TAX CREDITS FOR SPORTING EVENTS

(Sections 67.3000 and 67.3005)

The act creates a refundable income and financial institutions tax credit which may be available for sports commissions, convention and visitors bureaus, certain nonprofit organizations, counties, and municipalities to offset expenses incurred in attracting sporting events to the state. Applicants for the tax credit must submit game support contracts to the Department of Economic Development for approval. The tax credit will be equal to the lesser of five dollars for each per session admission ticket sold for the event and paid registered participants multiplied by the number of days of the event or one hundred percent of eligible expenses incurred. No more than ten million dollars in tax credits may be issued per fiscal year, of this, no more than eight million dollars can be available for events in St. Louis city or any county with more than three hundred thousand inhabitants. The tax credits are fully transferrable, provided a notarized endorsement is filed with the Department of Economic Development. The Department of Economic Development is prohibited from certifying game support contracts after August 28, 2018, but may certify game support contracts on or prior to such date which pertain to games to be held after August 28, 2018.

The act also creates an income, financial institutions, and corporate franchise tax credit equal to fifty percent of the amount of an eligible donation made, on or after January 1, 2012, to a certified sponsor or local organizing committee for the purposes of attracting sporting events to the state. The tax credit may not be applied against withholding taxes. The tax credit is non-refundable, but may be carried forward four years. The tax credit is transferable. Certified sponsors and local organizing committees may apply to the Department of Economic Development for the tax credits. Applications for tax credits must be accompanied by payment in an amount equal to the tax credits requested. The Department of Economic Development is prohibited from issuing more than ten million dollars in tax credits each fiscal year. The provisions of this act shall automatically sunset six years after August 28, 2012 unless reauthorized.

These provisions are identical to provisions of HCS/HB 1245 (2012) and similar to a provision of SCS/SBs 588 & 585 (2012), SB 8 (1st Ex. Session 2011), SS/SB 203 (2011), SB 840 (2010), and HB 1786 (2010).

BLIGHT

(Section 135.953)

This act prohibits a finding of blight under the Enhanced Enterprise Zone statute from being used to meet the conditions for blight under any other state statute.

MISSOURI QUALITY JOBS ACT

(Section 620.1878, 620.1881)

Currently, under the Quality Jobs program a company must make either seventy million dollars in new investment in two years or thirty million dollars in new investment in two years while maintaining at least a seventy million dollar annual payroll to be eligible for the tax credits for job retention. This act lowers the minimum required investment from seventy million dollars to fifty million dollars and increases the amount of time the company has to make this investment to five years.

Currently, no new tax credits for job retention projects may be issued for projects approved by the Department of Economic Development after August 30, 2013. This act extends this deadline until August 30, 2018.

This act also creates a new tax incentive for qualified companies for retaining jobs. The Department of Economic Development may allow qualified companies, that agree to retain at least one hundred and twenty-five existing jobs with an average wage equal to or in excess of ninety percent of the county average wage for at least ten years and agree to make a capital investment equal to one-half times the amount of state benefits provided within three years, to retain withholding taxes from the retained jobs for a period of ten years. The company may choose to receive up to eighty percent of the amount the company would be eligible to retain in the form of tax credits capable of being issued upon approval of the project. These tax credits may be issued immediately or over a three year period. In order to receive the job retention benefits, a qualified company must enter into a written agreement with the department providing detailed performance requirements and recapture provisions. The Department of Economic Development is required to notify the president pro tem of the Senate and the speaker of the House prior to allowing the retention of withholding taxes or awarding tax credits under this provision. The amount of tax credits authorized under this provision of the program is capped at six million dollars annually and cannot exceed the projected net state benefit.

As an alternative to all other benefits available under the program, for calendar years 2013 and 2014, the Department of Economic Development may provide up-front financing to qualified companies in the form of refundable tax credits capable of being issued upon approval of the project. To receive such benefits, a qualified company must enter into a written agreement with the department that provides performance requirements and clawback provisions. Qualified companies in targeted industries could receive tax credits equal to as much as nine percent of new payroll projected over a five year period. Non-targeted industry qualified companies could receive tax credits equal to as much as seven percent of new payroll projected over a five year period. The department of economic development is required to notify the president pro tem of the Senate and the speaker of the House prior to awarding tax credits under this provision. The amount of tax credits authorized under this provision of the program is capped at ten million dollars annually and cannot exceed the projected net state benefit.

This provision is similar to a provision of HCS/HB 1710 (2012), HB 1455 (2012), and SB 280 (2011).

MISSOURI JOBS FOR EDUCATION PROGRAM

(Section 620.2450)

This act creates a program where businesses receive credits redeemable toward tuition at any state college or university for each new full-time job the business creates. This credit toward tuition may be used by business employees, relatives, or any person the business owner chooses. This credit must be used within ten years, or the funds will be deposited into state general revenue. This program will be funded through the withholding of state employee taxes from employers that fill out an application created by the Department of Revenue. The Department of Economic Development is required to administer the program. This program will sunset on August 28, 2016.

This provision is similar to a provision of HCS/HB 1710 (2012) and HB 1728 (2012).

EMILY KALMER