135.110. Tax credit for new or expanded business facility--computation--maximum years and amount allowed--no credit allowed a public utility and certain businesses--definitions.
Tax credit for new or expanded business facility--computation--maximumyears and amount allowed--no credit allowed a public utility andcertain businesses--definitions.
135.110. 1. Any taxpayer who shall establish a new business facilityshall be allowed a credit, each year for ten years, in an amount determinedpursuant to subsection 2 or 3 of this section, whichever is applicable,against the tax imposed by chapter 143, RSMo, excluding withholding taximposed by sections 143.191 to 143.265, RSMo, or an insurance company whichshall establish a new business facility by satisfying the requirements insubdivision (7) of section 135.100 shall be allowed a credit against thetax otherwise imposed by chapter 148, RSMo, and in the case of an insurancecompany exempt from the thirty percent employee requirement of section135.230, against any obligation imposed pursuant to section 375.916, RSMo,except that no taxpayer shall be entitled to multiple ten-year periods forsubsequent expansions at the same facility, except as otherwise provided inthis section. For the purpose of this section, the term "facility" shallmean, and be limited to, the facility or facilities which are located onthe same site in which the new business facility is located, and in whichthe business conducted at such facility or facilities is directly relatedto the business conducted at the new business facility. Notwithstandingthe provisions of this subsection, a taxpayer may be entitled to anadditional ten-year period if a new business facility is expanded in theeighth, ninth or tenth year of the current ten-year period or in subsequentyears following the expiration of the ten-year period, if the number of newbusiness facility employees attributed to such expansion is at leasttwenty-five and the amount of new business facility investment attributedto such expansion is at least one million dollars. Credits may not becarried forward but shall be claimed for the taxable year during whichcommencement of commercial operations occurs at such new business facility,and for each of the nine succeeding taxable years. A letter of intent, asprovided for in section 135.258, must be filed with the department ofeconomic development no later than fifteen days prior to the commencementof commercial operations at the new business facility. The initialapplication for claiming tax credits must be made in the taxpayer's taxperiod immediately following the tax period in which commencement ofcommercial operations began at the new business facility. This provisionshall have effect on all initial applications filed on or after August 28,1992. No credit shall be allowed pursuant to this section unless thenumber of new business facility employees engaged or maintained inemployment at the new business facility for the taxable year for which thecredit is claimed equals or exceeds two; except that the number of newbusiness facility employees engaged or maintained in employment by arevenue-producing enterprise other than a revenue-producing enterprisedefined in paragraphs (a) to (g) and (i) to (l) of subdivision (11) ofsection 135.100 which establishes an office as defined in subdivision (8)of section 135.100 shall equal or exceed twenty-five.
2. For tax periods beginning after August 28, 1991, in the case of ataxpayer operating an existing business facility, the credit allowed bysubsection 1 of this section shall offset the greater of:
(1) Some portion of the income tax otherwise imposed by chapter 143,RSMo, excluding withholding tax imposed by sections 143.191 to 143.265,RSMo, or in the case of an insurance company, the tax on the directpremiums, as defined in chapter 148, RSMo, and in the case of an insurancecompany exempt from the thirty percent employee requirement of section135.230, against any obligation imposed pursuant to section 375.916, RSMo,with respect to such taxpayer's new business facility income for thetaxable year for which such credit is allowed; or
(2) Up to fifty percent or, in the case of an economic developmentproject located within a distressed community as defined in section135.530, seventy-five percent of the business income tax otherwise imposedby chapter 143, RSMo, excluding withholding tax imposed by sections 143.191to 143.265, RSMo, or in the case of an insurance company, the tax on thedirect premiums, as defined in chapter 148, RSMo, and in the case of aninsurance company exempt from the thirty percent employee requirement ofsection 135.230, against any obligation imposed pursuant to section375.916, RSMo, if the business operates no other facilities in Missouri.In the case of an existing business facility operating more than onefacility in Missouri, the credit allowed in subsection 1 of this sectionshall offset up to the greater of the portion prescribed in subdivision (1)of this subsection or twenty-five percent or, in the case of an economicdevelopment project located within a distressed community as defined insection 135.530, thirty-five percent of the business' tax, except that notaxpayer operating more than one facility in Missouri shall be allowed tooffset more than twenty-five percent or, in the case of an economicdevelopment project located within a distressed community as defined insection 135.530, thirty-five percent of the taxpayer's business income taxin any tax period under the method prescribed in this subdivision. Suchcredit shall be an amount equal to the sum of one hundred dollars or, inthe case of an economic development project located within a distressedcommunity as defined in section 135.530, one hundred fifty dollars for eachnew business facility employee plus one hundred dollars or, in the case ofan economic development project located within a distressed community asdefined in section 135.530, one hundred fifty dollars for each one hundredthousand dollars, or major fraction thereof (which shall be deemed to befifty-one percent or more) in new business facility investment. For thepurpose of this section, tax credits earned by a taxpayer, who establishesa new business facility because it satisfies the requirements of paragraph(c) of subdivision (4) of section 135.100, shall offset the greater of theportion prescribed in subdivision (1) of this subsection or up to fiftypercent or, in the case of an economic development project located within adistressed community as defined in section 135.530, seventy-five percent ofthe business' tax provided the business operates no other facilities inMissouri. In the case of a business operating more than one facility inMissouri, the credit allowed in subsection 1 of this section shall offsetup to the greater of the portion prescribed in subdivision (1) of thissubsection or twenty-five percent or, in the case of an economicdevelopment project located within a distressed community as defined insection 135.530, thirty-five percent of the business' tax, except that notaxpayer operating more than one facility in Missouri shall be allowed tooffset more than twenty-five percent or, in the case of an economicdevelopment project located within a distressed community as defined insection 135.530, thirty-five percent of the taxpayer's business income taxin any tax period under the method prescribed in this subdivision.
3. For tax periods beginning after August 28, 1991, in the case of ataxpayer not operating an existing business facility, the credit allowed bysubsection 1 of this section shall offset the greater of:
(1) Some portion of the income tax otherwise imposed by chapter 143,RSMo, excluding withholding tax imposed by sections 143.191 to 143.265,RSMo, or in the case of an insurance company, the tax on the directpremiums, as defined in chapter 148, RSMo, and in the case of an insurancecompany exempt from the thirty percent employee requirement of section135.230, against any obligation imposed pursuant to section 375.916, RSMo,with respect to such taxpayer's new business facility income for thetaxable year for which such credit is allowed; or
(2) Up to one hundred percent of the business income tax otherwiseimposed by chapter 143, RSMo, excluding withholding tax imposed by sections143.191 to 143.265, RSMo, or in the case of an insurance company, the taxon the direct premiums, as defined in chapter 148, RSMo, and in the case ofan insurance company exempt from the thirty percent employee requirement ofsection 135.230, against any obligation imposed pursuant to section375.916, RSMo, if the business has no other facilities operating inMissouri. In the case of a taxpayer not operating an existing business andoperating more than one facility in Missouri, the credit allowed bysubsection 1 of this section shall offset up to the greater of the portionprescribed in subdivision (1) of this subsection or twenty-five percent or,in the case of an economic development project located within a distressedcommunity as defined in section 135.530, thirty-five percent of thebusiness' tax, except that no taxpayer operating more than one facility inMissouri shall be allowed to offset more than twenty-five percent or, inthe case of an economic development project located within a distressedcommunity as defined in section 135.530, thirty-five percent of thetaxpayer's business income tax in any tax period under the methodprescribed in this subdivision. Such credit shall be an amount equal tothe sum of seventy-five dollars or, in the case of an economic developmentproject located within a distressed community as defined in section135.530, one hundred twenty-five dollars for each new business facilityemployee plus seventy-five dollars or, in the case of an economicdevelopment project located within a distressed community as defined insection 135.530, one hundred twenty-five dollars for each one hundredthousand dollars, or major fraction thereof (which shall be deemed to befifty-one percent or more) in new business facility investment.
4. 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 because it qualifies as aseparate facility pursuant to subsection 6 of this section, and, in thecase of a new business facility which satisfies the requirements ofparagraph (c) of subdivision (4) of section 135.100, or subdivision (10) ofsection 135.100, the number of new business facility employees at suchfacility shall be reduced by the average number of individuals employed,computed as provided in this subsection, at the facility during the taxableyear immediately preceding the taxable year in which such expansion,acquisition, or replacement occurred and shall further be reduced by thenumber of individuals employed by the taxpayer or related taxpayer that 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.
5. For the purpose of computing the credit allowed by this section inthe case of a facility which qualifies as a new business facility becauseit qualifies as a separate facility pursuant to subsection 6 of thissection, and, in the case of a new business facility which satisfies therequirements of paragraph (c) of subdivision (4) of section 135.100 orsubdivision (10) of section 135.100, the amount of the taxpayer's newbusiness facility investment in such facility shall be reduced by theaverage amount, computed as provided in subdivision (7) of section 135.100for new business facility investment, of the investment of the taxpayer, orrelated taxpayer immediately preceding such expansion or replacement or atthe time of acquisition. Furthermore, the amount of the taxpayer's newbusiness facility investment shall also be reduced by the amount ofinvestment 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.
6. If a facility, which does not constitute a new business facility,is expanded by the taxpayer, the expansion shall be considered a separatefacility eligible for the 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, or, if less, one hundredpercent of the investment in the original facility prior to expansion andif the number of new business facility employees engaged or maintained inemployment at the expansion facility for the taxable year for which creditis claimed equals or exceeds two, except that the number of new businessfacility employees engaged or maintained in employment at the expansionfacility for the taxable year for which the credit is claimed equals orexceeds twenty-five if an office as defined in subdivision (8) of section135.100 is established by a revenue-producing enterprise other than arevenue-producing enterprise defined in paragraphs (a) to (g) and (i) to(l) of subdivision (11) of section 135.100 and the total number ofemployees at the facility after the expansion is at least two greater thanthe total number of employees before the expansion, except that the totalnumber of employees at the facility after the expansion is at least greaterthan the number of employees before the expansion by twenty-five, if anoffice as defined in subdivision (8) of section 135.100 is established by arevenue-producing enterprise other than a revenue-producing enterprisedefined in paragraphs (a) to (g) and (i) to (l) of subdivision (11) ofsection 135.100; and
(2) The expansion otherwise constitutes a new business facility. Thetaxpayer's investment in the expansion and in the original facility priorto expansion shall be determined in the manner provided in subdivision (7)of section 135.100.
7. No credit shall be allowed pursuant to this section to a publicutility, as such term is defined in section 386.020, RSMo. Notwithstandingany provision of this subsection to the contrary, motor carriers, bargelines or railroads engaged in transporting property for hire, or anyinterexchange telecommunications company or local exchangetelecommunications company that establishes a new business facility shallbe eligible to qualify for credits allowed in this section.
8. For the purposes of the credit described in this section, in thecase of a corporation described in section 143.471, RSMo, or partnership,in computing Missouri's tax liability, this credit shall be allowed to thefollowing:
(1) The shareholders of the corporation described in section 143.471,RSMo;
(2) The partners of the partnership.
This credit shall be apportioned to the entities described in subdivisions(1) and (2) of this subsection in proportion to their share of ownership onthe last day of the taxpayer's tax period.
9. Notwithstanding any provision of law to the contrary, anyemployee-owned engineering firm classified as SIC 8711, architectural firmas classified SIC 8712, or accounting firm classified SIC 8721 establishinga new business facility because it qualifies as a headquarters as definedin subsection 10 of this section, shall be allowed the credits described insubsection 11 of this section under the same terms and conditionsprescribed in sections 135.100 to 135.150; provided:
(1) Such facility maintains an average of at least five hundred newbusiness facility employees as defined in subdivision (5) of section135.100 during the taxpayer's tax period in which such credits are beingclaimed; and
(2) Such facility maintains an average of at least twenty milliondollars in new business facility investment as defined in subdivision (7)of section 135.100 during the taxpayer's tax period in which such creditsare being claimed.
10. For the purpose of the credits allowed in subsection 9 of thissection:
(1) "Employee-owned" means the business employees own directly orindirectly, including through an employee stock ownership plan or trust atleast:
(a) Seventy-five percent of the total business stock, if the taxpayeris a corporation described in section 143.441, RSMo; or
(b) One hundred percent of the interest in the business if thetaxpayer is a corporation described in section 143.471, RSMo, apartnership, or a limited liability company; and
(2) "Headquarters" means:
(a) The administrative management of at least three integratedfacilities operated by the taxpayer or related taxpayer; and
(b) The taxpayer's business has been headquartered in this state formore than fifty years.
11. The tax credits allowed in subsection 9 of this section shall bethe greater of:
(1) Four hundred dollars for each new business facility employee ascomputed in subsection 4 of this section and four percent of new businessfacility investment as computed in subsection 5 of this section; or
(2) Five hundred dollars for each new business facility employee ascomputed in subsection 4 of this section, and five hundred dollars of eachone hundred thousand dollars of new business facility investment ascomputed in subsection 5 of this section.
12. For the purpose of the credit described in subsection 9 of thissection, in the case of a small corporation described in section 143.471,RSMo, or a partnership, or a limited liability company, the credits allowedin subsection 9 of this section shall be apportioned in proportion to theshare of ownership of each shareholder, partner or stockholder on the lastday of the taxpayer's tax period for which such credits are being claimed.
13. For the purpose of the credit described in subsection 9 of thissection, tax credits earned, to the extent such credits exceed thetaxpayer's Missouri tax on taxable business income, shall constitute anoverpayment of taxes and in such case, be refunded to the taxpayer providedsuch refunds are used by the taxpayer to purchase specified facility items.For the purpose of the refund as authorized in this subsection, "specifiedfacility items" means equipment, computers, computer software, copiers,tenant finishing, furniture and fixtures installed and in use at the newbusiness facility during the taxpayer's taxable year. The taxpayer shallperfect such refund by attesting in writing to the director, subject to thepenalties of perjury, the requirements prescribed in this subsection havebeen met and submitting any other information the director may require.
14. Notwithstanding any provision of law to the contrary, anytaxpayer may sell, assign, exchange, convey or otherwise transfer taxcredits allowed in subsection 9 of this section under the terms andconditions prescribed in subdivisions (1) and (2) of this subsection. Suchtaxpayer, referred to as the assignor for the purpose of this subsection,may sell, assign, exchange or otherwise transfer earned tax credits:
(1) For no less than seventy-five percent of the par value of suchcredits; and
(2) In an amount not to exceed one hundred percent of such earnedcredits. The taxpayer acquiring the earned credits referred to as theassignee for the purpose of this subsection may use the acquired credits tooffset up to one hundred percent of the tax liabilities otherwise imposedby chapter 143, RSMo, excluding withholding tax imposed by sections 143.191to 143.261, RSMo, or chapter 148, RSMo, or in the case of an insurancecompany exempt from the thirty percent employee requirement of section135.230, against any obligation imposed pursuant to section 375.916, RSMo.Unused credits in the hands of the assignee may be carried forward for upto five tax periods, provided all such credits shall be claimed within tentax periods following the tax period in which commencement of commercialoperations occurred at the new business facility. The assignor shall enterinto a written agreement with the assignee establishing the terms andconditions of the agreement and shall perfect such transfer by notifyingthe director in writing within thirty calendar days following the effectivedate of the transfer and shall provide any information as may be requiredby the director to administer and carry out the provisions of thissubsection. Notwithstanding any other provision of law to the contrary,the amount received by the assignor of such tax credit shall be taxable asincome of the assignor, and the difference between the amount paid by theassignee and the par value of the credits shall be taxable as income of theassignee.
(L. 1980 S.B. 644 § 2, A.L. 1983 H.B. 54, A.L. 1986 S.B. 727 merged with H.B. 1554 Revision, A.L. 1991 H.B. 294 & 405, H.B. 608, A.L. 1992 S.B. 661 & 620, A.L. 1993 H.B. 566, A.L. 1995 H.B. 414, A.L. 1996 H.B. 1237, A.L. 1998 H.B. 1656 merged with S.B. 827)Effective 8-28-98 (S.B. 827) 1-1-99 (H.B. 1656)
CROSS REFERENCE:
Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830