Missouri 2025 Regular Session

Missouri Senate Bill SB537 Compare Versions

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Old	New	Differences
1	1
2	2	FIRST REGULAR SESSION
3	3	SENATE BILL NO. 537
4	4	103RD GENERAL ASSEMBLY
5	5	INTRODUCED BY SENATOR BROWN (16).
6	6	1897S.01I KRISTINA MARTIN, Secretary
7	7	AN ACT
8	8	To amend chapter 620, RSMo, by adding thereto one new section relating to incentives for
9	9	converting a business to produce certain chemicals, gases, metals, and minerals.
10	10
11	11	Be it enacted by the General Assembly of the State of Missouri, as follows:
12	12	Section A. Chapter 620, RSMo, is amended by adding thereto 1
13	13	one new section, to be known as section 620.1641, to read as 2
14	14	follows:3
15	15	620.1641. 1. This section shall be known and may be 1
16	16	cited as the "Missouri Defense and Energy Ind ependence Act". 2
17	17	2. As used in this section, the following terms mean: 3
18	18	(1) "Department", the Missouri department of economic 4
19	19	development; 5
20	20	(2) "Qualified amount", for a qualified company in a 6
21	21	given tax year, a portion of such qualified co mpany's 7
22	22	qualified conversion costs, subject to the limitations 8
23	23	provided in this section; 9
24	24	(3) "Qualified company", a firm, partnership, joint 10
25	25	venture, association, private or public corporation 11
26	26	regardless of whether organized for profit, or headqu arters 12
27	27	of such entity registered to do business in Missouri, that 13
28	28	is a nontraditional defense contractor, as such term is 14
29	29	defined in 10 U.S.C. Section 3014, as amended, and that 15
30	30	incurs qualified conversion costs; 16
31	31	(4) "Qualified conversion costs", costs a qualified 17
32	32	company incurs in converting such company to produce 18 SB 537 2
33	33	chemicals, metals, gases, or rare earth minerals that will 19
34	34	be used for projects designed to decrease or eliminate 20
35	35	reliance on foreign-produced chemicals, metals, gases, or 21
36	36	rare earth minerals used in the production of energy 22
37	37	projects or Department of Defense projects; 23
38	38	(5) "Tax credit", tax credits issued by the department 24
39	39	to offset the state taxes imposed by chapters 143 and 148, 25
40	40	excluding the withholding tax imposed under sections 143.191 26
41	41	to 143.265. 27
42	42	3. (1) For all tax years beginning on or after 28
43	43	January 1, 2026, a qualified company shall be allowed to 29
44	44	claim a tax credit against the qualified company's state tax 30
45	45	liability in an amount equal to the qualified comp any's 31
46	46	qualified amount, subject to the limitations provided in 32
47	47	this subsection. 33
48	48	(2) The total qualified amount a qualified company 34
49	49	shall be allowed to claim under this section shall not 35
50	50	exceed fifteen percent of the cumulative amount of tax 36
51	51	credits allowed under subsection 4 of this section. One- 37
52	52	fourth of such total qualified amount a qualified company is 38
53	53	eligible to receive shall be issued in each of the four tax 39
54	54	years immediately following the tax year for which the 40
55	55	qualified company claim ed the tax credit. 41
56	56	4. The cumulative amount of tax credits allowed to all 42
57	57	taxpayers under this section shall not exceed forty million 43
58	58	dollars per tax year. If the amount of tax credits claimed 44
59	59	in a tax year under this section exceeds forty millio n 45
60	60	dollars, tax credits shall be allowed based on the order in 46
61	61	which they are claimed. 47
62	62	5. (1) Tax credits issued under the provisions of 48
63	63	this section shall not be refundable. 49 SB 537 3
64	64	(2) No tax credit claimed under this section shall be 50
65	65	carried forward to any subsequent tax year. 51
66	66	(3) Tax credits claimed pursuant to this section may 52
67	67	be assigned, transferred, sold, or otherwise conveyed. 53
68	68	6. (1) There is hereby created in the state treasury 54
69	69	the "Grants for Independence from Foreign Influ ence Fund", 55
70	70	which shall consist of at least ten million dollars 56
71	71	appropriated by the general assembly and any gifts, 57
72	72	contributions, grants, or bequests received from federal, 58
73	73	private, or other sources. The state treasurer shall be 59
74	74	custodian of the fun d. In accordance with sections 30.170 60
75	75	and 30.180, the state treasurer may approve disbursements. 61
76	76	The fund shall be a dedicated fund and, upon appropriation, 62
77	77	moneys in the fund shall be used solely as provided in 63
78	78	subsection 7 of this section. 64
79	79	(2) Notwithstanding the provisions of section 33.080 65
80	80	to the contrary, any moneys remaining in the fund at the end 66
81	81	of the biennium shall not revert to the credit of the 67
82	82	general revenue fund. 68
83	83	(3) The state treasurer shall invest moneys in the 69
84	84	fund in the same manner as other funds are invested. Any 70
85	85	interest and moneys earned on such investments shall be 71
86	86	credited to the fund. 72
87	87	7. (1) The department shall develop and implement 73
88	88	grants for independence from foreign influence as provided 74
89	89	in this subsection. 75
90	90	(2) The department shall establish procedures for the 76
91	91	solicitation, evaluation, and approval of grant applications 77
92	92	received from a qualified company. A qualified company may 78
93	93	submit a grant application for the award of moneys for 79
94	94	qualified conversion costs incurred by the qualified company 80
95	95	as provided in this subsection. 81 SB 537 4
96	96	(3) The department shall evaluate each application and 82
97	97	approve or reject such application. Subject to 83
98	98	appropriations, upon approval of an application, the 84
99	99	department shall administer a grant award of moneys from the 85
100	100	grants for independence from foreign influence fund in an 86
101	101	amount not to exceed five hundred thousand dollars per grant 87
102	102	application. 88
103	103	(4) Moneys granted to a qualified company under this 89
104	104	section shall be used solely for qualified conversion costs 90
105	105	incurred before the completion of the conversion of the 91
106	106	qualified company. 92
107	107	8. The department shall promulgate all necessary rules 93
108	108	and regulations for the administration of this section 94
109	109	including, but not limited to, rules relating to the 95
110	110	verification of a qualified company's qualified amount and 96
111	111	qualified conversion costs. Any rule or portion of a rule, 97
112	112	as that term is defined in section 536.010, that is created 98
113	113	under the authority d elegated in this section shall become 99
114	114	effective only if it complies with and is subject to all of 100
115	115	the provisions of chapter 536 and, if applicable, section 101
116	116	536.028. This section and chapter 536 are nonseverable and 102
117	117	if any of the powers vested with the general assembly 103
118	118	pursuant to chapter 536 to review, to delay the effective 104
119	119	date, or to disapprove and annul a rule are subsequently 105
120	120	held unconstitutional, then the grant of rulemaking 106
121	121	authority and any rule proposed or adopted after August 28, 107
122	122	2025, shall be invalid and void. 108
123	123	9. Under section 23.253 of the Missouri sunset act: 109
124	124	(1) The provisions of the new program authorized under 110
125	125	this section shall automatically sunset six years after the 111
126	126	effective date of this section unless reauthoriz ed by an act 112
127	127	of the general assembly; 113 SB 537 5
128	128	(2) If such program is reauthorized, the program 114
129	129	authorized under this section shall automatically sunset 115
130	130	twelve years after the effective date of the reauthorization 116
131	131	of this section; and 117
132	132	(3) This section shall terminate on September first of 118
133	133	the calendar year immediately following the calendar year in 119
134	134	which the provisions authorized under this section is sunset. 120
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