SB 5 Modifies several provisions regarding tax credits and the corporate income tax
Sponsor: Lager
LR Number: 0291S.05I Fiscal Note available
Committee: Jobs, Economic Development and Local Government
Last Action: 1/30/2013 - Hearing Conducted S Jobs, Economic Development and Local Government Committee Journal Page:
Title: Calendar Position:
Effective Date: Emergency clause

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Current Bill Summary


SB 5 - This act modifies laws relating to taxation by extending certain social or benevolent tax credits, ending the authorization of tax credits under many programs or placing sunsets on the program, reducing the amount of low-income housing and historic tax credits that may be authorized each fiscal year, limiting the amount of Brownfield remediation tax credits that may be authorized each fiscal year, and phasing out the corporate income tax.

BENEVOLENT TAX CREDITS

This act modifies provisions of law regarding certain benevolent tax credits.

The Public Safety Officer Surviving Spouse Tax Credit program currently sunsets on August 28, 2013. This act extends the sunset to December 31, 2017. (Section 135.090)

The Children in Crisis Tax Credit program provided an income tax credit for contributions to child advocacy centers, crisis care centers, and entities that receive funding from the Court-Appointed Special Advocate Fund. This tax credit program sunset on August 28, 2012. This act reauthorizes this tax credit effective on July 1, 2013 with a sunset of December 31, 2017. (Section 135.327)

This act extends the sunset from December 2013 to December 2017 on the section of law that creates the tax credit for certain taxpayers who modify their homes to make them accessible for a disabled resident. (Section 135.562)

The provisions of law authorizing a tax credit for contributions to pregnancy resource centers sunset on August 28, 2012. This act reauthorizes this tax credit program effective July 1, 2013 with a sunset of December 31, 2017. (Section 135.630)

The tax credit for donations to food pantries expired August 28, 2011. This act reauthorizes this tax credit program, effective July 1, 2013, with a sunset of December 31, 2017. (Section 135.647)

The provisions regarding the Children in Crisis tax credit, pregnancy resource centers tax credit and the tax credit for donations to food pantries have an emergency clause.

The provisions relating to benevolent tax credits are similar to HB 87 (2013), HB 368 (2013), a provision in SB 163 (2013), SB 15 (2013) and SB 20 (2013).

TAX CREDITS

The act prohibits the authorization of further tax credits after August 28, 2013, under the following tax credit programs: the infrastructure tax credit program, the business facility tax credit program, the neighborhood preservation tax credit program, the family farm breeding livestock loan tax credit, the Brownfield jobs/investment tax credit program, and the small business incubator tax credit program. (Sections 100.286, 100.297, 135.155, 135.484, 348.505, 447.708, and 620.495)

The act also ends tax credits under the qualified beef tax credit program, the wine and grape production tax credit program, the agricultural product utilization contributor tax credit program, and the new generation cooperative incentive tax credit program effective December 31, 2013. (Section 135.679, 135.700,348.430, 348.432, 348.436)

The act prohibits the authorization of further tax credits after August 28, 2017, under the neighborhood assistance program and the family development account tax credit program and after December 31, 2017, under the youth opportunities tax credit program, the maternity home tax credit program, and the shared care tax credit program, unless the programs are reauthorized by the General Assembly. (Sections 32.115, 208.770, 135.460, 135.600, 660.055)

The act also repeals the charcoal producers tax credit. (Section 135.313)

LOW-INCOME HOUSING TAX CREDITS

(Sections 135.350 and 135.352)

The act establishes a fifty million dollar cap for authorizations of 9% and 4% low-income housing tax credits beginning with FY 2014.

The stacking of state 9% low-income housing tax credits with state historic preservation tax credits for the same project is prohibited. The carry-back for low-income housing tax credits is reduced from three years to two years.

These provisions are similar to provisions in SCS/HCS/HB 222 (2013), HB 698 (2013), SB 32 (2013), SCS/SB 120 (2013), and SB 103 (2013).

HISTORIC PRESERVATION TAX CREDITS

(Sections 253.550, 253.557, and 253.559)

Under current law, the Department of Economic Development is prohibited from issuing more than one hundred forty million dollars in historic preservation tax credits in any fiscal year for projects which will receive more than two hundred and seventy-five thousand dollars in tax credits. Beginning fiscal year 2014, this act would prohibit the Department of Economic Development from approving more than fifty million dollars in historic preservation tax credits increased by the amount of any recisions of approved applications for such tax credits.

The act prohibits the department from issuing more than fifty thousand dollars in historic preservation tax credits per project for non-income producing residential rehabilitation projects.

Applicants for projects that, as of August 28, 2013, have: received approval from the Department of Economic Development; incurred certain levels of expenses; or received certification from the state historical preservation officer will not be subject to the new limitations on tax credit issuance, but will be subject to the current law limitations on tax credit issuance.

The act also prohibits the stacking of state historic preservation tax credits with state 9% low-income housing tax credits. Historic preservation tax credits will now be capable of being carried back one year or forward five years.

These provisions are similar to provisions in SCS/HCS/HB 222 (2013), HB 698 (2013), SB 32 (2013), SCS/SB 120 (2013), and SB 103 (2013).

BROWNFIELD REMEDIATION TAX CREDITS

(Section 447.708)

The act prohibits the authorization of more than twenty million dollars in Brownfield remediation tax credits in each fiscal year for FY 2014 - FY 2017. Beginning in FY 2018, no more than fifteen million dollars in Brownfield remediation tax credits may be authorized in each fiscal year. The act prohibits the authorization of more than ten million dollars in Brownfield tax credits each fiscal year, for FY 2014 - FY 2017, for projects that receive benefits under the Distressed Areas Land Assemblage program. Beginning FY 2018, no more than five million dollars in Brownfield tax credits may be authorized each fiscal year for projects that receive benefits under the Distressed Areas Land Assemblage program. After August 28, 2020, the authorization of tax credits under this program is prohibited.

CORPORATE INCOME TAX

(Section 143.071)

This act reduces the corporate income tax rate from its current six and one-fourth percent of Missouri taxable income until the tax is eliminated. Beginning with the 2014 tax year, the corporate income tax rate will decrease by one and one-fourth percent each year. Beginning on January 1, 2018, there will be no state tax on corporate income.

These provisions are similar to provisions contained in SB 472 (2012), SS/SCS/HCS/HB 1865 (2012), SCS/HCS/HBs 1278 & 1152 (2012), SCS/SB 548 (2012), SB 471 (2012), SB 532 (2012), SB 582 (2012), and SB 708 (2012), SCS/SB 548 (2012), and SB 8 (1st Ext Sess. 2011).

MIKE HAMMANN