Missouri HB 682: Modifies provisions relating to tax credits

Bill Text

FIRST REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 682
103RD GENERAL ASSEMBLY
1798H.02C JOSEPH ENGLER, Chief Clerk
AN ACT
To repeal sections 32.115 and 135.460, RSMo, and to enact in lieu thereof four new sections
relating to tax credits.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 32.115 and 135.460, RSMo, are repealed and four new sections
2 enacted in lieu thereof, to be known as sections 32.115, 135.460, 348.273, and 348.274, to
3 read as follows:
32.115. 1. The department of revenue shall grant a tax credit, to be applied in the
2 following order until used, against:
3 (1) The annual tax on gross premium receipts of insurance companies in chapter 148;
4 (2) Thetaxonbanksdeterminedpursuanttosubdivision(2)ofsubsection2ofsection
5 148.030;
6 (3) The tax on banks determined in subdivision (1) of subsection 2 of section
7 148.030;
8 (4) The tax on other financial institutions in chapter 148;
9 (5) The corporation franchise tax in chapter 147;
10 (6) The state income tax in chapter 143; and
11 (7) The annual tax on gross receipts of express companies in chapter 153.
12 2. For proposals approved pursuant to section 32.110:
13 (1) The amount of the tax credit shall not exceed [fifty] seventy percent of the total
14 amount contributed during the taxable year by the business firm or, in the case of a financial
15 institution, where applicable, during the relevant income period in programs approved
16 pursuant to section 32.110;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

17 (2) Except as provided in subsection 2 or 5 of this section, a tax credit of up to
18 seventy percent may be allowed for contributions to programs where activities fall within the
19 scopeofspecialprogramprioritiesasdefinedwiththeapprovalofthegovernorinregulations
20 promulgated by the director of the department of economic development;
21 (3) Except as provided in subsection 2 or 5 of this section, the tax credit allowed for
22 contributions to programs located in any community shall be equal to seventy percent of the
23 total amount contributed where such community is a city, town or village which has fifteen
24 thousand or less inhabitants as of the last decennial census and is located in a county which is
25 either located in:
26 (a) An area that is not part of a standard metropolitan statistical area;
27 (b) A standardmetropolitan statisticalarea butsuch county hasonlyone city, town or
28 village which has more than fifteen thousand inhabitants; or
29 (c) A standard metropolitan statistical area and a substantial number of persons in
30 such county derive their income from agriculture.
31
32 Such community may also be in an unincorporated area in such county as provided in
33 subdivision (1), (2) or (3) of this subsection. Except in no case shall the total economic
34 benefit of the combined federal and state tax savings to the taxpayer exceed the amount
35 contributed by the taxpayer during the tax year;
36 (4) Such tax credit allocation, equal to seventy percent of the total amount
37 contributed, shall not exceed four million dollars in fiscal year 1999 and six million dollars in
38 fiscal year 2000 and any subsequent fiscal year. When the maximum dollar limit on the
39 seventy percent tax credit allocation is committed, the tax credit allocation for such programs
40 shall then be equal to fifty percent credit of the total amount contributed. Regulations
41 establishing special program priorities are to be promulgated during the first month of each
42 fiscal year and at such times during the year as the public interest dictates. Such credit shall
43 not exceed two hundred and fifty thousand dollars annually except as provided in subdivision
44 (5) of this subsection. No tax credit shall be approved for any bank, bank and trust company,
45 insurance company, trust company, national bank, savings association, or building and loan
46 association for activities that are a part of its normal course of business. Any tax credit not
47 used in the period the contribution was made may be carried over the next five succeeding
48 calendar or fiscal years until the full credit has been claimed. Except as otherwise provided
49 for proposals approved pursuant to section 32.111, 32.112 or 32.117, in no event shall the
50 total amount of all other tax credits allowed pursuant to sections 32.100 to 32.125 exceed
51 thirty-two million dollars in any one fiscal year, of which six million shall be credits allowed
52 pursuant to section 135.460. If six million dollars in credits are not approved, then the
53 remaining credits may be used for programs approved pursuant to sections 32.100 to 32.125;
HCS HB 682 2

54 (5) The credit may exceed two hundred fifty thousand dollars annually and shall not
55 be limited if community services