HCS/SS/SCS/SB 92 - This act modifies provisions relating to tax credits. INTERN AND APPRENTICE RECRUITMENT TAX CREDIT This act establishes the "Intern and Apprentice Recruitment Act". For all tax years beginning on or after January 1, 2024, this act authorizes an income tax credit for taxpayers who hire an intern or apprentice, as such terms are defined in the act. The tax credit shall be equal to $1,500 for each intern or apprentice hired at a pay rate equal to or greater than the minimum wage, provided that the number of interns and apprentices employed during the tax year exceeds the average number of interns and apprentices employed by the taxpayer for the previous three years, and further provided that the interns and apprentices work a certain number of hours, as described in the act. A taxpayer shall not claim a tax credit pursuant to this act that exceeds $9,000 in a tax year, and the total amount of tax credits authorized by the act shall not exceed $1 million per year. Tax credits authorized by the act shall not be refundable or carried forward, and shall not be transferred, assigned, sold, or otherwise conveyed. A taxpayer shall apply for the tax credit to the Department of Economic Development and shall include information on participation in a qualified apprenticeship program or a copy of the official transcript of an intern, as applicable. This act shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.457) This provision is substantially similar to SB 637 (2023) and to a provision in SS/SCS/HCS/HB 417 (2023) and SCS/HCS/HB 1038 (2023). WORK OPPORTUNITY TAX CREDIT For all tax years beginning on or after January 1, 2024, this act authorizes a taxpayer to claim a tax credit for wages paid by the taxpayer during the tax year to an individual who is in a targeted group, as such term is defined for the federal work opportunity tax credit, and who is employed in the state. The amount of the tax credit shall be the lesser of one hundred percent of the federal work opportunity tax credit claimed for the tax year by the taxpayer or the taxpayer's state income tax liability for the tax year. A nonprofit organization with no state income tax liability may retain withholding tax for such employees in the amount of the tax credit such organization would have be authorized to claim. Tax credits authorized by the act shall not be refundable or carried forward, and shall not be transferred, sold, or assigned. This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.465) This provision is identical to HB 1345 (2023) and is substantially similar to SB 720 (2023). LOCAL HOSPITAL FOUNDATION DONATION TAX CREDIT For all tax years beginning on or after January 1, 2024, this act authorizes a taxpayer to claim a tax credit in an amount equal to fifty percent of the amount the taxpayer's donation made to a local hospital foundation, provided that the tax credit shall not exceed $2,500. A local hospital foundation is defined as any hospital foundation that is exempt from federal taxation and that provides financial relief for unpaid hospital bills for services provided at not-for-profit hospitals to any person whom the foundation deems to be in need of relief. Tax credits authorized by the act shall not be refundable or transferable, but may be carried forward for three subsequent tax years. The maximum amount of tax credits that may be authorized in a tax year shall not exceed $2 million. This provision shall sunset on August 28, 2029, unless reauthorized by the General Assembly. (Section 135.640) This provision is identical to HCS/HB 654 (2023). FOOD PANTRY TAX CREDIT Current law authorizes tax credits for donations made to local food pantries, local soup kitchens, and local homeless shelters, with such tax credits limited to annual authorizations of $1.75 million. This act increases the maximum amount of annual authorizations to $3 million. Additionally, such tax credits are scheduled to sunset on December 31, 2026. This act extends the sunset date to December 31, 2031. (Section 135.647) This provision is identical to HCS/HB 653 (2023), and is substantially similar to SB 488 (2023) and to a provision in SS/SB 143 (2023) and SCS/HCS/HB 154 (2023). ENTERTAINMENT INDUSTRY JOBS ACT This act establishes the "Entertainment Industry Jobs Act". For all tax years beginning on or after January 1, 2024, this act authorizes a taxpayer to claim a tax credit for rehearsal expenses and tour expenses, as such terms are defined in the act, for live entertainment tours and associated rehearsals conducted within the state. The tax credit shall be equal to 30% of such expenses, provided that no taxpayer shall receive a tax credit in excess of $1 million if such taxpayer's expenses are less than $4 million; and further provided that no taxpayer shall receive a tax credit in excess of $2 million if such taxpayer's expenses are more than $4 million but less than $8 million; and further provided that no taxpayer shall receive a tax credit in excess of $3 million if such taxpayer's expenses are at least $8 million. Tax credits issued under this act shall not be refundable, but may be carried forward to the taxpayer's five subsequent tax years. Unredeemed tax credits shall expire after the fifth tax year following the initial date of issuance, regardless of whether unredeemed tax credits are transferred or sold pursuant to the act. Tax credits may be transferred or sold, provided that the tax credit is transferred or sold to another Missouri taxpayer. A taxpayer shall submit information to the Department of Economic Development and the Department of Revenue relating to the identity of a transferee and the amount of tax credits being transferred or sold, as described in the act. A transferee shall not subsequently transfer or sell any tax credit acquired from a transferor, and tax credits shall not be transferred or sold for less than 60% of the value of such tax credits. The aggregate amount of tax credits that may be authorized under the act in a given fiscal year shall not exceed $8 million. If applications for tax credits exceed such amount, the Department of Economic Development may, at its discretion, authorize additional tax credits not to exceed $2 million, provided that the maximum amount of tax credits that may be authorized during the subsequent fiscal year shall be reduced by such amount. This act shall sunset on December 31, 2030, unless reauthorized by the General Assembly. Notwithstanding the sunset provision, this act shall expire ninety days after the Department determines that all other political subdivisions having a tax credit substantially similar to this act let such tax credits lapse or expire. This provision shall become effective January 1, 2024. (Section 135.753) This provision is identical to SB 170 (2023) and to a provision in SS/SCS/SBs 94 et al. (2023), SCS/HCS/HBs 133 & 583 (2023), and HCS/HB 675 (2023), and is substantially similar to a provision in SCS/SBs 961 & 733 (2022). TAX CREDITS FOR CERTAIN FUELS Current law authorizes a tax credit for all tax years beginning on or after January 1, 2023, for the sale of higher ethanol blend fuel and biodiesel fuel and for the production of biodiesel fuel. This act provides that any taxpayer with a tax year beginning prior to January 1, 2023, but ending during the 2023 calendar year shall be allowed a tax credit for the amount of fuel sold or produced during the portion of such tax year that occurs during the 2023 calendar year. Additionally, current law authorizing a tax credit for the production of biodiesel fuel limits the maximum amount of tax credits that may be authorized in a fiscal year to $4 million. This act increases such annual limit to $5.5 million and removes a provision requiring the Department of Revenue to apportion tax credits among biodiesel producers applying for such tax credits. (Sections 135.772 to 135.778) These provisions are identical to SCS/SB 519 (2023) and are substantially similar to HCS/HB 925 (2023) and to provisions in HS/HCS/SS/SB 138 (2023). ANGEL INVESTMENT INCENTIVE ACT This act establishes the Missouri Angel Investment Incentive Act. For all tax years beginning on or after January 1, 2023, this act allows an investor, as defined in the act, to claim a tax credit in an amount equal to fifty percent of the investor's investment in the qualified securities of a qualified Missouri business, as defined in the act, or seventy percent of the investor's investment if the qualified Missouri business is located in certain rural communities, as described in the act. If the amount of the tax credit exceeds the investor's tax liability in any one tax year, the credit may be carried forward for up to five subsequent tax years. No investor shall receive more than fifty thousand dollars in tax credits in a single year for contributions to a single qualified Missouri business, and shall not receive more than two hundred fifty thousand dollars in tax credits in total in a single tax year. A tax credit may be transferred by a qualified investor. The total amount of tax credits authorized in a single tax year by the Missouri Technology Corporation (MTC) shall not exceed six million dollars for the 2023 and 2024 tax years. Thereafter, the maximum amount of tax credits that may be authorized shall be increased annually by 20%, provided that the maximum amount of tax credits was authorized in the previous year. To be designated as a qualified Missouri business, a business shall apply to the MTC, as described in the act. The designation of a business as a qualified Missouri business shall be made annually by the MTC. In addition to other requirements described in the act, a qualified Missouri business shall not have had annual gross revenues of more than five million dollars in the most recent tax year of the business, and the business shall not have been in operation longer than five years if the business is not a bioscience business, or longer than ten years if the business is a bioscience business. Each business that has been allocated tax credits by the MTC shall submit a report containing certain information, as described in the act, to the MTC before such tax credits are issued. The state of Missouri shall not be held liable for any damages to an investor that makes an investment in any qualified security of a qualified Missouri business, any business that applies to be a qualified Missouri business but is turned down, or any investor that makes an investment in a business that applies to be a qualified Missouri business but is turned down. The MTC shall annually review the activities undertaken by this act to ensure they are in compliance with the provisions of the act. If the MTC determines that a business is not in substantial compliance, it may inform the business that such business will lose its designation if it does not come into compliance within one hundred twenty days. If the business does not come into compliance, the MTC may revoke its designation. If a business loses its designation as a qualified Missouri business, it shall be precluded from being allocated any additional tax credits. However, investors in such a business shall be entitled to keep all of the tax credits properly issued prior to the loss of designation by the business. The MTC shall report certain information annually, as described in the act, to the Department of Economic Development, the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives. These provisions shall sunset on December 31, 2032, unless reauthorized by the General Assembly. (Sections 348.273 and 348.274) These provisions are identical to SS/SCS/SB 413 (2023) and are substantially similar to HB 727 (2023), SB 78 (2017), and HB 2302 (2016). RURAL ACCESS TO CAPITAL ACT This act establishes the "Missouri Rural Access to Capital 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 $16 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 $30 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 sixty 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, has its principal business operations in the state, is engaged in certain industries, as described in the act, does not knowingly employ any individual who is unlawfully present in this country, and is located or has committed to locate in a rural area. 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 total number of new jobs, maintained jobs, new payroll, maintained payroll, new revenue, and maintained revenue by each eligible business receiving a qualified investment, 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. At the time a rural fund exits the program, it shall be required to make a distribution to the state, not to exceed ten percent of the amount of tax credits received, if the amount of state and local tax benefits generated by the rural fund's qualified investments are less than the amount of tax credits distributed to the rural fund. These provisions shall sunset on August 28, 2029, unless reauthorized by the General Assembly. (Sections 620.3500 to 620.3530) These provisions are identical to provisions in SS#3/HCS/HB 268 (2023) and are substantially similar to HCS/HB 959 (2023), 675 (2022), HB 1885 (2022), SCS/SB 465 (2021), HB 1361 (2021), SB 724 (2020), SCS/SB 477 (2019), HB 1230 (2019), and HB 1236 (2019), and to provisions in SB 644 (2022), SB 1091 (2022), SCS/SB 750 (2022), and SS/SCS/HB 948 (2021). JOSH NORBERG HA #1 - THIS AMENDMENT CHANGES THE TITLE TO "RELATING TO TAXATION" HA #2 - THIS AMENDMENT MODIFIES THE RURAL ACCESS TO CAPITAL ACT TO MAKE SUCH LANGUAGE IDENTICAL TO PROVISIONS IN SS/HCS/HB 268 (2023) HA #3 - THIS AMENDMENT AUTHORIZES THREE TAX CREDITS RELATING TO THE PROVISION OF CHILD CARE HA #4 - THIS AMENDMENT MODIFIES PROVISIONS OF THE WORK OPPORTUNITY TAX CREDIT TO CORRECT REFERENCES TO FEDERAL LAW HA #1 TO HA #5, HA #5 AS AMENDED - THIS AMENDMENT AUTHORIZES SPORTS WAGERING HA #1 TO HA #6, HA #2 to HA #6, HA #6 AS AMENDED - THIS AMENDMENT AUTHORIZES AN INCOME TAX DEDUCTION FOR BEGINNING FARMERS AND REMOVES THE SUNSET FROM AN INCOME TAX DEDUCTION FOR EMPLOYEE STOCK OWNERSHIP PLANS