To repeal section 253.401, RSMo 1994, relating to tax credits, and to enact in lieu thereof four new sections relating to the same subject, with an effective date.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Section 254.401, RSMo 1994, is repealed and four new sections enacted in lieu thereof, to be known as sections 253.401, 253.550, 253.559 and 253.561, to read as follows:

     253.401. As used in sections 253.400 to 253.407 and sections 253.550 to 253.561, unless the context requires otherwise:

     (1) "Certified historic structure", a property listed individually on the National Register of Historic Places;

     [(1)] (2) "Department" means the department of natural resources;

     (3) "Eligible property", property offered or used for nonresidential purposes, conduct of business, or residential rental;

     [(2)] (4) "Fund" means the historic preservation revolving fund;

     [(3)] (5) "Historic property" or "property" means any building, structure, district, area or site that is significant in the history, architecture, archaeology or culture of this state, its communities or this country, which is eligible for nomination to the National Register of Historic Places;

     (6) "Structure in a certified historic district", a structure which is certified by the department of natural resources as contributing to the historic significance of a certified historic district listed on the National Register of Historic Places, or a local district that has been certified by the United States Department of the Interior.

     253.550. Any individual, partnership, trust or estate, or corporation incurring costs and expenses for the rehabilitation of eligible property as defined in section 253.401, which is a certified historic structure or structure within a certified historic district shall be entitled to a credit against the taxes imposed pursuant to chapter 143, RSMo, on that individual or entity in an amount equal to twenty-five percent of the total costs and expenses of rehabilitation which shall include development, architectural, engineering and other costs, provided the rehabilitation costs associated with rehabilitation and the expenses exceed fifty percent of the taxpayer's basis in the property and the rehabilitation meets standards consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation as determined by the state historic preservation officer of the Missouri department of natural resources.

     253.559. If the amount of such credit exceeds the taxpayer's tax liability for the year in which the rehabilitated property is placed in service, the amount that exceeds the state tax liability may be carried back for credit against the taxes imposed pursuant to chapter 143, RSMo, except for sections 143.191 to 143.265, RSMo, on such taxpayer in preceding years back to 1996 or back three years, whichever is less, and may be carried forward for credit against the income taxes of such taxpayer in the succeeding ten years, or until the full credit is used, whichever occurs first. Credits granted to a partnership or multiple owners of property shall be passed through to the partners respectively or owners respectively pro rata or pursuant to an executed agreement documenting an alternate distribution method.

     253.561. To claim the credit authorized pursuant to this section, the taxpayer shall apply to the Missouri department of natural resources which shall determine the amount of eligible rehabilitation costs and expenses, and whether it meets the standards of the Secretary of the Interior as set forth in section 253.557 and may issue a certificate thereof to the taxpayer. The taxpayer shall attach the certificate to all Missouri income tax returns on which the credit is claimed.

     Section B. Sections 253.550 to 253.561 shall become effective on January 1, 1998, and shall apply to all taxable years beginning after December 31, 1997.