SB 599 - This act makes various changes to incentive programs managed by the Department of Economic Development ("DED"). Those changes are:

(1) Regarding chapter 100 industrial development revenue bonds, the impact on state sales tax revenue is added to the existing reporting requirements;

(2) Regarding Business Use Incentives for Large Scale Development "BUILD", the act:

1. Removes the exclusion of health and professional firms;

2. Reduces the number of new jobs and size of investment to qualify;

3. Removes cumulative bond cap language;

4. Adds an annual tax credit cap of $11 million;

(3) Regarding the New/Expanding Business Facility Tax Credit, the act sunsets the credit; projects commencing operations on or before August 28, 2003, will continue to receive incentives; no new projects will be allowed;

(4) Concerning enterprise zones, the act:

1. Adds authority for businesses to participate that are "targeted industries";

2. Grandfathers those commencing operations on or before August 28, 2003;

3. Adds $50 million annual tax credit cap for businesses commencing operations on or after August 29, 2003;

4. Requires procedures adopted by the DEDto stay within cap to be presented to and adopted by Joint Committee on Economic Development Policy and Planning;

(5) The act removes DED's participation in the Charcoal Producer's Tax Credit makes it completely a department of natural resources program;

(6) Regarding the Low Income Housing Tax Credit, the act:

1. Requires that a tax credit certificate like that of other tax credit programs be issued;

2. More clearly ties the state credit to the federal credit;

3. Allows the owners of the property to allocate the credit differently than pro-rata;

4. Modifies transferability of the credit;

5. Eliminates recapture of the credit at the state level;

(7) The act repeals the Transportation Development Tax Credit, the Film Production Tax Credit, the Individual Training Account "Skills Development" Tax Credit; the Mature Worker Tax Credit and the SBA/USDA Loan Guarantee Fee Tax Credit;

(8) Regarding the Historic Preservation Tax Credit, the act:

1. Requires a pre-application to be eligible for credits;

2. Requires DED to provide a pre-approval for eligible projects;

3. Requires projects to be placed into service within 3 years from pre-approval;

4. Requires taxpayers to apply for credits by end of the tax year after tax year project placed into service;

5. Grants rulemaking authority to carry out these limitations;

(9) Regarding Missouri Technology Corporation ("MTC"), the act

1. Adds protection to business records submitted to MTC so as to make them closed records;

2. Adds a member to the board of directors the Commissioner of Higher Education;

3. Adds various powers to the MTC, including suing and being sued, purchasing and selling property, charging a fee for applications, and creating accounts outside the state treasury;

(10) Increases the reporting requirements concerning DED programs;

(11) Regarding the Research Tax Credit, the act:

1. Limits the credit to apply only to "targeted industries";

2. Implements a scale of the percentage of expenses can be count toward qualifying for the credit depending on years of existence of the taxpayer;

3. Removes restrictions on transferability;

4. Removes the "aggregate" counting of tax credits for the cap;

(12) The act repeals various provisions from the Affordable Housing Assistance Program, the Neighborhood Assistance Program, and the Youth Opportunities Program.
JEFF CRAVER