HB 215 -- Economic Development

Co-Sponsors:  Bray, Rizzo

This bill makes various changes to economic development programs
relating to distressed communities and small business investment
tax credits.  The bill:

(1)  Changes the definition of a community development
corporation to stress development of projects that benefit low--
income individuals and communities;

(2)  Lowers the investment requirement of principal owners of
Missouri small businesses eligible for investment from 50% of
the business to 35% of the business;

(3)  Eliminates the designation of a "target area" for purposes
of identifying areas of poverty by the Department of Social
Services;

(4)  Reduces the statewide limit on all tax credits for
investments in a small business per year from $13 million to
$5.5 million and reduces the minimum amount within distressed
communities from $4 million to $2.75 million;

(5)  Increases the maximum percentage of investment ownership
allowed in a small business to qualify for a tax credit from 50%
to 65%;

(6)  Reduces the time period requirement for investment in a
small business from 5 years to 3 years and excludes any sale,
change of control, or the going public of a business from the
minimum period of time for investment for purposes of the small
business investment tax credit program;

(7)  Reduces the percentage of employees required to be located
at a business contained within distressed communities from 75%
to 60% and increases the maximum number of employees at a
business contained within a distressed community from 100 to 150
to qualify for the distressed communities tax credit program;

(8)  Allows the leasing of certain technology equipment to
qualify as an expense for purposes of obtaining a tax credit and
increases the maximum tax credit for such equipment expense from
$75,000 to $150,000;

(9)  Expands the availability of follow-up capital to include
businesses which have previously received follow-up capital
within the last 3 years for purposes of tax credits for
contributions to innovation centers;

(10)  Increases the allowable tax credit percentage of the
amount of qualified contribution to a qualified fund for
purposes of tax credits for contributions to innovation centers
from 50% to 75% and reduces the aggregate maximum statewide
credits for contributions to innovation centers from $9 million
to $4.5 million annually;

(11)  Allows any unused credits for these tax credit programs
from the previous year to be added to any statewide caps for
these programs in future years;

(12)  Requires the Department of Economic Development to pursue
a revocation of the tax credits only from the original applicant
for the tax credit;

(13)  Allows a demolition tax credit for up to 100% of the cost
if the demolition is part of a redevelopment plan approved by
the Director of the Department of Economic Development and by
the local government with jurisdiction in the area in which the
project is located and with the approval of the Department of
Natural Resources; and

(14)  Repeals the Missouri Individual Training Account Program
Act.

The bill contains an emergency clause.

Missouri House of Representatives
Last Updated November 26, 2001 at 11:42 am