253.559. Procedure for approval of tax credit--eligibility, how determined--certificate required.
Procedure for approval of tax credit--eligibility, howdetermined--certificate required.
253.559. 1. To obtain approval for tax credits allowed under sections253.545 to 253.559, a taxpayer shall submit an* application for tax credits tothe department of economic development. Each application for approval,including any applications received for supplemental allocations of taxcredits as provided under subsection 8 of this section, shall be prioritizedfor review and approval, in the order of the date on which the application waspostmarked, with the oldest postmarked date receiving priority. Applicationspostmarked on the same day shall go through a lottery process to determine theorder in which such applications shall be reviewed.
2. Each application shall be reviewed by the department of economicdevelopment for approval. In order to receive approval, an application, otherthan applications submitted under the provisions of subsection 8 of thissection, shall include:
(1) Proof of ownership or site control. Proof of ownership shallinclude evidence that the taxpayer is the fee simple owner of the eligibleproperty, such as a warranty deed or a closing statement. Proof of sitecontrol may be evidenced by a leasehold interest or an option to acquire suchan interest. If the taxpayer is in the process of acquiring fee simpleownership, proof of site control shall include an executed sales contract oran executed option to purchase the eligible property;
(2) Floor plans of the existing structure, architectural plans, and,where applicable, plans of the proposed alterations to the structure, as wellas proposed additions;
(3) The estimated cost of rehabilitation, the anticipated total costs ofthe project, the actual basis of the property, as shown by proof of actualacquisition costs, the anticipated total labor costs, the estimated projectstart date, and the estimated project completion date;
(4) Proof that the property is an eligible property and a certifiedhistoric structure or a structure in a certified historic district; and
(5) Any other information which the department of economic developmentmay reasonably require to review the project for approval.
Only the property for which a property address is provided in the applicationshall be reviewed for approval. Once selected for review, a taxpayer shallnot be permitted to request the review of another property for approval in theplace of the property contained in such application. Any disapprovedapplication shall be removed from the review process. If an application isremoved from the review process, the department of economic development shallnotify the taxpayer in writing of the decision to remove such application.Disapproved applications shall lose priority in the review process. Adisapproved application, which is removed from the review process, may beresubmitted, but shall be deemed to be a new submission for purposes of thepriority procedures described in this section.
3. If the department of economic development deems the applicationsufficient, the taxpayer shall be notified in writing of the approval for anamount of tax credits equal to the amount provided under section 253.550 lessany amount of tax credits previously approved. Such approvals shall begranted to applications in the order of priority established under thissection and shall require full compliance thereafter with all otherrequirements of law as a condition to any claim for such credits.
4. Following approval of an application, the identity of the taxpayercontained in such application shall not be modified except:
(1) The taxpayer may add partners, members, or shareholders as part ofthe ownership structure, so long as the principal remains the same, providedhowever, that subsequent to the commencement of renovation and the expenditureof at least ten percent of the proposed rehabilitation budget, removal of theprincipal for failure to perform duties and the appointment of a new principalthereafter shall not constitute a change of the principal; or
(2) Where the ownership of the project is changed due to a foreclosure,deed in lieu of a foreclosure or voluntary conveyance, or a transfer inbankruptcy.
5. In the event that the department of economic development grantsapproval for tax credits equal to the total amount available under subsection2 of section 253.550, or sufficient that when totaled with all otherapprovals, the amount available under subsection 2 of section 253.550 isexhausted, all taxpayers with applications then awaiting approval orthereafter submitted for approval shall be notified by the department ofeconomic development that no additional approvals shall be granted during thefiscal year and shall be notified of the priority given to such taxpayer'sapplication then awaiting approval. Such applications shall be kept on fileby the department of economic development and shall be considered for approvalfor tax credits in the order established in this section in the event thatadditional credits become available due to the rescission of approvals or whena new fiscal year's allocation of credits becomes available for approval.
6. All taxpayers with applications receiving approval on or after theeffective date of this act** shall commence rehabilitation within two years ofthe date of issuance of the letter from the department of economic developmentgranting the approval for tax credits. "Commencement of rehabilitation" shallmean that as of the date in which actual physical work, contemplated by thearchitectural plans submitted with the application, has begun, the taxpayerhas incurred no less than ten percent of the estimated costs of rehabilitationprovided in the application. Taxpayers with approval of a project shallsubmit evidence of compliance with the provisions of this subsection. If thedepartment of economic development determines that a taxpayer has failed tocomply with the requirements provided under this section, the approval for theamount of tax credits for such taxpayer shall be rescinded and such amount oftax credits shall then be included in the total amount of tax credits,provided under subsection 2 of section 253.550, from which approvals may begranted. Any taxpayer whose approval shall be subject to rescission shall benotified of such from the department of economic development and, upon receiptof such notice, may submit a new application for the project.
7. To claim the credit authorized under sections 253.550 to 253.559, ataxpayer with approval shall apply for final approval and issuance of taxcredits from the department of economic development which, in consultationwith the department of natural resources, shall determine the final amount ofeligible rehabilitation costs and expenses and whether the completedrehabilitation meets the standards of the Secretary of the United StatesDepartment of the Interior for rehabilitation as determined by the statehistoric preservation officer of the Missouri department of natural resources. For financial institutions credits authorized pursuant to sections 253.550 to253.561*** shall be deemed to be economic development credits for purposes ofsection 148.064, RSMo. The approval of all applications and the issuing ofcertificates of eligible credits to taxpayers shall be performed by thedepartment of economic development. The department of economic developmentshall inform a taxpayer of final approval by letter and shall issue, to thetaxpayer, tax credit certificates. The taxpayer shall attach the certificateto all Missouri income tax returns on which the credit is claimed.
8. Except as expressly provided in this subsection, tax creditcertificates shall be issued in the final year that costs and expenses ofrehabilitation of the project are incurred, or within the twelve-month periodimmediately following the conclusion of such rehabilitation. In the event theamount of eligible rehabilitation costs and expenses incurred by a taxpayerwould result in the issuance of an amount of tax credits in excess of theamount provided under such taxpayer's approval granted under subsection 3 ofthis section, such taxpayer may apply to the department for issuance of taxcredits in an amount equal to such excess. Applications for issuance of taxcredits in excess of the amount provided under a taxpayer's application shallbe made on a form prescribed by the department. Such applications shall besubject to all provisions regarding priority provided under subsection 1 ofthis section.
9. The department of economic development shall determine, on an annualbasis, the overall economic impact to the state from the rehabilitation ofeligible property.
(L. 1997 2d Ex. Sess. S.B. 1, A.L. 1998 S.B. 827, A.L. 2009 H.B. 191)Effective 6-04-09
*Word "a" appears in original rolls.
**"This act" (H.B. 191, 2009) contained multiple effective dates of 6-04-09 and 8-28-09.
***Section 253.561 was repealed by S.B. 613 Revision, 2007.
CROSS REFERENCE:
Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830