SB 79 Creates the Show Me Rural Jobs Act
Sponsor: Wasson
LR Number: 0720S.01I Fiscal Notes
Committee: Economic Development
Last Action: 1/10/2017 - Second Read and Referred S Economic Development Committee Journal Page: S98
Title: Calendar Position:
Effective Date: August 28, 2017

Full Bill Text | All Actions | Amendments/CCRs/CCSs | Available Summaries | Senate Home Page | List of 2017 Senate Bills

Current Bill Summary

SB 79 - This act creates the Show Me Rural Jobs Act.

This act requires the Department of Agriculture to accept and review applications for approved investment companies that invest in rural business concerns. Applications shall include the amount of growth capital the applicant is seeking and a $5000 fee. The act requires growth capital to be comprised of 60% or less credit-eligible capital contribution. The act lists other information that must be included, such as evidence that the applicant meets certain criteria and information on the potential benefit to the state. For the credit-eligible capital contributions, each investor must submit an affidavit stating a commitment to make the contribution and the amount.

The Department of Agriculture shall not approve more than $125 million in growth capital and not more than $100 million in credit-eligible capital contributions. The Department of Agriculture may deny an application only for certain enumerated reasons and an applicant has a chance to provide additional information to cure any defect in the application that led to denial. Upon approval, the Department of Agriculture shall provide written notice to the applicant with the amount of growth capital and a tax credit certificate for each investor whose affidavit was attached.

Within 60 days of notice of approval, the approved investment company shall collect the credit-eligible capital contributions from the investors who signed affidavits and one or more cash investments that will compose the remaining amount of growth capital. Within 65 days, the approved investment company shall provide the Department of Economic Development with documentation that the amounts have been collected. If the company fails to comply, the Department of Economic Development shall award lapsed growth capital to each approved investment company that received less than it requested. Any remaining capital may be awarded to newly approved companies. (Section 620.1953)

The act creates a non-refundable tax credit for taxpayers making a credit-eligible capital contribution to an investment company. The credit cannot be sold, transferred, or allocated to any other company except an affiliate. The taxpayer may claim up to 20% of the credit for each year after July 1, 2019. If the amount of the credit exceeds the taxpayer's liability for that year, the excess shall be carried forward and claimed during the next five years. The maximum amount of credits claimed by all taxpayers shall not exceed $15 million, not including amounts carried forward from previous years. (Section 620.1954)

The Department of Economic Development shall revoke tax credit certificates issued under this act if an approved investment company takes certain actions, as described in the act. The Department of Economic Development shall provide notice to the approved investment company before revoking the tax credit certificates and the company has 90 days to correct any violations to avoid revocation. If the tax credit certificates are revoked, they no longer count toward the limits above and may be reallocated. After 5 years an approved investment company may leave the program. If state and local tax revenues fall short of the amount anticipated in the application, the state may recover a percentage of the distributions. (Section 620.1955)

Each approved investment company shall submit a report to the Departments of Agriculture and Economic Development two years after it collects the total growth investment. This report must contain specific information as described in the act. Thereafter, the approved investment company shall submit an annual report each April. (Section 620.1956)

An approved investment fund may request a written opinion from the Department stating whether a business in which it proposes to invest is a rural business concern. (Section 620.1957)

Prior to funding a rural business concern, an approved investment company shall provide the department with certain documents as described in the act. (Section 620.1958)

This act shall sunset after six years unless reauthorized by the General Assembly.

This act is identical to HB 218 (2017) and HCS/HB 1927 (2016), and to provisions contained in HCS/SCS/SB 703 (2016), and is similar to SB 885 (2016).