Section 100.840 - Increases the amount of certificates which can be sold by the Missouri Development Finance Board under the Business Use Incentives for Large-Scale Development (BUILD) from $75 million to $100 million. At least 25% of the new maximum amount is earmarked for distressed communities as defined in new section 135.530 of the act.

Section 135.403 - Expands the tax credit for investments in small businesses to include a Missouri small business in a distressed community. The total amount of credits for Missouri small businesses is increased from $5 million to $9 million, with the additional $4 million earmarked for investment in small businesses in distressed communities; the aggregate amount of credits, including those for investment in community banks, is increased from the current $11 million to $15 million.

Section 135.405 - Exempts investments in Missouri small businesses in distressed communities from the current limit of $1,500-$100,000 per taxpayer per business.

Section 135.503 - Increases the aggregate amount of credits under the CAPCO (Certified Capital Company) program from the current $10 million to $14 million; at least 25% of the maximum is allocated for CAPCO contributions in Missouri small businesses in distressed communities.

Section 135.530 - Defines "distressed community" as a Missouri municipality with median household income under 70% of median household income for either metropolitan or nonmetropolitan areas.

Section 135.535 - Allows income tax credit for qualified corporations, LLCs, partnerships or sole proprietorships with less than 100 employees to get a 25% credit against income taxes owed for income generated by a facility which relocates to or locates in a distressed community. The section also allows an employee of such a company to take an income tax credit equal to 1.5% of the employee's gross salary at the facility. In lieu of the employer 25% tax credit, an employer may take a credit in the amount of 25% of funds expended for various high tech equipment at the facility, up to $35,000 per year per entity for the first 3 years. Total credits are limited to $10 million.

Section 135.545 - Allows income tax credit in the amount of 50% of qualified investment in certain transportation equipment located in a distressed community, if the investment is part of a development plan approved by the municipality and the local transit agency.

Section 215.030 - Expands powers of the Missouri Housing Development Commission to make or purchase mortgage loans for residential housing, for sale or rent, in distressed communities.

RUSS HEMBREE