135.503. Amount of credit, how calculated, reduction--insurance companies not required to pay retaliatory tax, when--carry forward--limitation on amounts of certified capital, allocation of certified
Amount of credit, how calculated, reduction--insurance companiesnot required to pay retaliatory tax, when--carry forward--limitationon amounts of certified capital, allocation of certifiedcapital--notification of limitation.
135.503. 1. Any investor that makes an investment of certifiedcapital shall, in the year of investment, earn a vested credit againststate premium tax liability equal to the applicable percentage of theinvestor's investment of certified capital. An investor shall be entitledto take up to ten percent of the vested credit in any taxable year of theinvestor. Any time after three years after August 28, 1996, the director,with the approval of the commissioner of administration, may reduce theapplicable percentage on a prospective basis. Any such reduction in theapplicable percentage by the director shall not have any effect on creditsagainst state premium tax liability which have been claimed or will beclaimed by any investor with respect to credits which have been earned andvested pursuant to an investment of certified capital prior to theeffective date of any such change.
2. An insurance company claiming a state premium tax credit earnedthrough an investment in a certified capital company shall not be requiredto pay any additional retaliatory tax levied pursuant to section 375.916,RSMo, as a result of claiming such credit.
3. The credit against state premium tax liability which is describedin subsection 1 of this section may not exceed the state premium taxliability of the investor for any taxable year. All such credits againststate premium tax liability may be carried forward indefinitely until thecredits are utilized. The maximum amount of certified capital in one ormore certified capital companies for which earned and vested tax creditswill be allowed in any year to any one investor or its affiliates shall belimited to ten million dollars.
4. Except as provided in subsection 5 of this section, the aggregateamount of certified capital for which earned and vested credits againststate premium tax liability are allowed for all persons pursuant tosections 135.500 to 135.529 shall not exceed the following amounts: forcalendar year 1996, $0.00; for calendar year 1997, an amount which wouldentitle all Missouri certified capital company investors to take aggregatecredits of five million dollars; and for any year thereafter, an additionalamount to be determined by the director but not to exceed aggregate creditsof ten million dollars for any year with the approval of the commissionerof administration and reported to the general assembly as provided insubsection 2 of section 33.282, RSMo, provided that the amount sodetermined shall not impair the ability of an investor with earned andvested credits which have been allowed in previous years to take them,pursuant to subsection 1 of this section. During any calendar year inwhich the limitation described in this subsection will limit the amount ofcertified capital for which earned and vested credits against state premiumtax liability are allowed, certified capital for which credits are allowedwill be allocated in order of priority based upon the date of filing ofinformation described in subdivision (1) of subsection 5 of section135.516. Certified capital limited in any calendar year by the applicationof the provisions of this subsection shall be allowed and allocated in theimmediately succeeding calendar year in the order of priority set forth inthis subsection. The department shall make separate allocations ofcertified capital for which credits are allowed under the limitationsdescribed in this subsection and under the limitations described insubsection 5 of this section.
5. In addition to the maximum amount pursuant to subsection 4 of thissection, the aggregate amount of certified capital for which earned andvested credits against state premium tax liability are allowed for personspursuant to sections 135.500 to 135.529 shall be the following: forcalendar year 1999 and for any year thereafter, an amount to be determinedby the director which would entitle all Missouri certified capital companyinvestors to take aggregate credits not to exceed four million dollars forany year with the approval of the commissioner of administration andreported to the general assembly as provided in subsection 2 of section33.282, RSMo, provided that the amount so determined shall not impair theability of an investor with earned and vested credits which have beenallowed in previous years or pursuant to the provisions of subsection 4 ofthis section to take them, pursuant to subsection 1 of this section. Forpurposes of any requirement regarding the schedule of qualified investmentsfor certified capital for which earned and vested credits against statepremium tax liability are allowed pursuant to this subsection only, thedefinition of a "qualified Missouri business" as set forth in subdivision(14) of subsection 2 of section 135.500 means a Missouri business that islocated in a distressed community as defined in section 135.530, and meetsall of the requirements of subdivision (14) of subsection 2 of section135.500. During any calendar year in which the limitation described inthis subsection limits the amount of additional certified capital for whichearned and vested credits against state premium tax liability are allowed,additional certified capital for which credits are allowed shall beallocated in order of priority based upon the date of filing of informationdescribed in subdivision (1) of subsection 5 of section 135.516 withrespect to such additional certified capital. The department shall makeseparate allocations of certified capital for which credits are allowedunder the limitations described in this subsection and under thelimitations described in subsection 4 of this section. No limitationapplicable to any certified capital company with respect to certifiedcapital for which credits are allowed pursuant to subsection 4 of thissection shall limit the amount of certified capital for which credits areallowed pursuant to this subsection. No limitation applicable to anycertified capital company with respect to certified capital for whichcredits are allowed pursuant to this subsection shall limit the amount ofcertified capital for which credits are allowed pursuant to subsection 4 ofthis section.
6. The department shall advise any Missouri certified capitalcompany, in writing, within fifteen days after receiving the filingdescribed in subdivision (1) of subsection 5 of section 135.516 whether thelimitations of subsection 3 of this section then in effect will beapplicable with respect to the investments and credits described in suchfiling with the department.
(L. 1996 H.B. 1237, A.L. 1997 2d Ex. Sess. S.B. 1, A.L. 1998 H.B. 1656, A.L. 2003 H.B. 289)CROSS REFERENCE:
Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830