CCS HCS#2 SS SCS SB 718 -- TAX INCENTIVES FOR BUSINESS
DEVELOPMENT

This bill changes the laws regarding tax incentives for business
development.

VARIOUS TAX CREDIT PROGRAMS

The bill:

(1)  Increases the annual cap on the amount of tax credits the
Department of Economic Development may authorize for the Enhanced
Enterprise Zone Program from $14 million to $24 million;

(2)  Increases the fiscal year cap for economic development tax
credits that are approved as part of the Neighborhood Assistance
Program from $4 million to $6 million;

(3)  Specifies that all demolition activities are part of
remediation and allows remediation tax credits to include up to
100% of demolition costs that are not directly part of the
remediation but which are necessary to accomplish the planned use
of the facility.  Demolition may occur on adjacent property that
independently qualifies as abandoned or underutilized and is
located in a municipality with fewer than 20,000 residents.
Currently, some demolition activities associated with brownfield
redevelopment are separate from remediation activities; and

(4)  Prohibits a taxpayer who receives tax credits for a new or
expanded business facility from simultaneously receiving Quality
Jobs tax credits under Sections 620.1875 - 620.1890, RSMo, at the
same facility.

QUALITY JOBS PROGRAM

The bill:

(1)  Increases the annual cap on the amount of tax credits that
can be issued for the Quality Jobs Program from $40 million to
$60 million;

(2)  Allows tax credits to be issued for job retention projects
until August 30, 2013.  Tax credits for this project type were
only authorized through August 30, 2007;

(3)  Allows a project facility to include separate buildings
within the same county.  Currently, they must be located within
one mile of each other; and

(4)  Allows a company that leases or owns facilities that produce
electricity derived from qualified renewable energy sources or
which produce fuel for the generation of electricity from
qualified renewable energy sources to participate in the program
as a technology business project if it meets the other
requirements of the program.  Qualified renewable energy sources
include open-looped biomass, close-looped biomass, solar, wind,
geothermal, and hydropower but not ethanol distillation or
production or biodiesel production.

COMMUNITY IMPROVEMENT DISTRICTS

The bill:

(1)  Allows community improvement districts (CID) to exist in
special business districts within the City of St. Louis.
Currently, any CID in St. Louis that is also in a special
business district cannot levy a CID sales tax unless special
assessments imposed on real property or businesses within the
special business district are repealed; and

(2)  Excludes sales by public utilities and providers of
communications, cable, or video services from the CID sales tax.

TAX INCREMENT FINANCING

The bill:

(1)  Specifies the terms served by members of tax increment
financing (TIF) commissions in the counties of Jefferson, St.
Charles, and St. Louis; and

(2)  Specifies the requirements for public hearings related to
TIF projects in the counties of Jefferson, St. Charles, and St.
Louis.

TAX POLICY AND TAXATION

The bill:

(1)  Authorizes the department to issue letter rulings regarding
the New Markets Tax Credit Program.  The letter rulings are
binding in a court of law and must be issued within 60 days of a
request.  The department can refuse to issue the letter ruling
for good cause, but must explain the reason for refusal.  Letter
rulings are closed to the public; however, information can be
released as long as anything which would identify the applicant
or is otherwise protected is redacted;

(2)  Establishes in statute an exemption from state and local
sales and use tax on all tangible personal property included on
the United States munitions list that is sold to or purchased by
a foreign government for a governmental purpose.  Currently, this
exemption is granted by the Department of Revenue through a
letter ruling;

(3)  Specifies that the true value in money for assessment
purposes of any possessory interest in real property located on
or within the ultimate airport boundary shown by a federal
airport layout plan of a commercial airport owned by a political
subdivision will be the true value in money of the possessory
interest in the real property less the total costs paid toward
any new construction or improvements completed on the property
after January 1, 2008, if included in the possessory interest,
unless paid by the political subdivision, regardless of the year
the costs were incurred;

(4)  Authorizes the cities of Harrisonville and Raytown to
impose, upon voter approval, a sales tax of up to 0.5% for the
purpose of improving public safety; and

(5)  Requires any tax credit program applicant who purposely and
directly employs unauthorized aliens to forfeit any tax credits
issued but not redeemed and to repay all tax credits that have
been redeemed during the time the unauthorized alien was employed
by the applicant.

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