TAX CREDITS BEING ELIMINATED

The act prohibits further issuance of the following tax credits beginning August 28, 2013: Production portion of the Affordable Housing Assistance tax credit (Section 32.115); the Development tax credit (Section 32.115); Neighborhood Preservation tax credit (Section 135.484); and the Self-Employed Health Insurance tax credit (Section 143.119).

DATA STORAGE CENTERS TAX INCENTIVES

Sections 67.2050 & 144.810

This act allows the governing body of any municipality to enter into loan agreements, or sell, lease, or mortgage municipal property to private entities for the development of a technology business facility project. Municipalities include utility boards of counties, cities, towns or villages. Transactions involving the lease or rental of such properties will be exempt from state and local sales taxes and any leasehold interests on such properties will not be subject to property taxes. The act allows municipalities to sell or otherwise dispose of municipal property to private entities for technology business facility projects provided that the terms and methods utilized reasonably protect the economic well being of the municipality. Any private entity which transfers property to the municipality for purposes of a technology business facility project will reserve the right to request that the municipality transfer such property back to the entity at no cost.

This act provides state and local sales and use tax exemptions for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services, used in new data storage center facilities. The act also provides a state and local sales and use tax exemption for purchases of tangible personal property for the construction of a new data storage center facility. In order to receive the sales tax exemption provided for new data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least five million dollars of new facility investment and create at least five new jobs with wages of at least 150 percent of the county average wage over a three year period. A project shall be approved even though the investment and job creation requirements are not met if exemptions do not exceed the project fiscal benefit to the state over ten years. A project may be approved even though the investment and job creation requirements are not met if exemptions do not exceed the project fiscal benefit to the state over ten years. Projects must meet the job creation and investment amounts projected in their notice of intent to receive exemptions under the act

The act also creates a state and local sales and use tax exemption for existing data storage center facilities for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services. The exemption will only apply to the increase in expenditures for utilities over the previous year's expenditures.

The exemptions for tangible property will be available only on the increase in expenditures over the average of the previous three years expenditures. In order to receive the sales tax exemption provided for existing data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least two million dollars of new facility investment over a one year period and create at least two new jobs with wages of at least 150 percent of the county average wage over a two year period. A project may be approved even though the investment and job creation requirements are not met if exemptions do not exceed the project fiscal benefit to the state over ten years. Projects must meet the job creation and investment amounts projected in their notice of intent to receive exemptions under the act.

The Department of Economic Development and the Department of Revenue are authorized to conduct random audits to ensure compliance with the requirements for state and local sales and use tax exemptions authorized under the act.

The data storage centers tax incentive will expire on September 1, 2019. The expiration will not impair any agreements or exemptions granted before the expiration.

These provisions are similar to HB 222 (2013), SB 46 (2013), and SB 394 (2013). These provisions are similar to provisions contained in HCS/SB 23 (2013), HCS/SS/SCS/SB 83 (2013), HCS/SB 112 (2013), and SCS/SB 120 (2013).

DISTRESSED AREAS LAND ASSEMBLAGE TAX CREDIT

Section 99.1205

Currently, an applicant for this tax credit is entitled to a tax credit in an amount equal to fifty percent of the applicant's acquisition costs, which includes among other things the cost of demolishing vacant buildings, and for a five-year period, one hundred percent of the applicant's interest costs. These acquisition costs include the reasonable costs of maintaining an eligible parcel of land for a five-year period after acquiring the parcel. This act extends the five-year time limitation on receiving a tax credit for maintenance costs and interest costs to twelve years. Certain design costs are added to the types of eligible acquisition costs.

The definition of eligible project areas is expanded to include areas around a site formerly used as a state penitentiary in Jefferson City.

This act allows parcels to be part of an eligible project if they are acquired on behalf of the applicant through affiliated companies controlled by the applicant. Parcels acquired from a municipal authority will not be considered an eligible parcel.

The act requires the redevelopment agreement between the municipal authority and the redeveloper to contain deadlines for commencement of work and project completion. The agreement must also give the municipal authority the right to terminate the rights of the redeveloper if such deadlines are not met.

This act also allows a developer applying for the tax credit to file for the credit on a quarterly basis, rather than annually.

Currently, the Department of Economic Development is prohibited from authorizing tax credits under this program after August 28, 2013. This act extends the amount of time the department can authorize tax credits under this program until August 28, 2019.

Beginning in 2013, applicants must report quarterly to the Department of Economic Development on the progress of their project. No tax credits are to be issued to an applicant if a municipal authority terminates its redevelopment rights.

These provisions are substantially similar to SB 379 (2013), HB 423 (2013) and a provision contained in HCS/SB 112 (2013). These provisions are similar to HB 1130 (2012), HB 1723 (2012), and SB 783 (2012).

WOOD ENERGY PRODUCERS TAX CREDIT

Section 135.305

Currently, the Wood Energy Tax Credit program may not authorize further tax credits after June 30, 2013. This act allow tax credits to be authorized under this program until June 30, 2019. This act also prohibits more than $3.5 million in tax credits under this program in any fiscal year.

These provision are similar to HB 413 (2013), SB 204 (2013) and SB 748 (2012). These provisions are similar to provisions contained in HCS/HB 83, SS/SCS/SB 120 (2013), and CCS/HCS/SB 342 (2013).

LOW-INCOME HOUSING TAX CREDITS

Sections 135.350 & 135.352

A fiscal year cap is established for 9% low-income housing tax credits. The cap is $130 million for FY 2014 and is lowered over a period of years. For FY 2018 and all fiscal years thereafter, the cap is $110 million. Authorizations of 4% low-income housing tax credits are capped at $4 million each fiscal year beginning FY 2015. The stacking of state 9% low-income housing tax credits with state historic preservation tax credits for the same project is prohibited. The carry back of low-income housing tax credits is eliminated and the carry forward is reduced to two years. These provisions have an emergency clause.

These provisions are similar to SS/SCS/SB 120 (2013), SCS/HCS/HB 222 (2013), SB 5 (2013), SB 32 (2013), SB 103 (2013), SB 531 (2012), SCS/SB 548 (2012), and provisions of SB 8 (2011 1st Ex. Session).

PREGNANCY RESOURCES CENTER TAX CREDIT

Section 135.630

Currently, taxpayers making a contributions to a pregnancy resources center may receive a tax credit equal to 50% of their contribution. This act increases the fiscal year cap from $2 million to $2.5 million.

MISSOURI EXPORT INCENTIVE ACT

Sections 135.1550 to 135.1575

This act creates the Missouri Export Incentive Act. For all fiscal years beginning on or after July 1, 2013, this act authorizes air export tax credits for freight forwarders in an amount equal to forty cents per chargeable kilo shipped on a qualifying outbound flight from an international airport located in this state. The Department of Economic Development is required to adjust the tax credit amounts based upon fluctuations in fuel costs for over-the-road transportation. In order to receive air export tax credits, freight forwarders must file an application with the Department containing the master airway bill for the shipment withing 120 days of the flight. The act requires the Department to establish procedures to allow freight forwarders to receive air export tax credits within twenty business days of the departure of the qualifying flight.

The amount of air export tax credits which may be issued each fiscal year is $7.5 million. If an amount less than the fiscal year cap is issued in a fiscal year, then the unissued amount shall be carried forward to increase the next fiscal year's cap. The total aggregate amount of air export tax credits that may be authorized over eight years is $60 million. The tax credit transferred and may be carried forward six years

The authorization of air export tax credits is prohibited after June 30, 2021, but the act allows for the subsequent issuance of any tax credits which are authorized prior to such date.

These provisions are similar to SB 120 (2013), HB 1476 (2012), HB 840 (2011) & SB 390 (2011). These provisions are similar to provisions contained in HB 201 (2013), HCS/HB 221 (2013), and SCS/HCS/HB 222 (2013).

HISTORIC PRESERVATION

Sections 253.545, 253.550, 253.557 & 253.559

This act modifies provisions of law relating to 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 2015, and each fiscal year thereafter, this act would prohibit the Department of Economic Development from approving more than $90 million in historic preservation tax credits for projects receiving at least $275,000 in tax credits, increased by the amount of any rescissions of approved applications for such tax credits. Projects which would receive less than two hundred seventy-five thousand dollars in tax credits will be subject to a $10 million fiscal year cap.

This act prohibits the Department from issuing more than one hundred twenty-five thousand dollars in historic preservation tax credits per project for non-income producing residential rehabilitation projects. The stacking of state historic preservation tax credits with state 9% low-income housing tax credits is prohibited.

Applicants for projects that, as of the effective date of the act, 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 defines total costs and expenses of rehabilitation and prohibits the Department of Economic Development from defining it more narrowly than the federal historic preservation program.

Currently, a taxpayer must prove that the building is a certified historic structure or in a certified historic district to be eligible for the tax credit. This act allow the applicant to instead provide evidence that they have submitted documentation to qualify as such.

The act requires applications for final approval to include a cost an expense certification prepared by an independent certified public accountant. After initial approval by the Department of Economic Development, the taxpayer shall be issued 75% of their eligible tax credits. Within 120 after initial approval, the Department shall make a final determination of the amount the taxpayer is eligible for. The Department shall then issue the remaining amount or require the taxpayer to pay back any excess issuance. Taxpayers must repay after six years an amount equal to 25% of developer's fees. An appeals procedure is created for decisions made by the Department of Economic Development and the Department of Natural Resources.

These provisions have an emergency clause.

These provisions are similar to SS/SCS/SB 120 (2013), SCS/HCS/HB 222 (2013), SB 5 (2013), SB 32 (2013), SB 103 (2013), SB 531 (2012), SCS/SB 548 (2012), and provisions of SB 8 (2011 1st Ex. Session).

MISSOURI ANGEL INVESTMENT INCENTIVE ACT

Sections 348.273 & 348.274

This act creates the Missouri Angel Investment Incentive Act. The act provides tax credits to investors in certain companies. Under this program businesses may apply to regional Small Business and Technology Development centers (SBTDC) to be designated a qualified business. Each quarter, the regional SBTDC shall allocate tax credits to these qualified businesses. The tax credit will then be issued to investors and equal to fifty percent of their investment in the business. The tax credits may be transferred once to an individual or carried forward up to five years. No more than six million dollars in tax credits may be allocated each tax year. No tax credits shall be allocated or issued after December 31, 2019. SBTCDs are prohibited from allowing tax credits of more than fifty thousand dollars per qualified business or more than two hundred fifty thousand dollars per investor or owner of an entity investor. Qualified business must comply with provision prohibiting certain types of research.

Qualified businesses allocated tax credits are required to report to the regional SBTDC annually. Regional SBTDCs are required to report to the SBTDC home office quarterly. The SBTDC home office is required to report annually to the Department of Economic Development, Department of Revenue, the Governor, the President pro tempore of the Senate, and the Speaker of the House of Representatives.

The Missouri Angel Investment Incentive Act expires on December 31, 2019.

These provisions are similar to HB 182 (2013), HB 191 (2013), SB 91 (2013), and HB 1593 (2012). These provisions are similar to provisions contained in SCS/HCS/HB 222 (2013), HCS/SB 23 (2013), HCS/SS/SCS/SB 83 (2013), HCS/SB 112 (2013), and SS/SCS/SB 120 (2013).

BROWNFIELD REMEDIATION TAX CREDITS

Section 447.708

The act prohibits more than $25 million in Brownfield Remediation tax credits being authorized in any fiscal year beginning FY 2015. This provision has an emergency clause.

These provision are similar to provisions contained in SS/SCS/SB 120 (2013) and SB 8 (1st Ext. Session 2011).

MIKE HAMMANN