FIRST REGULAR SESSION

HOUSE BILL NO. 380

97TH GENERAL ASSEMBLY


 

 

INTRODUCED BY REPRESENTATIVES BAHR (Sponsor), KOENIG, SMITH (120) AND CURTMAN (Co-sponsors).

0587L.01I                                                                                                                                                  D. ADAM CRUMBLISS, Chief Clerk


 

AN ACT

To amend chapters 143 and 620, RSMo, by adding thereto two new sections relating to income taxation.




Be it enacted by the General Assembly of the state of Missouri, as follows:


            Section A. Chapters 143 and 620, RSMo, are amended by adding thereto two new sections, to be known as sections 143.126 and 620.031, to read as follows:

            143.126. 1. For all taxable years beginning on or after January 1, 2014, there shall be subtracted from the taxpayer's federal adjusted gross income the following amounts to the extent included in federal adjusted gross income:

            (1) Net profit from business as determined under the Internal Revenue Code of 1986, as amended, and reported from schedule C and on line 12 of the taxpayer's form 1040 federal individual income tax return;

            (2) Net income from rental real estate, royalties, partnerships, S corporations, estates, trusts, residual interest in real estate mortgage investment conduits, and net farm rental as determined under the Internal Revenue Code of 1986, as amended, and reported from schedule E and on line 17 of the taxpayer's form 1040 federal individual income tax return; and

            (3) Net farm profit as determined under the Internal Revenue Code of 1986, as amended, and reported from schedule F and on line 18 of the taxpayer's form 1040 federal income tax return.

            2. As used in this section, references to the federal form 1040 and federal schedule C, schedule E, and schedule F, shall be to such form and schedules as they existed for the taxable year beginning on January 1, 2011, and as revised thereafter by the Internal Revenue Service.

            620.031. 1. Notwithstanding any other provision of law to the contrary, beginning on August 28, 2013, the department of economic development, the Missouri housing development commission, and the Missouri development finance board shall not approve applications for tax credits which, in the aggregate, exceed one hundred million dollars. All such tax credits are made subject to the application approval limitation outlined in this section, and approved on a first come, first served basis. No tax credit provisions in this section shall be construed as giving authority to the department of economic development, the Missouri housing development commission, and the Missouri development finance board to authorize or issue tax credits beyond the programmatic application approval caps in state law on or before the effective date of this section. When conflicting, all sections or portions of sections setting out program specific tax credit application approval limitations or caps shall be superseded by the aggregate cap provided in this subsection.

            2. Notwithstanding any other provision of law to the contrary, beginning on August 28, 2013, the maximum annual amount of tax credits issued for all tax credit programs administered by the department of economic development, the Missouri housing development commission, and the Missouri development finance board shall not exceed one hundred million dollars. All such tax credits are made subject to the issuance limitation outlined in this section, and issued on a first come, first served basis. No tax credit provisions in this section shall be construed as giving authority to the department of economic development, the Missouri housing development commission, and the Missouri development finance board to authorize or issue tax credits beyond the programmatic issuance caps in state law on or before the effective date of this section. When conflicting, all sections or portions of sections setting out program specific tax credit issuance limitations or caps shall be superseded by the aggregate cap provided in this subsection.

            3. Notwithstanding any other provision of law to the contrary, beginning on August 28, 2013, no newly approved tax credit application shall create a right for the holder to force the state issuance of a tax credit which, if issued, would exceed the aggregate issuance limitations set forth in subsection 2 of this section. Applications approved before August 28, 2013, which do create such a right shall be honored under the terms provided by state law in effect when the application was approved, and shall not be counted against the one hundred million dollar issuance cap provided in this section.

            4. The Missouri housing development commission and the Missouri development finance board shall report to the department of economic development the amount of all tax credit application approvals and tax credit issuances made by such entities within one business day of such approvals. The department of economic development shall maintain a running record of such tax credit activities to ensure compliance with the application approval and issuance limitations of this section.