HCS SCS SB 614 -- RESIDENTIAL TREATMENT AGENCY TAX CREDIT ACT

SPONSOR:  Stouffer (Sutherland)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 13 to 0.

This substitute establishes the Residential Treatment Agency Tax
Credit Act which authorizes a tax credit for 50% of the amount
contributed to a qualified residential treatment agency.  To be a
qualified residential treatment agency, the agency must be
licensed under Section 210.484, RSMo, and contract with the
Department of Social Services to provide treatment services.  On
behalf of individuals who have made donations, an agency can
apply for tax credits in an aggregate amount that does not exceed
40% of the payments received by the agency from the department in
the preceding 12 months.

The tax credit is non-refundable, can be carried back three years
or forward four years, and is fully transferrable.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2007, FY
2008, and FY 2009.  Estimated Cost on Other State Funds of $2,164
in FY 2007, $0 in FY 2008, and $0 in FY 2009.  The fiscal impact
could be divided between the General Revenue Fund and the County
Foreign Insurance Fund (which ultimately goes to local school
districts) if some of the tax credits are utilized against
insurance premium taxes.

PROPONENTS:  Supporters say that the bill gives agencies the
option to purchase tax credits up to 40% of their residential
treatment payments from the state after service is provided.  The
agency can then use the tax credits for donors to receive a tax
credit for 50% of their donations.  Donors can also deduct the
donation as a charitable donation on their federal tax return.
Currently, the state reimbursement rate covers about 50% of the
cost of care, and the home also does charitable care for
children.  The tax credit is good for both the agencies and the
state since it is difficult to raise enough funds to provide for
these children.

Testifying for the bill were Representative Sutherland; Ray
McKennis, Missouri Baptist Children's Home; and Department of
Social Services.

OPPONENTS:  There was no opposition voiced to the committee.

Karla Strobel, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:46 am