SS/SCS/HB 948 - This act modifies provisions relating to tax credits.
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), HB 393 (2021), SB 674 (2020), and HB 2274 (2020), and to a provision contained in SCS/SB 354 (2021), HCS/HB 693 (2021), 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. (Section 135.686)
This provision is identical to SB 355 (2021) and is substantially similar to a provision contained in SCS/SB 354 (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 identical to a provision contained in SS/SCS/SB 354 (2021) and is substantially similar to SB 367 (2021), SB 366 (2020), HB 923 (2019), HB 1661 (2018), and HB 788 (2017).
ALTERNATIVE FUEL TAX CREDITS
For all tax years beginning on or after January 1, 2022, this act authorizes a tax credit for retail dealers selling higher ethanol blend at the retail dealer's service station, as such terms are defined in the act. The credit shall be equal to five cents per gallon of higher ethanol blend sold and dispensed through metered pumps at the service station during the tax year. The tax credit shall be nontransferable and nonrefundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $4 million.
This provision shall sunset on December 31, 2027, unless reauthorized by the General Assembly. (Section 135.755)
This provision is identical to SCS/SB 140 (2021) and substantially similar to HB 601 (2021).
For all tax years beginning on or after January 1, 2022, this act authorizes a tax credit for retail dealers selling biodiesel blends at retail service stations, as set forth in the act. The credit shall be equal to two cents per gallon of biodiesel blend of at least 5% but not more than 10% sold or five cents per gallon of biodiesel blend in excess of 10%. The tax credit shall be nontransferable and refundable. The total amount of tax credits authorized under the act in a given fiscal year shall not exceed $16 million.
The Department of Revenue may work with the Division of Weights and Measures to validate that the biodiesel blend a retail dealer claims for the tax credit authorized under the act contains a sufficient percentage of biodiesel fuel for the tax credit being claimed.
Nothing in the act shall be construed to mandate the sale of biodiesel blends in Missouri.
This provision shall sunset on December 31, 2027, unless reauthorized by the General Assembly. (Section 135.775)
This provision is similar to SCS/SB 96 (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)
This provision is identical to a provision contained in SCS/SB 354 (2021) and HCS/HB 693 (2021).
RURAL WORKFORCE DEVELOPMENT ACT
This act establishes the "Missouri Rural Workforce Development Act", which provides a tax credit for certain investments made in businesses located in rural areas in this state.
This act allows investors to make capital investments in a rural fund, as defined in the act. Such investors shall be allowed a tax credit for a period of six years beginning with the year the investor made a capital investment. The tax credit shall be equal to a percentage of the capital investment. The percentage shall be zero for the first two years, and fifteen percent for the subsequent four years. Tax credits issued under the act shall not be refundable, but may be carried forward to any of the five subsequent tax years, as described in the act. No more than $25 million dollars in tax credits shall be authorized in a given calendar year.
A rural fund wishing to accept investments as capital investments shall apply to the Department of Economic Development. The application shall include the amount of capital investment requested, a copy of the applicant's license as a rural business or small business investment company, evidence that the applicant has made at least $100 million in investments in nonpublic companies located in counties throughout the United States with a population less than fifty thousand, evidence that the applicant has made at least $50 million in investments in nonpublic companies located in Missouri, and a business plan that includes a revenue impact statement projecting state and local tax revenue to be generated by the applicant's proposed qualified investments, as described in the act. The rural fund shall also submit a nonrefundable application fee of $5,000.
The Department shall grant or deny an application within thirty days of receipt. The Department shall deny an application if such application is incomplete or insufficient, if the revenue impact assessment does not demonstrate that the business plan will result in a positive economic impact on the state over a ten year period, or if the Department has already approved the maximum amount of capital investment authority.
Rural funds shall use capital investments made by investors to make qualified investments, as defined in the act, in eligible businesses. An eligible business is a business that, at the time of the qualified investment, has fewer than two hundred fifty employees and has its principal business operations in the state.
The Department may recapture tax credits if the rural fund does not invest sixty percent of its capital investment authority in qualified investments within two years of the date of the capital investment, and one hundred percent of its capital investment authority within three years, if the rural fund fails to maintain qualified investments equal to ninety percent of its capital investment authority in years three through six, as described in the act, if prior to exiting the program or thirty days after the sixth year, the rural fund makes a distribution or payment that results in the fund having less than one hundred percent of its capital investment authority invested in qualified investments, or if the rural fund violates provisions of the act.
Rural funds shall submit annual reports to the Department, including the name and location of each eligible business receiving a qualified investment, the number of jobs created and jobs retained as a result of qualified investments, the average salary of such jobs, and any other information required by the Department, as described in the act.
At any time after the sixth anniversary of the capital investment, a rural fund may apply to the Department to exit the program. The Department shall respond to such application within fifteen days.
The Department shall not accept new applications for tax credits under the act after December 31, 2031.
This provision is substantially similar to SCS/SB 465 (2021), SB 724 (2020), SCS/SB 477 (2019), HB 1230 (2019), and HB 1236 (2019).