HB 995 -- Regional Economic Development Initiative

Sponsor:  Hobbs

This bill establishes a Regional Economic Development Initiative
to promote individual and business investments in economic
development within a region through contributions to regional
economic development organizations.  A regional economic
development organization is any legally formed and locally
recognized nonprofit organization representing multiple cities or
counties with the goal of promoting economic growth for its
respective area.

Beginning January 1, 2008, taxpayers will be eligible to receive
a tax credit equal to 50% of any amount contributed to a regional
economic development organization if the organization's plan has
been approved by the Department of Economic Development.  In
order to receive the tax credit, contributions must be made
during the department-approved fundraising time period.

No more than $12 million of tax credits can be authorized
annually, and no more than $36 million can be authorized for the
life of the program.  The tax credit can be used to offset a
taxpayer's income tax; corporate franchise tax; financial
institutions tax; or bridge, express, and public utilities tax.
The tax can be carried forward for five years or sold.

The organization is required to submit an application to the
department for tax credit authorization.  The requirements of the
application, eligible activities, and considerations the
department must take into account when reviewing applications are
specified.  The organization must submit quarterly reports
detailing its expenditure and the progress of its project.
Within six months of the end of the project, the organization
must report its results and submit an audit to the department.
If the funds have not been expended in accordance with the
approved application or if the project has not been completed,
the organization must repay the department an amount equal to the
tax credits issued.

The provisions of the bill will expire six years from the
effective date.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:21 am