HCS HB 2328 -- TAX INCENTIVES (Wasson)

COMMITTEE OF ORIGIN:  Committee on Conservation and Natural
Resources

This substitute changes the laws regarding tax incentives for
economic development.

REGIONAL ECONOMIC DEVELOPMENT INITIATIVE

The substitute 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 $1 million of tax credits can be authorized annually
and no more than $3 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 a 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.

BUSINESSES OPERATING IN A MINE

A state and local sales and use tax exemption is authorized on
purchases of electricity, gas, propane, water, telecommunications
services, other utilities, machinery, and equipment by a person
operating a business in a mine that is not used for mining if the
mine contains at least one million square feet of space for
business use if the business facility is operated by a qualified
company that is engaged or has been engaged in a high impact,
technology business, or small and expanding business project at
the business facility.

The provisions of the substitute regarding the Regional Economic
Development Initiative will expire three years from the effective
date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown
in FY 2009, $22,760 to Unknown in FY 2010, and $34,233 to Unknown
in FY 2011.  Estimated Cost on Other State Funds of Unknown in FY
2009, FY 2010, and FY 2110.

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