HB 1143 -- Distressed Communities

Sponsor:  Rizzo

This bill expands the definition of a "distressed community" in
the law relating to tax credits for investment in or relocating a
business to a distressed community.  A distressed community will
include areas within metropolitan statistical areas that are
designated as either a federal empowerment zone, a federal
enhanced enterprise community, or state enterprise zones
designated prior to January 1, 1986, but will not include the
expansion of those zones done after March 16, 1988.

Relating to the Rebuilding Communities and Neighborhood
Preservation Act, the bill:

(1)  Expands the definition of "eligible residence" to include
condominiums, entire apartment buildings, or single apartments
within an apartment building;

(2)  Expands the definition of "new residence" to include vacant
agricultural or horticultural property which has not been used
for at least five years, and that is either within or contiguous
to a central business district located in Christian or Greene
counties;

(3)  Expands the definition of "project" to include the new
construction, rehabilitation, or substantial rehabilitation of
multiple residences, whether comprised of one structure
containing multiple single-family residences (e.g., an apartment
building) or multiple individual structures (e.g., townhouses or
individual homes), in addition to single residences;

(4)  Defines the new term "central business district" as the area
in a municipality which is and traditionally has been the
location of the principal business, commercial, financial,
service, and governmental entities;

(5)  Limits the tax credits available for the rehabilitation and
construction of residences in distressed communities and census
blocks to $1.5 million for projects commenced after August 28,
2002.  Under current law, of the $16 million in community
improvement tax credits allowed, $8 million are to be allocated
for "eligible residence" programs and $8 million for "qualifying
residence" programs.  The bill states that if, by October 1 of
the calendar year, the Director of the Department of Economic
Development has issued all $8 million of the credits allowed for
one of these programs and has not issued the entire $8 million
allowance for the other program, the director is required to
reallocate 70% of any unused tax credits from the program which
has not reached its $8 million cap to the one which has.  The
reallocated credits will be given to taxpayers who have applied
for, but have not received, tax credits in that same year and who
are engaged in projects in the area where the tax credit cap has
been met for that same year.  The maximum reallocated tax credit
for any project may not exceed $500,000; and

(6)  Allows one application for tax credits to be submitted to
the department for preliminary approval in the case of projects
involving the new construction, rehabilitation, or substantial
rehabilitation of more than one residence.  Tax credits will be
awarded upon final approval of an application and presentation of
acceptable proof that substantial construction of each individual
residence has been completed, rather than delaying issuance of
the tax credits until the entire project is substantially
complete.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:00 am