135.225. Tax credit for new or expanded business facility, requirements--definitions--apportionment of credits--period for which tax credit granted--election to forfeit and claim tax credit under sect
Tax credit for new or expanded business facility,requirements--definitions--apportionment of credits--period forwhich tax credit granted--election to forfeit and claim taxcredit under section 135.110--vesting of credits and exemptions,when--waiver of credits and exemptions, when.
135.225. 1. The credits otherwise provided by sections 135.100 to135.150 shall upon proper application be granted to any taxpayer who shallestablish and operate a new business facility located within an enterprisezone, except one designated pursuant to subsection 5 of section 135.230, onthe same terms and conditions specified in those sections, except that:
(1) The credit otherwise allowed for each new business facility employeeemployed within an enterprise zone shall be four hundred dollars;
(2) An additional credit of four hundred dollars shall be granted foreach twelve-month period that a new business facility employee is a residentof an enterprise zone;
(3) An additional credit of four hundred dollars shall be granted foreach twelve-month period that the person employed as a new business facilityemployee is a person who, at the time of such employment by the new businessfacility, met the criteria as set forth in section 135.240;
(4) The credit otherwise allowed for new business facility investmentshall be equal to the sum of ten percent of the first ten thousand dollars ofsuch qualifying investment, plus five percent of the next ninety thousanddollars of such qualifying investment, plus two percent of all remainingqualifying investments within an enterprise zone;
(5) In the case of a small corporation described in section 143.471,RSMo, or a partnership, the credits granted by this section shall beapportioned in proportion to the share of ownership of the taxpayer on thelast day of the taxpayer's tax period for which such tax credits are beingclaimed, to the following:
(a) The shareholders of a small corporation described in section143.471, RSMo;
(b) The partners in a partnership;
(6) In the case of financial institutions described pursuant to theprovisions of chapter 148, RSMo, the credits allowed in subdivisions (1), (2),(3) and (4) of this subsection and the credit allowed in section 135.235 maybe used to offset the tax imposed by chapter 148, RSMo, and, in the case of aninsurance company exempt from the thirty-percent employee requirement ofsection 135.230, any obligations imposed pursuant to section 375.916, RSMo,subject to the same method of apportionment as prescribed for taxes imposed bychapter 143, RSMo, and as provided in subdivision (6) of section 135.100 andsubsections 2 and 3 of section 135.110;
(7) If a facility within an enterprise zone, which does not constitute anew business facility, is expanded or improved by the taxpayer within theenterprise zone, the expansion or improvement shall be considered a separatefacility eligible for the credits allowed in this section and section 135.235,and the exemption allowed in section 135.220, if:
(a) The new business facility investment in the expansion or improvementduring the tax period in which such credits and the exemption are claimedexceeds one hundred thousand dollars or, if less than one hundred thousanddollars, is twenty-five percent of the investment in the original facilityprior to expansion or improvement; and
(b) The expansion or improvement otherwise constitutes a new businessfacility; and
(c) The number of new business facility employees engaged or maintainedin employment at the expanded or improved facility for the taxable year forwhich the credit is claimed equals or exceeds two and the total number ofemployees at the facility after expansion or improvement is at least twogreater than the total number of employees before expansion or improvement.The taxpayer's investment in the expansion or improvement and in the originalfacility prior to expansion or improvement shall be determined in the mannerprovided in subdivision (7) of section 135.100;
(8) For the purpose of sections 135.200 to 135.256, an office as definedin subdivision (8) of section 135.100, when established, must create andmaintain at least two new business facility employees as defined insubdivision (5) of section 135.100;
(9) In the case where a person employed by the new business facility isa resident of the enterprise zone for less than a twelve-month period, or inthe case where a person employed as a new business facility employee is aperson who, at the time of such employment by the new business facility, metthe criteria as set forth in section 135.240, is employed for less than atwelve-month period, the credits allowed by subdivisions (2) and (3) of thissubsection shall be determined by multiplying four hundred dollars by afraction, the numerator of which is the number of calendar days during thetaxpayer's tax year for which such credits are claimed, in which the personmet the requirements prescribed in subdivision (2) or (3) of this subsection,and the denominator of which is three hundred and sixty-five, except that suchcredit shall not exceed four hundred dollars per employee in any one taxableyear;
(10) The deferment of tax credit authorized in section 135.120 shall notbe available to taxpayers establishing a new business facility in anenterprise zone;
(11) The allowance for additional ten-year periods to certain newbusiness facilities as prescribed in subsection 1 of section 135.110 shall notbe available to taxpayers expanding a new business facility in an enterprisezone, except that any taxpayer who has been eligible to earn enterprise zonetax benefits for ten tax periods, or until the expiration of the fifteen-yearperiod as prescribed in subsection 1 of section 135.230, or for the maximumperiod otherwise allowed by law, may qualify for the tax credits allowed insection 135.110 if otherwise eligible, pursuant to the same terms andconditions prescribed in sections 135.100 to 135.150;
(12) Taxpayers who establish a new business facility by operating arevenue-producing enterprise as defined in paragraph (d) of subdivision (6) ofsection 135.200 shall not be required to create and maintain new businessfacility employees.
2. The tax credits described in subdivisions (1), (2), (3) and (4) ofsubsection 1 of this section, the training credit allowed in section 135.235,and the income exemption allowed in section 135.220, shall be allowed to anytaxpayer, under the same terms and conditions specified in such sections, whoestablishes a new business facility in an enterprise zone designated pursuantto subsection 5 of section 135.230, except that all such tax benefits shall beremoved not later than seven years after the enterprise zone is designated assuch.
3. Notwithstanding any provision of law to the contrary, any taxpayerwho establishes a new business facility in an enterprise zone, may elect toforfeit the tax credits otherwise allowed in section 135.235 and this sectionand the exemptions otherwise allowed in sections 135.215 and 135.220 and therefund otherwise allowed in section 135.245, and in lieu thereof, claim thetax credits allowed in section 135.110, pursuant to the same terms andconditions prescribed in sections 135.100 to 135.150. To perfect theelection, the taxpayer shall attach written notification of such election tothe taxpayer's initial application for claiming tax credits. The electionshall be irreversible once perfected.
4. The right to receive the income exemption described in section135.220, the tax credits described in subsection 1 of this section and thetraining credit allowed in section 135.235 shall vest in the taxpayer uponcommencement of operations of the revenue-producing enterprise, but suchvested right shall be waived by the taxpayer for any given year in which theterms and conditions of sections 135.100 to 135.268 are not met.Representations made by the department and relied upon in good faith by thetaxpayer shall be binding upon the state of Missouri insofar as they areconsistent with the provisions of this chapter. The provisions of thissubsection shall apply to all revenue-producing enterprises which are eligiblefor incentives pursuant to this subsection and which commenced operation on orafter January 1, 1996, to the extent such incentives do not exceed thefifteen-year limitation pursuant to subsection 1 of section 135.230 or theseven-year limitation pursuant to subsection 5 of section 135.230. Theprovisions of this subsection shall apply to all revenue-producing enterpriseswhich are eligible for the incentives set forth in this subsection, and whichbegan operation after January 1, 1996, to the extent such incentives do notexceed the fifteen-year limitation set forth in subsection 1 of section135.230, or the seven-year limit set forth in subsection 5 of section 135.230.
(L. 1982 H.B. 1713, et al. § 7, A.L. 1983 H.B. 559, A.L. 1986 S.B. 727, A.L. 1991 H.B. 294 & 405, A.L. 1992 S.B. 661 & 620, A.L. 1994 H.B. 1248 & 1048, A.L. 1995 H.B. 414, A.L. 1996 H.B. 1237, A.L. 1997 2d Ex. Sess. S.B. 1, A.L. 1999 H.B. 701)CROSS REFERENCE:
Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830