SB 885
Creates the "Show Me Rural Jobs Act"
LR Number:
Last Action:
3/2/2016 - Hearing Conducted S Jobs, Economic Development and Local Government Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2016

Current Bill Summary

SB 885 - This act creates the Show Me Rural Jobs Act. Under the act, the Department of Agriculture will accept and review applications for approved investment companies that invest in rural business concerns. Applications will include the amount of growth capital the applicant is seeking and a fee. The act requires growth capital to be comprised of 60% or less credit-eligible capital contribution and 40% or more cash investments. The act lists other information that must be included such as evidence that the applicant meets certain criteria and information on the potential benefit to the state. For the credit-eligible capital contributions, each investor must submit an affidavit stating a commitment to make the contribution and the amount.

The Department of Agriculture will approve up to $166,666,667 in growth capital and up to $100,000,000 in credit-eligible capital contributions. The Department of Agriculture can deny an application only for certain enumerated reasons and an applicant has a chance to provide additional information to cure any defect in the application that led to denial. Upon approval, the Department of Agriculture will provide written notice to the applicant with the amount of growth capital and a tax credit certificate for each investor whose affidavit was attached.

Within 60 days of notice of approval, the approved investment company shall collect the credit-eligible capital contributions from the investors who signed affidavits and one or more cash investments that will compose the remaining amount of growth capital. Within 65 days, the approved investment company shall provide the Department of Economic Development with documentation that the amounts have been collected. If the company fails to comply, the Department of Economic Development shall award lapsed growth capital to each approved investment company that received less than it requested. Any remaining capital may be awarded to newly approved companies.

The act creates a non-refundable tax credit for taxpayers making a credit-eligible capital contribution to an investment company. This credit cannot be sold, transferred, or allocated to any other company except an affiliate. The taxpayer may claim up to 20% of the credit for each year after July 1, 2018. If the amount of the credit exceeds the taxpayer's liability for that year, the excess shall be carried forward and claimed during the next five years. The maximum amount of credits claimed by all taxpayers cannot exceed $20,000,000 - not including amounts carried forward from previous years.

The Department of Economic Development shall revoke tax credit certificates issued under this act in several situations depending on the approved investment company's actions. The Department of Economic Development must provide notice to the approved investment company before revoking the tax credit certificates and the company has 90 days to correct any violations to avoid revocation. If the tax credit certificates are revoked, they no longer count toward the limits above and may be reallocated. After 5 years an approved investment company may leave the program. If state and local tax revenues fall short of the amount anticipated in the application, the state may recover a percentage of the distributions.

Each approved investment company must submit a report to the Departments of Agriculture and Economic Development roughly 2 years after it collects the total growth investment. This report must contain specific information. After that, the approved investment company must submit an annual report each April.

This act is identical to HB 1927 (2016).