Section 620.2600

Title XL ADDITIONAL EXECUTIVE DEPARTMENTS

Chapter 620

Effective - 28 Aug 2014   

  620.2600.  Tax credit authorized — definitions — eligibility — rulemaking authority — sunset provision. — 1.  This section shall be known and may be cited as the "Innovation Campus Tax Credit Act".

  2.  As used in this section, the following terms mean:

  (1)  "Certificate", a tax credit certificate issued under this section;

  (2)  "Department", the Missouri department of economic development;

  (3)  "Eligible donation", donations received from a taxpayer by innovation campuses that are to be used solely for projects that advance learning in the areas of science, technology, engineering, and mathematics.  Eligible donations may include cash, publicly traded stocks and bonds, and real estate that shall and will be valued and documented according to the rules promulgated by the department of economic development;

  (4)  "Innovation education campus" or "innovation campus", as defined in section 178.1100, an educational partnership consisting of at least one of each of the following entities:

  (a)  A local Missouri high school or K-12 school district;

  (b)  A Missouri four-year public or private higher education institution;

  (c)  A Missouri-based business or businesses; and

  (d)  A Missouri two-year public higher education institution or state technical college of Missouri;

  (5)  "Taxpayer", any of the following individuals or entities who make an eligible donation to any innovation campus:

  (a)  A person, firm, partner in a firm, corporation, or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed in chapter 143;

  (b)  A corporation subject to the annual corporation franchise tax imposed in chapter 147;

  (c)  An insurance company paying an annual tax on its gross premium receipts in this state;

  (d)  Any other financial institution paying taxes to the state of Missouri or any political subdivisions of this state under chapter 148;

  (e)  An individual subject to the state income tax imposed in chapter 143;

  (f)  Any charitable organization which is exempt from federal income tax and whose Missouri unrelated business taxable income, if any, would be subject to the state income tax imposed under chapter 143.

  3.  For all taxable years beginning on or after January 1, 2015, any^* taxpayer shall be allowed a credit against the taxes otherwise due under chapters 147, 148, or 143, excluding withholding tax imposed by sections 143.191 to 143.265, in an amount equal to fifty percent of the amount of an eligible donation, subject to the restrictions in this section.  The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state income tax liability in the tax year for which the credit is claimed.  Any amount of credit that the taxpayer is prohibited by this section from claiming in a tax year shall not be refundable, but may be carried forward to any of the taxpayer's four subsequent taxable years.

  4.  To claim the credit authorized in this section, an innovation campus may submit to the department an application for the tax credit authorized by this section on behalf of taxpayers.  The department shall verify that the innovation campus has submitted the following items:

  (1)  A valid application in the form and format required by the department;

  (2)  A statement attesting to the eligible donation received, which shall include the name and taxpayer identification number of the individual or taxpayer making the eligible donation, the amount of the eligible donation, and the date the eligible donation was received by the innovation campus; and

  (3)  Payment from the innovation campus equal to the value of the tax credit for which application is made.  

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If the innovation campus applying for the tax credit meets all criteria required by this subsection, the department shall issue a certificate in the appropriate amount.

  5.  Tax credits issued under this section may be assigned, transferred, sold, or otherwise conveyed, and the new owner of the tax credit shall have the same rights in the credit as the taxpayer.  Whenever a certificate is assigned, transferred, sold, or otherwise conveyed, a notarized endorsement shall be filed with the department specifying the name and address of the new owner of the tax credit and the value of the credit.

  6.  The department may promulgate rules to implement the provisions of this section.  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 under and 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, 2014, shall be invalid and void.

  7.  Under section 23.253 of the Missouri sunset act:

  (1)  The program authorized under this section shall expire six years after August 28, 2014, unless reauthorized by an act of the general assembly; and

  (2)  If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after August 28, 2014; and

  (3)  This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.

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(L. 2014 H.B. 1459 merged with S.B. 729)

*Word "a" appears in H.B. 1459, 2014.

Sunset date 8-28-20

Termination date 9-01-21