FIRST REGULAR SESSION
94TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES AVERY (Sponsor) AND PORTWOOD (Co-sponsor).
Read 1st time March 30, 2007 and copies ordered printed.
D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To amend chapter 143, RSMo, by adding thereto one new section relating to financial institutions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 143, RSMo, is amended by adding thereto one new section, to be known as section 143.472, to read as follows:
143.472. 1. With respect to limited liability companies that are associations, a pro rata share of the tax credit for the tax payable under chapter 148, RSMo, shall be allowed against each limited liability company shareholders' state income tax as follows, provided the association otherwise complies with chapter 148, RSMo:
(1) The credit allowed by this subsection shall be equal to the savings and loan association tax calculated under chapter 148, RSMo, based on the computations provided in chapter 148, RSMo, and such credit shall be allocated to the qualifying shareholder according to stock ownership, determined by multiplying a fraction, where the numerator is the shareholder's stock, and the denominator is the total stock issued by the association;
(2) The tax credit authorized in this subsection shall be permitted only to the shareholders that qualify as a limited liability shareholder, provided the stock at all times during the taxable period qualifies as limited liability company stock, and such stock is held by the shareholder during the taxable period. The credit created by this section on a yearly basis is available to each qualifying shareholder, including shareholders filing joint returns. A savings and loan association holding company is not allowed this credit, except that, such credit shall flow through to such savings and loan association holding company's qualified shareholders, and be allocated to such shareholders under the same conditions; and
(3) In the event such shareholder cannot use all or part of the tax credit in the taxable period of receipt, such shareholder may carry forward such tax credit for a period of the lesser of five years or until used, provided such credits are used as soon as the taxpayer has Missouri taxable income.
2. With respect to limited liability companies that are credit institutions, a pro rata share of the tax credit for the tax payable under chapter 148, RSMo, shall be allowed against each limited liability company shareholders' state income tax as follows, provided the credit institution otherwise complies with chapter 148, RSMo:
(1) The credit allowed by this subsection shall be equal to the credit institution tax calculated under chapter 148, RSMo, and based on the computations provided in chapter 148, RSMo, and such credit institution shall be allocated to the qualifying shareholder according to stock ownership, determined by multiplying a fraction, where the numerator is the shareholder's stock, and the denominator is the total stock issued by such credit institution;
(2) The tax credit authorized in this subsection shall be permitted only to the shareholders that qualify as limited liability company shareholders, provided the stock at all times during the taxable period qualifies as limited liability stock, and such stock is held by the shareholder during the taxable period. The credit created by this section on a yearly basis is available to each qualifying shareholder, including shareholders filing joint returns. A credit institution holding company is not allowed this credit, except that, such credit shall flow through to such credit institution holding company's qualified shareholders, and be allocated to such shareholders under the same conditions; and
(3) In the event such shareholder cannot use all or part of the tax credit in the taxable period of receipt, such shareholder may carry forward such tax credit for a period of the lesser of five years or until used, provided such credits are used as soon as the taxpayer has Missouri taxable income.
3. Limited liability company shareholders of an association required to pay such franchise taxes under chapter 148, RSMo, may take a tax credit against such shareholder's state income tax return, as provided in subsection 1 of this section. Such tax credit shall be the taxpayer's pro rata share of the franchise tax paid by the association as provided in chapter 148, RSMo.
4. Limited liability company shareholders of a credit institution required to pay franchise taxes under chapter 148, RSMo, may take a tax credit against such shareholder's state income tax return, as provided in subsection 2 of this section. Such tax credit shall be the taxpayer's pro rata share of the franchise tax paid by the credit institution as provided in chapter 148, RSMo.
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