HB 1288 Modifies provisions relating to tax credits for contributions to certain benevolent organizations

     Handler: Dixon

Current Bill Summary

- Prepared by Senate Research -


SS#2/SCS/HCS/HBs 1288, 1377, & 2050 - This act modifies several provisions relating to tax credits for contributions to certain benevolent organizations.

CHAMPION FOR CHILDREN TAX CREDIT

The Champion for Children Tax Credit is currently scheduled to expire on December 31, 2019. This act reauthorizes the credit until December 31, 2025.

This act also modifies the definition of "child advocacy centers" to include associations based in the state, affiliated with a national association, and organized to provide support to certain regional child assessment centers.

This act also increases the cap on the aggregate amount of tax credits that may be authorized from $1M to $1.5M for all fiscal years beginning on or after July 1, 2019.

This act also provides that such tax credits shall not be transferrable. (Section 135.341)

This provision is substantially similar to a provision contained in SCS/SBs 632 & 675 (2018).

MATERNITY HOMES TAX CREDIT

This act reauthorizes a tax credit for contributions made to maternity homes until June 30, 2024.

The act also modifies the definition of "maternity homes" to require that a maternity home provide services at no cost to clients, and that it not perform, induce, or refer for abortions.

The carry-forward provision for tax credits that exceed a taxpayer's tax liability is shortened from four years to one year. Tax credits shall not be assigned, transferred, or sold.

This act also provides that tax credits shall be issued in the order contributions are received. If the aggregate amount of tax credits redeemed in a fiscal year is less than the aggregate amount authorized, the difference shall be added to the aggregate amount of tax credits that may be authorized in the subsequent fiscal year.

For all fiscal years beginning on or after July 1, 2019, this act increases the amount of tax credits that may be authorized under this program from $2.5 million to $3.5 million. (Section 135.600)

This provision is substantially similar to a provision contained in SCS/SBs 632 & 675 (2018), and is similar to a provision contained in SB 15 (2017).

DIAPER BANK TAX CREDIT

For all fiscal years beginning on or after July 1, 2019, this act authorizes a tax credit in the amount of fifty percent of a contribution to a diaper bank, as defined in the act. The tax credit shall not be refundable or transferrable, but may be carried forward to the subsequent tax year. A tax credit shall not be issued for a contribution of less than $100. No tax credit shall be issued in excess of $50,000, and the total amount of tax credits issued under this act shall not exceed $500,000 in a given fiscal year. If the amount of tax credits authorized in a fiscal year is less than $500,000, the unauthorized amount shall be added to the amount that may be authorized in the next fiscal year.

The Department of Social Services shall establish a procedure by which the Department can ensure that the aggregate amount of tax credits authorized are equally apportioned among all entities classified as diaper banks. If a diaper bank fails to use all of its apportioned tax credits, the Department may reapportion such unused tax credits to diaper banks that have used all of their allotment, as described in the act.

The Department shall annually determine which facilities in the state may be classified as a diaper bank, and the Department shall establish a procedure by which a taxpayer can determine if an entity has been classified as a diaper bank.

This program shall sunset on December 31, 2024, unless reauthorized by the General Assembly. (Section 135.621)

This act also modifies the definition of "domestic and social tax credits" for the purposes of the Tax Credit Accountability Act to include the diaper bank tax credit established under this act. (Section 135.800)

This provision is identical to SCS/SB 1015 (2018), HCB 12 (2018), and to a provision contained in HCS/SCS/SBs 632 & 675 (2018), and is substantially similar to HB 2613 (2018) and HB 2440 (2018).

PREGNANCY RESOURCE CENTER TAX CREDIT

This act reauthorizes a tax credit for contributions made to pregnancy resource centers until December 31, 2024.

Tax credits shall not be assigned, transferred, or sold. If the aggregate amount of tax credits redeemed in a fiscal year is less than the aggregate amount authorized, the difference shall be added to the aggregate amount of tax credits that may be authorized in the subsequent fiscal year.

For all fiscal years beginning on or after July 1, 2019, this act increases the amount of tax credits that may be authorized under this program from $2.5 million to $3.5 million. (Section 135.630)

This provision is substantially similar to a provision contained in HCS/SCS/SBs 632 & 675 (2018), and is similar to a provision contained in SB 15 (2017).

DONATED FOOD TAX CREDIT

This act reauthorizes the Donated Food tax credit until December 31, 2026. Additionally, this act expands such tax credit to include food or cash donated to local soup kitchens or local homeless shelters, as defined in the act, in the taxpayer's area of residence. (Section 135.647)

This provision is identical to HB 2389 (2018), and is substantially similar to SB 804 (2018) and SCS/SB 217 (2017), and to a provision contained in HCS/SCS/SBs 632 & 675 (2018).

TAX CREDIT FOR UNMET NEEDS OF CHILDREN

This act provides a tax credit for any taxpayer who makes a contribution to an eligible provider. Eligible providers shall be organizations that provide funding for the unmet health, hunger, and hygiene needs of children in school. The tax credit shall be in an amount of fifty percent of the value of the contribution.

An eligible provider may submit an application for the tax credit to the Department of Social Services on behalf of a taxpayer, as described in the act.

The tax credits issued under this act shall be transferable and nonrefundable, but may be carried forward to any of the taxpayer's four subsequent taxable years.

This provision shall sunset six years after the effective date of this act unless reauthorized by the General Assembly. (Section 135.1125)

This provision is identical to SB 631 (2018) and SB 517 (2017), and to a provision contained in HCS/SCS/SBs 632 & 675 (2018), and is similar to SB 948 (2016) and HB 428 (2015).

JOSHUA NORBERG


Go to Main Bill Page  |  Return to Summary List  |  Return to Senate Home Page