- Committee -
SCS/SBs 867 & 552 - This act makes several changes in the law relating to Certified Capital Companies (CAPCOs).
Two new qualified investment targets are added including: "Qualified Missouri Stage Development Businesses" which is an emerging industry in Missouri, and "Qualified Missouri Agricultural Business" which includes a rural business adding value to raw agricultural commodities.
A "Qualified Distribution" is amended to limit reasonable costs of forming and syndicating the CAPCO to 10% of the value of the certified capital of the CAPCO, and limit subsequent management costs to 2 1/2% of the certified capital. These changes apply only to CAPCOs designated after August 28, 2000.
The definition of "Qualified Missouri Business" is amended by adding an allowance for investment in a company with gross annual sales of up to $7.5 million if 50% of certified capital is invested with a "Qualified Missouri Stage Development Business" or a "Qualified Missouri Agricultural Business" which meets the definition of a "Qualified Missouri Stage Development Business".
The definition of "Affiliate of a Certified Company" is changed to reflect ownership as 15% or more of outstanding securities instead of 10% ownership of outstanding securities.
Any one investor and its affiliates is entitled to take more then $10 million in tax credits so long as no more than $10 million in credits were earned after August 28, 2000.
This act modifies the amount of aggregate credits allowed by authorizing $10 million in the year 2000 and an amount not to exceed 10% of cumulative credits earned for every year thereafter.
For any CAPCO designated after August 28, 2000, at least 25% of certified capital must be invested in qualified Missouri Agricultural Businesses.
The proceeds of all certified capital after it was originally placed in qualified investments may be placed again in qualified investments however no more than 5% of certified capital may be placed in any security or policy issued by an insurance company.
ELIZABETH BAX