SB 577 - This act modifies provisions of law relating to tax credits. TAX CREDITS WITH FURTHER AUTHORIZATION PROHIBITED The act prohibits the authorization of further tax credits after August 28, 2014 for the following tax credit programs: the business facility tax credit program, the neighborhood preservation tax credit program, the rebuilding communities tax credit program, the film production tax credit program, the enhanced enterprise zone tax benefit program, the family farm breeding livestock loan tax credit, and the brownfield redevelopment tax credit program. The act also repeals the rolling stock tax credit and the charcoal producers tax credit. The act also prohibits the Department of Economic Development from approving any new notices of intent or entering into any new agreements with qualified manufacturers under the Manufacturing Jobs Act after August 28, 2014. The act also ends tax credits under the qualified beef tax credit program, the wine and grape production tax credit program, the agricultural product utilization contributor tax credit program, and the new generation cooperative incentive tax credit program, effective December 31, 2014. LOW-INCOME HOUSING TAX CREDITS Section 135.350 & 135.352 The act establishes a one hundred ten million dollar cap for authorizations of 9% low-income housing tax credits for FY 2015. For each subsequent fiscal year from FY 2016 to FY 2018, the amount of 9% low-income housing tax credits which may be authorized is gradually reduced such that beginning FY 2018, no more than twenty-seven and a half million dollars in 9% low-income housing tax credits may be authorized each fiscal year. Authorizations of 4% low-income housing tax credits are capped at twenty million dollars for FY 2015. For each subsequent fiscal year, the amount of 4% low-income housing tax credits which may be authorized is reduced by five million dollars, such that after June 30, 2017, no more than five million dollars in 4% low-income housing tax credits may be authorized each fiscal year. The stacking of state 9% low-income housing tax credits with state historic preservation tax credits for the same project is prohibited. The carry-back for low-income housing tax credits is reduced from three years to two years. HISTORIC PRESERVATION TAX CREDITS Sections 253.550, 253.557 & 253.559 Under current law, the Department of Economic Development is prohibited from issuing more than one hundred forty million dollars in historic preservation tax credits in any fiscal year for projects which will receive more than two hundred and seventy-five thousand dollars in tax credits. Beginning fiscal year 2015 for projects receiving at least $275,000 in credits, this act would prohibit the Department of Economic Development from approving more than eighty million dollars in historic preservation tax credits increased by the amount of any recisions of approved applications for such tax credits. For each subsequent fiscal year the amount is reduced by twenty million dollars, so that after fiscal year 2017, no more than twenty million dollars in these historic preservation tax credits may be authorized each fiscal year. Projects which would receive less than $275,000 in tax credits will be subject to a ten million dollar fiscal year cap for fiscal year 2015, which is gradually reduced so that after June 30, 2017, no more than two and a half million dollars in these tax credits may be authorized each fiscal year. The act prohibits the Department from issuing more than one hundred twenty-five thousand dollars in historic preservation tax credits per project for non-income producing residential rehabilitation projects. Applicants for projects that, as of August 28, 2014, have: received approval from the Department of Economic Development; incurred certain levels of expenses; or received certification from the state historical preservation officer will not be subject to the new limitations on tax credit issuance, but will be subject to the current law limitations on tax credit issuance. The act also prohibits the stacking of state historic preservation tax credits with state 9% low-income housing tax credits. Historic preservation tax credits will now be capable of being carried back one year or forward five years. This act is similar to SB 163 (2013). MIKE HAMMANN