SB 884
Modifies provisions relating to facilities of historic significance
Sponsor:
LR Number:
3051S.02C
Last Action:
4/24/2024 - Formal Calendar S Bills for Perfection
Journal Page:
Title:
SCS SB 884
Effective Date:
August 28, 2024

Current Bill Summary

SCS/SB 884 - This act modifies provisions relating to facilities of historic significance.

HISTORIC, RURAL REVITALIZATION, AND REGULATORY STREAMLINING ACT

This act names the historic preservation tax credit the "Missouri Historic, Rural Revitalization, and Regulatory Streamlining Act".

Current law authorizes a tax credit for rehabilitation expenses incurred for the rehabilitation of certain properties, and requires such rehabilitation to meet the standards as determined by the State Historic Preservation officer of the Missouri Department of Natural Resources. Ten percent of such rehabilitation costs may be incurred for investigative assessments and building stabilization prior to the submission of an application.

The act authorizes a tax credit for the rehabilitation of property that is in a qualifying county, as defined in the act, equal to 35% of the total costs of rehabilitation incurred on or after July 1, 2024. A qualifying county shall be a county that is not within the city of Kansas City or the city of St. Louis.

The act provides that state historic rehabilitation standards shall not be more restrictive than the Secretary of the Interior's Standards for Rehabilitation.

This act modifies the threshold at which tax credits do not count toward the aggregate limit on tax credits authorized from $275,000 to $475,000, and adjusts such number annually for inflation.

Current law limits the aggregate amount of tax credits that are reserved for projects located in a qualified census tract to $30 million. This act adjusts such amount annually for inflation.

Tax credits authorized for a single-resource certified historic structure of more than one million gross square feet with a Part I approval prior to January 1, 2024, shall not count toward the aggregate amount of tax credits that may be authorized in a fiscal year.

Current law prohibits not-for-profit entities from receiving historic preservation tax credits. This act authorizes such entities to receive such tax credits.

This act requires the Department of Economic Development to establish an application cycle that allows for the year-round submission and year-round receipt and review of such applications.

Current law requires an application for tax credits to include proof that the property is an eligible property and a certified historic structure or a structure in a certified historic district. In lieu of such requirement, this act allows proof that part 1 of a federal application or a draft national register of historic places nomination has been submitted to the State Historic Preservation Office.

This act requires the Department, when evaluating an application, to consider the estimated number of housing units created by the project, the estimated number of construction and professional jobs associated with the project, capital improvements created by a project, and increased revenues from sales or property taxes. Historic schools and theaters, as defined in the act, and projects receiving less than $475,000 in tax credits, as adjusted annually for inflation, are exempted from such requirements.

The State Historic Preservation Office shall determine whether a rehabilitation satisfies the required standards within sixty days of the filing of an initial application for tax credits and such determination shall be based upon evidence as described in the act, and, if approved, shall forward the application to the National Park Service within sixty days.

If the scope of a project that has been approved materially changes, the taxpayer shall be eligible to receive additional tax credits in the year in which the Department is notified of and approves of such change in scope, as described in the act.

Current law requires submission of evidence of the capacity of the applicant to finance rehabilitation costs and expenses within sixty days of approval. This act changes such requirement to one hundred twenty days.

Current law requires a taxpayer receiving approval for tax credits to commence rehabilitation within nine months of approval. This act changes such date to eighteen months from approval. Taxpayers shall notify the Department of the loss of site control within ten days of such loss. The act allows a taxpayer to forfeit approval of tax credits at any time.

Current law requires taxpayers to submit an application for final approval of tax credits. This act provides that final approval shall be shown by either approval of the State Historic Preservation Office or an approved part 3 federal application. The act requires the Department to issue tax credits to the taxpayer within sixty days of receipt of the application, as described in the act.

An applicant may appeal any official decision relating to the application submitted by the applicant, as described in the act. (Sections 253.544 to 253.559)

TAX CREDIT FEES

Current law authorizes the Department of Economic Development to impose a 4% fee on the amount of tax credits issued to recipients pursuant to the historic preservation tax credit. This act provides that such fees shall be considered qualified rehabilitation expenditures, and shall be distributed to the Economic Development Advancement Fund, as described in the act. (Section 620.1900)

This act is substantially similar to SB 721 (2023) and HCS/HB 316 (2023).

JOSH NORBERG

Amendments

No Amendments Found.