FIRST REGULAR SESSION
SENATE BILL NO. 565
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BEAN.
2108S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 620, RSMo, by adding thereto four new sections relating to workforce housing
tax incentives, with penalty provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto 1
four new sections, to be known as sections 620.2022, 620.2024, 2
620.2026, and 620.2028, to read as follows:3
620.2022. 1. Sections 620.2022 to 620.2028 shall be 1
known and may be cited as the "Workforce Housing Tax 2
Incentives Program". 3
2. As used in sections 620.2022 to 620.2028, the 4
following terms mean: 5
(1) "Brownfield site", an abandoned, idled, or 6
underutilized property where expansion or redevelopment is 7
complicated by real or perceived environmental 8
contamination. A "brownfield site" includes property 9
contiguous with the site on which the property is located. 10
A "brownfield site" does not include property that has been 11
placed, or is proposed for placement, on the national 12
priorities list establishe d under the federal Comprehensive 13
Environmental Response, Compensation, and Liability Act, 42 14
U.S.C. Section 9601 et seq.; 15
(2) "Community", a small city, urban area, or county; 16
(3) "Department", the Missouri department of economic 17
development; 18 SB 565 2
(4) "Disaster recovery housing project", a qualified 19
housing project located in a county that is a declared state 20
disaster as defined under section 190.275 or disaster area 21
as defined under section 184.805 and is eligible for the 22
Federal Emergency Management Agency (FEMA) Individual 23
Assistance program; 24
(5) "Governing body", the board, the body, or the 25
persons in whom the powers of a political subdivision as a 26
body corporate, or otherwise, are vested; 27
(6) "Grayfield site", a prope rty meeting the following 28
requirements: 29
(a) The property has been developed and has 30
infrastructure in place but the property's current use is 31
outdated or prevents a better or more efficient use of the 32
property. Such property includes vacant, bli ghted, 33
obsolete, or otherwise underutilized property; and 34
(b) The property's improvements and infrastructure are 35
at least twenty-five years old and one or more of the 36
following conditions exist: 37
a. Thirty percent or more of a building locate d on the 38
property that is available for occupancy has been vacant or 39
unoccupied for twelve months or more; 40
b. The assessed value of the improvements on the 41
property has decreased by twenty -five percent or more; 42
c. The property is currently b eing used as a parking 43
lot; or 44
d. The improvements on the property no longer exist; 45
(7) "Greenfield site", a site that does not meet the 46
definition of a brownfield site or grayfield site. A 47
project proposed at a site located on previously u ndeveloped 48
land or agricultural land shall be presumed to be a 49
greenfield site; 50 SB 565 3
(8) "Housing business", a business that is a housing 51
developer, housing contractor, or nonprofit organization 52
that completes a housing project in the state; 53
(9) "Housing project", a project located in this state 54
meeting the requirements of section 620.2024; 55
(10) "Multi-use building", a building whose street - 56
level ground story is used for a purpose other than 57
residential, and whose upper story or stories are currently 58
used primarily for a residential purpose, or will be used 59
primarily for a residential purpose after completion of the 60
housing project associated with the building; 61
(11) "Program", the workforce housing tax incentives 62
program administered under sections 620.2022 to 620.2028; 63
(12) "Qualified rehabilitation project", a project for 64
the rehabilitation of property in this state that meets the 65
following criteria: 66
(a) The property is at least one of the following: 67
a. Property listed on the National Register of 68
Historic Places or eligible for such listing; 69
b. Property designated as of historic significance to 70
a district listed in the National Register of Historic 71
Places or eligible for such designation; 72
c. Property or district designated a local landmark by 73
a city or county ordinance; or 74
d. A barn constructed prior to 1937; 75
(b) The property meets the physical criteria and 76
standards for rehabilitation established by the department 77
by rule. To the extent applicable, the physical standards 78
and criteria shall be consistent with the United States 79
Secretary of the Interior's Standards for Rehabilitation; and 80
(c) The project has qualified rehabilitation 81
expenditures that meet or exceed the fol lowing: 82 SB 565 4
a. In the case of commercial property, expenditures 83
totaling at least fifty thousand dollars or fifty percent of 84
the assessed value of the property, excluding the land, 85
prior to rehabilitation, whichever is less; or 86
b. In the case of property other than commercial 87
property including, but not limited to, barns constructed 88
prior to 1937, expenditures totaling at least twenty -five 89
thousand dollars or twenty -five percent of the assessed 90
value, excluding the land, prior to rehabilitati on, 91
whichever is less; 92
(13) "Qualifying new investment", costs that are 93
directly related to the acquisition, repair, rehabilitation, 94
or redevelopment of a housing project in this state. A 95
"qualifying new investment" includes costs that are direc tly 96
related to new construction of dwelling units if the new 97
construction occurs in a distressed workforce housing 98
community. The amount of costs that may be used to compute 99
"qualifying new investment" shall not exceed the costs used 100
for the first one hundred fifty thousand dollars of value 101
for each dwelling unit that is part of a housing project. A 102
"qualifying new investment" does not include the following: 103
(a) The portion of the total cost of a housing project 104
that is financed by federal, state, or local government tax 105
credits, grants, forgivable loans, or other forms of 106
financial assistance that do not require repayment, 107
excluding the tax incentives provided under sections 108
620.2022 to 620.2028; or 109
(b) If a housing project include s the rehabilitation, 110
repair, or redevelopment of an existing multi -use building, 111
the portion of the total acquisition costs of the multi -use 112
building, including a proportionate share of the total 113
acquisition costs of the land upon which the multi -use 114 SB 565 5
building is situated, that are attributable to the street - 115
level ground story that is used for a purpose that is other 116
than residential; 117
(14) "Small city", a city or village that: 118
(a) Is not located wholly within one of the eight most 119
populous counties in the state as determined by the most 120
recent decennial census; or 121
(b) If located wholly within one of the eight most 122
populous counties as determined by the most recent decennial 123
census, meets both of the following: 124
a. Has two thousand five hundred or fewer inhabitants; 125
and 126
b. Experienced less than thirty percentage points of 127
population growth when comparing the most recent decennial 128
census to the decennial census immediately preceding the 129
most recent decennial census. 130
The term "small city" shall not include any city with more 131
than four hundred thousand inhabitants and located in more 132
than one county; 133
(15) "Tax credit" or "tax credits", a credit or 134
credits issued by the department against the tax otherwise 135
due under chapter 143 or 148, excluding withholding tax 136
imposed under sections 143.191 to 143.265; 137
(16) "Tax incentive", a state measure that is intended 138
to encourage individuals and businesses to spend moneys or 139
save moneys by reducing the amount of t ax that they have to 140
pay including, but not limited to, tax credits and refunds 141
of sales and use tax issued under this program; 142
(17) "Urban area": 143
(a) Any city or municipality, except for a small city, 144
that is wholly located within one of th e eight most populous 145 SB 565 6
counties in the state as determined by the most recent 146
decennial census; or 147
(b) Any city with more than four hundred thousand 148
inhabitants and located in more than one county. 149
620.2024. To receive workforce housing tax incentives 1
under sections 620.2022 to 620.2028, a proposed housing 2
project shall meet the following requirements: 3
(1) The housing project includes at least one of the 4
following: 5
(a) Four or more single-family dwelling units, exc ept 6
for a housing project located in a small city, then two or 7
more single-family dwelling units; 8
(b) One or more multiple dwelling unit buildings, each 9
containing three or more individual dwelling units; or 10
(c) Two or more dwelling units lo cated in the upper 11
story of an existing multi -use building; 12
(2) The housing project consists of any of the 13
following: 14
(a) Rehabilitation, repair, or redevelopment at a 15
brownfield or grayfield site that results in new dwelling 16
units; 17
(b) The rehabilitation, repair, or redevelopment of 18
dilapidated dwelling units; 19
(c) The rehabilitation, repair, or redevelopment of 20
dwelling units located in the upper story of an existing 21
multi-use building; 22
(d) For a housing project located in a small city that 23
meets program requirements under paragraph (a) of 24
subdivision (1) of this subsection, development at a 25
greenfield site; or 26
(e) For a disaster recovery housing project as defined 27
under section 620.2022, development at a green field site; 28 SB 565 7
(3) (a) Except as provided in paragraph (b) of this 29
subdivision, the average dwelling unit cost shall not exceed 30
the maximum amount established by the department for each 31
fiscal year for the applicable project type and project 32
location. The department shall establish the maximum 33
average dwelling unit cost for a housing project that 34
includes single-family dwelling units that are located in a 35
small city and for a housing project that includes single - 36
family dwelling units that are l ocated in an urban area. 37
The department shall establish the maximum average dwelling 38
unit cost for a housing project that includes multiple 39
dwelling unit buildings and is located in a small city and 40
for a housing project that includes multiple dwellin g unit 41
buildings and is located in an urban area. In establishing 42
each maximum average dwelling unit cost, the department 43
shall primarily consider the most recent annual United 44
States Census Bureau Building Permits Survey and historical 45
program data; 46
(b) If the housing project involves the 47
rehabilitation, repair, redevelopment, or preservation of 48
property described in subdivision (12) of subsection 2 of 49
section 620.2022, the average dwelling unit cost shall not 50
exceed one hundred twenty -five percent of the maximum 51
average dwelling unit cost established by the department for 52
the applicable housing project type and housing project 53
location as provided in paragraph (a) of this subdivision; 54
and 55
(4) The dwelling units, when completed and made 56
available for occupancy, meet the United States Department 57
of Housing and Urban Development's housing quality standards 58
as set forth in 24 CFR 982 and all applicable local safety 59
standards. 60 SB 565 8
620.2026. 1. (1) A housing business seeking 1
workforce housing tax incentives provided under section 2
620.2028 shall apply to the department in the manner 3
prescribed by the department's rules. The department may 4
accept applications during one or more annual application 5
periods to be determined by the department by rule. 6
(2) The application shall include the following: 7
(a) Information establishing local participation in 8
the housing project, including: 9
a. A resolution in support of the housing project by 10
the governing body of the community where the housing 11
project will be located; and 12
b. Documentation of local matching funds pledged for 13
the housing project in an amount equal to at least one 14
thousand dollars per dwelling unit including, but not 15
limited to, a funding agreement between the housing business 16
and the governing body of the community where the housing 17
project will be located. For purposes of this subparagraph, 18
local matching funds shall be in the form of cash or cash 19
equivalents or in the form of a local property tax 20
exemption, rebate, refund, or reimbursement; 21
(b) Information evidencing an agreement between the 22
business and the department specifying the requirements that 23
will be met to confirm eligibility and the requirements 24
shall be maintained throughout the period of the agreement 25
in order to retain the incentives or financial assistance 26
received. The department shall consult with the governing 27
body of the community during negotiations relating to the 28
agreement. The agreement shall contain a report submitted 29
to the department by a business, together with its 30
application, describing all violations of environmental law 31
or worker safety law within the last five years. If, upon 32 SB 565 9
review of the application, the department finds tha t the 33
business has a record of violations of the law, statutes, 34
rules, or regulations that tend to show a consistent 35
pattern, the department shall not provide incentives or 36
assistance to the business unless the department finds 37
either that the violati ons did not seriously affect public 38
health, public safety, or the environment, or if such 39
violations did seriously affect public health, public 40
safety, or the environment, that mitigating circumstances 41
were present; 42
(c) Information showing the to tal costs and funding 43
sources of the housing project sufficient to allow the 44
department to adequately determine the financing that will 45
be utilized for the housing project, the actual cost of the 46
dwelling units, and the amount of the qualifying new 47
investment; and 48
(d) Any other information deemed necessary by the 49
department to evaluate the eligibility and financial need of 50
the housing project under the program. 51
In addition to complying with the applicable requirements 52
under this subdivision, a housing business applying for 53
disaster recovery housing project tax incentives shall also 54
submit a certification that the applicant's housing project 55
meets the definition of a disaster recovery housing project, 56
if applicable. The housing business sha ll also submit 57
documentation that provides evidence that the qualified 58
disaster recovery housing project is needed due to the 59
impact of the disaster that is the subject of the major 60
disaster declaration. 61 SB 565 10
2. (1) All completed applications shall b e reviewed 62
and scored on a competitive basis by the department under 63
rules adopted by the department. 64
(2) Upon review and scoring of all applications 65
received during an application period, the department may 66
make a tax incentive award to a housin g project, which tax 67
incentive award shall represent the maximum amount of tax 68
incentives the housing project may qualify for under the 69
program. In determining a tax incentive award, the 70
department shall not use an amount of housing project costs 71
that exceeds the amount included in the application of the 72
housing business. Tax incentive awards shall be approved by 73
the director of the department. 74
(3) After making a tax incentive award, the department 75
shall notify the housing business of its ta x incentive 76
award. The notification shall include the amount of tax 77
incentives awarded under section 620.2028 and a statement 78
that the housing business has no right to receive a tax 79
incentive certificate or claim a tax incentive until all 80
requirements of the program, including all requirements 81
imposed by the agreement entered into under subsection 3 of 82
this section, are satisfied. The amount of tax credits 83
included on a tax credit certificate issued under this 84
section, or a claim for refund of sa les and use taxes, shall 85
be contingent upon completion of the requirements under 86
subsection 3 of this section. 87
(4) An applicant that does not receive a tax incentive 88
award during an application period may make additional 89
applications during subse quent application periods. Such 90
applicant shall be required to submit a new application, 91
which shall be competitively reviewed and scored in the same 92
manner as other applications in that application period. 93 SB 565 11
3. (1) Upon receipt of a tax incentive award for the 94
housing project, the housing business shall enter into an 95
agreement with the department for the successful completion 96
of all requirements of the program. The agreement shall 97
identify the tax incentive award amount, the tax incentive 98
award date, the housing project completion deadline, and the 99
total costs of the housing project. 100
(2) The following compliance cost fees shall apply to 101
all agreements entered into under this program and shall be 102
collected in a manner determined by th e department: 103
(a) The imposition of a one -time compliance cost fee 104
of five hundred dollars to be collected by the department 105
prior to the issuance of a tax incentive certificate or the 106
disbursement of financial assistance; and 107
(b) The imposition of a compliance cost fee equal to 108
one-half of one percent of the value of tax incentives 109
claimed under an agreement that has an aggregate tax 110
incentive value of one hundred thousand dollars or greater. 111
The department shall collect the fee from th e business after 112
the tax incentive is claimed by the business from the 113
department of revenue. 114
(3) (a) Except as provided in paragraph (b) of this 115
subdivision, a housing business shall complete its housing 116
project within three years from the date the housing project 117
is registered by the department. 118
(b) The department may, for good cause within its 119
discretion, extend a housing project's completion deadline 120
by up to twelve months upon application by the housing 121
business. Such application shall be made prior to the 122
expiration of the three -year completion deadline in 123
paragraph (a) of this subdivision. The department may 124
approve a second extension of up to twelve months if prior 125 SB 565 12
to the expiration of the first twelve -month extension the 126
housing business applies and substantiates to the 127
satisfaction of the department that the second extension is 128
warranted due to extenuating circumstances outside the 129
control of the housing business. The department may 130
determine what qualifies as "good cause" and establish by 131
rule the extenuating circumstances that will qualify for 132
approval and any additional information that the department 133
may require for approval of such extension. Applications by 134
a housing business shall be made in the manner and form 135
prescribed by the department by rule. 136
(4) Upon completion of a housing project, a housing 137
business shall submit the following to the department: 138
(a) An examination of the housing project in 139
accordance with the American Institute of Cer tified Public 140
Accountants' Statements on Standards for Attestation 141
Engagements, completed by a certified public accountant 142
authorized to practice in this state; 143
(b) A statement of the final amount of the qualifying 144
new investment for the housing project; and 145
(c) Any information the department deems necessary to 146
ensure compliance with the agreement signed by the housing 147
business under paragraph (a) of this subdivision, the 148
requirements of this program, and rules the department and 149
the department of revenue adopt under subsection 4 of 150
section 620.2028. 151
(5) (a) Upon review of the examination, verification 152
of the amount of the qualifying new investment, and review 153
of any other information submitted under paragraph (c) of 154
subdivision (4) of this subsection, the department shall 155
notify the housing business of the amount that the housing 156
business may claim as a refund of the sales and use tax 157 SB 565 13
under subsection 2 of section 620.2028 and shall issue a tax 158
credit certificate to the hou sing business stating the 159
amount of workforce housing investment tax credits under 160
subsection 3 of section 620.2028 the eligible housing 161
business may claim. The sum of the amount that the housing 162
business may claim as a refund of the sales and use tax and 163
the amount of the tax credit certificate shall not exceed 164
the total amount of the tax incentive award. 165
(b) If upon review of the examination in paragraph (a) 166
of subdivision (4) of this subsection the department 167
determines that a housing proj ect has incurred project costs 168
in excess of the amount submitted in the application made 169
under subsection 1 of this section and identified in the 170
agreement, the department shall do one of the following: 171
a. If the housing project costs do not cause the 172
housing project's average dwelling unit cost to exceed the 173
applicable maximum amount authorized under subdivision (3) 174
of subsection 1 of section 620.2024, the department shall 175
consider the agreement fulfilled and shall issue a tax 176
credit certificate; 177
b. If the housing project costs cause the housing 178
project's average dwelling unit cost to exceed the 179
applicable maximum amount authorized under subdivision (3) 180
of subsection 1 of section 620.2024 but do not cause the 181
average dwelling unit co st to exceed one hundred fifty 182
percent of such applicable maximum amount, the department 183
shall consider the agreement fulfilled and shall issue a tax 184
credit certificate. In such case, the department shall 185
reduce the tax incentive award and the corresp onding amount 186
of tax incentives the eligible housing project shall claim 187
under subsections 2 and 3 of section 620.2028 by the same 188
percentage that the housing project's average dwelling unit 189 SB 565 14
cost exceeds the applicable maximum amount under subdivision 190
(3) of subsection 1 of section 620.2024, and such tax 191
incentive reduction shall be reflected on the tax credit 192
certificate. If the department issues a certificate under 193
this subparagraph, the department of revenue shall accept 194
the certificate notwith standing that the housing project's 195
average dwelling unit costs exceed the maximum amount 196
specified in subdivision (3) of subsection 1 of section 197
620.2024; or 198
c. If the housing project costs cause the housing 199
project's average dwelling unit cost to exceed one hundred 200
fifty percent of the applicable maximum amount authorized 201
under subdivision (3) of subsection 1 of section 620.2024, 202
the department shall determine the eligible housing business 203
to be in default under the agreement, shall revoke t he tax 204
incentive award, and shall not issue a tax credit 205
certificate. The housing business shall not be allowed a 206
refund of sales and use tax under subsection 2 of section 207
620.2028. 208
(6) The maximum aggregate amount of tax incentives 209
that may be awarded and issued under section 620.2028 to a 210
housing business for a housing project shall not exceed one 211
million dollars. 212
(7) If a housing business qualifies for a higher 213
amount of tax incentives under section 620.2028 than is 214
allowed by the limitation imposed under subdivision (6) of 215
this subsection, the department and the housing business may 216
negotiate an apportionment of the reduction in tax 217
incentives between the sales tax refund provided in 218
subsection 2 of section 620.2028 and the work force housing 219
investment tax credits provided in subsection 3 of section 220
620.2028, provided the total aggregate amount of tax 221 SB 565 15
incentives after the apportioned reduction does not exceed 222
the amount under subdivision (6) of this subsection. 223
(8) The department shall issue tax incentives under 224
the program on a first -come, first-served basis until the 225
maximum amount of tax incentives allocated under subdivision 226
(4) of subsection 5 of this section is reached. The 227
department shall maintain a list of housing projects 228
registered prior to January 1, 2026, and of housing projects 229
awarded tax incentives on or after January 1, 2026, so that 230
if the maximum aggregate amount of tax incentives is reached 231
in a given fiscal year, such registered housing proje cts 232
that were completed but for which tax incentives were not 233
issued, and such housing projects that were completed and 234
are awarded tax incentives but for which tax incentives have 235
not been issued, shall be placed on a waitlist in the order 236
the housing projects were registered or awarded tax 237
incentives and shall be given priority for receiving tax 238
incentives in succeeding fiscal years. 239
4. (1) The failure by a housing business in 240
completing a housing project to comply with any requirement 241
of this program or any of the terms and obligations of an 242
agreement entered into under this section may result in the 243
revocation, reduction, termination, or rescission of the tax 244
incentive award or the approved tax incentives and may 245
subject the housing b usiness to the repayment or recapture 246
of tax incentives claimed under section 620.2028. 247
(2) The repayment or recapture of tax incentives under 248
this section shall be accomplished, provided that the 249
repayment of incentives or financial assistance by the 250
business if the business does not meet any of the 251
requirements of this part or the resulting agreement. The 252
repayment of incentives under this subsection shall be 253 SB 565 16
considered a tax payment due and payable to the department 254
of revenue by any taxpa yer who has claimed such incentives, 255
and the failure to make such a repayment may be treated by 256
the department of revenue in the same manner as a failure to 257
pay the tax shown due or required to be shown due with the 258
filing of a return or deposit form. In addition, the county 259
shall have the authority to take action to recover the value 260
of property taxes not collected as a result of the exemption 261
provided to the business under this program. 262
5. (1) Notwithstanding subsection 1 of this section 263
to the contrary, the department may establish a disaster 264
recovery housing project application period following the 265
declaration of a major disaster for a disaster area in 266
Missouri. 267
(2) Upon review and scoring of all applications 268
received during a disaster recovery application period, the 269
department may make a tax incentive award to a disaster 270
recovery housing project. The tax incentive award shall 271
represent the maximum amount of tax incentives that the 272
disaster recovery housing project may qual ify for under the 273
program. In determining a tax incentive award, the 274
department shall not use an amount of housing project costs 275
that exceeds the amount included in the application of the 276
housing business. Tax incentive awards shall be approved by 277
the director of the department. 278
(3) The department shall issue tax incentives under 279
the program for disaster recovery housing projects on a 280
first-come, first-served basis until the maximum amount of 281
tax incentives is allocated. The aggregate amount of tax 282
incentives issued for disaster recovery housing projects 283
under this program shall not exceed thirty -five million 284
dollars. Of the moneys allocated to disaster recovery 285 SB 565 17
housing projects, seventeen million five hundred thousand 286
dollars shall be reserved for allocation to qualified 287
housing projects in small cities. 288
(4) The aggregate amount of tax incentives issued for 289
all other housing projects under this program that are not 290
disaster recovery housing projects shall not exceed thirty - 291
five million dollars. 292
620.2028. 1. A housing business that has entered into 1
an agreement under section 620.2026 is eligible to receive 2
the tax incentives described in subsections 2 and 3 of this 3
section. 4
2. (1) A housing business may claim a refund of the 5
sales and use taxes paid under chapter 144 prior to the 6
completion of the housing project that are directly related 7
to a housing project and specified in the agreement. 8
(2) To receive a refund, a claim shall be filed b y the 9
housing business with the department of revenue as follows: 10
(a) The contractor or subcontractor shall state under 11
oath, on forms provided by the department of revenue, the 12
amount of sales and use taxes paid under chapter 144 prior 13
to the completion of the housing project that are directly 14
related to a housing project and specified in the agreement; 15
(b) The contractor or subcontractor shall file the 16
forms with the housing business before final settlement is 17
made; and 18
(c) a. The housing business shall, after the 19
agreement completion date, apply to the department of 20
revenue for any refund of the amount of sales and use taxes 21
paid under chapter 144 prior to the completion of the 22
housing project that were directly related to a housing 23
project and specified in the agreement. The application 24
shall be made in the manner and upon forms to be provided by 25 SB 565 18
the department of revenue. The department of revenue shall 26
audit the claim and, if approved, issue a refund to the 27
housing business. The application shall be made within one 28
year after the agreement completion date. A claim filed by 29
the housing business in accordance with this subsection 30
shall not be denied by reason of a limitation provision set 31
forth in chapter 143 or 1 44; 32
b. For purposes of subparagraph a of this paragraph, 33
"agreement completion date" means the date on which the 34
department notifies the department of revenue that all 35
applicable requirements of the agreement entered into under 36
subdivision (1) of subsection 3 of section 620.2026, and all 37
applicable requirements of this program, including the rules 38
the department and the department of revenue adopt under 39
subsection 4 of section 620.2028, are satisfied. 40
A contractor or subcontractor who willfully makes a false 41
claim under oath in violation of the provisions of this 42
subsection shall be guilty of a misdemeanor, and in addition 43
to any other penalty, the contractor or subcontractor shall 44
be liable for the payment of the tax and any applicable 45
penalty and interest. 46
3. (1) For all tax years beginning on or after 47
January 1, 2026, a housing business may claim a tax credit 48
in an amount not to exceed the following: 49
(a) For a housing project located in an urban area, 50
ten percent of the qu alifying new investment of a housing 51
project specified in the agreement; 52
(b) For a housing project located in a small city, 53
twenty percent of the qualifying new investment of a housing 54
project specified in the agreement; and 55 SB 565 19
(c) For a disaster recovery housing project, twenty 56
percent of the qualifying new investment of a housing 57
project specified in the agreement. 58
(2) An individual who is part of the housing business 59
may claim a tax credit under this subsection from a 60
partnership, limited liability company, S corporation, 61
estate, or trust electing to have income taxed directly to 62
the individual. The amount claimed by the individual shall 63
be based upon the pro rata share of the individual's 64
earnings from the partnership, limited liability company, S 65
corporation, estate, or trust. 66
(3) Any tax credit in excess of the housing business 67
or individual taxpayer's liability for the tax year is not 68
refundable but may be credited to the tax liability for the 69
following five years o r until depleted, whichever is earlier. 70
(4) (a) To claim a tax credit under this subsection, 71
a taxpayer shall include one or more tax credit certificates 72
with the taxpayer's tax return. 73
(b) The tax credit certificate shall contain the 74
taxpayer's name, address, tax identification number, the 75
amount of the credit, the name of the eligible housing 76
business, any other information required by the department 77
of revenue, and a place for the name and tax identification 78
number of a transferee and the amount of the tax credit 79
being transferred, if applicable. 80
(c) The tax credit certificate, unless rescinded by 81
the department, shall be accepted by the department of 82
revenue as payment for taxes for all tax years beginning on 83
or after January 1, 2026, subject to any conditions or 84
restrictions placed by the department upon the face of the 85
tax credit certificate and subject to the limitations of 86
this program. 87 SB 565 20
(d) Tax credit certificates issued under subdivision 88
(5) of subsection 3 of section 620.2026 may be transferred 89
to any person. Within ninety days of transfer, the 90
transferee shall submit the transferred tax credit 91
certificate to the department of revenue along with a 92
statement containing the transferee's name, tax 93
identification number, and address; the denomination that 94
each replacement tax credit certificate is to carry; and any 95
other information required by the department of revenue. 96
However, tax credit certificate amounts of less than the 97
minimum amount established b y rule of the department shall 98
not be transferable. 99
(e) Within thirty days of receiving the transferred 100
tax credit certificate and the transferee's statement, the 101
department of revenue shall issue one or more replacement 102
tax credit certificates t o the transferee. Each replacement 103
tax credit certificate shall contain the information 104
required for the original tax credit certificate and shall 105
have the same expiration date that appeared on the 106
transferred tax credit certificate. 107
(f) A tax credit shall not be claimed by a transferee 108
under this section until a replacement tax credit 109
certificate identifying the transferee as the proper holder 110
has been issued. The transferee may use the amount of the 111
tax credit transferred against the trans feree taxpayer's 112
state tax liability for all tax years beginning on or after 113
January 1, 2026, under the same terms and conditions that 114
the transferor was allowed. Any consideration received for 115
the transfer of the tax credit shall not be included as 116
income under chapter 143. Any consideration paid for the 117
transfer of the tax credit shall not be deducted from income 118
under chapter 143. 119 SB 565 21
(5) For purposes of the individual and corporate 120
income taxes and the franchise tax, the increase in the 121
basis of the property that would otherwise result from the 122
qualifying new investment shall be reduced by the amount of 123
the tax credit computed under this subsection. 124
(6) Notwithstanding any provision of section 105.1500 125
to the contrary, any requireme nt to provide information, 126
documents, or records under this section, and any 127
requirement established by the department to provide 128
information, documents, or records for the purpose of 129
administering and enforcing this section, shall be exempt 130
from section 105.1500. 131
4. The department of economic development and the 132
department of revenue may promulgate all necessary rules and 133
regulations for the administration of sections 620.2022 to 134
620.2028. Any rule or portion of a rule, as that term is 135
defined in section 536.010, shall become effective only if 136
it complies with and is subject to all of the provisions of 137
chapter 536 and, if applicable, section 536.028. This 138
section and chapter 536 are nonseverable and if any of the 139
powers vested with the general assembly pursuant to chapter 140
536 to review, to delay the effective date, or to disapprove 141
and annul a rule are subsequently held unconstitutional, 142
then the grant of rulemaking authority and any rule proposed 143
or adopted after August 28, 2025, sh all be invalid and void. 144
5. Under section 23.253 of the Missouri sunset act: 145
(1) The provisions of the new program authorized under 146
sections 620.2022 to 620.2028 shall automatically sunset on 147
December thirty-first, six years after the effecti ve date of 148
sections 620.2022 to 620.2028 unless reauthorized by an act 149
of the general assembly; 150 SB 565 22
(2) If such program is reauthorized, the program 151
authorized under sections 620.2022 to 620.2028 shall 152
automatically sunset on December thirty -first, six years 153
after the effective date of the reauthorization of sections 154
620.2022 to 620.2028; 155
(3) Sections 620.2022 to 620.2028 shall terminate on 156
September first of the calendar year immediately following 157
the calendar year in which the program auth orized under 158
sections 620.2022 to 620.2028 is sunset; and 159
(4) Nothing in this subsection shall prevent a 160
taxpayer from claiming a tax credit properly issued before 161
this program was sunset in a tax year after the program is 162
sunset. 163