SB 0448 Tax Credits: Investments by MO Certified Capital Companies
Committee:WAMELR Number:S1617.01I
Last Action:03/07/95 - Hearing Conducted S Ways & Means Committee
Effective Date:August 28, 1995
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Current Bill Summary

SB 448 - The act provides tax credits for Missouri Certified Capital Companies for investments in "qualified Missouri business", defined in the act as a business headquartered in Missouri, with no more than 300 employees, a majority of whom are employed in Missouri and with gross sales during the last complete fiscal year of less than $7 million.

Any investor who makes an investment in a qualified Missouri business shall receive a credit against state insurance premium tax liability at a percentage of the investment, and the percentage shall be determined by the Department of Economic Development on a case-by-case basis and shall not exceed one hundred and twenty percent.

The certified capital company shall have a funding period of one year from certification by the Department. The Department shall review and approve applicant capital companies and administer the tax credits. The Department shall conduct an annual review of each certified capital company. Violation of the act shall be grounds for decertification which means forfeiture of tax credits for the current and future tax years. The Department may revoke certification for any misrepresentation by the company to the Department.

The act requires the certified capital company to invest at least thirty percent in qualified businesses within 3 years and at least fifty percent within 5 years. Qualified investments must satisfy requirements of Chapter 409, RSMo, regarding regulation of securities. Tax credits may be sold or transferred pursuant to rules promulgated by the Department. The Department may promulgate rules necessary to carry out the requirements of the act, and such rules shall be subject to review and approval of the Joint Committee on Administrative Rules.