SB 819 - This act modifies provisions relating to the Historic Preservation tax credit, and renames such tax credit the "Missouri Historic, Heritage, Tourism, and Rural Revitalization Act". This act allows counties to designate certain structures as "essential community or heritage facilities", which shall be structures that are historic county courthouses located in a qualifying county, as defined in the act, or structures that are significant in the history, architecture, archeology, or culture of the state or its communities, which shall have been constructed at least 50 years prior to an application for tax credits, and which shall have at least $100,000 in estimated eligible costs and expenses to be incurred in the rehabilitation of such structure. $5 million of the amount of tax credits that may be authorized under this act shall be reserved for essential community or heritage facility projects that are historic county courthouses, provided that no county shall have more than two such projects approved in a given fiscal year, and provided that such projects shall only receive tax credits from the reserved amount. If the maximum amount reserved for such projects is authorized in any fiscal year, the amount reserved shall be increased by $1 million, provided that no more than $10 million shall be reserved for such projects. Any amount of reserved tax credits not authorized by March 31 of a fiscal year shall no longer stand reserved, and may be authorized for any project under the act.
Current law limits the amount of tax credits that may be issued under this act to $90 million, with an additional $30 million available for projects that are located in a qualified census tract, as defined in the act. This act modifies such provision to provide that the $90 million limit shall be used only for projects not located in a qualified census tract. If the maximum amount of the $30 million allowed for projects located in a qualified census tract is authorized, such projects may be authorized under the $90 million limit, provided such maximum amount has not been authorized.
This act also modifies the tax credits which may be claimed under the act for residential structures. Currently, such structures shall be non-income producing single-family, owner-occupied residential property. This act allows the structure to be either owner-occupied or occupied by a relative within the third degree of consanguinity of the applicant. For applications approved on or after July 1, 2020, any residential project located in a county that is not a qualified county shall only receive tax credits if it is located in a distressed area, as described in the act. (Section 253.550)
Currently, the amount of tax credits that a project may receive is limited to 25% of the total costs and expenses of rehabilitation incurred. This act modifies such amount for residential projects to 25% of total costs or $50,000, whichever is less. For essential community or heritage facility projects that are historic county courthouses, such amount shall be 50% of total costs or $500,000, whichever is less. For all other projects located in a qualifying county, such amount shall be 35% of total costs. For all other projects located in a county that is not a qualifying county, such amount shall remain 25%. (Section 253.545)
This act modifies the carry-back and carry-forward provisions of tax credits issued under this act by reducing such periods from a 3-year carry-back and 10-year carry-forward to a 1-year carry-back and 5-year carry-forward for all tax credits authorized on or after July 1, 2020.
Current law prohibits not-for-profit entities from receiving historic preservation tax credits. This act allows such entities to claim such tax credits. (Section 253.557)
If the scope of an approved project materially changes, such project shall be eligible to receive additional tax credits, as described in the act. If the project was originally approved prior to August 28, 2018, the Department shall evaluate the change in scope under the criteria in effect prior to such date. (Section 253.559.4)
Projects that receive approval for tax credits shall commence rehabilitation within eighteen months, rather than nine months, of the date of approval. Additionally, "commencement of rehabilitation" shall mean that as of the date that physical work has begun, the taxpayer shall have incurred no less than twenty percent, rather than ten percent, of the estimated costs of rehabilitation. Taxpayers shall notify the Department of Economic Development of any loss of site control, or of failure to obtain site control, within ten days of such failure. Taxpayers may voluntarily forfeit project approval at any time. The amount of tax credits authorized for such forfeited or rescinded project shall be made available for other projects. If a taxpayer later submits an application for the same project, any expenditures which are incurred after the date of the rescinded or forfeited approval shall remain eligible expenditures for the purposes of determining the amount of tax credits. (Section 253.259.8)
After completion of a project, the taxpayer is required to submit an application for the final approval of costs and issuance of tax credits. Within 60 days of receipt of such application, the Department shall issue to the taxpayer tax credits in the amount of 75% of the amount of tax credits for which the taxpayer is eligible based on the application for final approval, or 75% of the amount of tax credits approved under the initial application, whichever is less. Within 120 days of an application for final approval, the Department shall make a determination of final costs and the amount of tax credits to be issued, and shall issue the balance of tax credits owed to the applicant and not issued in the initial tax credit issuance. If the amount initially issued exceeds the amount that the taxpayer is eligible for, as determined by the Department's final approval, the taxpayer shall repay such excess amount to the Department. (Section 253.559.9)
An applicant or their duly authorized representative may appeal any official decision made by the Department with regard to the application submitted to an independent third-party appeals officer designated by the Department. Such appeal shall be submitted in writing within 30 days of the applicant's receipt of the decision being appealed. The appeals officer shall deliver a written decision no later than 90 days after initial receipt of the appeal. (Section 253.559.12)
Current law allows the Department to charge a fee of 4% of the value of tax credits issued under the act for deposit in the Economic Development Advancement Fund, with 37.5% of such revenue appropriated for business recruitment and marketing and the remainder appropriated for various purposes in the Department. This act modifies such provision to distribute the revenues as follows: 37.5% in the Economic Development Advancement Fund for business recruitment and marketing, 25% to the Department for the administration of the act, 25% to the Department of Natural Resources for the administration of the act, and the remaining 12.5% to the Economic Development Advancement Fund for purposes allowed by current law. (Section 620.1900)
This act is substantially similar to HB 2359 (2020), SB 1032 (2018), and HB 2717 (2018).
JOSH NORBERG