CCS/SS/SCS/HS/HCS/HB 701 - This act makes revisions in several programs administered by the Department of Economic Development:

This act modifies and clarifies provisions relating to enterprise zone tax credits. The definition of revenue producing enterprise in an enterprise zone is expanded to include the operations of TWA at Kansas City International Airport. The right to New Business Facility and Enterprise Zone tax credits and exemptions is clarified to vest upon commencement of operations. Benefits are re-calculated annually based on statutory requirements applied in the first year. This act also increases the population requirement for Enterprise Zones and satellite zones from 59,000 to 72,000.

New enterprise zones have been added for Randolph County, the city of Lamar in Barton County, portions of Saint Genevieve County and Jefferson County, Portageville in New Madrid County, the city of Ava in Douglas County, and a satellite zone in the city of Independence.

There are two changes in the law relating to distressed communities. This act redefines small business ownership, from owning 50% to owning 20% if the business is located in a distressed community and shortens to minimum time a business must remain in a distressed community to qualify for the tax credit.

Interstate recognition of tax credits is added to the existing section of law which authorizes credit for income tax paid in another state.

This act clarifies that qualified film production tax credits are granted for 50% of expenses related to production activities to qualified film production "projects", rather than production companies.

An income tax credit for the purchase of a dry fire hydrant or provision of water storage for the same is provided in this act. The credit is equal to 50% of the cost, not to exceed $5,000 with in-kind contributions limited to not more than 25% of the total credit claimed. The total amount of available credit is capped at $500,000 per fiscal year.

This act extends the Rural Economic Assistance Program an additional 10 years to expire June 30, 2010. A provision is also made for the Joint Committee on Economic Development Policy and Planning to continue until July of 2010.

The city of Wellston is authorized to use the Business Extension Service Team Fund which is designed to provide grants or loans to distressed urban areas and allows any city using this fund to retain ten percent for administrative costs.

This act establishes a right to appeal any agency decision on state administered tax credits, loans, or abatements to the administrative hearing commission. This act also states that any business employing illegal aliens shall not be eligible for any state tax credits or loan programs for five years.

Certain utilities located in an enterprise zone may lower their commercial rates without Public Service Commission approval.

There are also provisions for increased oversight and reporting of all tax credit programs administered by the department of Economic Development and the Missouri Development Finance Board. The state Auditor is required to perform a cost benefit analysis for programs administered by the Department of Economic Development.

This contains portions of SB 475 and SB 68 and is similar to HS/HCS/SB 518 (TAT).
ELIZABETH BAX