Missouri 2025 Regular Session

Missouri Senate Bill SB490 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
3	3	and is intended to be omitted in the law.
4	4	FIRST REGULAR SESSION
5	5	SENATE BILL NO. 490
6	6	103RD GENERAL ASSEMBLY
7	7	INTRODUCED BY SENATOR SCHNELTING.
8	8	1544S.01I KRISTINA MARTIN, Secretary
9	9	AN ACT
10	10	To repeal sections 32.115 and 135.460, RSMo, and to enact in lieu thereof two new sections
11	11	relating to benevolent tax credits.
12	12
13	13	Be it enacted by the General Assembly of the State of Missouri, as follows:
14	14	Section A. Sections 32.115 and 135.460, RSMo, are repealed 1
15	15	and two new sections enacted in lieu thereof, to be known as 2
16	16	sections 32.115 and 135.460, to read as foll ows:3
17	17	32.115. 1. The department of revenue shall grant a 1
18	18	tax credit, to be applied in the following order until used, 2
19	19	against: 3
20	20	(1) The annual tax on gross premium receipts of 4
21	21	insurance companies in chapter 148; 5
22	22	(2) The tax on banks determined pursuant to 6
23	23	subdivision (2) of subsection 2 of section 148.030; 7
24	24	(3) The tax on banks determined in subdivision (1) of 8
25	25	subsection 2 of section 148.030; 9
26	26	(4) The tax on other financial institutions in chapter 10
27	27	148; 11
28	28	(5) The corporation franchise tax in chapter 147; 12
29	29	(6) The state income tax in chapter 143; and 13
30	30	(7) The annual tax on gross receipts of express 14
31	31	companies in chapter 153. 15
32	32	2. For proposals approved pursuant to section 32.110: 16
33	33	(1) The amount of the tax credit shall not exceed 17
34	34	[fifty] seventy percent of the total amount contributed 18 SB 490 2
35	35	during the taxable year by the business firm or, in the case 19
36	36	of a financial institution, where applicable, during the 20
37	37	relevant income period in programs approved pursuan t to 21
38	38	section 32.110; 22
39	39	(2) Except as provided in subsection 2 or 5 of this 23
40	40	section, a tax credit of up to seventy percent may be 24
41	41	allowed for contributions to programs where activities fall 25
42	42	within the scope of special program priorities as defined 26
43	43	with the approval of the governor in regulations promulgated 27
44	44	by the director of the department of economic development; 28
45	45	(3) Except as provided in subsection 2 or 5 of this 29
46	46	section, the tax credit allowed for contributions to 30
47	47	programs located in an y community shall be equal to seventy 31
48	48	percent of the total amount contributed where such community 32
49	49	is a city, town or village which has fifteen thousand or 33
50	50	less inhabitants as of the last decennial census and is 34
51	51	located in a county which is either loca ted in: 35
52	52	(a) An area that is not part of a standard 36
53	53	metropolitan statistical area; 37
54	54	(b) A standard metropolitan statistical area but such 38
55	55	county has only one city, town or village which has more 39
56	56	than fifteen thousand inhabitants; or 40
57	57	(c) A standard metropolitan statistical area and a 41
58	58	substantial number of persons in such county derive their 42
59	59	income from agriculture. 43
60	60	Such community may also be in an unincorporated area in such 44
61	61	county as provided in subdivision (1), (2) or (3) of this 45
62	62	subsection. Except in no case shall the total economic 46
63	63	benefit of the combined federal and state tax savings to the 47
64	64	taxpayer exceed the amount contributed by the taxpayer 48
65	65	during the tax year; 49 SB 490 3
66	66	(4) Such tax credit allocation, equal to seventy 50
67	67	percent of the total amount contributed, shall not exceed 51
68	68	four million dollars in fiscal year 1999 and six million 52
69	69	dollars in fiscal year 2000 and any subsequent fiscal year. 53
70	70	When the maximum dollar limit on the seventy percent tax 54
71	71	credit allocation is com mitted, the tax credit allocation 55
72	72	for such programs shall then be equal to fifty percent 56
73	73	credit of the total amount contributed. Regulations 57
74	74	establishing special program priorities are to be 58
75	75	promulgated during the first month of each fiscal year and 59
76	76	at such times during the year as the public interest 60
77	77	dictates. Such credit shall not exceed two hundred and 61
78	78	fifty thousand dollars annually except as provided in 62
79	79	subdivision (5) of this subsection. No tax credit shall be 63
80	80	approved for any bank, bank a nd trust company, insurance 64
81	81	company, trust company, national bank, savings association, 65
82	82	or building and loan association for activities that are a 66
83	83	part of its normal course of business. Any tax credit not 67
84	84	used in the period the contribution was made m ay be carried 68
85	85	over the next five succeeding calendar or fiscal years until 69
86	86	the full credit has been claimed. Except as otherwise 70
87	87	provided for proposals approved pursuant to section 32.111, 71
88	88	32.112 or 32.117, in no event shall the total amount of all 72
89	89	other tax credits allowed pursuant to sections 32.100 to 73
90	90	32.125 exceed thirty -two million dollars in any one fiscal 74
91	91	year, of which six million shall be credits allowed pursuant 75
92	92	to section 135.460. If six million dollars in credits are 76
93	93	not approved, then the remaining credits may be used for 77
94	94	programs approved pursuant to sections 32.100 to 32.125; 78
95	95	(5) The credit may exceed two hundred fifty thousand 79
96	96	dollars annually and shall not be limited if community 80
97	97	services, crime prevention, education, job training, 81 SB 490 4
98	98	physical revitalization or economic development, as defined 82
99	99	by section 32.105, is rendered in an area defined by federal 83
100	100	or state law as an impoverished, economically distressed, or 84
101	101	blighted area or as a neighborhood experiencing problems 85
102	102	endangering its existence as a viable and stable 86
103	103	neighborhood, or if the community services, crime 87
104	104	prevention, education, job training, physical revitalization 88
105	105	or economic development is limited to impoverished persons. 89
106	106	3. For proposals approved pu rsuant to section 32.111: 90
107	107	(1) The amount of the tax credit shall not exceed 91
108	108	fifty-five percent of the total amount invested in 92
109	109	affordable housing assistance activities or market rate 93
110	110	housing in distressed communities as defined in section 94
111	111	135.530 by a business firm. Whenever such investment is 95
112	112	made in the form of an equity investment or a loan, as 96
113	113	opposed to a donation alone, tax credits may be claimed only 97
114	114	where the loan or equity investment is accompanied by a 98
115	115	donation which is eligible for federal income tax charitable 99
116	116	deduction, and where the total value of the tax credits 100
117	117	herein plus the value of the federal income tax charitable 101
118	118	deduction is less than or equal to the value of the 102
119	119	donation. Any tax credit not used in the period for w hich 103
120	120	the credit was approved may be carried over the next ten 104
121	121	succeeding calendar or fiscal years until the full credit 105
122	122	has been allowed. If the affordable housing units or market 106
123	123	rate housing units in distressed communities for which a tax 107
124	124	is claimed are within a larger structure, parts of which are 108
125	125	not the subject of a tax credit claim, then expenditures 109
126	126	applicable to the entire structure shall be reduced on a 110
127	127	prorated basis in proportion to the ratio of the number of 111
128	128	square feet devoted to the affordable housing units or 112
129	129	market rate housing units in distressed communities, for 113 SB 490 5
130	130	purposes of determining the amount of the tax credit. The 114
131	131	total amount of tax credit granted for programs approved 115
132	132	pursuant to section 32.111 for the fiscal year begi nning 116
133	133	July 1, 1991, shall not exceed two million dollars, to be 117
134	134	increased by no more than two million dollars each 118
135	135	succeeding fiscal year, until the total tax credits that may 119
136	136	be approved reaches ten million dollars in any fiscal year; 120
137	137	(2) For any year during the compliance period 121
138	138	indicated in the land use restriction agreement, the owner 122
139	139	of the affordable housing rental units for which a credit is 123
140	140	being claimed shall certify to the commission that all 124
141	141	tenants renting claimed units are income eligible for 125
142	142	affordable housing units and that the rentals for each 126
143	143	claimed unit are in compliance with the provisions of 127
144	144	sections 32.100 to 32.125. The commission is authorized, in 128
145	145	its discretion, to audit the records and accounts of the 129
146	146	owner to verify such certification; 130
147	147	(3) In the case of owner -occupied affordable housing 131
148	148	units, the qualifying owner occupant shall, before the end 132
149	149	of the first year in which credits are claimed, certify to 133
150	150	the commission that the occupant is income eligible during 134
151	151	the preceding two years, and at the time of the initial 135
152	152	purchase contract, but not thereafter. The qualifying owner 136
153	153	occupant shall further certify to the commission, before the 137
154	154	end of the first year in which credits are claimed, that 138
155	155	during the compliance period indicated in the land use 139
156	156	restriction agreement, the cost of the affordable housing 140
157	157	unit to the occupant for the claimed unit can reasonably be 141
158	158	projected to be in compliance with the provisions of 142
159	159	sections 32.100 to 32.125. Any suc ceeding owner occupant 143
160	160	acquiring the affordable housing unit during the compliance 144 SB 490 6
161	161	period indicated in the land use restriction agreement shall 145
162	162	make the same certification; 146
163	163	(4) If at any time during the compliance period the 147
164	164	commission determines a project for which a proposal has 148
165	165	been approved is not in compliance with the applicable 149
166	166	provisions of sections 32.100 to 32.125 or rules promulgated 150
167	167	therefor, the commission may within one hundred fifty days 151
168	168	of notice to the owner either seek injunc tive enforcement 152
169	169	action against the owner, or seek legal damages against the 153
170	170	owner representing the value of the tax credits, or 154
171	171	foreclose on the lien in the land use restriction agreement, 155
172	172	selling the project at a public sale, and paying to the 156
173	173	owner the proceeds of the sale, less the costs of the sale 157
174	174	and less the value of all tax credits allowed herein. The 158
175	175	commission shall remit to the director of revenue the 159
176	176	portion of the legal damages collected or the sale proceeds 160
177	177	representing the value of the tax credits. However, except 161
178	178	in the event of intentional fraud by the taxpayer, the 162
179	179	proposal's certificate of eligibility for tax credits shall 163
180	180	not be revoked. 164
181	181	4. For proposals approved pursuant to section 32.112, 165
182	182	the amount of the tax cred it shall not exceed fifty -five 166
183	183	percent of the total amount contributed to a neighborhood 167
184	184	organization by business firms. Any tax credit not used in 168
185	185	the period for which the credit was approved may be carried 169
186	186	over the next ten succeeding calendar or fi scal years until 170
187	187	the full credit has been allowed. The total amount of tax 171
188	188	credit granted for programs approved pursuant to section 172
189	189	32.112 shall not exceed one million dollars for each fiscal 173
190	190	year. 174
191	191	5. The total amount of tax credits used for mar ket 175
192	192	rate housing in distressed communities pursuant to sections 176 SB 490 7
193	193	32.100 to 32.125 shall not exceed thirty percent of the 177
194	194	total amount of all tax credits authorized pursuant to 178
195	195	sections 32.111 and 32.112. 179
196	196	135.460. 1. This section and sections 620.1100 and 1
197	197	620.1103 shall be known and may be cited as the "Youth 2
198	198	Opportunities and Violence Prevention Act". 3
199	199	2. As used in this section, the term "taxpayer" shall 4
200	200	include corporations as defined in section 143.441 or 5
201	201	143.471, any charitable organization which is exempt from 6
202	202	federal income tax and whose Missouri unrelated business 7
203	203	taxable income, if any, would be subject to the state income 8
204	204	tax imposed under chapter 143, and individuals, individual 9
205	205	proprietorships and partnerships. 10
206	206	3. A taxpayer shall be allowed a tax credit against 11
207	207	the tax otherwise due pursuant to chapter 143, excluding 12
208	208	withholding tax imposed by sections 143.191 to 143.265, 13
209	209	chapter 147, chapter 148, or chapter 153 in an amount equal 14
210	210	to thirty percent fo r property contributions and [fifty] 15
211	211	seventy percent for monetary contributions of the amount 16
212	212	such taxpayer contributed to the programs described in 17
213	213	subsection 5 of this section, not to exceed two hundred 18
214	214	thousand dollars per taxable year, per taxpayer ; except as 19
215	215	otherwise provided in subdivision (5) of subsection 5 of 20
216	216	this section. The department of economic development shall 21
217	217	prescribe the method for claiming the tax credits allowed in 22
218	218	this section. No rule or portion of a rule promulgated 23
219	219	under the authority of this section shall become effective 24
220	220	unless it has been promulgated pursuant to the provisions of 25
221	221	chapter 536. All rulemaking authority delegated prior to 26
222	222	June 27, 1997, is of no force and effect and repealed; 27
223	223	however, nothing in this section shall be interpreted to 28
224	224	repeal or affect the validity of any rule filed or adopted 29 SB 490 8
225	225	prior to June 27, 1997, if such rule complied with the 30
226	226	provisions of chapter 536. The provisions of this section 31
227	227	and chapter 536 are nonseverable and if any of the powers 32
228	228	vested with the general assembly pursuant to chapter 536, 33
229	229	including the ability to review, to delay the effective 34
230	230	date, or to disapprove and annul a rule or portion of a 35
231	231	rule, are subsequently held unconstitutional, then the 36
232	232	purported grant of rulemaking authority and any rule so 37
233	233	proposed and contained in the order of rulemaking shall be 38
234	234	invalid and void. 39
235	235	4. The tax credits allowed by this section shall be 40
236	236	claimed by the taxpayer to offset the taxes that become due 41
237	237	in the taxpayer's tax period in which the contribution was 42
238	238	made. Any tax credit not used in such tax period may be 43
239	239	carried over the next five succeeding tax periods. 44
240	240	5. The tax credit allowed by this section may only be 45
241	241	claimed for monetary or property contribu tions to public or 46
242	242	private programs authorized to participate pursuant to this 47
243	243	section by the department of economic development and may be 48
244	244	claimed for the development, establishment, implementation, 49
245	245	operation, and expansion of the following activities and 50
246	246	programs: 51
247	247	(1) An adopt-a-school program. Components of the 52
248	248	adopt-a-school program shall include donations for school 53
249	249	activities, seminars, and functions; school -business 54
250	250	employment programs; and the donation of property and 55
251	251	equipment of the corporation to the school; 56
252	252	(2) Expansion of programs to encourage school dropouts 57
253	253	to reenter and complete high school or to complete a 58
254	254	graduate equivalency degree program; 59
255	255	(3) Employment programs. Such programs shall 60
256	256	initially, but not ex clusively, target unemployed youth 61 SB 490 9
257	257	living in poverty and youth living in areas with a high 62
258	258	incidence of crime; 63
259	259	(4) New or existing youth clubs or associations; 64
260	260	(5) Employment/internship/apprenticeship programs in 65
261	261	business or trades for perso ns less than twenty years of 66
262	262	age, in which case the tax credit claimed pursuant to this 67
263	263	section shall be equal to one -half of the amount paid to the 68
264	264	intern or apprentice in that tax year, except that such 69
265	265	credit shall not exceed ten thousand dollars pe r person; 70
266	266	(6) Mentor and role model programs; 71
267	267	(7) Drug and alcohol abuse prevention training 72
268	268	programs for youth; 73
269	269	(8) Donation of property or equipment of the taxpayer 74
270	270	to schools, including schools which primarily educate 75
271	271	children who have been expelled from other schools, or 76
272	272	donation of the same to municipalities, or not -for-profit 77
273	273	corporations or other not -for-profit organizations which 78
274	274	offer programs dedicated to youth violence prevention as 79
275	275	authorized by the department; 80
276	276	(9) Not-for-profit, private or public youth activity 81
277	277	centers; 82
278	278	(10) Nonviolent conflict resolution and mediation 83
279	279	programs; 84
280	280	(11) Youth outreach and counseling programs. 85
281	281	6. Any program authorized in subsection 5 of this 86
282	282	section shall, at lea st annually, submit a report to the 87
283	283	department of economic development outlining the purpose and 88
284	284	objectives of such program, the number of youth served, the 89
285	285	specific activities provided pursuant to such program, the 90
286	286	duration of such program and recorde d youth attendance where 91
287	287	applicable. 92 SB 490 10
288	288	7. The department of economic development shall, at 93
289	289	least annually submit a report to the Missouri general 94
290	290	assembly listing the organizations participating, services 95
291	291	offered and the number of youth served as t he result of the 96
292	292	implementation of this section. 97
293	293	8. The tax credit allowed by this section shall apply 98
294	294	to all taxable years beginning after December 31, 1995. 99
295	295	9. For the purposes of the credits described in this 100
296	296	section, in the case of a cor poration described in section 101
297	297	143.471, partnership, limited liability company described in 102
298	298	section 347.015, cooperative, marketing enterprise, or 103
299	299	partnership, in computing Missouri's tax liability, such 104
300	300	credits shall be allowed to the following: 105
301	301	(1) The shareholders of the corporation described in 106
302	302	section 143.471; 107
303	303	(2) The partners of the partnership; 108
304	304	(3) The members of the limited liability company; and 109
305	305	(4) Individual members of the cooperative or marketing 110
306	306	enterprise. 111
307	307	Such credits shall be apportioned to the entities described 112
308	308	in subdivisions (1) and (2) of this subsection in proportion 113
309	309	to their share of ownership on the last day of the 114
310	310	taxpayer's tax period. 115
311	311	