HOUSE BILL NO. 3080 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE RIGGS.
6788H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 253.544, 253.545, 253.550, 253.557, and 253.559, RSMo, and to enact in lieu thereof five new sections relating to facilities of historic significance.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 253.544, 253.545, 253.550, 253.557, and 253.559, RSMo, are 2 repealed and five new sections enacted in lieu thereof, to be known as sections 253.544, 3 253.545, 253.550, 253.557, and 253.559, to read as follows: 253.544. Sections 253.544 to 253.559 [shall] may be known and [may be] cited as the 2 "Missouri Historic, Rural Revitalization, and Regulatory Streamlining Act". 253.545. As used in sections 253.544 to 253.559, the following terms mean, unless 2 the context requires otherwise: 3 (1) "Applicable percentage": 4 (a) For the rehabilitation of a property that receives or intends to receive a state tax 5 credit under sections 135.350 to 135.363, twenty-five percent; 6 (b) For the rehabilitation of a property located in a qualifying county approved for a 7 state tax credit and that is not a property that receives or intends to receive a state tax credit 8 under sections 135.350 to 135.363, thirty-five percent; [or] 9 (c) For the rehabilitation of a property not located in a qualifying county approved for 10 a tax credit, twenty-five percent; or 11 (d) For the rehabilitation of a property that is a historic school, thirty-five 12 percent; 13 (2) "Certified historic structure", a building located in Missouri and either: 14 (a) Listed individually on the National Register of Historic Places; or
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 3080 2
15 (b) Located in a National Register-listed historic district or a local district that has 16 been certified by the United States Department of the Interior and certified by the Secretary of 17 the Interior or the state historic preservation office as a contributing resource in the district; 18 (3) "Deed in lieu of foreclosure or voluntary conveyance", a transfer of title from a 19 borrower to the lender to satisfy the mortgage debt and avoid foreclosure; 20 (4) "Department", the department of economic development; 21 (5) "Eligible property", property located in Missouri and offered or used for 22 residential or business purposes; 23 (6) "Eligible recipient", an individual taxpayer or nonprofit entity incurring expenses 24 in connection with an eligible property; 25 (7) "Historic theater", any historic theater that is a certified historic structure or is 26 located in a historic district; 27 (8) "Historic school", any historic school that is a certified historic structure or that is 28 located in a historic district; 29 (9) "Leasehold interest", a lease in an eligible property for a term of not less than 30 thirty years; 31 (10) "Principal", a managing partner, general partner, or president of a taxpayer; 32 (11) "Qualified census tract", a census tract or census block with a poverty rate of 33 twenty percent or higher as determined by a map and listing of census tracts which shall be 34 published by the department and updated on a five-year cycle, and which map and listing 35 shall depict census tracts with twenty percent poverty rate or higher, grouped by census tracts 36 with twenty percent to forty-two percent poverty, and forty-two percent to eighty-one percent 37 poverty as determined by the most current five-year figures published by the American 38 Community Survey conducted by the United States Census Bureau; 39 (12) "Qualified rehabilitation standards", the Secretary of the Interior's Standards for 40 Rehabilitation, codified under 36 CFR 67; 41 (13) "Qualifying county", any county or portion thereof in this state that is not: 42 (a) Within a city with more than four hundred thousand inhabitants and located in 43 more than one county; or 44 (b) A city not within a county; 45 (14) "Taxpayer", any person, firm, partnership, trust, estate, limited liability company, 46 or corporation. 253.550. 1. (1) Any taxpayer incurring costs and expenses for the rehabilitation of 2 eligible property, which is a certified historic structure or structure in a certified historic 3 district, may, subject to the provisions of this section and section 253.559, receive a credit 4 against the taxes imposed pursuant to chapters 143 and 148, except for sections 143.191 to 5 143.265, on such taxpayer in an amount equal to twenty-five percent of the total costs and HB 3080 3
6 expenses of rehabilitation incurred after January 1, 1998, which shall include, but not be 7 limited to, qualified rehabilitation expenditures as defined under Section 47(c)(2)(A) of the 8 Internal Revenue Code of 1986, as amended, and the related regulations thereunder, provided 9 the rehabilitation costs associated with rehabilitation and the expenses exceed fifty percent of 10 the total basis in the property and the rehabilitation meets standards consistent with the 11 standards of the Secretary of the United States Department of the Interior for rehabilitation as 12 determined by the state historic preservation officer of the Missouri department of natural 13 resources. 14 (2) Any taxpayer incurring costs and expenses for the rehabilitation of eligible 15 property that is in a qualifying county and is a certified historic structure shall, subject to the 16 provisions of this section and section 253.559, receive a credit against the taxes imposed 17 under chapters 143 and 148, excluding withholding tax imposed under sections 143.191 to 18 143.265, on such taxpayer in an amount equal to thirty-five percent of the total costs and 19 expenses of rehabilitation incurred on or after July 1, [2024] 2026. Ten percent of the total 20 costs and expenses of rehabilitation upon which the tax credit is based may be incurred for 21 investigation assessments and building stabilization before the taxpayer submits the 22 application for tax credits under sections 253.544 to 253.559. Such total costs and 23 expenses of rehabilitation shall include, but not be limited to, qualified rehabilitation 24 expenditures as defined under 26 U.S.C. Section 47(c)(2)(A), as amended, and related 25 regulations, if: 26 (a) Such qualified rehabilitation expenditures exceed fifty percent of the total basis in 27 the property; and 28 (b) The rehabilitation meets the qualified rehabilitation standards of the Secretary of 29 the United States Department of the Interior for rehabilitation of historic structures. 30 (3) State historic rehabilitation standards shall not be more restrictive than the 31 Secretary of the Interior's Standards for Rehabilitation set forth under 36 CFR 67. 32 2. (1) The department shall not approve applications for tax credits for properties not 33 located in a qualified census tract under the provisions of subsections 5 and 11 of section 34 253.559 which, in the aggregate, exceed ninety million dollars, increased by any amount of 35 tax credits for which approval shall be rescinded under the provisions of section 253.559. 36 The limitations provided under this subsection shall not apply to applications approved under 37 the provisions of subsection 5 of section 253.559 for projects to receive less than [two 38 hundred seventy-five] four hundred ninety-five thousand dollars in tax credits. 39 (2) For each fiscal year beginning on or after July 1, 2018, the department shall 40 authorize an amount up to, but not to exceed, an additional thirty million dollars in tax credits 41 issued under subsections 5 and 11 of section 253.559, provided that such tax credits are 42 authorized solely for projects located in a qualified census tract. Projects that receive HB 3080 4
43 preliminary approval that are located within a qualified census tract may receive an 44 authorization of tax credit under either subdivision (1) of this subsection or this subdivision, 45 but such projects shall first be authorized from the tax credit amount in this subdivision before 46 being authorized from the tax credit amount in subdivision (1) of this subsection. 47 (3) For each fiscal year beginning on or after July 1, 2018, if the maximum amount of 48 tax credits allowed in any fiscal year as provided under subdivisions (1) and (2) of this 49 subsection is authorized, the maximum amount of tax credits allowed under subdivisions (1) 50 and (2) of this subsection shall be adjusted by the percentage increase in the Consumer Price 51 Index for All Urban Consumers, or its successor index, as such index is defined and officially 52 reported by the United States Department of Labor, or its successor agency. Only one such 53 adjustment shall be made for each instance in which the provisions of this subdivision apply. 54 The director of the department shall publish such adjusted amount. 55 3. (1) For all applications for tax credits approved on or after January 1, 2010, no 56 more than two hundred fifty thousand dollars in tax credits may be issued for eligible costs 57 and expenses incurred in the rehabilitation of an eligible property that is a nonincome- 58 producing single-family residential property occupied by the taxpayer applicant or any 59 relative within the third degree of consanguinity or affinity of such applicant and that is either 60 a certified historic structure or a structure in a certified historic district. 61 (2) For all applications for tax credits, an amount equal to the applicable percentage 62 may be issued for eligible costs and expenses incurred in the rehabilitation of an eligible 63 property that is a nonincome-producing single-family residential property occupied by the 64 taxpayer applicant or any relative within the third degree of consanguinity or affinity of such 65 applicant and that is either a certified historic structure or a structure in a certified historic 66 district. For properties not located in a qualifying county, tax credits shall not be issued under 67 this subdivision unless the property is located in a distressed community, as defined under 68 section 135.530. 69 4. The limitations on tax credit authorization provided under the provisions of 70 subsection 2 of this section shall not apply to: 71 (1) Any application submitted by a taxpayer, which has received approval from the 72 department prior to October 1, 2018; or 73 (2) Any taxpayer applying for tax credits, provided under this section, which, on or 74 before October 1, 2018, has filed an application with the department evidencing that such 75 taxpayer: 76 (a) Has incurred costs and expenses for an eligible property which exceed the lesser 77 of five percent of the total project costs or one million dollars and received an approved Part I 78 from the Secretary of the United States Department of Interior; or HB 3080 5
79 (b) Has received certification, by the state historic preservation officer, that the 80 rehabilitation plan meets the qualified rehabilitation standards, and the rehabilitation costs 81 and expenses associated with such rehabilitation shall exceed fifty percent of the total basis in 82 the property. 83 5. A single-resource certified historic structure of more than one million gross square 84 feet with a Part I approval or on the National Register before January 1, [2024] 2026, shall be 85 subject to the dollar caps under subsection 2 of this section, provided that, for any such 86 projects that are eligible for tax credits in an amount exceeding sixty million dollars, the total 87 amount of tax credits for such project counted toward the annual limits provided in subsection 88 2 of this section shall be spread over a period of six years with one-sixth of such amount 89 allocated each year if: 90 (1) The project otherwise meets all the requirements of this section; 91 (2) The project meets the ten percent incurred costs test under subsection 9 of section 92 253.559 within thirty-six months after an award is issued; and 93 (3) The taxpayer agrees with the department of economic development, on a form 94 prescribed by the department, to then claim the entire award of the original "state historical 95 tax credits" over three state fiscal years with the initial year being the calendar year when the 96 tax credits are issued. 253.557. 1. If the amount of such credit exceeds the total tax liability for the year in 2 which the rehabilitated property is placed in service, the amount that exceeds the state tax 3 liability may be carried back to any of the three preceding years and carried forward for credit 4 against the taxes imposed pursuant to chapter 143 and chapter 148, except for sections 5 143.191 to 143.265 for the succeeding ten years, or until the full credit is used, whichever 6 occurs first. Not-for-profit entities including, but not limited to, corporations organized as 7 not-for-profit corporations pursuant to chapter 355 shall be eligible for the tax credits 8 authorized under sections 253.544 to 253.559. Taxpayers eligible for tax credits may transfer, 9 sell, or assign the credits. Credits granted to a partnership, a limited liability company taxed 10 as a partnership, or multiple owners of property shall be passed through to the partners, 11 members, or owners respectively pro rata or pursuant to an executed agreement among the 12 partners, members, or owners documenting an alternate distribution method. 13 2. The assignee of the tax credits, hereinafter the assignee for purposes of this 14 subsection, may use acquired credits to offset up to one hundred percent of the tax liabilities 15 otherwise imposed pursuant to chapter 143 and chapter 148, except for sections 143.191 to 16 143.265. The assignor shall perfect such transfer by notifying the department in writing 17 within thirty calendar days following the effective date of the transfer and shall provide any 18 information as may be required by the department of natural resources to administer and 19 carry out the provisions of this section. HB 3080 6
253.559. 1. To obtain approval for tax credits allowed under sections 253.544 to 2 253.559, a taxpayer shall submit an application for tax credits to the department of natural 3 resources. The department shall establish an application cycle that allows for year-round 4 submission and year-round receipt and review of such applications. Each application for 5 approval, including any applications received for supplemental allocations of tax credits as 6 provided under subsection 11 of this section, shall be prioritized for review and approval, in 7 the order of the date on which the application was postmarked, with the oldest postmarked 8 date receiving priority. Applications postmarked on the same day shall go through a lottery 9 process to determine the order in which such applications shall be reviewed. 10 2. Each application shall be reviewed by the department for approval. In order to 11 receive approval, an application, other than applications submitted under the provisions of 12 subsection 11 of this section, shall include: 13 (1) Proof of ownership or site control. Proof of ownership shall include evidence that 14 the taxpayer is the fee simple owner of the eligible property, such as a warranty deed or a 15 county assessor record as proof of ownership. Proof of site control may be evidenced by a 16 leasehold interest or an option to acquire such an interest. If the taxpayer is in the process of 17 acquiring fee simple ownership, proof of site control shall include an executed sales contract 18 or an executed option to purchase the eligible property; 19 (2) Floor plans of the existing structure, architectural plans, and, where applicable, 20 plans of the proposed alterations to the structure, as well as proposed additions; 21 (3) The estimated cost of rehabilitation, the anticipated total costs of the project, the 22 actual basis of the property, as shown by proof of actual acquisition costs, the anticipated total 23 labor costs, the estimated project start date, and the estimated project completion date; 24 (4) Proof that the property is an eligible property and a certified historic structure or a 25 structure in a certified historic district or part 1 of a federal application or a draft National 26 Register of Historic Places nomination has been submitted to the state historic preservation 27 office. In such instances, the application may proceed as a preliminary application concurrent 28 with the associated federal process for nomination to the National Register of Historic Places; 29 (5) A copy of land use plans; and 30 (6) Any other information the department may reasonably require to review the 31 project for approval. 32 33 Only the property for which a property address is provided in the application shall be 34 reviewed for approval. Once selected for review, a taxpayer shall not be permitted to request 35 the review of another property for approval in the place of the property contained in such 36 application. Any disapproved application shall be removed from the review process. If an 37 application is removed from the review process, the department shall notify the taxpayer in HB 3080 7
38 writing of the decision to remove such application. Disapproved applications shall lose 39 priority in the review process. A disapproved application, which is removed from the review 40 process, may be resubmitted, but shall be deemed to be a new submission for purposes of the 41 priority procedures described in this section. 42 3. (1) In evaluating an application for tax credits submitted under this section, the 43 department shall also consider: 44 (a) The amount of projected net fiscal benefit of the project to the state and local 45 municipality as calculated based on reasonable methods; 46 (b) The overall size and quality of the proposed project, including, but not limited to: 47 a. The estimated number of new jobs or housing units, or both, to be created by the 48 project; 49 b. The estimated number of construction jobs and professional jobs associated with 50 the project that are included in total project costs; 51 c. Capital improvements created by a project and the potential of future community 52 in