SS#3/SCS/SBs 45, 212, 136, 278, 279, 285 & 288 - This act modifies every state tax credit program in existence which does not currently have a tax credit cap or sunset date for the program, except for the senior citizen property tax credit, the homestead preservation tax credit, financial and insurance tax credits, and the community college new job training and retention tax credit. The authorization of development tax credits will be prohibited after June 30, 2012. (Section 32.105) The authorization of neighborhood assistance tax credits is prohibited after June 30, 2015. (Sections 32.110 and 32.115) The authorization of affordable housing tax credits is prohibited after June 30, 2012. (Sections 32.111, 32.112, and 32.115)
Under current law, any city, town, or village located in St. Louis County, Jefferson County, or St. Charles County must create a county-wide TIF commission in order to implement a tax increment finance project. This act requires any city, town, or village in the state, which is located within a county subject to the authority of the East-West Gateway Council of Govnerments and desires to implement a TIF project after August 28, 2009, to create a county-wide tax increment finance commission. (Section 99.820)
Any municipality which fails to provide the statutorily required report to the department of economic development will be prohibited from implementing any new tax increment finance project for a period of no less than five years from the date of failure to comply. The State Auditor is required to make information on municipal tax increment finance projects available to the public in a searchable database on the Auditor's website. (Section 99.865)
Under current law, the Missouri Development Finance Board is prohibited from issuing the greater of ten million dollars or an amount equal to five percent of growth in general revenue receipts for the preceding three years in Missouri Development Finance Board Infrastructure Development Fund Contribution Tax Credits annually unless the Commissioner of Administration, the director of the Department of Economic Development, and the director of the Department of Revenue agree to exceed such limit. Beginning fiscal year 2010, the act limits the authorization of infrastructure and development contribution credits to no more than ten million dollars per fiscal year. The limitation on authorization of infrastructure development fund contribution tax credits may only be exceeded by a signed and notarized letter evidencing mutual agreement by the Commissioner of Administration, the director of the Department of Economic Development, the director of the Department of Revenue, the Chairman of the House Budget Committee, and the Chairman of the Senate Appropriations Committee, provided that in such case no more than twenty-five million dollars in tax credits may be authorized for such fiscal year. Taxpayers must file an application with the department of economic development for infrastructure development contribution tax credits. If the amount of eligible applications exceeds the allocation for tax credits, tax credits will be awarded on a first-to-file, first-to-receive basis. The authorization of infrastructure development fund contribution tax credits is prohibited after June 30, 2015. (Section 100.286)
Beginning fiscal year 2010, the Missouri Development Finance Board is barred from issuing more than ten million dollars in revenue bonds or notes for which tax credits are available under the bond guarantee program per fiscal year. Bond guarantee tax credits are prohibited from being authorized after June 30, 2015. (Section 100.297)
The act removes the requirement that applicants for the BUILD program consider locating within another state and state the disparity in costs exist between such state and Missouri and increases the annual tax credit cap from fifteen million to twenty-five million dollars. An additional ten million dollars in tax credits will be available for companies which have pay an average wage in excess of seventy-five thousand dollars. The act prohibits the issuance of BUILD tax credits after June 30, 2015. (Section 100.850)
The act requires the circuit court to order a public hearing on the creation and funding of a proposed transportation development district, if the petition to create such district was filed by the owners of all real property within the proposed district. The director of the Department of Revenue will perform all functions incident to the administration, collection, enforcement, and operation of transportation development district sales taxes. The board of directors of every transportation development district is required to annually submit a report of financial transactions to the state auditor. Failure to timely file such a report by a transportation development district will result in the imposition of a fine not to exceed five hundred dollars. Petitions to create transportation development districts must include details of the budgeted expenditures, including estimated expenditures for real physical improvements, estimated land acquisition expenses, estimated expenses for professional services, and estimated interest charges. (Sections 105.145, 238.207, 238.212, and 238.235)
No more than one hundred thousand dollars in tax credits for surviving spouses of public safety officers may be authorized in any fiscal year beginning fiscal year 2010. Taxpayers will be required to file an application for tax credits with the department of revenue. If the amount of eligible applications exceeds the allocation for tax credits, tax credits will be awarded on a first-to-file, first-to-receive basis. Tax credits for surviving spouses of public safety officers are prohibited from being authorized after June 30, 2013. (Section 135.090)
The act allows an existing headquarters to receive tax credits for new or expanded business facilities for expansions done before January 1, 2015. At least twenty-five new employees and at least one million dollars in new investment must be attributed to such expansion. Buildings on multiple, non-contiguous property will be considered one facility if the buildings are within the same municipality. (Section 135.155)
Beginning fiscal year 2010, the department of economic development is prohibited from authorizing more than three million five hundred thousand dollars in wood energy producer tax credits per fiscal year. Taxpayers must file an application with the department of economic development for wood energy producer tax credits. If the amount of eligible applications exceeds the allocation for tax credits, tax credits will be awarded on a first-to-file, first-to-receive basis. (Section 135.305)
No special needs adoption tax credits or children in crisis tax credits may be authorized after June 30, 2012. (Section 135.327)
Beginning fiscal year 2010, no more than one hundred percent of the amount of tax credits which are made available for projects within the state under the federal low income housing tax credit program may be made available for authorization under the low income housing tax credit program per fiscal year. No low income housing tax credits may be authorized after June 30, 2019. The director of the department of economic development is required to request a binding letter ruling from the IRS, no later than October 1, 2009, stating that certificated tax credits are treated as a payment of tax liability. (Section 135.352)
The act prohibits the authorization of youth opportunities tax credits after June 30, 2013. (Sections 32.115 and 135.460)
The act prohibits the authorization of neighborhood preservation tax credits after June 30, 2015. (Section 135.484)
No more than fifty thousand dollars in tax credits for expenses incurred by small businesses in the provision of disabled access may be authorized each fiscal year beginning FY 2010. Small businesses must file an application with the Department of Economic Development for disabled access tax credits. If the amount of eligible applications exceed the allocation for tax credits, tax credits will be awarded on a first-to-file, first-to-receive basis. The act prohibits the authorization of disabled access tax credits after June 30, 2014.
(Section 135.490)
The act prohibits the authorization of rebuilding communities tax credits after June 30, 2013. (Section 135.535)
The act prohibits the authorization of tax credits for contributions to shelters for victims of domestic violence after June 30, 2014. (Section 135.550)
The secondary mining use tax credit program is created to provide a tax credit for taxpayers, including not-for-profit insurance companies, that incur expenses for the utilization of an existing mine for secondary uses equal to the lesser of hundred percent of such costs or one hundred thousand dollars. The tax credit is fully transferrable, and non-refundable, but may be carried forward five years. The tax credit has an annual aggregate state-wide cap of one million dollars. The provisions of the act creating this tax credit program will automatically terminate six years from the effective date of the act unless re-authorized. (Section 135.567)
The Business Relocation for Secondary Mining Use Tax Credit program is created to provide a tax credit to taxpayers, including not-for-profit insurance companies, that incur expenses in relocating to an existing mine for use of the mine other than mining equal to the lesser of fifty percent of such costs or ten thousand dollars. The tax credit is fully transferrable, and non-refundable, but may be carried forward five years. The tax credit has an annual aggregate state-wide cap of one hundred thousand dollars. The provisions of the act creating this tax credit program will automatically terminate six years from the effective date of the act unless re-authorized. (Section 135.568)
The Abandoned Mine Safety Tax Credit Program is created to provide a tax credit, to taxpayers, including not-for-profit insurance companies, that incur expenses in implementing safety measures or devices in abandoned mines, equal to the lesser of fifty percent of such expenses or fifty thousand dollars. The tax credit is fully transferrable, and non-refundable, but may be carried forward five years. The tax credit has an annual aggregate state-wide cap of five hundred thousand dollars. The provisions of the act creating this tax credit program will automatically terminate six years from the effective date of the act unless re-authorized. (Section 135.569)
No tax credits for contributions to maternity homes may be authorized after June 30, 2014. (Section 135.600)
Under current law, the Department of Economic Development is required to limit the monetary amount of qualified equity investments to a level necessary to limit tax credit utilization to no more than fifteen million dollars annually. Following fiscal year 2010, no equity investments may be made unless reauthorization is provided by enactment of a general law by the General Assembly.
This act would require the department to limit the monetary amount of qualified equity investments to a level necessary to limit tax credit utilization to no more than twenty-five million dollars annually. The department is required to deny any application received for certain other economic development incentives which, in addition to the benefits received under the new markets program by the entity, either directly or indirectly, would exceed the projected state benefit. The requirement for reauthorization by enactment of a general law by the General Assembly is moved back two fiscal years to fiscal years following fiscal year 2012. (Section 135.680)
No more than three hundred fifty thousand dollars in wine and grape production tax credits may be authorized each fiscal year beginning FY 2010. Wine and grape producers must file an application with the department of economic development for disabled access tax credits. If the amount of eligible applications exceeds the allocation for tax credits, tax credits will be awarded on a first-to-file, first-to-receive basis. No wine and grape production tax credits may be authorized after June 30, 2014. (Section 135.700)
Beginning FY 2010, the act limits fiscal year authorizations of loan guarantee fee tax credits to no more than one hundred twenty-five thousand dollars. After June 30, 2012, no loan guarantee fee tax credits may be authorized. (Section 135.766)
The act modifies provisions of the Tax Credit Accountability Act of 2004 to require tax credit recipients to report job creation resulting from tax credit utilization. The department of economic development is required to make certain tax credit utilization information available on the department's website and the Missouri Accountability Portal. (Sections 135.800, 135.802, 135.805, and 620.017)
No enhanced enterprise zone tax credits may be authorized after June 30, 2015. (Section 135.967)
The act creates a state and local sales and use tax exemption for utilities, machinery and equipment used or consumed by certain businesses, which after the effective date of the act, commence operations in a facility located in an underground mine which contains at least five hundred thousand square feet of space which could be used by such business. The exemption will expire for taxpayers twenty years from the date the taxpayer is approved for the exemption. The sales tax exemption created by this act and benefits available under the Missouri Quality Jobs Act are mutually exclusive of one another such that any business which receives a tax benefit under one is ineligible for receipt of the other. (Section 144.059)
Tax credits may not be authorized for contributions to the family development account after June 30, 2012. (Section 208.770)
No more than one hundred twenty-five million dollars in historic preservation tax credits may be authorized each fiscal year beginning FY 2010. No historic preservation tax credits may be authorized after June 30, 2015. Applicants which have incurred certain levels of expenses or received certification from the state historical preservation officer on or before the thirtieth day following the effective date of the act will not be precluded from receiving tax credit authorization. (Section 253.550)
Under current law, not-for-profit entities are eligible for tax credits under the Historic Preservation Tax Credit Program. This act would make not-for-profit entities eligible to receive historic preservation tax credits. (Section 253.557)
The Department of Economic Development will be allowed to authorize tax credits tax credits per year to encourage equity investment in technology-based early stage Missouri companies, commonly referred to as angel investments. Investors who contribute the first five hundred thousand dollars in equity investment to a qualified Missouri business may be issued a tax credit equal to thirty percent of the investment or forty percent of the investment if the qualified business is located in a rural area or distressed community. An investor can receive a credit of up to fifty thousand dollars for an investment in a single qualified business and up to one hundred thousand dollars for investments in more than one qualified business per year. Tax credits for equity investment in technology-based early stage Missouri companies may be carried forward for up to three years or transferred. Beginning FY 2010, the department of economic development is prohibited from authorizing more than five million dollars in angel tax credits each fiscal year. No angel tax credits may be authorized after June 30, 2015. (Sections 348.273 and 348.274)
No family farm breeding livestock tax credits may be authorized after June 30, 2013. (Section 348.505)
No more than seventeen million five hundred thousand dollars in brownfield redevelopment tax credits may be authorized each fiscal year beginning FY 2010. Brownfield redevelopment credits will no longer be available for demolition costs, new investment, or new or retained jobs. Brownfield remediation credits will now be available for costs of environmental insurance policies and the backfill of areas where contaminated soil excavation occurs. The act allows for the pro rated release of remediation tax credits upon issuance of a letter of completion from the department of natural resources. No brownfield redevelopment tax credits may be authorized after June 30, 2015. (Section 447.708)
Records pertaining to a business project with which the Department of Economic Development, the Economic Development Export Finance Board, or a regional planning commission may be deemed closed records. (Sections 620.014)
The act creates an income tax credit for contributions to the Missouri job development fund equal to fifty percent of the contribution made. The tax credit is non-transferrable and non-refundable, but may be carried forward three years. The credit is limited to two thousand five hundred dollars per taxpayer. No more than one hundred thousand dollars in tax credits for contributions to the Missouri job development fund may be authorized each fiscal year beginning FY 2010. No tax credits for contributions to the Missouri job development fund may be authorized after June 30, 2011. (Sections 620.470 and 620.478)
The Department of Economic Development is allowed to include pre-employment training in its new or expanding industry training. The act specifies what services may be provided including development of training plans, the provision of training through qualified training staff, fees for training professionals, and transportation expenses if the training can be more effectively provided outside the community where the jobs will be located. Any assistance provided which does not result in an increase in employment within one year from the date the department provides such assistance will be subject to a claw-back provision. (Section 620.472)
The act increases the annual cap on small business incubator tax credits from five hundred thousand to one million dollars and prohibits the authorization of such tax credits after June 30, 2015. (Section 620.495)
The act modifies provisions of law which authorize a tax credit for qualified research expenses. The tax credit will be equal to ten percent of qualified research expenses incurred during the taxable year unless such expenses were incurred in a distressed community, in which case the credit will be equal to twenty-five percent of such expenses. Eligibility for receipt of the tax credit is limited to taxpayers with less than two hundred twenty-five employees, seventy-five percent of which must be employed within the state. Such taxpayers must be engaged, on a for-profit basis, in the development of medical instruments and devices, medical diagnostics and therapeutics, plant science products, or pharmaceutical or veterinary products with agricultural applications in order to receive the credit. Under current law, no qualified research expense tax credits may be approved, awarded or issued after January 1, 2005. This act removes the prohibition on approval and issuance of tax credits and provides that, no more than three million dollars tax credits for qualified research expenses may be authorized per year. No more than five hundred thousand dollars may be issued annually per taxpayer unless such taxpayer incurred the qualified research expenses in a distressed community in which case such taxpayer may not receive more than one million dollars in tax credits annually. No taxpayer may simultaneously receive tax credits under this tax credit program and the newly created tax credit in section 620.1041 of this act. The provisions of the act creating this tax credit program will automatically terminate six years from the effective date of the act unless re-authorized. (Section 620.1039)
The act creates a new tax credit for qualified research expenses. The amount of the tax credit will be based upon the increase in a taxpayer's qualified research expenses over an average of the three preceding year's expenses. A taxpayer can receive a tax credit equal to: three percent of the amount of increased expenses which do not exceed two million five hundred thousand dollars; five percent of the amount of increased expenses which exceed two million five hundred thousand but do not exceed five million dollars; and seven and one half percent of the amount of increased expenses which exceed five million dollars. No more than seven million dollars in tax credits for qualified research expenses may be authorized annually. Qualified research expenses will be limited to those incurred in the research and development of agricultural biotechnology, plant genomics products, diagnostic and therapeutic medical devices, and prescription pharmaceuticals consumed by humans or animals. Expenses incurred in the research, development, or manufacturing of power system technology for aerospace, space, defense, alternative energy, alternative energy vehicles, or implantable or wearable medical devices are also permitted. The department director may allow a taxpayer to transfer up to forty percent of the tax credits issued, but not yet claimed, between January 1, 2010, and December 31, 2016. The Director of the Department of Economic Development must act between August 1 and August 15th on tax credit applications filed between January 1 and July 1st for claims from the previous year. A formula is provided by which tax credits will be issued if the eligible claims for the credits exceed the amount available. No one taxpayer can be issued more than thirty percent of the total amount of tax credits authorized in any calendar year. Taxpayers are prohibited from simultaneously receiving benefits under this program and the other qualified research tax credit program contained in the act.
The provisions of the act creating this tax credit program will automatically terminate six years from the effective date of the act unless re-authorized. (Section 620.1041)
The act creates a new type of program eligible for quality jobs benefits to be known as green jobs projects. Eligible qualified company activities for green jobs projects include the development of green technology or green manufacturing, such as clean or sustainable energy development, energy efficiency or conservation, green building techniques or components, green transportation technology or manufacturing, or environmental sustainability. A green jobs project qualified company may retain four percent of new payroll for up to five years if it creates ten new jobs which pay wages equal to or greater than the county average wage. The retention of new job withholdings may be increased by as much as an additional three percent depending upon the amount of local incentives received by the qualified company. If a qualified company creates at least one hundred new jobs, the retention period may be extended to six years. The retention period may be extended to a total of seven years if hte company creates at least five hundred new jobs. To the extent retention of employee withholdings are insufficient to provide the entire amount of benefit due, the department will issue a refundable tax credit for the difference. A qualified company may receive an additional benefit if it shows that either a supplier or purchaser of such qualified company either expands or commences operations within the state by creating at least ten new state jobs. In such case, the qualified company may receive benefits equal to one-half of the supplier or purchaser's new payroll withholdings for a period of three years. (Sections 620.1878 and 620.1881)
The act specifies that if the department fails to respond within thirty days of a Quality Jobs Program applicant's notice of intent, the notice is deemed a disapproval. Currently, the notice is deemed an approval if the department fails to respond within thirty days. The act specifies how the department must apply certain definitions when a business that has already received an approved notice of intent later files another notice of intent and eliminates the per-company annual cap on technology business projects. The per project caps for technology business projects and high impact projects are removed. The annual limit on issuance of quality jobs tax credits is increased from sixty million to eighty million dollars. (Section 620.1881)
The Small Business and Entrepreneurial Growth Act is established to provide tax incentives for small business expansion. Beginning January 1, 2010, small business employers will be allowed to retain new employee income tax withholdings for one year, if such employer: employs more than five employees and increases payroll by at least twenty percent due to the creation of new jobs which pay at least eighty-five percent of the county average wage; or employs less than five employees and adds new employees so that the total number of employees is five or greater and such jobs pay at least eighty-five percent of the county average wage. Such employers will be allowed to retain all employee income tax withholding for two years if, in addition to the job creation and pay requirements, such employer offers health insurance and pays more than fifty percent of such premiums for all employees. No more than five million dollars in benefits will be available annually under the small business and entrepreneurial growth act. The provisions of the act creating this tax credit program will automatically terminate six years from the effective date of the act unless re-authorized. (Section 620.1892)
No more than two hundred thousand dollars in tax credits to defray the cost of caring for an elderly person, commonly known as shared care credits may be authorized each fiscal year beginning FY 2010. Registered care givers must file an application with the division of aging for shared care tax credits. If the amount of eligible applications exceeds the allocation for tax credits, tax credits will be awarded on a first-to-file, first-to-receive basis. No shared care tax credits may be authorized after June 30, 2015. (Section 660.055)
The act contains an emergency clause.
JASON ZAMKUS