HB 2470 -- Economic Development and Assistance Programs

Sponsor:  Flook

This bill changes the laws regarding several economic development
and assistance programs.  In its main provisions, the bill:

(1)  Renames the Neighborhood Assistance Act to the Affordable
Housing Assistance Act and reduces the amount of total tax
credits available from $32 million to $26 million annually;

(2)  Establishes the Community Assistance Program which will
issue tax credits for contributions to projects that include
community development, education, physical revitalization, job
training, and youth development.  These tax credits may be
carried over for five years, sold, or transferred for 75% to 100%
of par value.  The tax credit will be 30% of the contribution for
in-kind donations, 50% of the contribution for monetary
donations, or 70% of the contribution for monetary donations to a
rural community project;

(3)  Re-establishes the Small Business Incubators Act which
consists of a loan, loan guarantee, and grant program for the
establishment and operation of small business incubators.  A
local sponsor can submit an application to the Department of
Economic Development to obtain a loan, loan guarantee, or grant.
The bill specifies the requirements of the application, criteria
which must be met in order to accept an application, the purposes
for which a loan or grant can be used, and the responsibilities
of the local sponsor.  The Missouri Small Business Incubators
Fund is created consisting of appropriations, gifts, and other
contributions.  Taxpayers who make a contribution to the fund or
to an approved local sponsor will be entitled to a tax credit for
50% of the donation.  These tax credits may be carried over for
five years, sold, or transferred for 75% to 100% of their par
value;

(4)  Limits the total amount of tax credits granted under the
Community Assistance and the Small Business Incubator programs to
$26 million for Fiscal Year 2010 and thereafter.  Of this amount,
up to $6 million must be allocated for youth development and up
to $8 million for rural community projects;

(5)  Establishes the Development Tax Credit Program.  Any
business firm may apply to the department to conduct economic
development projects.  The department will approve applications
on a case-by-case basis giving priority to manufacturing,
processing, or assembly; corporate headquarters; services in
interstate commerce; and warehouse or distribution projects
proposing wages above the average for the area and which provide
health benefits.  These tax credits may be carried over for five
years, sold, or transferred.  Tax credits approved for all
economic development projects cannot exceed $6 million in any
fiscal year.  Tax credits for economic development projects will
be the lesser of $10,000 per quality job created or retained; 50%
of the purchase price of new capital improvements or equipment;
$500,000 per project; or the least amount needed to cause the
project to occur.  These tax credits may be carried over for five
years, sold, or transferred for 75% to 100% of their par value;

(6)  Allows the department to terminate participation in a
program, require a refund of any donations, and require the
participant to repay the state for any tax credits that have
already been redeemed if the participant in the Community
Assistance Program, Small Business Incubator Program, or
Development Tax Credit Program fails to abide by the conditions
of the program;

(7)  Prohibits tax credits from being approved, awarded, or
issued after January 1, 2009, to any person or entity claiming a
tax credit under the Youth Opportunities and Violence Prevention
Act, Family Development Account Program, or the current Small
Business Incubator Program established in Section 620.495, RSMo;
and

(8)  Repeals provisions regarding tax credits for neighborhood
assistance and homeless assistance and eliminates the Youth
Opportunities and Violence Prevention Act and the Family
Development Account Program.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm