Tax credit allowed, duration--prohibition on receiving other taxcredits--limitations on issuance of tax credits--cap--eligibilityof certain expansions--employee calculations--computation ofcredit--flow-through tax treatments--credits may be claimed,when--certificates--refunds--verification procedures.
135.967. 1. A taxpayer who establishes a new business facility may,upon approval by the department, be allowed a credit, each tax year for upto ten tax years, in an amount determined as set forth in this section,against the tax imposed by chapter 143, RSMo, excluding withholding taximposed by sections 143.191 to 143.265, RSMo. No taxpayer shall receivemultiple ten-year periods for subsequent expansions at the same facility.
2. Notwithstanding any provision of law to the contrary, any taxpayerwho establishes a new business facility in an enhanced enterprise zone andis awarded state tax credits under this section may not also receive taxcredits under sections 135.100 to 135.150, sections 135.200 to 135.286, orsection 135.535, and may not simultaneously receive tax credits undersections 620.1875 to 620.1890, RSMo, at the same facility.
3. No credit shall be issued pursuant to this section unless:
(1) The number of new business facility employees engaged ormaintained in employment at the new business facility for the taxable yearfor which the credit is claimed equals or exceeds two; and
(2) The new business facility investment for the taxable year forwhich the credit is claimed equals or exceeds one hundred thousand dollars.
4. The annual amount of credits allowed for an approved enhancedbusiness enterprise shall be the lesser of:
(1) The annual amount authorized by the department for the enhancedbusiness enterprise, which shall be limited to the projected state economicbenefit, as determined by the department; or
(2) The sum calculated based upon the following:
(a) A credit of four hundred dollars for each new business facilityemployee employed within an enhanced enterprise zone;
(b) An additional credit of four hundred dollars for each newbusiness facility employee who is a resident of an enhanced enterprisezone;
(c) An additional credit of four hundred dollars for each newbusiness facility employee who is paid by the enhanced business enterprisea wage that exceeds the average wage paid within the county in which thefacility is located, as determined by the department; and
(d) A credit equal to two percent of new business facility investmentwithin an enhanced enterprise zone.
5. Prior to January 1, 2007, in no event shall the departmentauthorize more than four million dollars annually to be issued for allenhanced business enterprises. After December 31, 2006, in no event shallthe department authorize more than twenty-four million dollars annually tobe issued for all enhanced business enterprises.
6. If a facility, which does not constitute a new business facility,is expanded by the taxpayer, the expansion shall be considered eligible forthe credit allowed by this section if:
(1) The taxpayer's new business facility investment in the expansionduring the tax period in which the credits allowed in this section areclaimed exceeds one hundred thousand dollars and if the number of newbusiness facility employees engaged or maintained in employment at theexpansion facility for the taxable year for which credit is claimed equalsor exceeds two, and the total number of employees at the facility after theexpansion is at least two greater than the total number of employees beforethe expansion; and
(2) The taxpayer's investment in the expansion and in the originalfacility prior to expansion shall be determined in the manner provided insubdivision (19) of section 135.950.
7. The number of new business facility employees during any taxableyear shall be determined by dividing by twelve the sum of the number ofindividuals employed on the last business day of each month of such taxableyear. If the new business facility is in operation for less than theentire taxable year, the number of new business facility employees shall bedetermined by dividing the sum of the number of individuals employed on thelast business day of each full calendar month during the portion of suchtaxable year during which the new business facility was in operation by thenumber of full calendar months during such period. For the purpose ofcomputing the credit allowed by this section in the case of a facilitywhich qualifies as a new business facility under subsection 6 of thissection, and in the case of a new business facility which satisfies therequirements of paragraph (c) of subdivision (17) of section 135.950, orsubdivision (25) of section 135.950, the number of new business facilityemployees at such facility shall be reduced by the average number ofindividuals employed, computed as provided in this subsection, at thefacility during the taxable year immediately preceding the taxable year inwhich such expansion, acquisition, or replacement occurred and shallfurther be reduced by the number of individuals employed by the taxpayer orrelated taxpayer that was subsequently transferred to the new businessfacility from another Missouri facility and for which credits authorized inthis section are not being earned, whether such credits are earned becauseof an expansion, acquisition, relocation, or the establishment of a newfacility.
8. In the case where a new business facility employee who is aresident of an enhanced enterprise zone for less than a twelve-month periodis employed for less than a twelve-month period, the credits allowed byparagraph (b) of subdivision (2) of subsection 4 of this section shall bedetermined by multiplying four hundred dollars by a fraction, the numeratorof which is the number of calendar days during the taxpayer's tax year forwhich such credits are claimed, in which the employee was a resident of anenhanced enterprise zone, and the denominator of which is three hundredsixty-five.
9. For the purpose of computing the credit allowed by this section inthe case of a facility which qualifies as a new business facility pursuantto subsection 6 of this section, and in the case of a new business facilitywhich satisfies the requirements of paragraph (c) of subdivision (17) ofsection 135.950 or subdivision (25) of section 135.950, the amount of thetaxpayer's new business facility investment in such facility shall bereduced by the average amount, computed as provided in subdivision (19) ofsection 135.950 for new business facility investment, of the investment ofthe taxpayer, or related taxpayer immediately preceding such expansion orreplacement or at the time of acquisition. Furthermore, the amount of thetaxpayer's new business facility investment shall also be reduced by theamount of investment employed by the taxpayer or related taxpayer which wassubsequently transferred to the new business facility from another Missourifacility and for which credits authorized in this section are not beingearned, whether such credits are earned because of an expansion,acquisition, relocation, or the establishment of a new facility.
10. For a taxpayer with flow-through tax treatment to its members,partners, or shareholders, the credit shall be allowed to members,partners, or shareholders in proportion to their share of ownership on thelast day of the taxpayer's tax period.
11. Credits may not be carried forward but shall be claimed for thetaxable year during which commencement of commercial operations occurs atsuch new business facility, and for each of the nine succeeding taxableyears for which the credit is issued.
12. Certificates of tax credit authorized by this section may betransferred, sold, or assigned by filing a notarized endorsement thereofwith the department that names the transferee, the amount of tax credittransferred, and the value received for the credit, as well as any otherinformation reasonably requested by the department. The sale price cannotbe less than seventy-five percent of the par value of such credits.
13. The director of revenue shall issue a refund to the taxpayer tothe extent that the amount of credits allowed in this section exceeds theamount of the taxpayer's income tax.
14. Prior to the issuance of tax credits, the department shall verifythrough the department of revenue, or any other state department, that thetax credit applicant does not owe any delinquent income, sales, or use taxor interest or penalties on such taxes, or any delinquent fees orassessments levied by any state department and through the department ofinsurance, financial institutions and professional registration that theapplicant does not owe any delinquent insurance taxes. Such delinquencyshall not affect the authorization of the application for such tax credits,except that the amount of credits issued shall be reduced by theapplicant's tax delinquency. If the department of revenue or thedepartment of insurance, financial institutions and professionalregistration, or any other state department, concludes that a taxpayer isdelinquent after June fifteenth but before July first of any year and theapplication of tax credits to such delinquency causes a tax deficiency onbehalf of the taxpayer to arise, then the taxpayer shall be granted thirtydays to satisfy the deficiency in which interest, penalties, and additionsto tax shall be tolled. After applying all available credits toward a taxdelinquency, the administering agency shall notify the appropriatedepartment, and that department shall update the amount of outstandingdelinquent tax owed by the applicant. If any credits remain aftersatisfying all insurance, income, sales, and use tax delinquencies, theremaining credits shall be issued to the applicant, subject to therestrictions of other provisions of law.
Tax credit allowed, duration--prohibition on receiving other taxcredits--limitations on issuance of tax credits--cap--eligibilityof certain expansions--employee calculations--computation ofcredit--flow-through tax treatments--credits may be claimed,when--certificates--refunds--verification procedures.
135.967. 1. A taxpayer who establishes a new business facility may,upon approval by the department, be allowed a credit, each tax year for upto ten tax years, in an amount determined as set forth in this section,against the tax imposed by chapter 143, RSMo, excluding withholding taximposed by sections 143.191 to 143.265, RSMo. No taxpayer shall receivemultiple ten-year periods for subsequent expansions at the same facility.
2. Notwithstanding any provision of law to the contrary, any taxpayerwho establishes a new business facility in an enhanced enterprise zone andis awarded state tax credits under this section may not also receive taxcredits under sections 135.100 to 135.150, sections 135.200 to 135.286, orsection 135.535, and may not simultaneously receive tax credits undersections 620.1875 to 620.1890, RSMo, at the same facility.
3. No credit shall be issued pursuant to this section unless:
(1) The number of new business facility employees engaged ormaintained in employment at the new business facility for the taxable yearfor which the credit is claimed equals or exceeds two; and
(2) The new business facility investment for the taxable year forwhich the credit is claimed equals or exceeds one hundred thousand dollars.
4. The annual amount of credits allowed for an approved enhancedbusiness enterprise shall be the lesser of:
(1) The annual amount authorized by the department for the enhancedbusiness enterprise, which shall be limited to the projected state economicbenefit, as determined by the department; or
(2) The sum calculated based upon the following:
(a) A credit of four hundred dollars for each new business facilityemployee employed within an enhanced enterprise zone;
(b) An additional credit of four hundred dollars for each newbusiness facility employee who is a resident of an enhanced enterprisezone;
(c) An additional credit of four hundred dollars for each newbusiness facility employee who is paid by the enhanced business enterprisea wage that exceeds the average wage paid within the county in which thefacility is located, as determined by the department; and
(d) A credit equal to two percent of new business facility investmentwithin an enhanced enterprise zone.
5. Prior to January 1, 2007, in no event shall the departmentauthorize more than four million dollars annually to be issued for allenhanced business enterprises. After December 31, 2006, in no event shallthe department authorize more than twenty-four million dollars annually tobe issued for all enhanced business enterprises.
6. If a facility, which does not constitute a new business facility,is expanded by the taxpayer, the expansion shall be considered eligible forthe credit allowed by this section if:
(1) The taxpayer's new business facility investment in the expansionduring the tax period in which the credits allowed in this section areclaimed exceeds one hundred thousand dollars and if the number of newbusiness facility employees engaged or maintained in employment at theexpansion facility for the taxable year for which credit is claimed equalsor exceeds two, and the total number of employees at the facility after theexpansion is at least two greater than the total number of employees beforethe expansion; and
(2) The taxpayer's investment in the expansion and in the originalfacility prior to expansion shall be determined in the manner provided insubdivision (19) of section 135.950.
7. The number of new business facility employees during any taxableyear shall be determined by dividing by twelve the sum of the number ofindividuals employed on the last business day of each month of such taxableyear. If the new business facility is in operation for less than theentire taxable year, the number of new business facility employees shall bedetermined by dividing the sum of the number of individuals employed on thelast business day of each full calendar month during the portion of suchtaxable year during which the new business facility was in operation by thenumber of full calendar months during such period. For the purpose ofcomputing the credit allowed by this section in the case of a facilitywhich qualifies as a new business facility under subsection 6 of thissection, and in the case of a new business facility which satisfies therequirements of paragraph (c) of subdivision (17) of section 135.950, orsubdivision (25) of section 135.950, the number of new business facilityemployees at such facility shall be reduced by the average number ofindividuals employed, computed as provided in this subsection, at thefacility during the taxable year immediately preceding the taxable year inwhich such expansion, acquisition, or replacement occurred and shallfurther be reduced by the number of individuals employed by the taxpayer orrelated taxpayer that was subsequently transferred to the new businessfacility from another Missouri facility and for which credits authorized inthis section are not being earned, whether such credits are earned becauseof an expansion, acquisition, relocation, or the establishment of a newfacility.
8. In the case where a new business facility employee who is aresident of an enhanced enterprise zone for less than a twelve-month periodis employed for less than a twelve-month period, the credits allowed byparagraph (b) of subdivision (2) of subsection 4 of this section shall bedetermined by multiplying four hundred dollars by a fraction, the numeratorof which is the number of calendar days during the taxpayer's tax year forwhich such credits are claimed, in which the employee was a resident of anenhanced enterprise zone, and the denominator of which is three hundredsixty-five.
9. For the purpose of computing the credit allowed by this section inthe case of a facility which qualifies as a new business facility pursuantto subsection 6 of this section, and in the case of a new business facilitywhich satisfies the requirements of paragraph (c) of subdivision (17) ofsection 135.950 or subdivision (25) of section 135.950, the amount of thetaxpayer's new business facility investment in such facility shall bereduced by the average amount, computed as provided in subdivision (19) ofsection 135.950 for new business facility investment, of the investment ofthe taxpayer, or related taxpayer immediately preceding such expansion orreplacement or at the time of acquisition. Furthermore, the amount of thetaxpayer's new business facility investment shall also be reduced by theamount of investment employed by the taxpayer or related taxpayer which wassubsequently transferred to the new business facility from another Missourifacility and for which credits authorized in this section are not beingearned, whether such credits are earned because of an expansion,acquisition, relocation, or the establishment of a new facility.
10. For a taxpayer with flow-through tax treatment to its members,partners, or shareholders, the credit shall be allowed to members,partners, or shareholders in proportion to their share of ownership on thelast day of the taxpayer's tax period.
11. Credits may not be carried forward but shall be claimed for thetaxable year during which commencement of commercial operations occurs atsuch new business facility, and for each of the nine succeeding taxableyears for which the credit is issued.
12. Certificates of tax credit authorized by this section may betransferred, sold, or assigned by filing a notarized endorsement thereofwith the department that names the transferee, the amount of tax credittransferred, and the value received for the credit, as well as any otherinformation reasonably requested by the department. The sale price cannotbe less than seventy-five percent of the par value of such credits.
13. The director of revenue shall issue a refund to the taxpayer tothe extent that the amount of credits allowed in this section exceeds theamount of the taxpayer's income tax.
14. Prior to the issuance of tax credits, the department shall verifythrough the department of revenue, or any other state department, that thetax credit applicant does not owe any delinquent income, sales, or use taxor interest or penalties on such taxes, or any delinquent fees orassessments levied by any state department and through the department ofinsurance, financial institutions and professional registration that theapplicant does not owe any delinquent insurance taxes. Such delinquencyshall not affect the authorization of the application for such tax credits,except that the amount of credits issued shall be reduced by theapplicant's tax delinquency. If the department of revenue or thedepartment of insurance, financial institutions and professionalregistration, or any other state department, concludes that a taxpayer isdelinquent after June fifteenth but before July first of any year and theapplication of tax credits to such delinquency causes a tax deficiency onbehalf of the taxpayer to arise, then the taxpayer shall be granted thirtydays to satisfy the deficiency in which interest, penalties, and additionsto tax shall be tolled. After applying all available credits toward a taxdelinquency, the administering agency shall notify the appropriatedepartment, and that department shall update the amount of outstandingdelinquent tax owed by the applicant. If any credits remain aftersatisfying all insurance, income, sales, and use tax delinquencies, theremaining credits shall be issued to the applicant, subject to therestrictions of other provisions of law.
Tax credit allowed, duration--prohibition on receiving other taxcredits--limitations on issuance of tax credits--cap--eligibilityof certain expansions--employee calculations--computation ofcredit--flow-through tax treatments--credits may be claimed,when--certificates--refunds--verification procedures.
135.967. 1. A taxpayer who establishes a new business facility may,upon approval by the department, be allowed a credit, each tax year for upto ten tax years, in an amount determined as set forth in this section,against the tax imposed by chapter 143, RSMo, excluding withholding taximposed by sections 143.191 to 143.265, RSMo. No taxpayer shall receivemultiple ten-year periods for subsequent expansions at the same facility.
2. Notwithstanding any provision of law to the contrary, any taxpayerwho establishes a new business facility in an enhanced enterprise zone andis awarded state tax credits under this section may not also receive taxcredits under sections 135.100 to 135.150, sections 135.200 to 135.286, orsection 135.535, and may not simultaneously receive tax credits undersections 620.1875 to 620.1890, RSMo, at the same facility.
3. No credit shall be issued pursuant to this section unless:
(1) The number of new business facility employees engaged ormaintained in employment at the new business facility for the taxable yearfor which the credit is claimed equals or exceeds two; and
(2) The new business facility investment for the taxable year forwhich the credit is claimed equals or exceeds one hundred thousand dollars.
4. The annual amount of credits allowed for an approved enhancedbusiness enterprise shall be the lesser of:
(1) The annual amount authorized by the department for the enhancedbusiness enterprise, which shall be limited to the projected state economicbenefit, as determined by the department; or
(2) The sum calculated based upon the following:
(a) A credit of four hundred dollars for each new business facilityemployee employed within an enhanced enterprise zone;
(b) An additional credit of four hundred dollars for each newbusiness facility employee who is a resident of an enhanced enterprisezone;
(c) An additional credit of four hundred dollars for each newbusiness facility employee who is paid by the enhanced business enterprisea wage that exceeds the average wage paid within the county in which thefacility is located, as determined by the department; and
(d) A credit equal to two percent of new business facility investmentwithin an enhanced enterprise zone.
5. Prior to January 1, 2007, in no event shall the departmentauthorize more than four million dollars annually to be issued for allenhanced business enterprises. After December 31, 2006, in no event shallthe department authorize more than twenty-four million dollars annually tobe issued for all enhanced business enterprises.
6. If a facility, which does not constitute a new business facility,is expanded by the taxpayer, the expansion shall be considered eligible forthe credit allowed by this section if:
(1) The taxpayer's new business facility investment in the expansionduring the tax period in which the credits allowed in this section areclaimed exceeds one hundred thousand dollars and if the number of newbusiness facility employees engaged or maintained in employment at theexpansion facility for the taxable year for which credit is claimed equalsor exceeds two, and the total number of employees at the facility after theexpansion is at least two greater than the total number of employees beforethe expansion; and
(2) The taxpayer's investment in the expansion and in the originalfacility prior to expansion shall be determined in the manner provided insubdivision (19) of section 135.950.
7. The number of new business facility employees during any taxableyear shall be determined by dividing by twelve the sum of the number ofindividuals employed on the last business day of each month of such taxableyear. If the new business facility is in operation for less than theentire taxable year, the number of new business facility employees shall bedetermined by dividing the sum of the number of individuals employed on thelast business day of each full calendar month during the portion of suchtaxable year during which the new business facility was in operation by thenumber of full calendar months during such period. For the purpose ofcomputing the credit allowed by this section in the case of a facilitywhich qualifies as a new business facility under subsection 6 of thissection, and in the case of a new business facility which satisfies therequirements of paragraph (c) of subdivision (17) of section 135.950, orsubdivision (25) of section 135.950, the number of new business facilityemployees at such facility shall be reduced by the average number ofindividuals employed, computed as provided in this subsection, at thefacility during the taxable year immediately preceding the taxable year inwhich such expansion, acquisition, or replacement occurred and shallfurther be reduced by the number of individuals employed by the taxpayer orrelated taxpayer that was subsequently transferred to the new businessfacility from another Missouri facility and for which credits authorized inthis section are not being earned, whether such credits are earned becauseof an expansion, acquisition, relocation, or the establishment of a newfacility.
8. In the case where a new business facility employee who is aresident of an enhanced enterprise zone for less than a twelve-month periodis employed for less than a twelve-month period, the credits allowed byparagraph (b) of subdivision (2) of subsection 4 of this section shall bedetermined by multiplying four hundred dollars by a fraction, the numeratorof which is the number of calendar days during the taxpayer's tax year forwhich such credits are claimed, in which the employee was a resident of anenhanced enterprise zone, and the denominator of which is three hundredsixty-five.
9. For the purpose of computing the credit allowed by this section inthe case of a facility which qualifies as a new business facility pursuantto subsection 6 of this section, and in the case of a new business facilitywhich satisfies the requirements of paragraph (c) of subdivision (17) ofsection 135.950 or subdivision (25) of section 135.950, the amount of thetaxpayer's new business facility investment in such facility shall bereduced by the average amount, computed as provided in subdivision (19) ofsection 135.950 for new business facility investment, of the investment ofthe taxpayer, or related taxpayer immediately preceding such expansion orreplacement or at the time of acquisition. Furthermore, the amount of thetaxpayer's new business facility investment shall also be reduced by theamount of investment employed by the taxpayer or related taxpayer which wassubsequently transferred to the new business facility from another Missourifacility and for which credits authorized in this section are not beingearned, whether such credits are earned because of an expansion,acquisition, relocation, or the establishment of a new facility.
10. For a taxpayer with flow-through tax treatment to its members,partners, or shareholders, the credit shall be allowed to members,partners, or shareholders in proportion to their share of ownership on thelast day of the taxpayer's tax period.
11. Credits may not be carried forward but shall be claimed for thetaxable year during which commencement of commercial operations occurs atsuch new business facility, and for each of the nine succeeding taxableyears for which the credit is issued.
12. Certificates of tax credit authorized by this section may betransferred, sold, or assigned by filing a notarized endorsement thereofwith the department that names the transferee, the amount of tax credittransferred, and the value received for the credit, as well as any otherinformation reasonably requested by the department. The sale price cannotbe less than seventy-five percent of the par value of such credits.
13. The director of revenue shall issue a refund to the taxpayer tothe extent that the amount of credits allowed in this section exceeds theamount of the taxpayer's income tax.
14. Prior to the issuance of tax credits, the department shall verifythrough the department of revenue, or any other state department, that thetax credit applicant does not owe any delinquent income, sales, or use taxor interest or penalties on such taxes, or any delinquent fees orassessments levied by any state department and through the department ofinsurance, financial institutions and professional registration that theapplicant does not owe any delinquent insurance taxes. Such delinquencyshall not affect the authorization of the application for such tax credits,except that the amount of credits issued shall be reduced by theapplicant's tax delinquency. If the department of revenue or thedepartment of insurance, financial institutions and professionalregistration, or any other state department, concludes that a taxpayer isdelinquent after June fifteenth but before July first of any year and theapplication of tax credits to such delinquency causes a tax deficiency onbehalf of the taxpayer to arise, then the taxpayer shall be granted thirtydays to satisfy the deficiency in which interest, penalties, and additionsto tax shall be tolled. After applying all available credits toward a taxdelinquency, the administering agency shall notify the appropriatedepartment, and that department shall update the amount of outstandingdelinquent tax owed by the applicant. If any credits remain aftersatisfying all insurance, income, sales, and use tax delinquencies, theremaining credits shall be issued to the applicant, subject to therestrictions of other provisions of law.
