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Missouri Senate Bill SB565

Missouri 2025 Regular Session

Missouri Senate Bill SB565 Compare Versions

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22 FIRST REGULAR SESSION
33 SENATE BILL NO. 565
44 103RD GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR BEAN.
66 2108S.01I KRISTINA MARTIN, Secretary
77 AN ACT
88 To amend chapter 620, RSMo, by adding thereto four new sections relating to workforce housing
99 tax incentives, with penalty provisions.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
1212 Section A. Chapter 620, RSMo, is amended by adding thereto 1
1313 four new sections, to be known as sections 620.2022, 620.2024, 2
1414 620.2026, and 620.2028, to read as follows:3
1515 620.2022. 1. Sections 620.2022 to 620.2028 shall be 1
1616 known and may be cited as the "Workforce Housing Tax 2
1717 Incentives Program". 3
1818 2. As used in sections 620.2022 to 620.2028, the 4
1919 following terms mean: 5
2020 (1) "Brownfield site", an abandoned, idled, or 6
2121 underutilized property where expansion or redevelopment is 7
2222 complicated by real or perceived environmental 8
2323 contamination. A "brownfield site" includes property 9
2424 contiguous with the site on which the property is located. 10
2525 A "brownfield site" does not include property that has been 11
2626 placed, or is proposed for placement, on the national 12
2727 priorities list establishe d under the federal Comprehensive 13
2828 Environmental Response, Compensation, and Liability Act, 42 14
2929 U.S.C. Section 9601 et seq.; 15
3030 (2) "Community", a small city, urban area, or county; 16
3131 (3) "Department", the Missouri department of economic 17
3232 development; 18 SB 565 2
3333 (4) "Disaster recovery housing project", a qualified 19
3434 housing project located in a county that is a declared state 20
3535 disaster as defined under section 190.275 or disaster area 21
3636 as defined under section 184.805 and is eligible for the 22
3737 Federal Emergency Management Agency (FEMA) Individual 23
3838 Assistance program; 24
3939 (5) "Governing body", the board, the body, or the 25
4040 persons in whom the powers of a political subdivision as a 26
4141 body corporate, or otherwise, are vested; 27
4242 (6) "Grayfield site", a prope rty meeting the following 28
4343 requirements: 29
4444 (a) The property has been developed and has 30
4545 infrastructure in place but the property's current use is 31
4646 outdated or prevents a better or more efficient use of the 32
4747 property. Such property includes vacant, bli ghted, 33
4848 obsolete, or otherwise underutilized property; and 34
4949 (b) The property's improvements and infrastructure are 35
5050 at least twenty-five years old and one or more of the 36
5151 following conditions exist: 37
5252 a. Thirty percent or more of a building locate d on the 38
5353 property that is available for occupancy has been vacant or 39
5454 unoccupied for twelve months or more; 40
5555 b. The assessed value of the improvements on the 41
5656 property has decreased by twenty -five percent or more; 42
5757 c. The property is currently b eing used as a parking 43
5858 lot; or 44
5959 d. The improvements on the property no longer exist; 45
6060 (7) "Greenfield site", a site that does not meet the 46
6161 definition of a brownfield site or grayfield site. A 47
6262 project proposed at a site located on previously u ndeveloped 48
6363 land or agricultural land shall be presumed to be a 49
6464 greenfield site; 50 SB 565 3
6565 (8) "Housing business", a business that is a housing 51
6666 developer, housing contractor, or nonprofit organization 52
6767 that completes a housing project in the state; 53
6868 (9) "Housing project", a project located in this state 54
6969 meeting the requirements of section 620.2024; 55
7070 (10) "Multi-use building", a building whose street - 56
7171 level ground story is used for a purpose other than 57
7272 residential, and whose upper story or stories are currently 58
7373 used primarily for a residential purpose, or will be used 59
7474 primarily for a residential purpose after completion of the 60
7575 housing project associated with the building; 61
7676 (11) "Program", the workforce housing tax incentives 62
7777 program administered under sections 620.2022 to 620.2028; 63
7878 (12) "Qualified rehabilitation project", a project for 64
7979 the rehabilitation of property in this state that meets the 65
8080 following criteria: 66
8181 (a) The property is at least one of the following: 67
8282 a. Property listed on the National Register of 68
8383 Historic Places or eligible for such listing; 69
8484 b. Property designated as of historic significance to 70
8585 a district listed in the National Register of Historic 71
8686 Places or eligible for such designation; 72
8787 c. Property or district designated a local landmark by 73
8888 a city or county ordinance; or 74
8989 d. A barn constructed prior to 1937; 75
9090 (b) The property meets the physical criteria and 76
9191 standards for rehabilitation established by the department 77
9292 by rule. To the extent applicable, the physical standards 78
9393 and criteria shall be consistent with the United States 79
9494 Secretary of the Interior's Standards for Rehabilitation; and 80
9595 (c) The project has qualified rehabilitation 81
9696 expenditures that meet or exceed the fol lowing: 82 SB 565 4
9797 a. In the case of commercial property, expenditures 83
9898 totaling at least fifty thousand dollars or fifty percent of 84
9999 the assessed value of the property, excluding the land, 85
100100 prior to rehabilitation, whichever is less; or 86
101101 b. In the case of property other than commercial 87
102102 property including, but not limited to, barns constructed 88
103103 prior to 1937, expenditures totaling at least twenty -five 89
104104 thousand dollars or twenty -five percent of the assessed 90
105105 value, excluding the land, prior to rehabilitati on, 91
106106 whichever is less; 92
107107 (13) "Qualifying new investment", costs that are 93
108108 directly related to the acquisition, repair, rehabilitation, 94
109109 or redevelopment of a housing project in this state. A 95
110110 "qualifying new investment" includes costs that are direc tly 96
111111 related to new construction of dwelling units if the new 97
112112 construction occurs in a distressed workforce housing 98
113113 community. The amount of costs that may be used to compute 99
114114 "qualifying new investment" shall not exceed the costs used 100
115115 for the first one hundred fifty thousand dollars of value 101
116116 for each dwelling unit that is part of a housing project. A 102
117117 "qualifying new investment" does not include the following: 103
118118 (a) The portion of the total cost of a housing project 104
119119 that is financed by federal, state, or local government tax 105
120120 credits, grants, forgivable loans, or other forms of 106
121121 financial assistance that do not require repayment, 107
122122 excluding the tax incentives provided under sections 108
123123 620.2022 to 620.2028; or 109
124124 (b) If a housing project include s the rehabilitation, 110
125125 repair, or redevelopment of an existing multi -use building, 111
126126 the portion of the total acquisition costs of the multi -use 112
127127 building, including a proportionate share of the total 113
128128 acquisition costs of the land upon which the multi -use 114 SB 565 5
129129 building is situated, that are attributable to the street - 115
130130 level ground story that is used for a purpose that is other 116
131131 than residential; 117
132132 (14) "Small city", a city or village that: 118
133133 (a) Is not located wholly within one of the eight most 119
134134 populous counties in the state as determined by the most 120
135135 recent decennial census; or 121
136136 (b) If located wholly within one of the eight most 122
137137 populous counties as determined by the most recent decennial 123
138138 census, meets both of the following: 124
139139 a. Has two thousand five hundred or fewer inhabitants; 125
140140 and 126
141141 b. Experienced less than thirty percentage points of 127
142142 population growth when comparing the most recent decennial 128
143143 census to the decennial census immediately preceding the 129
144144 most recent decennial census. 130
145145 The term "small city" shall not include any city with more 131
146146 than four hundred thousand inhabitants and located in more 132
147147 than one county; 133
148148 (15) "Tax credit" or "tax credits", a credit or 134
149149 credits issued by the department against the tax otherwise 135
150150 due under chapter 143 or 148, excluding withholding tax 136
151151 imposed under sections 143.191 to 143.265; 137
152152 (16) "Tax incentive", a state measure that is intended 138
153153 to encourage individuals and businesses to spend moneys or 139
154154 save moneys by reducing the amount of t ax that they have to 140
155155 pay including, but not limited to, tax credits and refunds 141
156156 of sales and use tax issued under this program; 142
157157 (17) "Urban area": 143
158158 (a) Any city or municipality, except for a small city, 144
159159 that is wholly located within one of th e eight most populous 145 SB 565 6
160160 counties in the state as determined by the most recent 146
161161 decennial census; or 147
162162 (b) Any city with more than four hundred thousand 148
163163 inhabitants and located in more than one county. 149
164164 620.2024. To receive workforce housing tax incentives 1
165165 under sections 620.2022 to 620.2028, a proposed housing 2
166166 project shall meet the following requirements: 3
167167 (1) The housing project includes at least one of the 4
168168 following: 5
169169 (a) Four or more single-family dwelling units, exc ept 6
170170 for a housing project located in a small city, then two or 7
171171 more single-family dwelling units; 8
172172 (b) One or more multiple dwelling unit buildings, each 9
173173 containing three or more individual dwelling units; or 10
174174 (c) Two or more dwelling units lo cated in the upper 11
175175 story of an existing multi -use building; 12
176176 (2) The housing project consists of any of the 13
177177 following: 14
178178 (a) Rehabilitation, repair, or redevelopment at a 15
179179 brownfield or grayfield site that results in new dwelling 16
180180 units; 17
181181 (b) The rehabilitation, repair, or redevelopment of 18
182182 dilapidated dwelling units; 19
183183 (c) The rehabilitation, repair, or redevelopment of 20
184184 dwelling units located in the upper story of an existing 21
185185 multi-use building; 22
186186 (d) For a housing project located in a small city that 23
187187 meets program requirements under paragraph (a) of 24
188188 subdivision (1) of this subsection, development at a 25
189189 greenfield site; or 26
190190 (e) For a disaster recovery housing project as defined 27
191191 under section 620.2022, development at a green field site; 28 SB 565 7
192192 (3) (a) Except as provided in paragraph (b) of this 29
193193 subdivision, the average dwelling unit cost shall not exceed 30
194194 the maximum amount established by the department for each 31
195195 fiscal year for the applicable project type and project 32
196196 location. The department shall establish the maximum 33
197197 average dwelling unit cost for a housing project that 34
198198 includes single-family dwelling units that are located in a 35
199199 small city and for a housing project that includes single - 36
200200 family dwelling units that are l ocated in an urban area. 37
201201 The department shall establish the maximum average dwelling 38
202202 unit cost for a housing project that includes multiple 39
203203 dwelling unit buildings and is located in a small city and 40
204204 for a housing project that includes multiple dwellin g unit 41
205205 buildings and is located in an urban area. In establishing 42
206206 each maximum average dwelling unit cost, the department 43
207207 shall primarily consider the most recent annual United 44
208208 States Census Bureau Building Permits Survey and historical 45
209209 program data; 46
210210 (b) If the housing project involves the 47
211211 rehabilitation, repair, redevelopment, or preservation of 48
212212 property described in subdivision (12) of subsection 2 of 49
213213 section 620.2022, the average dwelling unit cost shall not 50
214214 exceed one hundred twenty -five percent of the maximum 51
215215 average dwelling unit cost established by the department for 52
216216 the applicable housing project type and housing project 53
217217 location as provided in paragraph (a) of this subdivision; 54
218218 and 55
219219 (4) The dwelling units, when completed and made 56
220220 available for occupancy, meet the United States Department 57
221221 of Housing and Urban Development's housing quality standards 58
222222 as set forth in 24 CFR 982 and all applicable local safety 59
223223 standards. 60 SB 565 8
224224 620.2026. 1. (1) A housing business seeking 1
225225 workforce housing tax incentives provided under section 2
226226 620.2028 shall apply to the department in the manner 3
227227 prescribed by the department's rules. The department may 4
228228 accept applications during one or more annual application 5
229229 periods to be determined by the department by rule. 6
230230 (2) The application shall include the following: 7
231231 (a) Information establishing local participation in 8
232232 the housing project, including: 9
233233 a. A resolution in support of the housing project by 10
234234 the governing body of the community where the housing 11
235235 project will be located; and 12
236236 b. Documentation of local matching funds pledged for 13
237237 the housing project in an amount equal to at least one 14
238238 thousand dollars per dwelling unit including, but not 15
239239 limited to, a funding agreement between the housing business 16
240240 and the governing body of the community where the housing 17
241241 project will be located. For purposes of this subparagraph, 18
242242 local matching funds shall be in the form of cash or cash 19
243243 equivalents or in the form of a local property tax 20
244244 exemption, rebate, refund, or reimbursement; 21
245245 (b) Information evidencing an agreement between the 22
246246 business and the department specifying the requirements that 23
247247 will be met to confirm eligibility and the requirements 24
248248 shall be maintained throughout the period of the agreement 25
249249 in order to retain the incentives or financial assistance 26
250250 received. The department shall consult with the governing 27
251251 body of the community during negotiations relating to the 28
252252 agreement. The agreement shall contain a report submitted 29
253253 to the department by a business, together with its 30
254254 application, describing all violations of environmental law 31
255255 or worker safety law within the last five years. If, upon 32 SB 565 9
256256 review of the application, the department finds tha t the 33
257257 business has a record of violations of the law, statutes, 34
258258 rules, or regulations that tend to show a consistent 35
259259 pattern, the department shall not provide incentives or 36
260260 assistance to the business unless the department finds 37
261261 either that the violati ons did not seriously affect public 38
262262 health, public safety, or the environment, or if such 39
263263 violations did seriously affect public health, public 40
264264 safety, or the environment, that mitigating circumstances 41
265265 were present; 42
266266 (c) Information showing the to tal costs and funding 43
267267 sources of the housing project sufficient to allow the 44
268268 department to adequately determine the financing that will 45
269269 be utilized for the housing project, the actual cost of the 46
270270 dwelling units, and the amount of the qualifying new 47
271271 investment; and 48
272272 (d) Any other information deemed necessary by the 49
273273 department to evaluate the eligibility and financial need of 50
274274 the housing project under the program. 51
275275 In addition to complying with the applicable requirements 52
276276 under this subdivision, a housing business applying for 53
277277 disaster recovery housing project tax incentives shall also 54
278278 submit a certification that the applicant's housing project 55
279279 meets the definition of a disaster recovery housing project, 56
280280 if applicable. The housing business sha ll also submit 57
281281 documentation that provides evidence that the qualified 58
282282 disaster recovery housing project is needed due to the 59
283283 impact of the disaster that is the subject of the major 60
284284 disaster declaration. 61 SB 565 10
285285 2. (1) All completed applications shall b e reviewed 62
286286 and scored on a competitive basis by the department under 63
287287 rules adopted by the department. 64
288288 (2) Upon review and scoring of all applications 65
289289 received during an application period, the department may 66
290290 make a tax incentive award to a housin g project, which tax 67
291291 incentive award shall represent the maximum amount of tax 68
292292 incentives the housing project may qualify for under the 69
293293 program. In determining a tax incentive award, the 70
294294 department shall not use an amount of housing project costs 71
295295 that exceeds the amount included in the application of the 72
296296 housing business. Tax incentive awards shall be approved by 73
297297 the director of the department. 74
298298 (3) After making a tax incentive award, the department 75
299299 shall notify the housing business of its ta x incentive 76
300300 award. The notification shall include the amount of tax 77
301301 incentives awarded under section 620.2028 and a statement 78
302302 that the housing business has no right to receive a tax 79
303303 incentive certificate or claim a tax incentive until all 80
304304 requirements of the program, including all requirements 81
305305 imposed by the agreement entered into under subsection 3 of 82
306306 this section, are satisfied. The amount of tax credits 83
307307 included on a tax credit certificate issued under this 84
308308 section, or a claim for refund of sa les and use taxes, shall 85
309309 be contingent upon completion of the requirements under 86
310310 subsection 3 of this section. 87
311311 (4) An applicant that does not receive a tax incentive 88
312312 award during an application period may make additional 89
313313 applications during subse quent application periods. Such 90
314314 applicant shall be required to submit a new application, 91
315315 which shall be competitively reviewed and scored in the same 92
316316 manner as other applications in that application period. 93 SB 565 11
317317 3. (1) Upon receipt of a tax incentive award for the 94
318318 housing project, the housing business shall enter into an 95
319319 agreement with the department for the successful completion 96
320320 of all requirements of the program. The agreement shall 97
321321 identify the tax incentive award amount, the tax incentive 98
322322 award date, the housing project completion deadline, and the 99
323323 total costs of the housing project. 100
324324 (2) The following compliance cost fees shall apply to 101
325325 all agreements entered into under this program and shall be 102
326326 collected in a manner determined by th e department: 103
327327 (a) The imposition of a one -time compliance cost fee 104
328328 of five hundred dollars to be collected by the department 105
329329 prior to the issuance of a tax incentive certificate or the 106
330330 disbursement of financial assistance; and 107
331331 (b) The imposition of a compliance cost fee equal to 108
332332 one-half of one percent of the value of tax incentives 109
333333 claimed under an agreement that has an aggregate tax 110
334334 incentive value of one hundred thousand dollars or greater. 111
335335 The department shall collect the fee from th e business after 112
336336 the tax incentive is claimed by the business from the 113
337337 department of revenue. 114
338338 (3) (a) Except as provided in paragraph (b) of this 115
339339 subdivision, a housing business shall complete its housing 116
340340 project within three years from the date the housing project 117
341341 is registered by the department. 118
342342 (b) The department may, for good cause within its 119
343343 discretion, extend a housing project's completion deadline 120
344344 by up to twelve months upon application by the housing 121
345345 business. Such application shall be made prior to the 122
346346 expiration of the three -year completion deadline in 123
347347 paragraph (a) of this subdivision. The department may 124
348348 approve a second extension of up to twelve months if prior 125 SB 565 12
349349 to the expiration of the first twelve -month extension the 126
350350 housing business applies and substantiates to the 127
351351 satisfaction of the department that the second extension is 128
352352 warranted due to extenuating circumstances outside the 129
353353 control of the housing business. The department may 130
354354 determine what qualifies as "good cause" and establish by 131
355355 rule the extenuating circumstances that will qualify for 132
356356 approval and any additional information that the department 133
357357 may require for approval of such extension. Applications by 134
358358 a housing business shall be made in the manner and form 135
359359 prescribed by the department by rule. 136
360360 (4) Upon completion of a housing project, a housing 137
361361 business shall submit the following to the department: 138
362362 (a) An examination of the housing project in 139
363363 accordance with the American Institute of Cer tified Public 140
364364 Accountants' Statements on Standards for Attestation 141
365365 Engagements, completed by a certified public accountant 142
366366 authorized to practice in this state; 143
367367 (b) A statement of the final amount of the qualifying 144
368368 new investment for the housing project; and 145
369369 (c) Any information the department deems necessary to 146
370370 ensure compliance with the agreement signed by the housing 147
371371 business under paragraph (a) of this subdivision, the 148
372372 requirements of this program, and rules the department and 149
373373 the department of revenue adopt under subsection 4 of 150
374374 section 620.2028. 151
375375 (5) (a) Upon review of the examination, verification 152
376376 of the amount of the qualifying new investment, and review 153
377377 of any other information submitted under paragraph (c) of 154
378378 subdivision (4) of this subsection, the department shall 155
379379 notify the housing business of the amount that the housing 156
380380 business may claim as a refund of the sales and use tax 157 SB 565 13
381381 under subsection 2 of section 620.2028 and shall issue a tax 158
382382 credit certificate to the hou sing business stating the 159
383383 amount of workforce housing investment tax credits under 160
384384 subsection 3 of section 620.2028 the eligible housing 161
385385 business may claim. The sum of the amount that the housing 162
386386 business may claim as a refund of the sales and use tax and 163
387387 the amount of the tax credit certificate shall not exceed 164
388388 the total amount of the tax incentive award. 165
389389 (b) If upon review of the examination in paragraph (a) 166
390390 of subdivision (4) of this subsection the department 167
391391 determines that a housing proj ect has incurred project costs 168
392392 in excess of the amount submitted in the application made 169
393393 under subsection 1 of this section and identified in the 170
394394 agreement, the department shall do one of the following: 171
395395 a. If the housing project costs do not cause the 172
396396 housing project's average dwelling unit cost to exceed the 173
397397 applicable maximum amount authorized under subdivision (3) 174
398398 of subsection 1 of section 620.2024, the department shall 175
399399 consider the agreement fulfilled and shall issue a tax 176
400400 credit certificate; 177
401401 b. If the housing project costs cause the housing 178
402402 project's average dwelling unit cost to exceed the 179
403403 applicable maximum amount authorized under subdivision (3) 180
404404 of subsection 1 of section 620.2024 but do not cause the 181
405405 average dwelling unit co st to exceed one hundred fifty 182
406406 percent of such applicable maximum amount, the department 183
407407 shall consider the agreement fulfilled and shall issue a tax 184
408408 credit certificate. In such case, the department shall 185
409409 reduce the tax incentive award and the corresp onding amount 186
410410 of tax incentives the eligible housing project shall claim 187
411411 under subsections 2 and 3 of section 620.2028 by the same 188
412412 percentage that the housing project's average dwelling unit 189 SB 565 14
413413 cost exceeds the applicable maximum amount under subdivision 190
414414 (3) of subsection 1 of section 620.2024, and such tax 191
415415 incentive reduction shall be reflected on the tax credit 192
416416 certificate. If the department issues a certificate under 193
417417 this subparagraph, the department of revenue shall accept 194
418418 the certificate notwith standing that the housing project's 195
419419 average dwelling unit costs exceed the maximum amount 196
420420 specified in subdivision (3) of subsection 1 of section 197
421421 620.2024; or 198
422422 c. If the housing project costs cause the housing 199
423423 project's average dwelling unit cost to exceed one hundred 200
424424 fifty percent of the applicable maximum amount authorized 201
425425 under subdivision (3) of subsection 1 of section 620.2024, 202
426426 the department shall determine the eligible housing business 203
427427 to be in default under the agreement, shall revoke t he tax 204
428428 incentive award, and shall not issue a tax credit 205
429429 certificate. The housing business shall not be allowed a 206
430430 refund of sales and use tax under subsection 2 of section 207
431431 620.2028. 208
432432 (6) The maximum aggregate amount of tax incentives 209
433433 that may be awarded and issued under section 620.2028 to a 210
434434 housing business for a housing project shall not exceed one 211
435435 million dollars. 212
436436 (7) If a housing business qualifies for a higher 213
437437 amount of tax incentives under section 620.2028 than is 214
438438 allowed by the limitation imposed under subdivision (6) of 215
439439 this subsection, the department and the housing business may 216
440440 negotiate an apportionment of the reduction in tax 217
441441 incentives between the sales tax refund provided in 218
442442 subsection 2 of section 620.2028 and the work force housing 219
443443 investment tax credits provided in subsection 3 of section 220
444444 620.2028, provided the total aggregate amount of tax 221 SB 565 15
445445 incentives after the apportioned reduction does not exceed 222
446446 the amount under subdivision (6) of this subsection. 223
447447 (8) The department shall issue tax incentives under 224
448448 the program on a first -come, first-served basis until the 225
449449 maximum amount of tax incentives allocated under subdivision 226
450450 (4) of subsection 5 of this section is reached. The 227
451451 department shall maintain a list of housing projects 228
452452 registered prior to January 1, 2026, and of housing projects 229
453453 awarded tax incentives on or after January 1, 2026, so that 230
454454 if the maximum aggregate amount of tax incentives is reached 231
455455 in a given fiscal year, such registered housing proje cts 232
456456 that were completed but for which tax incentives were not 233
457457 issued, and such housing projects that were completed and 234
458458 are awarded tax incentives but for which tax incentives have 235
459459 not been issued, shall be placed on a waitlist in the order 236
460460 the housing projects were registered or awarded tax 237
461461 incentives and shall be given priority for receiving tax 238
462462 incentives in succeeding fiscal years. 239
463463 4. (1) The failure by a housing business in 240
464464 completing a housing project to comply with any requirement 241
465465 of this program or any of the terms and obligations of an 242
466466 agreement entered into under this section may result in the 243
467467 revocation, reduction, termination, or rescission of the tax 244
468468 incentive award or the approved tax incentives and may 245
469469 subject the housing b usiness to the repayment or recapture 246
470470 of tax incentives claimed under section 620.2028. 247
471471 (2) The repayment or recapture of tax incentives under 248
472472 this section shall be accomplished, provided that the 249
473473 repayment of incentives or financial assistance by the 250
474474 business if the business does not meet any of the 251
475475 requirements of this part or the resulting agreement. The 252
476476 repayment of incentives under this subsection shall be 253 SB 565 16
477477 considered a tax payment due and payable to the department 254
478478 of revenue by any taxpa yer who has claimed such incentives, 255
479479 and the failure to make such a repayment may be treated by 256
480480 the department of revenue in the same manner as a failure to 257
481481 pay the tax shown due or required to be shown due with the 258
482482 filing of a return or deposit form. In addition, the county 259
483483 shall have the authority to take action to recover the value 260
484484 of property taxes not collected as a result of the exemption 261
485485 provided to the business under this program. 262
486486 5. (1) Notwithstanding subsection 1 of this section 263
487487 to the contrary, the department may establish a disaster 264
488488 recovery housing project application period following the 265
489489 declaration of a major disaster for a disaster area in 266
490490 Missouri. 267
491491 (2) Upon review and scoring of all applications 268
492492 received during a disaster recovery application period, the 269
493493 department may make a tax incentive award to a disaster 270
494494 recovery housing project. The tax incentive award shall 271
495495 represent the maximum amount of tax incentives that the 272
496496 disaster recovery housing project may qual ify for under the 273
497497 program. In determining a tax incentive award, the 274
498498 department shall not use an amount of housing project costs 275
499499 that exceeds the amount included in the application of the 276
500500 housing business. Tax incentive awards shall be approved by 277
501501 the director of the department. 278
502502 (3) The department shall issue tax incentives under 279
503503 the program for disaster recovery housing projects on a 280
504504 first-come, first-served basis until the maximum amount of 281
505505 tax incentives is allocated. The aggregate amount of tax 282
506506 incentives issued for disaster recovery housing projects 283
507507 under this program shall not exceed thirty -five million 284
508508 dollars. Of the moneys allocated to disaster recovery 285 SB 565 17
509509 housing projects, seventeen million five hundred thousand 286
510510 dollars shall be reserved for allocation to qualified 287
511511 housing projects in small cities. 288
512512 (4) The aggregate amount of tax incentives issued for 289
513513 all other housing projects under this program that are not 290
514514 disaster recovery housing projects shall not exceed thirty - 291
515515 five million dollars. 292
516516 620.2028. 1. A housing business that has entered into 1
517517 an agreement under section 620.2026 is eligible to receive 2
518518 the tax incentives described in subsections 2 and 3 of this 3
519519 section. 4
520520 2. (1) A housing business may claim a refund of the 5
521521 sales and use taxes paid under chapter 144 prior to the 6
522522 completion of the housing project that are directly related 7
523523 to a housing project and specified in the agreement. 8
524524 (2) To receive a refund, a claim shall be filed b y the 9
525525 housing business with the department of revenue as follows: 10
526526 (a) The contractor or subcontractor shall state under 11
527527 oath, on forms provided by the department of revenue, the 12
528528 amount of sales and use taxes paid under chapter 144 prior 13
529529 to the completion of the housing project that are directly 14
530530 related to a housing project and specified in the agreement; 15
531531 (b) The contractor or subcontractor shall file the 16
532532 forms with the housing business before final settlement is 17
533533 made; and 18
534534 (c) a. The housing business shall, after the 19
535535 agreement completion date, apply to the department of 20
536536 revenue for any refund of the amount of sales and use taxes 21
537537 paid under chapter 144 prior to the completion of the 22
538538 housing project that were directly related to a housing 23
539539 project and specified in the agreement. The application 24
540540 shall be made in the manner and upon forms to be provided by 25 SB 565 18
541541 the department of revenue. The department of revenue shall 26
542542 audit the claim and, if approved, issue a refund to the 27
543543 housing business. The application shall be made within one 28
544544 year after the agreement completion date. A claim filed by 29
545545 the housing business in accordance with this subsection 30
546546 shall not be denied by reason of a limitation provision set 31
547547 forth in chapter 143 or 1 44; 32
548548 b. For purposes of subparagraph a of this paragraph, 33
549549 "agreement completion date" means the date on which the 34
550550 department notifies the department of revenue that all 35
551551 applicable requirements of the agreement entered into under 36
552552 subdivision (1) of subsection 3 of section 620.2026, and all 37
553553 applicable requirements of this program, including the rules 38
554554 the department and the department of revenue adopt under 39
555555 subsection 4 of section 620.2028, are satisfied. 40
556556 A contractor or subcontractor who willfully makes a false 41
557557 claim under oath in violation of the provisions of this 42
558558 subsection shall be guilty of a misdemeanor, and in addition 43
559559 to any other penalty, the contractor or subcontractor shall 44
560560 be liable for the payment of the tax and any applicable 45
561561 penalty and interest. 46
562562 3. (1) For all tax years beginning on or after 47
563563 January 1, 2026, a housing business may claim a tax credit 48
564564 in an amount not to exceed the following: 49
565565 (a) For a housing project located in an urban area, 50
566566 ten percent of the qu alifying new investment of a housing 51
567567 project specified in the agreement; 52
568568 (b) For a housing project located in a small city, 53
569569 twenty percent of the qualifying new investment of a housing 54
570570 project specified in the agreement; and 55 SB 565 19
571571 (c) For a disaster recovery housing project, twenty 56
572572 percent of the qualifying new investment of a housing 57
573573 project specified in the agreement. 58
574574 (2) An individual who is part of the housing business 59
575575 may claim a tax credit under this subsection from a 60
576576 partnership, limited liability company, S corporation, 61
577577 estate, or trust electing to have income taxed directly to 62
578578 the individual. The amount claimed by the individual shall 63
579579 be based upon the pro rata share of the individual's 64
580580 earnings from the partnership, limited liability company, S 65
581581 corporation, estate, or trust. 66
582582 (3) Any tax credit in excess of the housing business 67
583583 or individual taxpayer's liability for the tax year is not 68
584584 refundable but may be credited to the tax liability for the 69
585585 following five years o r until depleted, whichever is earlier. 70
586586 (4) (a) To claim a tax credit under this subsection, 71
587587 a taxpayer shall include one or more tax credit certificates 72
588588 with the taxpayer's tax return. 73
589589 (b) The tax credit certificate shall contain the 74
590590 taxpayer's name, address, tax identification number, the 75
591591 amount of the credit, the name of the eligible housing 76
592592 business, any other information required by the department 77
593593 of revenue, and a place for the name and tax identification 78
594594 number of a transferee and the amount of the tax credit 79
595595 being transferred, if applicable. 80
596596 (c) The tax credit certificate, unless rescinded by 81
597597 the department, shall be accepted by the department of 82
598598 revenue as payment for taxes for all tax years beginning on 83
599599 or after January 1, 2026, subject to any conditions or 84
600600 restrictions placed by the department upon the face of the 85
601601 tax credit certificate and subject to the limitations of 86
602602 this program. 87 SB 565 20
603603 (d) Tax credit certificates issued under subdivision 88
604604 (5) of subsection 3 of section 620.2026 may be transferred 89
605605 to any person. Within ninety days of transfer, the 90
606606 transferee shall submit the transferred tax credit 91
607607 certificate to the department of revenue along with a 92
608608 statement containing the transferee's name, tax 93
609609 identification number, and address; the denomination that 94
610610 each replacement tax credit certificate is to carry; and any 95
611611 other information required by the department of revenue. 96
612612 However, tax credit certificate amounts of less than the 97
613613 minimum amount established b y rule of the department shall 98
614614 not be transferable. 99
615615 (e) Within thirty days of receiving the transferred 100
616616 tax credit certificate and the transferee's statement, the 101
617617 department of revenue shall issue one or more replacement 102
618618 tax credit certificates t o the transferee. Each replacement 103
619619 tax credit certificate shall contain the information 104
620620 required for the original tax credit certificate and shall 105
621621 have the same expiration date that appeared on the 106
622622 transferred tax credit certificate. 107
623623 (f) A tax credit shall not be claimed by a transferee 108
624624 under this section until a replacement tax credit 109
625625 certificate identifying the transferee as the proper holder 110
626626 has been issued. The transferee may use the amount of the 111
627627 tax credit transferred against the trans feree taxpayer's 112
628628 state tax liability for all tax years beginning on or after 113
629629 January 1, 2026, under the same terms and conditions that 114
630630 the transferor was allowed. Any consideration received for 115
631631 the transfer of the tax credit shall not be included as 116
632632 income under chapter 143. Any consideration paid for the 117
633633 transfer of the tax credit shall not be deducted from income 118
634634 under chapter 143. 119 SB 565 21
635635 (5) For purposes of the individual and corporate 120
636636 income taxes and the franchise tax, the increase in the 121
637637 basis of the property that would otherwise result from the 122
638638 qualifying new investment shall be reduced by the amount of 123
639639 the tax credit computed under this subsection. 124
640640 (6) Notwithstanding any provision of section 105.1500 125
641641 to the contrary, any requireme nt to provide information, 126
642642 documents, or records under this section, and any 127
643643 requirement established by the department to provide 128
644644 information, documents, or records for the purpose of 129
645645 administering and enforcing this section, shall be exempt 130
646646 from section 105.1500. 131
647647 4. The department of economic development and the 132
648648 department of revenue may promulgate all necessary rules and 133
649649 regulations for the administration of sections 620.2022 to 134
650650 620.2028. Any rule or portion of a rule, as that term is 135
651651 defined in section 536.010, shall become effective only if 136
652652 it complies with and is subject to all of the provisions of 137
653653 chapter 536 and, if applicable, section 536.028. This 138
654654 section and chapter 536 are nonseverable and if any of the 139
655655 powers vested with the general assembly pursuant to chapter 140
656656 536 to review, to delay the effective date, or to disapprove 141
657657 and annul a rule are subsequently held unconstitutional, 142
658658 then the grant of rulemaking authority and any rule proposed 143
659659 or adopted after August 28, 2025, sh all be invalid and void. 144
660660 5. Under section 23.253 of the Missouri sunset act: 145
661661 (1) The provisions of the new program authorized under 146
662662 sections 620.2022 to 620.2028 shall automatically sunset on 147
663663 December thirty-first, six years after the effecti ve date of 148
664664 sections 620.2022 to 620.2028 unless reauthorized by an act 149
665665 of the general assembly; 150 SB 565 22
666666 (2) If such program is reauthorized, the program 151
667667 authorized under sections 620.2022 to 620.2028 shall 152
668668 automatically sunset on December thirty -first, six years 153
669669 after the effective date of the reauthorization of sections 154
670670 620.2022 to 620.2028; 155
671671 (3) Sections 620.2022 to 620.2028 shall terminate on 156
672672 September first of the calendar year immediately following 157
673673 the calendar year in which the program auth orized under 158
674674 sections 620.2022 to 620.2028 is sunset; and 159
675675 (4) Nothing in this subsection shall prevent a 160
676676 taxpayer from claiming a tax credit properly issued before 161
677677 this program was sunset in a tax year after the program is 162
678678 sunset. 163
679679