HS HB 513 -- STATE INCOME TAX (Clayton)

This bill authorizes a state income tax credit for
rehabilitation of certain historic structures located within
certified historic districts.  The credit will be equal to 25%
of the taxpayer's cost of rehabilitation, with certain
restrictions.  To qualify for the credit, the rehabilitation
costs must exceed 50% of the total basis in the property.  In
the case of any excess, the credit may be carried back 3 tax
years or forward 10 tax years until the full credit is used. The
bill requires the taxpayer to apply to the Department of Natural
Resources for eligibility.

This bill becomes effective January 1, 1998.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0
for FY 1998, $28,558 to $2,828,558 for FY 1999, and $26,734 to
$7,026,734 for FY 2000.

HB 513 -- STATE INCOME TAX

SPONSOR:  Clayton

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 21 to 0.

This bill authorizes a state income tax credit for
rehabilitation of certain historic structures located within
certified historic districts.  The credit will be equal to 25%
of the taxpayer's cost of rehabilitation, with certain
restrictions.  In the case of any excess, the credit may be
carried back 3 tax years or forward 10 tax years until the full
credit is used. The bill requires the taxpayer to apply to the
Department of Natural Resources for eligibility.

This bill becomes effective January 1, 1998.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0
for FY 1998, $28,558 to $2,828,558 for FY 1999, and $26,734 to
$7,026,734 for FY 2000.

PROPONENTS:  Supporters say that this bill will assist in the
redevelopment and reconditioning of historic buildings and
structures that have been without improvements for many years.
It will also revitalize the downtown areas of many cities and
towns.

Testifying for the bill were Representative Clayton; Hannibal
Main Street Program; Landmark Association of St. Louis; Historic
Kansas City Foundation; St. Louis Regional Commerce and Growth
Association; the Missouri Alliance for Historic Preservation;
the Walnut Street Development Corporation; AIA Missouri; and
Downtown St. Louis, Inc.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Research Analyst

HB 513 -- Tax Credits

Sponsor:  Clayton

This bill authorizes a state income tax credit for
rehabilitation of certain historic structures located within
certified historic districts.  The credit will be equal to 25%
of the taxpayer's cost of rehabilitation, with certain
restrictions.  In the case of any excess, the credit may be
carried back 3 tax years or forward 10 tax years until the full
credit is used. The bill requires the taxpayer to apply to the
Department of Natural Resources for eligibility.

This bill becomes effective January 1, 1998.