SB 1023 Changes economic development programs regarding distressed communities and small business investment tax credits
LR Number:3774S.03I Fiscal Note:3774-03
Committee:Ways and Means
Last Action:03/19/02 - SCS Voted Do Pass (SCS SBs 1023 & 1117) S Ways & Journal page:
Means Committee (3774S.05C)
Title:SCS SBs 1023 & 1117
Effective Date:August 28, 2002
Full Bill Text | All Actions | Available Summaries | Senate Home Page | List of 2002 Senate Bills
Current Bill Summary

SCS/SBs 1023 & 1117 - This act makes various changes to economic development programs relating to distressed communities and small business investment tax credits.

The act: (1) Changes the definition of a community development corporation to stress industrial, economic, entrepreneurial, commercial and civic development of projects that benefit low- income individuals and communities;

(2) Lowers the investment requirement of principal owners of Missouri small businesses eligible for investment from 50% of the business to 35% of the business;

(3) Eliminates the designation of a "target area" for purposes of identifying areas of poverty by the Department of Social Services;

(4) Increases the maximum percentage of investment ownership allowed in a small business to qualify for a tax credit from 50% to 65%;

(5) Reduces the time period requirement for investment in a small business from 5 years to 3 years and excludes any sale, change of control, or the going public of a business from the minimum period of time for investment for purposes of the small business investment tax credit program;

(6) Reduces the percentage of employees required to be located at a business contained within distressed communities from 75% to 60% and increases the maximum number of employees at a business contained within a distressed community from 100 to 150 to qualify for the distressed communities tax credit program;

(7) Allows the leasing of certain technology equipment to qualify as an expense for purposes of obtaining a tax credit;

(8) Increases the allowable tax credit percentage of the amount of qualified contribution to a qualified fund for purposes of tax credits for contributions to innovation centers from 50% to 75%;

(9) Allows any unused credits for these tax credit programs from the previous year to be added to any statewide caps for these programs in future years;

(10) Expands the availability of follow-up capital to include businesses which have previously received follow-up capital within the last 3 years for purposes of tax credits for contributions to innovation centers;

(11) Requires the Department of Economic Development to pursue a revocation of the tax credits only from the original applicant for the tax credit.

(12) expands the definition of a "distressed community" relating to tax credits for investment in or relocating a business to a distressed community. A distressed community will include areas within metropolitan statistical areas that are designated as either a federal empowerment zone, a federal enhanced enterprise community, or state enterprise zones designated prior to January 1, 1986, but will not include the expansion of those zones done after March 16, 1988.

This act contains an emergency clause.

This act is similar to HB 215 (2001).