SCS/SB 911 - This act provides various tax relief measures for economically distressed communities in the state. The act contains the following provisions:

Section 100.840 - Increases the amount of certificates which can be sold by the Missouri Development Finance Board under the Business Use Incentives for Large-Scale Development (BUILD) from $75 million to $100 million. At least 25% of the new maximum amount is earmarked for distressed communities as defined in new Section 135.530 of the act.

Section 135.403 - Expands the tax credit for investments in small businesses to include a Missouri small business in a distressed community. The total amount of credits for Missouri small businesses is increased from $5 million to $9 million, with the additional $4 million earmarked for investment in small businesses in distressed communities; the aggregate amount of credits, including those for investment in community banks, is increased from the current $11 million to $15 million.

Section 135.405 - Exempts investments in Missouri small businesses in distressed communities from the current limit of $1,500-$100,000 per taxpayer per business.

Section 135.408 - Allows investors in a Missouri small business located in a distressed community to qualify for tax credits if the investor owns less than 85% of the business.

Section 135.503 - Increases the aggregate amount of credits under the CAPCO (Certified Capital Company) program from the current $10 million to $14 million; at least 25% of the maximum is allocated for CAPCO contributions in Missouri small businesses in distressed communities.

Section 135.530 - Defines "distressed community" as a Missouri municipality with median household income under 70% of median household income for either metropolitan or nonmetropolitan areas.

Section 135.535 - Allows qualified corporations, LLCs, partnerships or sole proprietorships with less than 100 employees to get a 25% credit against income taxes owed for income generated by a facility which relocates to or locates in a distressed community. The section also allows an employee of such a company to take an income tax credit equal to 1.5% of the employee's gross salary at the facility. In lieu of the employer 25% tax credit, an employer may take a credit in the amount of 25% of funds expended for various high tech equipment at the facility, up to $75,000 per year per entity for the first 3 years. Total credits are limited to $10 million.

Section 135.545 - Allows income tax credit in the amount of 50% of qualified investment in certain transportation equipment located in a distressed community, if the investment is part of a development plan approved by the municipality and the local transit agency.

Section 144.063 - Exempts from sales and use tax one hundred percent of the cost of materials and supplies purchased for the construction of single family homes in rural areas.

Section 215.030 - Expands powers of the Missouri Housing Development Commission to make or purchase mortgage loans for residential housing, for sale or rent, in distressed communities.

Sections 215.350-215.362 - establishes a rural housing development program to be administered by the Missouri Housing development Commission (MHDC). The program will be subject to appropriation and authorize no-interest loans for the construction of single family homes. The maximum loan shall be $80,000. Non-profit organizations may apply and must give the required information. Loans are made according to need. The MHDC may require an expiration date, reports and inspections.

Loans are to be put in a revolving fund to build homes one at a time until sold. Homes shall be constructed on sites only where water and sewage services are available. Homes shall be sold at cost plus a $2500 fee for any construction supervisor hired. Priority shall be given to low and moderate income families. An anti-speculation clause shall be added to deter buyers from reselling to make a profit.
RUSS HEMBREE