SS/SCS/HCS/HB 327 - This act creates new economic development programs and modifies provisions of the Film Production Tax Credit Program, the Quality Jobs Program, the Enhanced Enterprise Zone Program, and the New Jobs Training Program.DISTRESSED AREAS LAND ASSEMBLAGE TAX CREDIT PROGRAM
This act creates the distressed areas land assemblage tax credit program, administered by the department of economic development. Tax credits issued under the distressed area land assemblage tax credit act, are non-refundable, fully transferrable income, corporate franchise, and financial institutions, tax credits. Tax credits issued under the act will be equal to fifty percent of the acquisition costs for the land, and one hundred percent of the interest costs. The tax credit program is capped at one hundred million dollars and the total amount of tax credits issued annually is limited to twelve million dollars. The authorization of land assemblage tax credits after August 28, 2013, is prohibited, but land assemblage tax credits authorized on or before august 28, 2013, but not yet issued, may be issued until all such credits have been issued.
SECTIONS 135.535 & 135.562
The act enables a taxpayer making less than $30,000 per year who modifies their home to be accessible to a disabled person who resides with the taxpayer to claim a credit against their income tax for one hundred percent of the costs of modification, up to $2,500. For taxpayers making between $30,000 and $60,000, a credit will be allowed in the amount equal to fifty percent of the costs of modification, up to $2,500. All tax credits will be refundable, up to $2,500 per year. The credits are not transferrable. The credit has a statewide maximum of $100,000 per year. If ten million dollars in tax credits are not approved, for programs authorized under the rebuilding communities tax credit program, then up to the first one hundred thousand dollars in tax credits shall be used for the home modification tax Credit created by this act.
A taxpayer is ineligible to be issued tax credits for such modifications two years in a row. The tax credit amount will be offset by a sufficient amount to account for a taxpayer's use of such modification as a deduction from federal adjusted gross income or any other state or federal income tax credits.
The credit applies to tax years beginning January 1, 2008, and expires December 31, 2013.
The modifications to these sections are similar to Senate Bill 877 (2006).
NEW MARKETS TAX CREDIT PROGRAM
This act provides an income tax credit in an amount equal to the applicable percentage of the adjusted purchase price paid to the issuer of a qualified equity investment. The amount of investments in any one qualified low-income community business which may be used for calculating the amount of tax credits is limited to ten million for such business including investments in any affiliates of such business. The applicable percentage is zero percent for each of the first two credit allowance dates and seven percent for the third credit allowance date and eight percent for the next four credit allowance dates. The tax credit is non-refundable and non-transferrable, but tax credits earned by "pass - through entities" may be allocated to the partners, members, or shareholders of the entity for their direct use. To the extent that the tax credits issued exceed a taxpayer's liability, the remaining tax credits may be carried forward to the taxpayer's five subsequent tax years. The Department of Economic Development must limit the amount of investments to a level necessary to limit tax credit utilization to no more than fifteen million dollars per fiscal year without regard to the potential for taxpayers carrying forward credits to later years. The act contains provisions allowing the Department of Economic Development to recapture tax credits issued under the act in certain situations.
This section contains a sunset provision and a reauthorization procedure for fiscal years following fiscal year 2010. For fiscal years following fiscal year 2010, annual reauthorization must be made in the form of a concurrent resolution clearly describing the amount of tax credits which will be made available for the next fiscal year, unless provisions of the Missouri Sunset act require reauthorization by general law. The sunset date and annual reauthorization requirement shall not preclude a taxpayer who makes a qualified equity investment prior to the such date from claiming credits issued under the act.
FILM PRODUCTION TAX CREDIT PROGRAM
The act modifies provisions of the film production tax credit program by lowering the minimum expected in-state budget expenditure, from $300,000 to $50,000 for qualified film production projects less than thirty minutes in length or to $100,000 for a project longer than thirty minutes, for tax years beginning on or after January 1, 2008. The act removes the limitation on the amount of tax credits which may be issued annually per taxpayer for all tax years beginning on or after December 31, 2007. The annual aggregate cap on all tax credits certified under the program is increased from one million five hundred thousand dollars to ten million dollars. The amount of the tax credit is reduced, beginning January 1, 2008, from fifty percent to thirty-five percent of the amount of qualifying expenses.
The provisions of this section will automatically sunset in six years if not re-authorized.
This section is similar to House Bill 360 (2007).
ENHANCED ENTERPRISE ZONE PROGRAM
The act:
(1) Increases the cap on the amount of tax credits that can be issued in a calendar year for the program from seven million dollars per year to twenty-five million dollars per year;
(2) Modifies the definition of an "employee" to a person employed by the enhanced business enterprise that is scheduled to work an average of at least 1,000 hours per year. Health insurance must be offered to employees at all times and must be partially paid by the employer. Currently, the definition of an "employee" includes full-time, part-time, and seasonal employees;
(3) Adds educational services, religious organizations, and public administration to the list of entities which are prohibited from being enhanced business enterprises. However, headquarters or administrative offices which would otherwise be excluded may qualify for benefits if the offices serve a multi-state territory. Currently, utilities regulated by the Missouri Public Service Commission are excluded from being an enhanced business enterprise. The act changes this to public utilities with a NAICS code 221, including water and sewer services;
(4) Allows speculative industrial or warehouse buildings constructed by a public entity, or a private entity if the land is leased by a public entity, to be exempt from ad valorem taxes, upon the approval of the governing authority. If the speculative building is owned by a private entity, the exemption cannot exceed two years. If it is owned or leased by a public entity, the exemption cannot exceed five years. Currently, only enhanced business enterprises can be exempt from these taxes; and
(5) Requires the department to verify through the Department of Revenue that the tax credit applicant does not owe any delinquent taxes, interest, or penalties and to verify through the Department of Insurance, Financial Institutions, and Professional Registration that the applicant does not owe any delinquent insurance taxes prior to issuing any tax credits. The amount of tax credits issued will be reduced by any tax delinquency.
MOTOR FUEL TAX EXEMPTIONS
Under this act, motor fuel used to operate public mass transportation service by a city transit authority, a city utilities board, or an interstate transportation authority, as such terms are defined in section 94.600, RSMo, a city, or an agency receiving funding from either the Federal Transit Administration's urban or nonurban formula transit programs is exempt from the state’s motor fuel tax.
SALES TAX EXEMPTIONS FOR MANUFACTURING
This act exempts purchases of certain energies, gases, utilities, chemicals, machinery and equipment used in the manufacture or processing of products including those consumed in the processing of recovered materials from state and local sales and use taxation.
NEW JOBS TRAINING PROGRAM
The act:
(1) Allows community college districts to sell certificates until July 1, 2018. Currently, they cannot sell certificates after July 1, 2008; and
(2) Extends the program until July 1, 2028. Currently, it will expire on July 1, 2018.
SECTION 178.715
Residents of certain counties in the southeast part of the state are authorized to create a taxing district for the purposes of creating a vocational school in that part of the state.
QUALITY JOBS PROGRAM
The act:
(1) Increases the cap on the amount of tax credits that can be issued in a calendar year for the program from twelve million dollars to thirty million dollars;
(2) Allows tax credits to offset taxes due from financial institutions under Chapter 148, RSMo. Currently, the credits can only be used to offset state income taxes imposed by Chapter 143;
(3) Modifies the definition of "withholding tax" to a computation using a schedule determined by the Department of Economic Development based on average wages. Currently, the definition is the state tax imposed by Sections 143.191 - 143.265;
(4) Allows the calendar year's maximum amount of quality jobs tax credits issued to a qualifying company that participates in both the Quality Jobs Program and the New Job Training Program to be increased by an amount equivalent to the withholding tax retained by that company under the New Job Training Program if the combined benefits do not exceed the projected state benefits of the project;
(5) Requires that if the calendar year's annual maximum amount of quality jobs tax credits issued to any qualified company is increased by $1 million, the number of new jobs must exceed 500. Currently, this increase in tax credits can occur by receiving the approval of the department and the Quality Jobs Advisory Task Force;
(6) Specifies the method in which the county average wage will be calculated when a qualified company relocates employees from one county to another;
(7) Revises the definition of "full-time employee" from an employee who works an average of 35 hours per week to an employee of the qualified company that is scheduled to work an average of 35 hours per week, but leaves the remaining requirements of the definition unchanged;
(8) Changes the calculation of "new direct local revenue" so that local earnings taxes are excluded;
(9) Specifies that no jobs created before the notice of intent will be considered new jobs;
(10) Specifies the method in which new payroll will be calculated;
(11) Adds educational services, religious organizations, public administration, and utilities regardless of whether or not they are regulated by the Missouri Public Service Commission to the list of entities which are prohibited from being qualified companies. However, headquarters or administrative offices which would otherwise be excluded may qualify for benefits if the offices serve a multi-state territory;
(12) Allows qualified companies to retain withholding taxes once the minimum number of new jobs has been attained and the county average wage has been exceeded. A qualified company will not receive tax credits if in its annual report, the average wage is below the county average wage, the company has not maintained the required employee insurance, or if the number of new jobs is below the minimum;
(13) Creates a new tax credit within the program for small business job retention and flood survivors relief. The amount of the tax credit will be equal to the amount of withholding tax generated by the full-time jobs retained over a period of three years. The calendar year maximum amount of tax credits which may be issued for small business retention and flood survivor relief is two hundred and fifty thousand dollars, but such amount may be increased up to five hundred thousand dollars if proposed by the department of economic development. No tax credits for small business job retention and flood survivor relief may be issued after August 30, 2010. A qualified company is prohibited from receiving benefits under the job retention and flood survivor relief provisions of the Missouri Quality Jobs Act if such company received any state or federal benefits, incentives, or tax relief or abatement in locating its facility in a flood plain;
(14) Requires the department of economic development to give preference, in providing benefits under the quality jobs act, to qualified companies and projects targeted at areas of the state which have recently been classified as disaster areas by the federal government;
(15) Requires the department to verify through the Department of Revenue that the tax credit applicant does not owe any delinquent taxes, interest, or penalties and to verify through the Department of Insurance, Financial Institutions, and Professional Registration that the applicant does not owe any delinquent insurance taxes prior to issuing any tax credits. The amount of tax credits issued will be reduced by any tax delinquency;
(16) Allows qualified companies to receive tax credits for providing tuition reimbursement programs to certain employees. The tax credit is a non-refundable, fully transferrable income tax credit. To the extent that a taxpayer's Missouri income tax liability is exceeded by the amount of tax credits issued in a tax year for tuition reimbursement, the remaining tax credits may be carried forward five years until completely claimed.
The tuition reimbursement tax credit is an income tax credit equal to fifty percent of expenses incurred by a qualified company in providing tuition reimbursement to eligible employees, not to exceed five thousand dollars per eligible employee per year. The act prohibits a qualified company from receiving more than twenty-five thousand dollars in tuition reimbursement tax credits in any one tax year. The total number of tuition reimbursement tax credits issued annually shall not exceed two hundred and fifty thousand dollars; and
(17) Requires qualified companies which receive benefits under the Missouri quality jobs act, which knowingly hire unauthorized workers to forfeit such benefits and repay the state the amount of state tax credits redeemed or withholding taxes retained.
DETERMINATION OF NEXUS FOR TAXATION PURPOSES
The act modifies provisions of income, sales and use, and corporate franchise tax law to exclude certain business contacts and activities, conducted within the state, from consideration in the determination of whether nexus exists for tax purposes.
MODIFICATIONS TO TAX CREDIT DEFINITIONS & TRANSFERABILITY PROVISIONS
The act modifies the definitions of the terms "person" and "taxpayer" with regard to provisions authorizing tax credit programs within chapters 32, 100, 135, 143, 173, 208, 348 & 620 RSMo, so as to include charitable organizations which are exempt from federal income tax. The act further amends the tax credit provisions contained in such chapters so as to allow for the full transferability of the tax credits authorized therein.
The act expands the state and local sales tax exemption for tangible personal property purchased for use or consumption in research and development of prescription pharmaceuticals to include utilities as well as tangible personal property used or consumed in such process as well as in the research and development of agricultural, biotechnology and plant genomics products.
The act modifies the tax credit for modifying a home for a disabled person such that a taxpayer is ineligible to be issued tax credits for such modifications two years in a row. The tax credit amount will be offset by a sufficient amount to account for a taxpayer's use of such modification as a deduction from federal adjusted gross income or any other state or federal income tax credits.
The act requires the Director of the Department of Revenue to calculate the levels of appropriation necessary to set the homestead exemption limit anywhere between one hundredth of one percent and five percent for reassessment years and one hundredth of one percent and two and a half percent for non-reassessment years. In doing so, the General Assembly could appropriate sufficient funds to offset any increase in property tax liability experienced by eligible taxpayers in a given year.
The act creates an income tax credit for the costs of constructing a qualified alternative fuel vehicle refueling property. The tax credit shall not exceed the lesser of twenty thousand dollars or twenty percent of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment. The cumulative amount of credits which may be claimed shall not exceed three million dollars for taxable year 2008. For taxable year 2009, the cumulative amount of tax credits which may be claimed is reduced to two million dollars, and for taxable year 2010, the amount is further reduced to one million dollars. The tax credit is non-refundable, but may be carried forward for two subsequent tax years. The tax credit is fully transferable. The act contains a recapture provision for refueling properties which cease sales of alternative fuel. The provisions of the tax credit program creating the tax credit program will automatically expire six years from the effective date of the act if not re-authorized.
The act creates an income tax deduction for tax year 2008, for a taxpayer's purchase of qualified hybrid vehicles. The deduction will equal the lesser of one thousand five hundred dollars or ten percent of the purchase price of the vehicle. The tax deduction must be taken in the year in which the purchase is made.
The act creates a tax credit for the purchase of e-85 gasoline or biodiesel or biodiesel-blended fuel. The tax credit will be equal to: twenty five cents per gallon of e-85 or five cents per gallon of biodiesel or biodiesel-blended fuel for 2008; twenty cents per gallon of e-85 or three cents per gallon of biodiesel or biodiesel-blended fuel for 2009 and 2010; and fifteen cents per gallon of e-85 or five cents per gallon of biodiesel or biodiesel-blended fuel for 2011 and each subsequent year. The tax credit must be for at least fifty dollars, but may not exceed five hundred dollars per taxpayer per year. The aggregate amount of tax credits which may be redeemed by all taxpayers in any given year shall not exceed five hundred thousand dollars. The tax credit is non-refundable, but may be carried forward three years. The provisions allowing for the tax credit for purchases e-85 gasoline and biodiesel or biodiesel-blended fuel will sunset six years from the effective date of the amendment unless re-authorized.
The act also creates a state sales tax exemption for fiscal year 2008, for purchases of automobiles designed to operate on eighty-five percent ethanol fuel. The act creates a state and local sales tax exemption for sales of new diesel-powered motor vehicles with a gross vehicle rating not exceeding eight thousand five hundred pounds.
Under current law, in order for a manufacturer to receive an exemption from sales tax for electrical energy used in the primary manufacture of a product, the manufacturer must prove that the total cost of electricity used exceeds ten percent of the total cost of production or that the raw materials used in the primary manufacture of a product contain at least twenty-five percent recovered materials. This act creates a rebuttable presumption that the raw materials used in the primary manufacture of automobiles contain at least twenty-five percent recovered materials.
The act creates the hunting heritage protection areas act. Subject to all applicable state and federal laws, the discharge of firearms for hunting, sport, and other lawful purposes shall not be prohibited in hunting heritage protection areas, which are defined as the 100-year floodplains of the Missouri and the Mississippi rivers as designated by the federal emergency management agency.
Certain areas are exempt from the act, which are: areas designated as "urbanized areas" according to the 2000 U.S. census; land used by facilities that are regulated by the federal energy regulatory commission; land used for the operation of physical ports of commerce and customs ports; land within Kansas City and St. Louis City; and land located within 1/2 mile of an interstate highway, as such highway exists as of August 28, 2007.
No new tax increment financing (TIF) project may be authorized in a hunting heritage protection area after August 28, 2007, except for the purposes of improving existing flood or drainage protection or for constructing or operating a renewable fuel production facility, provided that no new development results as a result of the projects. TIF projects or districts approved prior to the effective date of this act may make certain modifications.
The act exempts purchases of aviation jet fuel for transoceanic flights from state sales and use taxes. For purposes of calculating the existing sales tax exemption for aviation fuel purchased by common carriers or affiliate carriers, the amount of tax that would be owed, if not for the exemption created by this amendment, for purchases of aviation jet fuel on transoceanic flights may be used in arriving at the 1.5 million dollar maximum aggregate calendar year amount of state sales and use tax.
The act establishes the "Regional Railroad Authorities Act." The purpose of an authority established and operated under the act is to provide for the preservation, improvement, and the continuation of rail service for agriculture, industry, or passenger traffic and to provide for the preservation of railroad right-of-way for transportation uses, when determined to be practicable and necessary for the public welfare.
Under the act, every municipality or county within this state is authorized to form a regional railroad authority. A regional railroad authority may be organized by resolution or joint resolution adopted by the governing body or bodies of one or more counties. The governing body or bodies of a municipality or municipalities within a county or counties may request by resolution that the county or counties organize a railroad authority. If the county or counties do not organize an authority within ninety days of receipt of the request, the municipality or municipalities may organize an authority by resolution or joint resolution.
Before final adoption of an organization resolution, the governing body of each county or municipality named in it shall provide for a public hearing upon notice published in a newspaper of general circulation in the county or municipality. Upon the appointment and qualification of the commissioners first appointed to a regional railroad authority, the commissioners shall submit to the secretary of state a certified copy of each resolution adopted. The Secretary of State shall issue a certificate of incorporation if the resolution conforms to the requirements of this act.
All powers granted to an authority shall be exercised by its board of commissioners. Commissioners shall be appointed and vacancies in their office shall be filled by the governing body of each county or municipality named in the organization resolution, in accordance with the provisions of that resolution. The term of each commissioner shall be one year, or the remainder of the one year term for which a vacancy is filled, and until a successor is appointed. Commissioners shall receive no compensation for services but shall be reimbursed for necessary expenses incurred in the performance of their duties.
The authority may plan, establish, acquire, develop, construct, purchase, enlarge, extend, improve, maintain, equip, operate, regulate, and protect railroads, railroad properties and railroad facilities within its boundaries, including but not limited to terminal buildings, roadways, crossings, bridges, causeways, tunnels, equipment, and rolling stock.
The authority may exercise the power of eminent domain under Chapter 523, RSMo.
The state of Missouri and any political subdivision may transfer to any regional railroad authority or may place in its possession or control, by lease or other contract or agreement, either for a limited period or in fee, any property within a regional railroad authority district or any property wherever situated. The authority may establish charges and rentals for the use, sale, and availability of its property and service and may hold, use, dispose of, invest, and reinvest the income, revenues, and funds derived therefrom.
Every regional railroad authority, organized under the provisions of the act may issue its negotiable revenue bonds or notes in such principal amounts as, in its opinion, shall be necessary to provide sufficient funds for achieving its purposes, including the construction, establishment, acquisition, improvement, maintenance, protection and regulation of railroads and railroad facilities. The state shall not be liable on any notes or bonds of any regional railroad authority. No authority shall be required to pay any taxes or any assessments whatsoever to this state or to any political subdivisions, municipality or other governmental agency of this state. The notes and bonds of every authority and the income therefrom shall, at all times, be exempt from any taxes and any assessments, except for death and gift taxes and taxes on transfers.
The authority may enter into contracts including leases with any person, firm, or corporation, for terms the authority may determine:
(1) Providing for the operation of any facilities on behalf of the authority, at the rate of compensation as may be determined;
(2) Leasing a rail line for operation by the lessee or any facility or space therein for other commercial purposes, at rentals as may be determined, but no person may be authorized to operate a rail line other than as a common carrier;
(3) Granting the privilege, for compensation as the authority shall determine, of supplying goods, commodities, services, or facilities along rail lines or in or upon other property; and
(4) Making available services furnished by the authority or its agents, at charges, rentals, or fees which shall be reasonable and uniform for the same class of privilege or service.
The act provides a method for dissolving the authority. If the governing body of any city or county that organized a regional railroad authority, votes to dissolve a regional railroad authority, it shall be dissolved effective the date of the approval of dissolution by the Highways and Transportation Commission. In the event of dissolution of a regional railroad authority, all funds and other assets shall be distributed among the cities and counties, who were members, on a pro rata basis.
The act establishes the small business and entrepreneurial growth act for small business employers who expand their business by increasing the number of jobs and meeting certain qualifications. Beginning January 1, 2008, a qualified employer can retain the Missouri withholding tax from the salaries of the newly created jobs for one year; or if the employer pays more than 50% of the cost of the premiums for health insurance for all employees, the withholding tax can be retained for two years.
The act modifies several provisions of law relating to transportation development districts. The act modifies the definition of "qualified electors" to mean residents within a proposed district registered to vote and property owners who shall receive one vote per acre. The definition provides that any registered voter who is also a property owner must choose to vote as an owner or a registered voter. The act makes a technical change to what a transportation development petition must contain. The law currently provides that the petition must contain a proposal for funding a district, with a request that the funding proposal be submitted to the qualified voters residing in the proposed district. The act requires the TDD petition to set forth the estimated project costs and the anticipated revenues to be collected from the project. This amendment removes the word "residing" since that term is inconsistent with the portion of the TDD law that allows districts to be formed where there are no residents in the proposed district. The act provides for the de-annexation of property from a transportation development district but only with the unanimous consent of the property owners and the removal of such property will not materially affect the obligations of the district. The act modifies the process for submitting TDD plans to the state highways and transportation commission. The act provides for preliminary approval of a project by the commission. After such preliminary approval, the district may impose taxes and assessments. The act provides for the speedier transfer of a TDD project to the commission or local transportation authority provided the recipient consents.
The act requires municipalities, which are counties under the authority of the East-West Gateway Council of Governments, except for Franklin County, which desire to implement a tax increment financing project, to create a commission in the same manner as a first class county with a charter form of government having a population greater than nine hundred thousand. Such commission shall have twelve members with two members appointed by the school boards, one member to represent all other taxing jurisdictions, three members appointed by the county, and six members appointed by the cities in the county with tax increment financing districts.
This act requires cities, towns and villages, under the authority of the East-West Gateway Council of Governments, to receive prior approval of the county in which such city, town or village is located in order to implement a tax increment financing project.
The act prohibits tax increment finance projects in Greenfield areas located in municipalities under the authority of the east-west gateway council of governments. The act requires a two-thirds majority vote by the governing body of a municipality desiring to approve a tax increment finance project if the tax increment finance commission makes a recommendation in opposition.
The act makes tax credits issued for contributions to maternity homes fully transferrable.
The act creates an income tax credit in an amount equal to fifty percent of a contribution made by a taxpayer to an eligible organization for the preservation of Missouri's civil war sites. The tax credit is non-refundable, but may be carried forward five years until fully claimed. The tax credit is fully transferrable. The tax credit has an aggregate annual cap of one hundred thousand dollars and a per taxpayer annual cap of twenty five thousand dollars.
To the extent that tax credits remain unissued for the neighborhood assistance program, the first one hundred thousand dollars of such remaining tax credits shall be made available for issuance based upon contributions made to eligible organizations for the preservation of Missouri's civil war sites. The department of economic development shall certify organizations which qualify under the program. Upon certification, the department of economic development must notify the department of revenue as to an organization's certification status.
The act establishes the workforce investment board and repeals the Missouri Training and Employment Council Act including the Missouri training and employment council.
The act modifies the family development account program definition of community based organization to include any nonprofit corporation formed under chapter 355 RSMo, and decreases the amount of funds in the reserve account which may be used for administrative costs from twenty percent to fifteen percent.
The act modifies provisions of the small business investment tax credit as follows:
(1) Reduces the amount of the tax credit for a qualified investment in a small business from 40% to 30% of the investment, unless the small business is located in a distressed community, in which case the tax credit is reduced from 60% to 40%. A tax credit equal to 40% of an investment made in a small business located in a rural area is allowed. Tax credits will only be issued on investments up to $100,000;
(2) Removes the 50% tax credit for investment in a community bank or community development corporation;
(3) Requires that $10 million in tax credits be available each fiscal year for qualified investments in small businesses, regardless of the location of the business. Currently, the total amount of tax credits available for qualified investments in Missouri small businesses cannot exceed $13 million with $4 million reserved for distressed communities;
(4) Removes the requirement that $500,000 be available for tax credits for qualified investments in Missouri small businesses, community banks, or community development corporations from the neighborhood assistance program; and
(5) Prohibits the Department of Economic Development from issuing certificates without the approval of the small business tax credit review committee, which must review and determine the eligibility of all tax credit applications.
The act repeals the crime of ticket scalping and limited the number of tickets which may be purchased by one purchaser at one time except for group sales.
The act exempts motor fuel used for school buses, by school districts or persons contracted with school districts to provide school bus services. The exemption provided by this act will be provided to the school district for which the fuel is consumed in the form of a refund, regardless of whether the school district paid the tax or the tax was paid by persons contracted with the district to provide school bus services.
The act creates a non-refundable income and corporate franchise tax credit for sales of qualifying beef animals based upon such animal's weight at the time of first sale. The tax credit shall be equal to ten cents per pound above four hundred fifty pounds for the first sale, and ten cents per pound above the weight of the qualifying beef animal at the time of the first qualifying sale or four hundred fifty pounds, which ever is greater, for a subsequent sale. A qualifying beef animal must be certified by the agriculture and small business development authority and be born in this state after August 28, 2008, and raised or finished in this state.
The tax credit must be claimed in the year in which the qualifying sale is made. Qualifying beef tax credits are fully transferrable by notarized endorsement. To the extent the amount of tax credits for qualifying beef sales exceeds a taxpayer's corporate franchise or income tax liability, such remainder may be carried forward five years or back three years. The tax credit has an annual cap of ten million dollars and the cumulative amount of tax credits which may be issued under the amendment is limited to thirty million dollars.
In order to claim the tax credit authorized under the act, a taxpayer must submit an application to the agriculture and small business development authority at the end of each calendar year. If the taxpayer and qualified sale meet all of the requirements, the authority will then issue a tax credit certificate. All taxpayer information required in the application will be confidential, and may only be shared with state and federal animal health officials.
JASON ZAMKUS