§ 620.3530 — Report, contents — program considered a business tax recruitment tax credit — exit of program request — sunset provision — rulemaking authority.

Missouri § 620.3530

• Jurisdiction: Missouri
• Title XL: ADDITIONAL EXECUTIVE DEPARTMENTS
• Ch. 620: Department of Economic Development

Text

1.  Rural funds shall submit a report to the department within the first fifteen business days after the second and third credit allowance date.  The report following the second credit allowance date shall provide documentation as to the investment of sixty percent of the purchase price of such capital investment in qualified investments.  The report following the third credit allowance date shall provide documentation as to the investment of one hundred percent of the purchase price of such capital investment in qualified investments.  For all subsequent years, rural funds shall submit an annual report to the department within ninety days of the beginning of the calendar year during the compliance period.  Unless previously reported pursuant to this subsection, such reports shall also include:

(1)  The name and location of each eligible business receiving a qualified investment;

(2)  Bank statements of such rural fund evidencing each qualified investment;

(3)  A copy of the written opinion of the department, as provided in subsection 3 of section 620.3515 , or evidence that such business was an eligible business at the time of such qualified investment, as applicable;

(4)  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 from a rural fund;

(5)  A revenue impact assessment projecting state and local tax revenue actually generated and projected to be generated from a rural fund's qualified investments, prepared by a nationally recognized, third-party, independent firm engaged by the rural fund, in agreement with the department, that uses a dynamic forecasting model that projects the direct and indirect state and local tax revenue for a period of not less than ten years; and

(6)  Such other information as required by the department.

2.  The program authorized pursuant to sections 620.3500 to 620.3530 shall be considered a business recruitment tax credit under subdivision (3) * of subsection 2 of section 135.800 , and any rural fund approved under this program shall be subject to the provisions of sections 135.800 to 135.830 .

3.  On or after the sixth anniversary of the initial credit allowance date, a rural fund may apply to the department to exit the program and no longer be subject to regulation under the provisions of sections 620.3500 to 620.3530 .  Such request shall be on a form developed by the department to be completed by the rural fund.  The department shall respond to the exit application within thirty days of receipt of the completed form.  In evaluating the exit application, the fact that no credits have been recaptured and that the rural fund has not received a notice of recapture that has not been cured pursuant to subsection 4 of section 620.3520 shall be sufficient evidence to prove that the rural fund is eligible for exit.  The department shall not unreasonably deny, delay, or withhold its determination of an exit application submitted under this subsection.  If the exit application is denied, the notice shall include the reasons for such determination.

4.  Upon exit from the program in accordance with subsection 3 of this section, in the event the state sharing ratio is less than one, the state shall receive a share of distributions made with respect to the capital investment raised by the rural fund equal to one minus the state sharing ratio multiplied by the amount of tax credit equity contributed by the investors of the rural investor in exchange for the tax credits authorized pursuant to sections 620.3500 to 620.3530 , provided the rural fund may make distributions to make payments on the leverage source in an amount not to exceed principal and interest owed on the leverage source.

5.  Pursuant to section 23.253 of the Missouri sunset act:

(1)  The program authorized under sections 620.3500 to 620.3530 shall expire six years after August 28, 2024, unless reauthorized by the general assembly; and

(2)  Sections 620.3500 to 620.3530 shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under sections 620.3500 to 620.3530 is sunset; and

(3)  If such program is reauthorized, the program authorized under sections 620.3500 to 620.3530 shall automatically sunset six years after the effective date of the reauthorization of sections 620.3500 to 620.3530 ; and

(4)  Nothing in this subsection shall preclude a rural fund that has received certified capital investment authority from the department prior to the expiration of sections 620.3500 to 620.3530 from issuing the capital investment pursuant to that authority in accordance with sections 620.3500 to 620.3530 .

6.  The department may adopt such rules, statements of policy, procedures, forms, and guidelines as may be necessary to carry out the provisions of sections 620.3500 to 620.3530 .  Any rule or portion of a rule, as that term is defined in section 536.010 , that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028 .  This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2024, shall be invalid and void.

Legislative History

(L. 2024 S.B. 802) *Subdivision (4) appears in original rolls. Sunset date 8-28-30 Termination date 9-01-31