135.327. Special needs child adoption tax credit--definitions--nonrecurring adoption expenses, amount--individual and business entities tax credit, amount, time for filing application--assignment of t
Special needs child adoption tax credit--definitions--nonrecurringadoption expenses, amount--individual and business entities taxcredit, amount, time for filing application--assignment of taxcredit, when--children in crisis tax credit, amount,verification, time for filing--amount of tax credits redeemed,allocation, availability of unclaimed allocations--applicationprocedure--credit denial resulting in balance due--appropriationcalculation--rulemaking authority--sunset provision.
135.327. 1. As used in this section, the following terms shall mean:
(1) "CASA", an entity which receives funding from the court-appointedspecial advocate fund established under section 476.777, RSMo, including anassociation based in this state, affiliated with a national association,organized to provide support to entities receiving funding from thecourt-appointed special advocate fund;
(2) "Child advocacy centers", the regional child assessment centerslisted in subsection 2 of section 210.001, RSMo;
(3) "Contribution", amount of donation to qualified agency;
(4) "Crisis care center", entities contracted with this state whichprovide temporary care for children whose age ranges from birth throughseventeen years of age whose parents or guardian are experiencing anunexpected and unstable or serious condition that requires immediate actionresulting in short-term care, usually three to five continuous,uninterrupted days, for children who may be at risk for child abuse,neglect, or in an emergency situation;
(5) "Department", the department of revenue;
(6) "Director", the director of the department of revenue;
(7) "Qualified agency", CASA, child advocacy centers, or a crisiscare center;
(8) "Tax liability", the tax due under chapter 143, RSMo, other thantaxes withheld under sections 143.191 to 143.265, RSMo.
2. Any person residing in this state who legally adopts a specialneeds child on or after January 1, 1988, and before January 1, 2000, shallbe eligible to receive a tax credit of up to ten thousand dollars fornonrecurring adoption expenses for each child adopted that may be appliedto taxes due under chapter 143, RSMo. Any business entity providing fundsto an employee to enable that employee to legally adopt a special needschild shall be eligible to receive a tax credit of up to ten thousanddollars for nonrecurring adoption expenses for each child adopted that maybe applied to taxes due under such business entity's state tax liability,except that only one ten thousand dollar credit is available for eachspecial needs child that is adopted.
3. Any person residing in this state who proceeds in good faith withthe adoption of a special needs child on or after January 1, 2000, shall beeligible to receive a tax credit of up to ten thousand dollars fornonrecurring adoption expenses for each child that may be applied to taxesdue under chapter 143, RSMo; provided, however, that beginning on or afterJuly 1, 2004, two million dollars of the tax credits allowed shall beallocated for the adoption of special needs children who are residents orwards of residents of this state at the time the adoption is initiated.Any business entity providing funds to an employee to enable that employeeto proceed in good faith with the adoption of a special needs child shallbe eligible to receive a tax credit of up to ten thousand dollars fornonrecurring adoption expenses for each child that may be applied to taxesdue under such business entity's state tax liability, except that only oneten thousand dollar credit is available for each special needs child thatis adopted.
4. Individuals and business entities may claim a tax credit for theirtotal nonrecurring adoption expenses in each year that the expenses areincurred. A claim for fifty percent of the credit shall be allowed whenthe child is placed in the home. A claim for the remaining fifty percentshall be allowed when the adoption is final. The total of these taxcredits shall not exceed the maximum limit of ten thousand dollars perchild. The cumulative amount of tax credits which may be claimed bytaxpayers claiming the credit for nonrecurring adoption expenses in any onefiscal year prior to July 1, 2004, shall not exceed two million dollars.The cumulative amount of tax credits that may be claimed by taxpayersclaiming the credit for nonrecurring adoption expenses shall not be morethan four million dollars but may be increased by appropriation in anyfiscal year beginning on or after July 1, 2004; provided, however, that byDecember thirty-first following each July, if less than two million dollarsin credits have been issued for adoption of special needs children who arenot residents or wards of residents of this state at the time the adoptionis initiated, the remaining amount of the cap shall be available for theadoption of special needs children who are residents or wards of residentsof this state at the time the adoption is initiated. For all fiscal yearsbeginning on or after July 1, 2006, applications to claim the adoption taxcredit for special needs children who are residents or wards of residentsof this state at the time the adoption is initiated shall be filed betweenJuly first and April fifteenth of each fiscal year. For all fiscal yearsbeginning on or after July 1, 2006, applications to claim the adoption taxcredit for special needs children who are not residents or wards ofresidents of this state at the time the adoption is initiated shall befiled between July first and December thirty-first of each fiscal year.
5. Notwithstanding any provision of law to the contrary, anyindividual or business entity may assign, transfer or sell tax creditsallowed in this section. Any sale of tax credits claimed pursuant to thissection shall be at a discount rate of seventy-five percent or greater ofthe amount sold.
6. The director of revenue shall establish a procedure by which, foreach fiscal year, the cumulative amount of tax credits authorized in thissection is equally apportioned among all taxpayers within the twocategories specified in subsection 3 of this section claiming the credit inthat fiscal year. To the maximum extent possible, the director of revenueshall establish the procedure described in this subsection in such a manneras to ensure that taxpayers within each category can claim all the taxcredits possible up to the cumulative amount of tax credits available forthe fiscal year.
7. For all tax years beginning on or after January 1, 2006, a taxcredit may be claimed in an amount equal to up to fifty percent of averified contribution to a qualified agency and shall be named the childrenin crisis tax credit. The minimum amount of any tax credit issued shallnot be less than fifty dollars and shall be applied to taxes due underchapter 143, RSMo, excluding sections 143.191 to 143.265, RSMo. Acontribution verification shall be issued to the taxpayer by the agencyreceiving the contribution. Such contribution verification shall includethe taxpayer's name, Social Security number, amount of tax credit, amountof contribution, the name and address of the agency receiving the credit,and the date the contribution was made. The tax credit provided under thissubsection shall be initially filed for the year in which the verifiedcontribution is made.
8. The cumulative amount of the tax credits redeemed shall not exceedthe unclaimed portion of the resident adoption category allocation asdescribed in this section. The director of revenue shall determine theunclaimed portion available. The amount available shall be equally dividedamong the three qualified agencies: CASA, child advocacy centers, orcrisis care centers to be used towards tax credits issued. In the eventtax credits claimed under one agency do not total the allocated amount forthat agency, the unused portion for that agency will be made available tothe remaining agencies equally. In the event the total amount of taxcredits claimed for any one agency exceeds the amount available for thatagency, the amount redeemed shall and will be apportioned equally to alleligible taxpayers claiming the credit under that agency. After allchildren in crisis tax credits have been claimed, any remaining unclaimedportion of the reserved allocation for adoptions of special needs childrenwho are residents or wards of residents of this state shall then be madeavailable for adoption tax credit claims of special needs children who arenot residents or wards of residents of this state at the time the adoptionis initiated.
9. Prior to December thirty-first of each year, the entities listedunder the definition of qualified agency shall apply to the department ofsocial services in order to verify their qualified agency status. Upon adetermination that the agency is eligible to be a qualified agency, thedepartment of social services shall provide a letter of eligibility to suchagency. No later than February first of each year, the department ofsocial services shall provide a list of qualified agencies to thedepartment of revenue. All tax credit applications to claim the childrenin crisis tax credit shall be filed between July first and April fifteenthof each fiscal year. A taxpayer shall apply for the children in crisis taxcredit by attaching a copy of the contribution verification provided by aqualified agency to such taxpayer's income tax return.
10. The tax credits provided under this section shall be subject tothe provisions of section 135.333.
11. (1) In the event a credit denial, due to lack of availablefunds, causes a balance-due notice to be generated by the department ofrevenue, or any other redeeming agency, the taxpayer will not be heldliable for any penalty or interest, provided the balance is paid, orapproved payment arrangements have been made, within sixty days from thenotice of denial.
(2) In the event the balance is not paid within sixty days from thenotice of denial, the remaining balance shall be due and payable under theprovisions of chapter 143, RSMo.
12. The director shall calculate the level of appropriation necessaryto issue all tax credits for nonresident special needs adoptions appliedfor under this section and provide such calculation to the speaker of thehouse of representatives, the president pro tempore of the senate, and thedirector of the division of budget and planning in the office ofadministration by January thirty-first of each year.
13. The department may promulgate such rules or regulations as arenecessary to administer the provisions of this section. Any rule orportion of a rule, as that term is defined in section 536.010, RSMo, thatis created under the authority delegated in this section shall becomeeffective only if it complies with and is subject to all of the provisionsof chapter 536, RSMo, and, if applicable, section 536.028, RSMo. Thissection and chapter 536, RSMo, are nonseverable and if any of the powersvested with the general assembly pursuant to chapter 536, RSMo, to review,to delay the effective date, or to disapprove and annul a rule aresubsequently held unconstitutional, then the grant of rulemaking authorityand any rule proposed or adopted after August 28, 2006, shall be invalidand void.
14. Pursuant to section 23.253, RSMo, of the Missouri sunset act:
(1) The provisions of the new program authorized under subsections 7to 12 of this section shall automatically sunset six years after August 28,2006, unless reauthorized by an act of the general assembly; and
(2) If such program is reauthorized, the program authorized underthis section shall automatically sunset twelve years after the effectivedate of the reauthorization of this section; and
(3) This section shall terminate on September first of the calendaryear immediately following the calendar year in which the programauthorized under this section is sunset.
(L. 1987 S.B. 402 § 3, A.L. 1995 H.B. 414, A.L. 1999 H.B. 316, et al., A.L. 2002 S.B. 923, et al., A.L. 2004 H.B. 1453, A.L. 2006 H.B. 1485 merged with S.B. 1229, A.L. 2007 S.B. 86)Effective 6-30-07
Sunset date (for subsections 7 to 12) 8-28-12, unless reauthorized
Termination date (for section) 9-01-13, unless reauthorized
CROSS REFERENCE:
Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830