37		-	available for lease, to office tenants, or utilized for 20
38		-	office purposes by the owner -occupant; 21
39		-	(b) Such building has been substantially converted 22
40		-	from an office use to a predominantly residential use, 23
41		-	defined as more than fifty percent of the gross square 24
42		-	footage of the building, and may also include retail, or 25
43		-	other commercial use, and may also include accessory on -site 26
44		-	parking; and 27
45		-	(c) Such building was in itially placed in service at 28
46		-	least twenty-five years before the beginning of the 29
47		-	conversion; 30
48		-	(4) "Qualified Missouri main street district", an 31
49		-	accredited, associated, or affiliated main street district 32
50		-	of the Missouri main street program created pursuant to 33
51		-	sections 251.470 to 251.485; 34
52		-	(5) "Substantially converted", qualified conversion 35
53		-	expenditures incurred during the twenty -four-month period 36
54		-	preceding final approval of tax credits that in total are 37
55		-	greater than: 38
56		-	(a) The adjusted basis of such building and its 39
57		-	structural components, as determined as of the beginning of 40
58		-	the first day of such twenty -four-month period, or of the 41
59		-	holding period of the building, whichever is later; or 42
60		-	(b) Fifteen thousand dollars if the propert y is 43
61		-	located in a qualified Missouri main street district, or 44
62		-	five hundred thousand dollars if the property is not located 45
63		-	in a qualified Missouri main street district. 46 SS SCS SB 35 3
64		-	In the case of any conversion which may reasonably be 47
65		-	expected to be completed in p hases set forth in 48
66		-	architectural plans and specifications completed before the 49
67		-	conversion begins, qualified conversion expenditures shall 50
68		-	be totaled for the sixty -month period preceding final 51
69		-	approval of tax credits rather than the twenty -four-month 52
70		-	period preceding such final approval; 53
71		-	(6) "Upper floor housing", any housing that is 54
72		-	attached to or contained in the same building as commercial 55
73		-	property, whether located on the ground floor behind the 56
74		-	traditional storefront or on other floors of t he property. 57
	34	+	available for lease, to office tenants; 20
	35	+	(b) Such building has been substantially converted 21
	36	+	from an office use to a predominantly residential use, 22
	37	+	defined as more than fifty percent of the gross square 23
	38	+	footage of the building, and may also inc lude, retail, or 24
	39	+	other commercial use, and may also include accessory on -site 25
	40	+	parking; and 26
	41	+	(c) Such building was initially placed in service at 27
	42	+	least twenty-five years before the beginning of the 28
	43	+	conversion; 29
	44	+	(4) "Qualified Missouri main str eet district", an 30
	45	+	accredited, associated, or affiliated main street district 31
	46	+	of the Missouri main street program created pursuant to 32
	47	+	sections 251.470 to 251.485; 33
	48	+	(5) "Substantially converted", qualified conversion 34
	49	+	expenditures incurred during the twenty-four-month period 35
	50	+	preceding final approval of tax credits that in total are 36
	51	+	greater than: 37
	52	+	(a) The adjusted basis of such building and its 38
	53	+	structural components, as determined as of the beginning of 39
	54	+	the first day of such twenty -four-month period, or of the 40
	55	+	holding period of the building, whichever is later; or 41
	56	+	(b) Fifteen thousand dollars if the property is 42
	57	+	located in a qualified Missouri main street district, or 43
	58	+	five hundred thousand dollars if the property is not located 44
	59	+	in a qualified Missouri main street district. 45
	60	+	In the case of any conversion which may reasonably be 46
	61	+	expected to be completed in phases set forth in 47 SCS SB 35 3
	62	+	architectural plans and specifications completed before the 48
	63	+	conversion begins, qualified conversion expenditures shall 49
	64	+	be totaled for the sixty -month period preceding final 50
	65	+	approval of tax credits rather than the twenty -four-month 51
	66	+	period preceding such final approval; 52
	67	+	(6) "Upper floor housing", any housing that is 53
	68	+	attached to or contained in the same build ing as commercial 54
	69	+	property, whether located on the ground floor behind the 55
	70	+	traditional storefront or on other floors of the property. 56
75	71		99.722. 1. For all tax years beginning on or after 1
76	72		January 1, 2026, the department shall issue a t axpayer a 2
77	73		credit against the taxpayer's state tax liability equal to 3
78	74		twenty-five percent of qualified conversion expenditures 4
79	75		with respect to a qualified converted building. If the 5
80	76		amount of such tax credit exceeds the taxpayer's state tax 6
81	77		liability for the year in which tax credits are issued, the 7
82	78		amount that exceeds the state tax liability may be carried 8
83	79		back to any of the three preceding tax years or carried 9
84	80		forward for credit against state tax liability for the 10
85	81		succeeding ten tax years, or unt il the full credit is used, 11
86	82		whichever occurs first. 12
87	83		2. Tax credits authorized pursuant to this section may 13
88	84		be transferred, sold, or assigned, and shall retain the same 14
89	85		attributes as in the hands of the assignor. Tax credits may 15
90	86		be transferred multiple times. In order to transfer a tax 16
91	87		credit authorized pursuant to this section, the assignor and 17
92	88		assignee shall complete and submit a tax credit transfer 18
93	89		form provided by the department of revenue. Such transfers 19
94		-	may be facilitated through an ~~intermediary~~ entity as 20 ~~SS SCS SB 35 4~~
	90	+	may be facilitated through an in termediary entity as 20
95	91		permitted by law without affecting the nature or attributes 21
96		-	of the tax credit. 22
	92	+	of the tax credit. 22 SCS SB 35 4
97	93		3. Tax credits authorized for a partnership, a limited 23
98	94		liability company taxed as a partnership, or multiple owners 24
99	95		of property shall be passed th rough to the partners, 25
100	96		members, or owners respectively pro rata, or pursuant to an 26
101	97		executed agreement among the partners, members, or owners 27
102	98		documenting an alternate distribution method. 28
103	99		4. The assignee of a tax credit may use the acquired 29
104	100		tax credits to offset up to one hundred percent of the 30
105	101		taxpayer's state tax liability. The assignor shall perfect 31
106	102		such transfer by notifying the department in writing within 32
107	103		thirty calendar days following the effective date of the 33
108	104		transfer and shall provide any information as may be 34
109	105		required by the department. 35
110	106		99.724. 1. For all tax years beginning on or after 1
111	107		January 1, 2026, the department shall issue a taxpayer a 2
112	108		credit against the taxpayer's state tax liability equal to 3
113	109		thirty percent of qualified conversion expenditures with 4
114	110		respect to upper floor housing located in a qualified 5
115	111		Missouri main street district. If the amount of such tax 6
116	112		credit exceeds the taxpayer's state tax liability for the 7
117	113		year in which tax credits are issu ed, the amount that 8
118	114		exceeds the state tax liability may be carried back to any 9
119	115		of the three preceding tax years or carried forward for 10
120	116		credit against state tax liability for the succeeding ten 11
121	117		tax years, or until the full credit is used, whichever 12
122	118		occurs first. 13
123	119		2. Tax credits authorized pursuant to this section may 14
124	120		be transferred, sold, or assigned, and shall retain the same 15
125	121		attributes as in the hands of the assignor. Tax credits may 16
126		-	be transferred multiple times. In order to transfer a tax 17 ~~SS SCS SB 35 5~~
	122	+	be transferred multiple times. In order to transfer a tax 17
127	123		credit authorized pursuant to this section, the assignor and 18
128		-	assignee shall complete and submit a tax credit transfer 19
	124	+	assignee shall complete and submit a tax credit transfer 19 SCS SB 35 5
129	125		form provided by the department of revenue. Such transfers 20
130	126		may be facilitated through an intermediary entity as 21
131	127		permitted by law wit hout affecting the nature or attributes 22
132	128		of the tax credit. 23
133	129		3. Tax credits authorized for a partnership, a limited 24
134	130		liability company taxed as a partnership, or multiple owners 25
135	131		of property shall be passed through to the partners, 26
136	132		members, or owners respectively pro rata, or pursuant to an 27
137	133		executed agreement among the partners, members, or owners 28
138	134		documenting an alternate distribution method. 29
139	135		4. The assignee of a tax credit may use the acquired 30
140	136		tax credits to offset up to one hundred percent of the 31
141	137		taxpayer's state tax liability. The assignor shall perfect 32
142	138		such transfer by notifying the department in writing within 33
143	139		thirty calendar days following the effective date of the 34
144	140		transfer and shall provide any information as may be 35
145	141		required by the department. 36
146	142		99.726. 1. The total amount of tax credits authorized 1
147	143		pursuant to sections 99.720 to 99.730 shall not exceed fifty 2
148		-	million dollars in any fiscal year. 3
149		-	2. Fifty percent of the maximum amount of tax credits 4
150		-	available to be authorized to taxpayers in a fiscal year 5
151		-	pursuant to this section shall be authorized solely for 6
152		-	structures of more than seven hundred fifty thousand gross 7
153		-	square feet. If the total amount of such reserved tax 8
154		-	credits have been authorized, structures of more than seven 9
155		-	hundred fifty thousand gross square feet may receive tax 10
156		-	credits from the remaining unreserve d amount of tax 11
157		-	credits. If the total amount of reserved tax credits have 12
158		-	not been authorized by the department, structures of less 13 SS SCS SB 35 6
159		-	than seven hundred fifty thousand gross square feet may be 14
160		-	authorized tax credits from such reserved amount. The total 15
161		-	amount of tax credits for a structure of more than seven 16
162		-	hundred fifty thousand gross square feet may be allocated to 17
163		-	the annual limits provided in this section over a period of 18
164		-	up to ten years, if: 19
165		-	(1) The project otherwise meets all the requir ements 20
166		-	of sections 99.720 to 99.730; and 21
167		-	(2) The project meets the ten percent incurred costs 22
168		-	test under subsection 6 of section 99.728 within thirty -six 23
169		-	months after an award is authorized. 24
170		-	3. Twenty-five percent of the maximum amount of ta x 25
171		-	credits available to be authorized to taxpayers in a fiscal 26
172		-	year pursuant to this section shall be authorized solely for 27
173		-	upper floor housing projects located in a qualified Missouri 28
174		-	main street district. If the total amount of such reserved 29
175		-	tax credits have been authorized, upper floor housing 30
176		-	projects located in a qualified Missouri main street 31
177		-	district may receive tax credits from the remaining 32
178		-	unreserved amount of tax credits. If the total amount of 33
179		-	reserved tax credits have not been authori zed by the 34
180		-	department, projects not located in a qualified Missouri 35
181		-	main street district may be authorized tax credits from such 36
182		-	reserved amount. 37
183		-	4. If the maximum amount of tax credits allowed in any 38
184		-	fiscal year, as provided pursuant to this sec tion, is 39
185		-	authorized, the maximum amount of tax credits allowed 40
186		-	pursuant to subsection 1 of this section shall be adjusted 41
187		-	by the percentage increase in the Consumer Price Index for 42
188		-	All Urban Consumers, or its successor index, as such index 43
189		-	is defined and officially reported by the United States 44
190		-	Department of Labor, or its successor agency. Only one such 45 SS SCS SB 35 7
191		-	adjustment shall be made for each instance in which the 46
192		-	provisions of this subsection apply. The department shall 47
193		-	publish such adjusted amount. 48
194		-	5. In the event the department authorizes tax credits 49
195		-	equal to the total amount available pursuant to this 50
196		-	section, or sufficient that when totaled with all other 51
197		-	approvals, the amount available pursuant to this section is 52
198		-	exhausted, all taxpayers with applications then awaiting 53
199		-	approval or thereafter submitted for approval shall be 54
200		-	notified by the department that no additional approvals 55
201		-	shall be granted during the fiscal year and shall be 56
202		-	notified of the priority given to such taxpayer's 57
203		-	application then awaiting approval. Such applications shall 58
204		-	be kept on file by the department and shall be considered 59
205		-	for approval for tax credits in the order established in 60
206		-	this section in the event that additional tax credits become 61
207		-	available due to the rescission of approvals, or when a new 62
208		-	fiscal year's allocation of tax credits becomes available 63
209		-	for approval. 64
	144	+	million dollars in any fiscal year, except tax credits 3
	145	+	authorized for a structure of more than seven hu ndred fifty 4
	146	+	thousand gross square feet shall be subject to the limits 5
	147	+	provided in subsection 2 of this section, provided that the 6
	148	+	total amount of tax credits for such projects shall be 7
	149	+	allocated to the annual limits provided in this section over 8
	150	+	a period of six years, with one -sixth of such amount 9
	151	+	allocated each year if: 10
	152	+	(1) The project otherwise meets all the requirements 11
	153	+	of sections 99.720 to 99.730; 12
	154	+	(2) The project meets the ten percent incurred costs 13
	155	+	test under subsection 6 of sectio n 99.728 within thirty -six 14
	156	+	months after an award is issued; and 15 SCS SB 35 6
	157	+	(3) The taxpayer agrees with the department of 16
	158	+	economic development, on a form prescribed by the 17
	159	+	department, to claim the entire award of initial tax credits 18
	160	+	over a period of three f iscal years, with the initial year 19
	161	+	being the fiscal year in which the tax credits are issued; 20
	162	+	2. Twenty-five percent of the maximum amount of tax 21
	163	+	credits available to be authorized to taxpayers in a fiscal 22
	164	+	year pursuant to this section shall be au thorized solely for 23
	165	+	upper floor housing projects located in a qualified Missouri 24
	166	+	main street district. If the total amount of such reserved 25
	167	+	tax credits have been authorized, upper floor housing 26
	168	+	projects located in a qualified Missouri main street 27
	169	+	district may receive tax credits from the remaining 28
	170	+	unreserved amount of tax credits. If the total amount of 29
	171	+	reserved tax credits have not been authorized by the 30
	172	+	department, projects not located in a qualified Missouri 31
	173	+	main street district may be authori zed tax credits from such 32
	174	+	reserved amount. 33
	175	+	3. If the maximum amount of tax credits allowed in any 34
	176	+	fiscal year, as provided pursuant to this section, is 35
	177	+	issued, the maximum amount of tax credits allowed pursuant 36
	178	+	to subsection 1 of this section sha ll be adjusted by the 37
	179	+	percentage increase in the Consumer Price Index for All 38
	180	+	Urban Consumers, or its successor index, as such index is 39
	181	+	defined and officially reported by the United States 40
	182	+	Department of Labor, or its successor agency. Only one such 41
	183	+	adjustment shall be made for each instance in which the 42
	184	+	provisions of this subsection apply. The department shall 43
	185	+	publish such adjusted amount. 44
	186	+	4. In the event the department authorizes tax credits 45
	187	+	equal to the total amount available pursuant to t his 46
	188	+	section, or sufficient that when totaled with all other 47 SCS SB 35 7
	189	+	approvals, the amount available pursuant to this section is 48
	190	+	exhausted, all taxpayers with applications then awaiting 49
	191	+	approval or thereafter submitted for approval shall be 50
	192	+	notified by the department that no additional approvals 51
	193	+	shall be granted during the fiscal year and shall be 52
	194	+	notified of the priority given to such taxpayer's 53
	195	+	application then awaiting approval. Such applications shall 54
	196	+	be kept on file by the department and shall be cons idered 55
	197	+	for approval for tax credits in the order established in 56
	198	+	this section in the event that additional tax credits become 57
	199	+	available due to the rescission of approvals, or when a new 58
	200	+	fiscal year's allocation of tax credits becomes available 59
	201	+	for approval. 60
210	202		99.728. 1. To obtain approval for tax credits 1
211	203		pursuant to sections 99.720 to 99.730, a taxpayer shall 2
212		-	submit an application for tax credit authorization to the 3
213		-	department. The department shall have sixty days to review 4
214		-	the application and shall notify the applicant in writing 5
215		-	within thirty days of the decision of whether the 6
216		-	application has been authorized for tax cr edits. Each 7
217		-	application for approval, including any applications 8
218		-	received for supplemental allocations of tax credits as 9
219		-	provided pursuant to subsection 2 of section 99.730, shall, 10
220		-	if approved, be authorized for tax credits in the order of 11
221		-	submission. 12 SS SCS SB 35 8
222		-	2. Each application shall be reviewed by the 13
223		-	department for approval. In order to receive approval, an 14
224		-	application shall include: 15
225		-	(1) Proof of ownership or site control. Proof of 16
226		-	ownership shall include evidence that the taxpayer is the 17
227		-	fee simple owner of the eligible property, such as a 18
228		-	warranty deed or a closing statement. Proof of site control 19
229		-	may be evidenced by a leasehold interest or an option to 20
230		-	acquire such an interest. If the taxpayer is in the process 21
231		-	of acquiring fee simple ownership, proof of site control 22
232		-	shall include an executed sales contract or an executed 23
233		-	option to purchase the eligible property; 24
234		-	(2) Floor plans of the existing structure, 25
235		-	architectural plans, and, where applicable, plans of the 26
236		-	proposed conversion of the structure, as well as proposed 27
237		-	additions; 28
238		-	(3) The estimated cost of conversion, the anticipated 29
239		-	total costs of the project, the actual basis of the 30
240		-	property, as shown by proof of actual acquisition costs, the 31
241		-	anticipated total la bor costs, the estimated project start 32
242		-	date, and the estimated project completion date; 33
243		-	(4) Proof that the property is an eligible property; 34
244		-	(5) A copy of all land use and building approvals 35
245		-	reasonably necessary for the commencement of the pr oject; and 36
246		-	(6) Any other information which the department may 37
247		-	reasonably require to review the project for approval. 38
248		-	Only the property for which a property address is provided 39
249		-	in the application shall be reviewed for approval. Once 40
250		-	selected for review, a taxpayer shall not be permitted to 41
251		-	request the review of another property for approval in the 42
252		-	place of the property contained in such application. Any 43 SS SCS SB 35 9
253		-	disapproved application shall be removed from the review 44
254		-	process. If an application is rem oved from the review 45
255		-	process, the department shall notify the taxpayer in writing 46
256		-	of the decision to remove such application. The taxpayer 47
257		-	may subsequently submit a revised application. For the 48
258		-	purposes of determining the order of submission and 49
259		-	authorization of credits, the revised application shall be 50
260		-	considered a new application. 51
261		-	3. If the department determines that the application 52
262		-	meets the requirements of sections 99.720 to 99.730 to 53
263		-	receive an authorization of tax credits, the taxpayer shall 54
264		-	be notified in writing of the approval for an amount of tax 55
265		-	credits equal to the amounts provided in sections 99.722 and 56
266		-	99.724, less any amount of tax credits previously approved 57
267		-	pursuant to this section. Tax credits approved pursuant to 58
268		-	this section shall be approved and administered 59
269		-	independently and shall not be evaluated in conjunction with 60
270		-	any other state tax credit program. Such approvals shall be 61
271		-	granted to applications in the order of priority established 62
272		-	under this section and sh all require full compliance 63
273		-	thereafter with all other requirements of law as a condition 64
274		-	to any claim for such tax credits. 65
275		-	4. Following approval of an application, the identity 66
276		-	of the taxpayer contained in such application shall not be 67
277		-	modified except: 68
278		-	(1) The taxpayer may add partners, members, or 69
279		-	shareholders as part of the ownership structure, so long as 70
280		-	the principal remains the same; provided, however, that 71
281		-	subsequent to the commencement of renovation and the 72
282		-	expenditure of at leas t ten percent of the proposed 73
283		-	rehabilitation budget, removal of the principal for failure 74 SS SCS SB 35 10
284		-	to perform duties and the appointment of a new principal 75
285		-	thereafter shall not constitute a change of the principal; or 76
286		-	(2) Where the ownership of the project is changed due 77
287		-	to a foreclosure, deed in lieu of a foreclosure or voluntary 78
288		-	conveyance, or a transfer in bankruptcy. 79
289		-	5. All taxpayers with applications receiving approval 80
290		-	shall submit within one hundred twenty days following the 81
291		-	award of credits evidence of the capacity of the applicant 82
292		-	to finance the costs and expenses for the conversion of the 83
293		-	eligible property in the form of a line of credit or letter 84
294		-	of commitment subject to the lender's termination for a 85
295		-	material adverse change impacting the extension of credit. 86
296		-	If the department determines that a taxpayer has failed to 87
297		-	comply with the requirements of this subsection, then the 88
298		-	department shall notify the applicant of such failure and 89
299		-	the applicant shall have a thirty -day period from the date 90
300		-	of such notice to submit additional evidence to remedy the 91
301		-	failure. 92
302		-	6. All taxpayers with applications receiving approval, 93
303		-	excluding projects described in subsection 2 of section 94
304		-	99.726, shall commence conversion within twelve months of 95
305		-	the date of issuance of the letter from the department 96
306		-	granting the approval for tax credits. For the purposes of 97
307		-	this subsection, "commence conversion" shall mean that, as 98
308		-	of the date in which actual physical work, contemplated by 99
309		-	the architectural plans submitted with the application, has 100
310		-	begun, the taxpayer has incurred no less than ten percent of 101
311		-	the estimated costs of rehabilitation provided in the 102
312		-	application. Taxpayers with approval of a project shall 103
313		-	submit evidence of compliance with the provisions of this 104
314		-	subsection. If the department determines that a taxpayer 105
315		-	has failed to comply with the requirements of this 106 SS SCS SB 35 11
316		-	subsection, the approval for the amount of tax credits for 107
317		-	such taxpayer shall be rescinded and such amount of tax 108
318		-	credits shall then be included in the total amount of tax 109
319		-	credits from which approvals may be granted. Any taxpayer 110
320		-	whose approval shall be subject to rescission shall be 111
321		-	notified of such from the department and, upon receipt of 112
322		-	such notice, may submit a new application for the project. 113
	204	+	submit an application for tax credits to the department. 3
	205	+	The department shall have thirty days to review the 4
	206	+	application and shall notify the applicant in writing within 5
	207	+	thirty days of the decision of whether the application has 6
	208	+	been approved or denied. Each application for approval, 7
	209	+	including any applications received for supplemental 8
	210	+	allocations of tax credits as provi ded pursuant to 9
	211	+	subsection 2 of section 99.730, shall be reviewed in the 10
	212	+	order of submission. Tax credit allocations shall be 11
	213	+	prioritized based on a balanced consideration of the 12
	214	+	project's score and date of application approval. While 13
	215	+	higher scoring projects shall generally receive precedence, 14
	216	+	the department shall ensure that earlier approved projects 15
	217	+	are not unduly disadvantaged by the scoring process. 16
	218	+	2. Each application shall be reviewed by the 17
	219	+	department for approval. In order to receive approval, an 18
	220	+	application shall include: 19 SCS SB 35 8
	221	+	(1) Proof of ownership or site control. Proof of 20
	222	+	ownership shall include evidence that the taxpayer is the 21
	223	+	fee simple owner of the eligible property, such as a 22
	224	+	warranty deed or a closing statement. Proof of site control 23
	225	+	may be evidenced by a leasehold interest or an option to 24
	226	+	acquire such an interest. If the taxpayer is in the process 25
	227	+	of acquiring fee simple ownership, proof of site control 26
	228	+	shall include an executed sales contract or an executed 27
	229	+	option to purchase the eligible property; 28
	230	+	(2) Floor plans of the existing structure, 29
	231	+	architectural plans, and, where applicable, plans of the 30
	232	+	proposed conversion of the structure, as well as proposed 31
	233	+	additions; 32
	234	+	(3) The estimated cost of conver sion, the anticipated 33
	235	+	total costs of the project, the actual basis of the 34
	236	+	property, as shown by proof of actual acquisition costs, the 35
	237	+	anticipated total labor costs, the estimated project start 36
	238	+	date, and the estimated project completion date; 37
	239	+	(4) Proof that the property is an eligible property; 38
	240	+	(5) A copy of all land use and building approvals 39
	241	+	reasonably necessary for the commencement of the project; and 40
	242	+	(6) Any other information which the department may 41
	243	+	reasonably require to review the project for approval. 42
	244	+	Only the property for which a property address is provided 43
	245	+	in the application shall be reviewed for approval. Once 44
	246	+	selected for review, a taxpayer shall not be permitted to 45
	247	+	request the review of another property for approval i n the 46
	248	+	place of the property contained in such application. Any 47
	249	+	disapproved application shall be removed from the review 48
	250	+	process. If an application is removed from the review 49
	251	+	process, the department shall notify the taxpayer in writing 50 SCS SB 35 9
	252	+	of the decision to remove such application. A disapproved 51
	253	+	application, which is removed from the review process, may 52
	254	+	be resubmitted, but shall be deemed to be a new submission 53
	255	+	for purposes of the priority procedures described in this 54
	256	+	section. If the department det ermines that a taxpayer has 55
	257	+	failed to comply with the requirements of this subsection, 56
	258	+	then the department shall notify the applicant of such 57
	259	+	failure and the applicant shall have a thirty -day period 58
	260	+	from the date of such notice to submit additional evi dence 59
	261	+	to remedy the failure. 60
	262	+	3. If the department deems the application sufficient, 61
	263	+	the taxpayer shall be notified in writing of the approval 62
	264	+	for an amount of tax credits equal to twenty -five percent of 63
	265	+	qualified conversion expenditures, less any amount of tax 64
	266	+	credits previously approved pursuant to this section. Tax 65
	267	+	credits approved pursuant to this section shall be awarded 66
	268	+	and administered independently and shall not be evaluated in 67
	269	+	conjunction with any other state tax credit program. Such 68
	270	+	approvals shall be granted to applications in the order of 69
	271	+	priority established under this section and shall require 70
	272	+	full compliance thereafter with all other requirements of 71
	273	+	law as a condition to any claim for such tax credits. If 72
	274	+	the department disapproves an application, the taxpayer 73
	275	+	shall be notified in writing of the reasons for such 74
	276	+	disapproval. A disapproved application may be resubmitted. 75
	277	+	4. Following approval of an application, the identity 76
	278	+	of the taxpayer contained in such applica tion shall not be 77
	279	+	modified except: 78
	280	+	(1) The taxpayer may add partners, members, or 79
	281	+	shareholders as part of the ownership structure, so long as 80
	282	+	the principal remains the same; provided, however, that 81
	283	+	subsequent to the commencement of renovation and the 82 SCS SB 35 10
	284	+	expenditure of at least ten percent of the proposed 83
	285	+	rehabilitation budget, removal of the principal for failure 84
	286	+	to perform duties and the appointment of a new principal 85
	287	+	thereafter shall not constitute a change of the principal; or 86
	288	+	(2) Where the ownership of the project is changed due 87
	289	+	to a foreclosure, deed in lieu of a foreclosure or voluntary 88
	290	+	conveyance, or a transfer in bankruptcy. 89
	291	+	5. All taxpayers with applications receiving approval 90
	292	+	shall submit within one hundred twenty days fol lowing the 91
	293	+	award of credits evidence of the capacity of the applicant 92
	294	+	to finance the costs and expenses for the conversion of the 93
	295	+	eligible property in the form of a line of credit or letter 94
	296	+	of commitment subject to the lender's termination for a 95
	297	+	material adverse change impacting the extension of credit. 96
	298	+	If the department determines that a taxpayer has failed to 97
	299	+	comply with the requirements of this subsection, then the 98
	300	+	department shall notify the applicant of such failure and 99
	301	+	the applicant shall ha ve a thirty-day period from the date 100
	302	+	of such notice to submit additional evidence to remedy the 101
	303	+	failure. 102
	304	+	6. All taxpayers with applications receiving approval, 103
	305	+	excluding projects described in subdivision (1) of 104
	306	+	subsection 1 of section 99.726, sha ll commence conversion 105
	307	+	within twelve months of the date of issuance of the letter 106
	308	+	from the department granting the approval for tax credits. 107
	309	+	For the purposes of this subsection, "commence conversion" 108
	310	+	shall mean that, as of the date in which actual phy sical 109
	311	+	work, contemplated by the architectural plans submitted with 110
	312	+	the application, has begun, the taxpayer has incurred no 111
	313	+	less than ten percent of the estimated costs of 112
	314	+	rehabilitation provided in the application. Taxpayers with 113
	315	+	approval of a project shall submit evidence of compliance 114 SCS SB 35 11
	316	+	with the provisions of this subsection. If the department 115
	317	+	determines that a taxpayer has failed to comply with the 116
	318	+	requirements of this subsection, the approval for the amount 117
	319	+	of tax credits for such taxpayer sha ll be rescinded and such 118
	320	+	amount of tax credits shall then be included in the total 119
	321	+	amount of tax credits from which approvals may be granted. 120
	322	+	Any taxpayer whose approval shall be subject to rescission 121
	323	+	shall be notified of such from the department and, upon 122
	324	+	receipt of such notice, may submit a new application for the 123
	325	+	project. 124
323	326		99.730. 1. To claim a tax credit authorized pursuant 1
324		-	to sections 99.720 to 99.730, a taxpayer with approval 2
325		-	shall, except with respect to a tax credit authorized 3
326		-	pursuant to subsection 2 of section 99.7 26, apply for final 4
327		-	approval and issuance of tax credits from the department, 5
328		-	which shall determine the final amount of qualified 6
329		-	conversion expenditures and whether the completed 7
330		-	rehabilitation meets the requirements of this section. A 8
331		-	taxpayer shall submit to the department a final application 9
332		-	demonstrating: 10
333		-	(1) That the taxpayer has substantially converted a 11
334		-	qualified converted building or upper floor housing; 12
335		-	(2) Satisfactory evidence of any qualified conversion 13
336		-	expenditures for the structure, as determined by the 14
337		-	department; and 15
338		-	(3) Any other information reasonably requested by the 16
339		-	department relating to verifying qualified conversion 17
340		-	expenditures or compliance with the requirements of sections 18
341		-	99.720 to 99.730. 19
342		-	For financial institutions, tax credits authorized pursuant 20
343		-	to sections 99.720 to 99.730 shall be deemed to be 21
344		-	redevelopment tax credits for the purposes of sections 22
345		-	135.800 to 135.830. The approval of all applications and 23
346		-	the issuing of certificates of eligibl e tax credits to 24 SS SCS SB 35 12
347		-	taxpayers shall be performed by the department. The 25
348		-	department shall inform a taxpayer of final approval by 26
349		-	letter and shall issue, to the taxpayer, tax credit 27
350		-	certificates. The taxpayer shall attach the certificate to 28
351		-	all Missouri income tax returns on which the credit is 29
352		-	claimed. 30
353		-	2. (1) The department shall issue seventy -five 31
354		-	percent of the approved tax credits within sixty days of 32
355		-	receiving all required final application materials. Within 33
356		-	sixty days, the department sha ll make a final determination 34
357		-	of costs and issue the remaining twenty -five percent of 35
358		-	approved tax credits, or request repayment from the 36
359		-	applicant if the final determination results in an over - 37
360		-	issuance of tax credits. In the event the amount of 38
361		-	qualified conversion expenditures incurred by a taxpayer 39
362		-	would result in the issuance of an amount of tax credits in 40
363		-	excess of the amount authorized pursuant to subsection 3 of 41
364		-	section 99.728, such taxpayer may apply to the department 42
365		-	for issuance of tax c redits in an amount equal to such 43
366		-	excess. Applications for issuance of tax credits in excess 44
367		-	of the amount provided under a taxpayer's application shall 45
368		-	be made on a form prescribed by the department. Such 46
369		-	applications shall be subject to all provisi ons regarding 47
370		-	priority provided under subsection 1 of section 99.728. 48
371		-	(2) For tax credits authorized pursuant to subsection 49
372		-	2 of section 99.726, the applicant may submit to the 50
373		-	department an application for the issuance of tax credits 51
374		-	annually prior to final completion of the project. Upon 52
375		-	approval of the annual application for issuance, the 53
376		-	department shall issue eighty percent of the amount of tax 54
377		-	credits that would result from the qualified expenditures, 55
378		-	provided the total amount of credit s issued to date does not 56 SS SCS SB 35 13
379		-	exceed the total amount of credits authorized for the 57
380		-	project to date. Any remaining authorized tax credits shall 58
381		-	be issued upon the final approval of the project. The 59
382		-	department shall issue eighty percent of the approved 60
383		-	credits within sixty days of receiving all required 61
384		-	application materials. Within sixty days, the department 62
385		-	shall make a final determination of costs and issue any 63
386		-	remaining authorized tax credits upon the final completion 64
387		-	of the phased project, or re quest repayment if an over - 65
388		-	issuance of credits is determined. 66
389		-	3. The department shall determine, on an annual basis, 67
390		-	the overall economic impact to the state from the 68
391		-	rehabilitation of eligible property pursuant to sections 69
392		-	99.720 to 99.730. 70
393		-	4. No taxpayer shall be issued tax credits for 71
394		-	qualified conversion expenditures on a qualified converted 72
395		-	building within twenty -seven years of a previous issuance of 73
396		-	tax credits pursuant to sections 99.720 to 99.730 on such 74
397		-	qualified converted build ing. 75
398		-	5. The department may promulgate any rules and 76
399		-	regulations necessary to administer the provisions of 77
400		-	sections 99.720 to 99.730. Any rule or portion of a rule, 78
401		-	as that term is defined in section 536.010, that is created 79
402		-	under the authority d elegated in this section shall become 80
403		-	effective only if it complies with and is subject to all of 81
404		-	the provisions of chapter 536 and, if applicable, section 82
405		-	536.028. This section and chapter 536 are nonseverable and 83
406		-	if any of the powers vested with the general assembly 84
407		-	pursuant to chapter 536 to review, to delay the effective 85
408		-	date, or to disapprove and annul a rule are subsequently 86
409		-	held unconstitutional, then the grant of rulemaking 87 SS SCS SB 35 14
410		-	authority and any rule proposed or adopted after August 28, 88
411		-	2025, shall be invalid and void. 89
412		-	6. Notwithstanding the provisions of section 23.253 of 90
413		-	the Missouri sunset act to the contrary: 91
414		-	(1) The program authorized pursuant to sections 99.720 92
415		-	to 99.730 shall automatically sunset on December 31, 2033, 93
416		-	unless reauthorized by an act of the general assembly; and 94
417		-	(2) If such program is reauthorized, the program 95
418		-	authorized pursuant to sections 99.720 to 99.730 shall 96
419		-	automatically sunset twelve years after the effective date 97
420		-	of the reauthorization; 98
421		-	(3) Sections 99.720 to 99.730 shall terminate on 99
422		-	September first of the calendar year immediately following 100
423		-	the calendar year in which the program authorized pursuant 101
424		-	to sections 99.720 to 99.730 is sunset; and 102
425		-	(4) The provisions of this subsecti on shall not be 103
426		-	construed to limit or in any way impair: 104
427		-	(a) A taxpayer's ability to complete a project and 105
428		-	receive authorization for tax credits pursuant to sections 106
429		-	99.720 to 99.730 for any project for which the taxpayer has 107
430		-	submitted an initial application on or before the date the 108
431		-	program authorized pursuant to sections 99.720 to 99.730 109
432		-	expires; or 110
433		-	(b) The department of revenue's ability to redeem tax 111
434		-	credits authorized on or before the date the program 112
435		-	authorized pursuant to section s 99.720 to 99.730 expires, or 113
436		-	a taxpayer's ability to redeem such tax credits. 114
	327	+	to sections 99.720 to 99.730, a taxpayer with approval shall 2
	328	+	apply for final approval and issuance of tax credits from 3
	329	+	the department, which shall determine the final amount of 4
	330	+	qualified conversion expenditures and whether the completed 5
	331	+	rehabilitation meets the requirements of this section. A 6
	332	+	taxpayer shall submit to the department a final application 7
	333	+	demonstrating: 8
	334	+	(1) That the taxpayer has substantially converted a 9
	335	+	qualified converted building or upper floor housing; 10
	336	+	(2) Satisfactory evidence of any qualified conversion 11
	337	+	expenditures for the structure, as determined by the 12
	338	+	department; and 13
	339	+	(3) Any other information reasonably requested by the 14
	340	+	department relating to verifying qualified conversion 15
	341	+	expenditures or compliance with the requirements of sections 16
	342	+	99.720 to 99.730. 17
	343	+	For financial institutions, tax credits authorized pursu ant 18
	344	+	to sections 99.720 to 99.730 shall be deemed to be 19
	345	+	redevelopment tax credits for the purposes of sections 20
	346	+	135.800 to 135.830. The approval of all applications and 21 SCS SB 35 12
	347	+	the issuing of certificates of eligible tax credits to 22
	348	+	taxpayers shall be performed by the department. The 23
	349	+	department shall inform a taxpayer of final approval by 24
	350	+	letter and shall issue, to the taxpayer, tax credit 25
	351	+	certificates. The taxpayer shall attach the certificate to 26
	352	+	all Missouri income tax returns on which the credit is 27
	353	+	claimed. 28
	354	+	2. (1) The department shall issue seventy -five 29
	355	+	percent of the approved tax credits within sixty days of 30
	356	+	receiving all required final application materials. Within 31
	357	+	sixty days, the department shall make a final determination 32
	358	+	of costs and issue the remaining twenty -five percent of 33
	359	+	approved tax credits, or request repayment from the 34
	360	+	applicant if the final determination results in an over - 35
	361	+	issuance of tax credits. In the event the amount of 36
	362	+	qualified conversion expenditures incurred by a ta xpayer 37
	363	+	would result in the issuance of an amount of tax credits in 38
	364	+	excess of the amount provided under such taxpayer's approval 39
	365	+	granted pursuant to subsection 3 of section 99.728, such 40
	366	+	taxpayer may apply to the department for issuance of tax 41
	367	+	credits in an amount equal to such excess. Applications for 42
	368	+	issuance of tax credits in excess of the amount provided 43
	369	+	under a taxpayer's application shall be made on a form 44
	370	+	prescribed by the department. Such applications shall be 45
	371	+	subject to all provisions rega rding priority provided under 46
	372	+	subsection 1 of section 99.728. 47
	373	+	(2) For tax credits authorized pursuant to subdivision 48
	374	+	(1) of subsection 1 of section 99.726, the applicant shall 49
	375	+	submit a cost certification for each project phase. All 50
	376	+	expenses that relate to the phase shall be included in the 51
	377	+	cost certification form for that phase. Upon approval of 52
	378	+	the cost certification submitted and the work completed on 53 SCS SB 35 13
	379	+	each phase of the project, the department shall issue eighty 54
	380	+	percent of the amount of tax credits for which the applicant 55
	381	+	is approved for the phase. The remaining twenty percent 56
	382	+	shall be issued upon the final conclusion of the phased 57
	383	+	project. The department shall issue eighty percent of the 58
	384	+	approved credits within sixty days of receiving all required 59
	385	+	application materials. Within sixty days, the department 60
	386	+	shall make a final determination of costs and issue the 61
	387	+	remaining twenty percent of approved tax credits upon the 62
	388	+	final completion of the phased project, or request repayment 63
	389	+	if an over-issuance of credits is determined. 64
	390	+	3. The department shall determine, on an annual basis, 65
	391	+	the overall economic impact to the state from the 66
	392	+	rehabilitation of eligible property pursuant to sections 67
	393	+	99.720 to 99.730. 68
	394	+	4. No taxpayer shall be issued tax credits for 69
	395	+	qualified conversion expenditures on a qualified converted 70
	396	+	building within twenty -seven years of a previous issuance of 71
	397	+	tax credits pursuant to sections 99.720 to 99.730 on such 72
	398	+	qualified converted building. 73
	399	+	5. The department may promulgate any rules and 74
	400	+	regulations necessary to administer the provisions of 75
	401	+	sections 99.720 to 99.730. Any rule or portion of a rule, 76
	402	+	as that term is defined in section 536.010, that is created 77
	403	+	under the authority delegated in this sect ion shall become 78
	404	+	effective only if it complies with and is subject to all of 79
	405	+	the provisions of chapter 536 and, if applicable, section 80
	406	+	536.028. This section and chapter 536 are nonseverable and 81
	407	+	if any of the powers vested with the general assembly 82
	408	+	pursuant to chapter 536 to review, to delay the effective 83
	409	+	date, or to disapprove and annul a rule are subsequently 84
	410	+	held unconstitutional, then the grant of rulemaking 85 SCS SB 35 14
	411	+	authority and any rule proposed or adopted after August 28, 86
	412	+	2025, shall be invalid and void. 87
437	413		