SB 1008 Tax relief in distressed communities
LR Number:4460L.01I Fiscal Note:4460-01
Committee:Commerce and Environment
Last Action:02/28/00 - Referred S Commerce & Environment Committee Journal page:S334
Effective Date:August 28, 2000
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Current Bill Summary

SB 1008 - This act redirects a higher percentage of community bank investment to qualified businesses in distressed communities. The tax credit available for investment in a small business is reduced from 40% to 30%. The amount of tax credits available is modified from $13 million total with $4 million total available for businesses in distressed communities to a total aggregate amount of $6 million per year with $4 million per year available to businesses with distressed communities.

The percentage of collective qualified investment allowed by community bank investors qualifying for the tax credit is increased from 50% to 80% for small technology-based businesses. Such investors must remain in the technology-based business for a minimum of two years.

Tax credits will be revoked if an investment in any qualified business is withdrawn before the required duration of the investment has expired. However, such credits will not be withdrawn if such business changes ownership or if such business offers itself for investment by the general public as long as the business continues to operate.

The percentage of employees at a distressed community facility for any business locating or relocating a business facility to a distressed community is reduced from 75% to 60% and the total number of employees at such facility may not exceed 150, instead of 100, in order for the business to qualify for the tax credit available to businesses locating in distressed communities.

The 40% tax credit available for the purchase of certain equipment at a business facility located in a distressed community is also available for a lease of at least 2 years for such equipment.

If the total amount of tax credits available for businesses in distressed communities is not expended within the year, then the balance of such credit is transferred to provide tax credits for contributions to a qualified fund in support of Innovation Centers which provide seed capital to certain businesses.

Follow-up capital investment in any business previously receiving investment from a qualified fund is modified to allow investment in any Missouri business in which the qualified fund has invested capital in the previous 3 years.

The tax credit for a contribution to a qualified fund is increased from 50% to 75% of the amount of the contribution. The aggregate amount of tax credits available to contributors to a qualified fund is $5 million per year plus any unused distressed community tax credit amounts available from the previous year.

Any unused portion of the tax credits allowed pursuant to the Missouri Individual Training Account program will also be transferred to support contributions to qualified funds for Innovation Centers.