620.6033.  Allocation and issuance of tax credits — immunity from liability, when — annual report by business, contents. — 1.  (1)  The MTC is authorized to allocate tax credits to qualified Missouri businesses, and the department is authorized to issue tax credits to investors in such qualified Missouri businesses.  Such tax credits shall be allocated to those qualified Missouri businesses that, as determined by the MTC, are most likely to provide the greatest economic benefit to the Missouri innovation zone or the state, or both.  The MTC may allocate, and the department may issue, whole or partial tax credits in accordance with the report issued to the director of the department based on the MTC's assessment of the qualified Missouri businesses.  The MTC may consider numerous factors in such assessment including, but not limited to, the quality and experience of the management team, the size of the estimated market opportunity, the risk from current or future competition, the ability to defend intellectual property, the quality and utility of the business model, and the quality and reasonableness of financial projections for the business.

  (2)  Each qualified Missouri business for which the MTC has allocated tax credits such that the department can issue tax credits to the investors of such qualified Missouri business shall submit to the MTC a report before such tax credits are issued.  Such report shall include the following:

  (a)  The name, address, and taxpayer identification number of each investor who has made cash investment in the qualified securities of the qualified Missouri business;

  (b)  Proof of such investment, including copies of the securities' purchase agreements and canceled checks or wire-transfer receipts; and

  (c)  Such other information as may be reasonably required under this section and section 620.6030 or reasonably requested by the department or the MTC.

  2.  (1)  The state of Missouri, the department, or the MTC shall not be held liable for any damages to any investor that makes an investment in any qualified security of a qualified Missouri business, any business that applies to be designated as a qualified Missouri business and is denied, or any investor that makes an investment in a business that applies to be designated as a qualified Missouri business and is denied.

  (2)  Each qualified Missouri business shall have the obligation to notify the MTC, which shall notify the director of the department, of any changes in the qualifications of the business or in the eligibility of investors to claim a tax credit for cash investment in a qualified security.

  (3)  The director of the department, in cooperation with the MTC, shall provide the information specified under subdivision (3) of subsection 4 of this section to the director of the department of revenue on an annual basis.

  (4)  If the MTC determines that a business is not in substantial compliance with the requirements under this section and section 620.6030 to maintain its designation, the department or MTC, by written notice, may inform the business that such business will lose its designation as a qualified Missouri business one hundred twenty days from the date of mailing of the notice unless such business corrects the deficiencies and is once again in compliance with the requirements for designation and provides the MTC with evidence of correcting the deficiencies as the MTC reasonably requests.

  (5)  At the end of the one-hundred-twenty-day period, if the qualified Missouri business is still not in substantial compliance, the department or MTC may send a notice of loss of designation to the business, the director of the department of revenue, and to all known investors in the business.

  (6)  A business may lose its designation as a qualified Missouri business under this section and section 620.6030 by moving either its headquarters outside of Missouri or a substantial number of the jobs created in Missouri to a location outside Missouri within ten years after receiving financial assistance under this section and section 620.6030.

  (7)  In the event that a business loses its designation as a qualified Missouri business, such business shall be precluded from being issued any additional tax credits available under this section and section 620.6030 with respect to the business, shall be precluded from being approved as a qualified Missouri business, and shall be subject to an appropriate clawback provision that the MTC, in cooperation with the department by and through its service on the MTC board of directors, may institute.

  (8)  Investors who lawfully make an investment in a qualified Missouri business shall not have issued tax credits disallowed solely due to the business subsequently losing its designation as a qualified Missouri business.  In the event such qualified business loses its designation as a qualified Missouri business, the amount of tax credits issued under this section and section 620.6030 shall be subject to clawback provisions from the qualified Missouri business, to be determined by the department and the MTC board of directors.

  (9)  The portions of documents and other materials submitted to the department or MTC that contain confidential information shall be kept confidential and shall be maintained in a secured environment.  For the purposes of this section and section 620.6030, confidential information shall include, but not be limited to, such portions of trade secrets, documents, any customer lists, and other materials; any formula, compound, production data, or compilation of information that will allow certain individuals within a commercial concern using such portions of documents and other material the means to fabricate, produce, or compound an article of trade; or any service having commercial value that gives the user an opportunity to obtain a business advantage over competitors who do not know or use such service.

  (10)  The department and the MTC may prepare and adopt procedures, rules, and published guidance concerning the performance of the duties placed upon each respective entity by this section and section 620.6030.

  3.  Any investor who makes a cash investment in a qualified security of a qualified Missouri business may transfer the tax credits such investor may receive under subsection 3 of section 620.6030 to any natural person.  So long as the investor has not claimed the tax credit against the investor's Missouri income tax liability, such transferee may claim the tax credit against the transferee's Missouri income tax liability as provided in subdivision (1) of subsection 3 of section 620.6030, subject to all restrictions and limitations set forth in this section and section 620.6030.  Documentation of any tax credit transfer under this section shall be provided by the investor in the manner established by the MTC and the department by and through its service on the MTC board of directors.

  4.  (1)  Each qualified Missouri business for which tax credits were issued under this section and section 620.6030 shall report to the MTC annually on or before February first.  The MTC shall provide copies of the reports to the department under appropriate confidentiality agreements as may be necessary under the circumstances.  Such reports shall include the following:

  (a)  The name, address, and taxpayer identification number of each investor who has made a cash investment in the qualified securities of the qualified Missouri business and has received tax credits for this investment during the preceding year;

  (b)  The amounts of cash investments by each investor and a description of the qualified securities issued in consideration of such cash investments; and

  (c)  Such other information as may be reasonably required under this section and section 620.6030.

  (2)  The MTC shall report quarterly to the director of the department on the allocation of the tax credits in the preceding calendar quarter.  Such reports shall include:

  (a)  The number of applications received;

  (b)  The number and ratio of successful applications to unsuccessful applications;

  (c)  The amount of tax credits allocated but not issued in the previous quarter, including what percentage was allocated to individuals and what percentage was allocated to investment firms; and

  (d)  Such other information as reasonably agreed upon from time to time.

  (3)  The MTC and the department, as applicable, shall also report annually to the governor, the director of the department of economic development, the president pro tempore of the senate, and the speaker of the house of representatives, on or before April first, on the allocation and issuance of the tax credits.  Such reports shall include:

  (a)  The amount of tax credits issued in the previous fiscal year, including what percentage was issued to individuals and what percentage was issued to investment firms;

  (b)  The types of businesses that benefited from the tax credits;

  (c)  The amount of allocated but unissued tax credits and the information about the unissued tax credits set forth in subdivision (2) of this subsection;

  (d)  Any aggregate job creation or capital investment that resulted from the use of the tax credits for a period of five years beginning from the date on which the tax credits were awarded;

  (e)  The total cash investments made for the purchase of qualified securities of qualified Missouri businesses within the state during the preceding year and cumulatively since the effective date of this section and section 620.6030;

  (f)  An estimate of jobs created and jobs preserved by cash investments made in qualified Missouri businesses within the state;

  (g)  An estimate of the multiplier effect on the economy of the cash investments made under this section and section 620.6030; and

  (h)  Information regarding what businesses deriving benefits from the tax credits remained in the certified Missouri innovation zone, what businesses ceased business, what businesses were purchased, and what businesses may have moved out of a certified Missouri innovation zone or the state.

  (4)  Any violation of the reporting requirements of this subsection by a qualified Missouri business may be grounds for the loss of designation as a qualified Missouri business, and any such business that loses its designation as a qualified Missouri business shall be subject to the restrictions upon loss of designation set forth in subsection 2 of this section.

  5.  Notwithstanding any provision of section 105.1500 to the contrary, any requirement to provide information, documents, or records under any of sections 620.6000 to 620.6033, and any requirement established by the MTC or any state agency to provide information, documents, or records for the purpose of administering any of sections 620.6000 to 620.6033, shall be exempt from section 105.1500 of the personal privacy protection act.

  6.  Tax credits issued under section 620.6030 or this section shall be classified as entrepreneurial tax credits under section 135.800 of the tax credit accountability act.