Beginning January 1, 2014, manufacturers or distributors shipping cargo by waterborne vessel through a port facility located in Missouri may be eligible for an tax credit. The taxpayer must increase by 5% the volume of cargo they transport through a port facility over the prior year's total. The 5% increase requirement will be waived if the cargo is transported through a new port facility that transports at least 25,000 twenty-foot equivalent units (TEUs) in its first calendar year. Taxpayers must have transported at least 75 net tons of noncontainerized cargo or ten loaded TEUs in the prior year to be eligible for the tax credit.

The tax credit will $50 per TEU over the prior year's cargo volume. For cargo transported through a new port facility in its first year, the credit will be $50 per TEU. Taxpayers are limited to $250,000 in tax credits per year. No more than $3.5 million tax credits shall be allowed in a calendar year. The $250,000 taxpayer limit may be exceeded if the $3.5 million calendar year cap is not met by March fifteenth in a given year. The tax credit is nonrefundable, but unused amounts may be carried forward for 5 years. No tax credits shall be authorized after December 31, 2019.

Beginning January 1, 2014, taxpayers operating an international trade facility may qualify for a tax credit based on the amount of cargo transported by rail or barge. The credits shall be used to reduce income tax, franchise tax, and bank tax liability. The credit will be equal to $25 per TEU or 16 tons of noncontainerized cargo. No more than $2 million in tax credits may be issued in a fiscal year. No tax credits shall be issued after June 30, 2020. The tax credit is nonrefundable, but unused amounts may be carried forward for 5 years.

Beginning January 1, 2014, taxpayers operating an international trade facility and increasing the volume of cargo by 10% over the prior year may qualify for a tax credit. The credit shall be in an amount equal to $3,500 per new full-time employee or 2% of the capital investment made in the facility. The new employees or capital investments must be related to an increase in trade activities through oceangoing vessels to qualify for the tax credit. No more than $500,000 in tax credits may be issued in any fiscal year. No tax credits shall be issued after June 30, 2020. The tax credit amount cannot exceed 50% of a taxpayer's tax liability in a tax year, but unused amounts may be carried forward for 5 years. The tax credit may be recaptured if the number of full-time employees falls below the average number of full-time employees during the tax year.

This act is similar to HB 621 (2013).

MIKE HAMMANN