HB 1568 -- Regional Economic Development Organizations

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 defined as 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, 2009, 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 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 up to five years or transferred.

A regional economic development organization may 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 expenditures 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.  No application will be
authorized to receive more than $2 million in tax credits.  Of
this amount, no more than $50,000 per year can be used to support
the operation of the organization, including salaries, marketing,
operating expenses, and equipment.

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

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm