SB 36
Establishes the Capitol Complex Tax Credit Act
Sponsor:
LR Number:
0773S.01I
Last Action:
4/19/2021 - Informal Calendar S Bills for Perfection
Journal Page:
Title:
Calendar Position:
Effective Date:
August 28, 2021

Current Bill Summary

SS/SB 36 - This act modifies several provisions relating to tax credits.

BLIGHTED PROPERTY TAX CREDIT

For all tax years beginning on or after January 1, 2022, this act authorizes a tax credit in the amount of $5,000 for a taxpayer that is a first-time home buyer purchasing an eligible blighted property, as described in the act. To be eligible, a taxpayer shall also enter into an agreement with the land clearance for redevelopment authority to use such property as a principal residence for at least two years following rehabilitation of the property, shall purchase the property within one year or contract for purchase within six months of applying for a tax credit, and shall meet certain income requirements as described in the act.

The tax credit authorized by this act shall not be refundable or transferable, but may be carried back for three years or carried forward for five years.

This provision shall sunset after six years unless reauthorized by the General Assembly. (Section 99.720)

This provision is identical to SB 84 (2021) and HB 1588 (2020).

WOOD ENERGY TAX CREDIT

A tax credit for the production of certain wood-energy processed wood products expired on June 30, 2020. This act extends the tax credit until June 30, 2027. (Section 135.305)

This provision is identical to SB 127 (2021), SB 674 (2020), and HB 2274 (2020), and to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020), HCS/SS#2/SB 704 (2020), and SB 454 (2019).

MEAT PROCESSING FACILITIES TAX CREDIT

Current law authorizes the Meat Processing Facility Investment Tax Credit for the expansion or modernization of meat processing facilities, with such tax credit program to expire December 31, 2021. This act extends such tax credit until December 31, 2027.

This act also provides that the maximum amount of tax credits that may be issued to a meat processing facility may be increased by ten percent for meat processing facilities located in a county of the second, third, or fourth class. (Section 135.686)

This provision is substantially similar to SB 355 (2021).

FILM PRODUCTION TAX CREDIT

This act creates the "Show Missouri Film and Digital Media Act".

This act reauthorizes a tax credit for certain expenses related to the production of qualified film production projects in this state, as defined in the act. Tax credits for such expenses under previous law expired on November 28, 2013.

For all tax years beginning on or after January 1, 2021, this act authorizes a tax credit equal to 25% of qualifying in-state expenses, as defined in the act, and 10% of qualifying out-of-state expenses, as defined in the act, associated with the production of a qualified film production project. An additional 5% may be awarded for both qualifying in-state and out-of-state expenses if at least 50% of the qualified film production project is filmed in Missouri. A further additional 5% may be awarded for both qualifying in-state and out-of-state expenses if the Department of Economic Development determines that the script for such project positively markets a city or region of the state, the entire state, or a tourist attraction located in the state. The total dollar amount of tax credits awarded to a qualified film production project may be increased by ten percent if such project is located in a county of the second, third, or fourth class.

This provision shall sunset on December 31, 2027, unless reauthorized by the General Assembly. (Section 135.750)

This provision is substantially similar to SB 367 (2021), SB 366 (2020), HB 923 (2019), HB 1661 (2018), and HB 788 (2017).

URBAN FARMS TAX CREDIT

This act authorizes a tax credit in an amount equal to fifty percent of a taxpayer's expenses incurred in the construction or development of establishing or improving an urban farm in an urban area, as such terms are defined in the act.

The tax credit shall not exceed $5,000 for any single urban farm and shall not be transferable or refundable, but may be carried forward for three years. The total amount of tax credits authorized under this act shall not exceed $100,000 in any calendar year.

This provision shall sunset after six years unless reauthorized by the General Assembly. (Section 135.1610)

This provision is identical to HCS/HB 1586 (2020) and is substantially similar to SB 82 (2021).

AGRICULTURAL PRODUCTION TAX CREDITS

Current law authorizes tax credits for contributions to the Missouri Agriculture and Small Business Development Authority and investments in new generation cooperatives for the purpose of development of agricultural business, with such tax credit programs to expire December 31, 2021. This act extends such tax credits until December 31, 2027. (Section 348.436)

CAPITOL COMPLEX TAX CREDIT

This act creates the Capitol Complex Tax Credit Act.

The Capitol Complex Fund is authorized to receive any eligible monetary donation, as defined in the act, and shall be segregated into two accounts: a rehabilitation and renovation account, and a maintenance account. Ninety percent of the revenues deposited into the fund shall be placed in the rehabilitation and renovation account and seven and one-half percent of revenues deposited in the fund shall be placed in the maintenance account. The remaining two and one-half percent of the funds may be used for the purposes of fundraising, advertising, and administrative costs.

The choice of projects for which money is to be used, as well as the determination of the methods of carrying out the project and the procurement of goods and services, shall be made by the Commissioner of Administration. No moneys shall be released from the fund for any expense without the approval of the Commissioner of Administration.

For all taxable years beginning on or after January 1, 2021, any qualified donor, as defined in the act, shall be allowed a credit against any state income tax (except employer withheld taxes) or state taxes imposed on financial institutions for an amount equal to fifty percent of the monetary donation amount. Any amount of tax credit that exceeds the qualified donor's state income tax liability may be refunded or carried forward for the following four years.

For all taxable years beginning on or after January 1, 2021, a qualified donor shall be allowed a credit against any state income tax (except employer withheld taxes) or state taxes imposed on financial institutions for an amount equal to thirty percent of the value of the eligible artifact donation, as defined in the act. Any amount of tax credit that exceeds the donor's tax liability shall not be refunded for artifacts, but the credit may be carried forward for four subsequent years.

The Department of Economic Development shall not issue tax credits for donations to the Capitol Complex Fund in excess of $10 million per year in the aggregate. Donations received in excess of the cap shall be placed in line for tax credits the following year. Alternatively, a donor may donate without receiving the credit or may request that their donation is returned.

Tax credits issued for donations under this act are not subject to any fee. Tax credits issued under this act may be assigned, transferred, sold, or otherwise conveyed.

This provision shall sunset August 28, 2027, unless reauthorized by the General Assembly.

This provision is identical to SCS/SB 586 (2020) and HCS/HB 1713 (2020), and to a provision contained in HCS/SS/SCS/SB 570 (2020), HCS/SCS/SB 616 (2020), and HCS/SS#2/SB 704 (2020), and is substantially similar to SB 255 (2019) and to a provision contained in SB 545 (2018), HB 2691 (2018) and SCS/SB 6 (2017).

JOSH NORBERG