Missouri Senate

Introduced

LOW-INCOME HOUSING TAX CREDITS

Under current law, low-income housing tax credits are allowed over a ten-year period. Beginning January 1, 2012, this act reduces the period of time in which low-income housing tax credits are allowed to a three-year period and limits the total amount of low-income tax credits issued annually to no more than sixteen million dollars. The issuance of four percent low-income housing tax credits will be prohibited after January 1, 2012. The act also prohibits stacking low-income housing tax credits with historic preservation tax credits.

HISTORIC PRESERVATION TAX CREDITS

Under current law, the Department of Economic Development is prohibited from issuing more than one hundred forty million dollars in historic preservation tax credits in any fiscal year for projects which will receive more than two hundred and seventy-five thousand dollars in tax credits. Beginning fiscal year 2013, and each fiscal year thereafter, this act would prohibit the Department of Economic Development from issuing more than seventy-five million dollars in historic preservation tax credits increased by the amount of any recisions of approved applications for tax such credits. Projects which would receive less than two hundred seventy-five thousand dollars in tax credits will be subject to the seventy-five million dollar cap.

The act prohibits the department from issuing more than fifty thousand dollars in historic preservation tax credits per project for non-income producing residential rehabilitation projects. Non-income producing residential rehabilitation projects involving a subject property with a purchase price in excess of one hundred fifty thousand dollars will be ineligible for tax credits. Applicants for projects that, as of June 30, 2012, have: received approval from the Department of Economic Development; incurred certain levels of expenses; or received certification from the state historical preservation officer will not be subject to the new limitations on tax credit issuance, but will be subject to the current law limitations on tax credit issuance. The act also prohibits the stacking of historic preservation tax credits with neighborhood preservation tax credits or low-income housing tax credits.

REDUCTION OF TAX CREDIT AWARDS FOR CERTAIN CONTRIBUTION CREDITS

For all taxable years beginning on or after January 1, 2012, the act decreases the Missouri Development Finance Board Infrastructure Contribution credit from a fifty percent credit for contributions received to a credit equal to thirty-five percent of the amount contributed. The Affordable Housing Assistance Program tax credit is also reduced from fifty-five percent of the eligible donation to forty percent of such donation. The Disabled Access Tax Credit is reduced from fifty percent to thirty-five percent of eligible access expenditures. Beginning January 1, 2012, the following Social and Contribution tax credits will be reduced from fifty percent of the eligible contribution or donation to thirty-five percent of such contribution or donation:

1) Domestic Violence Shelter Tax Credits;

2) Family Development Account Tax Credits;

3) Health Care Access Fund Tax Credits;

4) Maternity Homes Tax Credits;

5) Neighborhood Assistance Program Tax Credits;

6) Pregnancy Resource Center Tax Credits;

7) Residential Dwelling Access Tax Credits;

8) Residential Treatment Agency Tax Credits; and

9) Children in Crisis Tax Credits;

SUNSET PROVISIONS FOR CERTAIN TAX CREDIT PROGRAMS

Due to the commission's recommendation that reforms to programs be made on a prospective basis, rather than utilizing traditional sunset provisions, this act prohibits the authorization of tax credits provided under the following programs after August 28, 2013:

1) The Bank Franchise Tax Credit;

2) The Bank Tax Credit for S-Corporations;

3) The Examination Fee Tax Credit;

4) The Missouri Health Insurance Pool Tax Credit;

5) The Missouri Life and Health Insurance Guaranty Tax Credit; and

6) The Property and Casualty Insurance Guaranty Tax Credit.

The authorization of tax credits under the following programs will be prohibited after August 28, 2015:

1) The Brownfield Remediation Tax Credit;

2) The Neighborhood Preservation Tax Credit;

3) The BUILD Tax Credit;

4) The Business Facility Tax Credit;

5) The Development Tax Credit;

6) The Enhanced Enterprise Zone Tax Credit;

7) The MDFB Bond Guarantee Tax Credit;

8) The MDFB Infrastructure Development Contribution Tax Credit;

9) The Missouri Quality Jobs Act;

10) The Family Farm Breeding Livestock Tax Credit;

11) The Agricultural Product Utilization Tax Credit;

12) The New Generation Cooperative Tax Credit;

13) The Neighborhood Assistance Tax Credit; and

14) The Low-Income Housing Tax Credit.

The authorization of tax credits under the following programs will be prohibited after August 28, 2017:

1) The Historic Preservation Tax Credit;

2) The Domestic Violence Shelter Tax Credit;

3) The Maternity Home Tax Credit;

4) The Shared Care Tax Credit;

5) The Youth Opportunities Tax Credit;

6) The Disabled Access Tax Credit; and

7) The Family Development Account Tax Credit;

The limitations on tax credit authorizations provided in the act will not impair an administering agencies ability to issue tax credits that were authorized prior to the date on which authorizations are prohibited, nor will they affect a taxpayer's ability to redeem such tax credits.

The act prohibits the approval of any new application for certificates under the Distressed Areas Land Assemblage Tax Credit program after August 28, 2011.

REPEAL OF CERTAIN TAX CREDIT PROGRAMS

This act repeals the following tax credit programs:

1) The Wine and Grape Production Tax Credit;

2) The Charcoal Producers Tax Credit;

3) The Wood Energy Tax Credit;

4) The Self-Employed Health Insurance Tax Credit;

5) The Rebuilding Communities Tax Credit;

6) The Film Production Tax Credit;

7) The Small Business Incubator Tax Credit; and

8) The Railroad Rolling Stock Tax Credit.

The act also repeals provisions of the Missouri property tax credit, commonly referred to as the circuit breaker tax credit, which allow renters to receive the property tax credit for rent constituting taxes paid. The jobs and investment tax credits available under the Brownfield Remediation program are also repealed.

JASON ZAMKUS