Mo. Code Regs. tit. 13 § 10-3.020

Current through Register Vol. 49, No. 24, December 16, 2024

Section 13 CSR 10-3.020 - Pregnancy Resource Center Tax Credit

PURPOSE: This amendment updates the rule to be in compliance with more recent statutory language including, adding charitable organizations and notifying the department of any changes in business functions that could impact their qualifying status, changing the reference of the annual cumulative amount of credits from dollars to referencing the statute, apportionment of funds, and updating procedures regarding contributions of stocks and bonds, real estate, and contributions that include a benefit to a donor. It also moves this rule to a division and chapter with similar tax credit rules.

(1) A qualified pregnancy resource center may apply for tax credits on behalf of taxpayers who make contributions to the agency. The amount of tax credit issued may be equivalent to up to fifty percent (50%) of the contribution to the agency. Credits shall not be less than fifty dollars ($50) and cannot exceed fifty thousand dollars ($50,000) to a taxpayer in a fiscal year. The total amount of tax credits issued under this rule cannot exceed the amount stated in section 135.630, RSMo in any fiscal year.

(2) Definitions.

(A) "Director" means the director of the Department of Social Services (DSS) or designee.

(B) "Qualified Pregnancy resource center," for the purpose of the Pregnancy Resource Center Tax Credit, means a pregnancy resource center that meets the definition stated in section 135.630, RSMo.

(3) The director will annually develop and maintain a list of centers which are qualified for the Pregnancy Resource Center Tax Credit. A copy of the pregnancy resource center listing is posted on the DSS website and will be made available to taxpayers upon request to the address referenced in paragraph (4)(A)1.

(4) Annually, the director will determine which facilities in Missouri may be classified as pregnancy resource centers for purposes of the Pregnancy Resource Center Tax Credit. To be a qualified center for purpose of the Pregnancy Resource Center Tax Credit, a facility must meet the definition set forth in section 135.630, RSMo.

(A) In order for the director to make such determinations, centers seeking eligibility must submit the following information:

1. A complete and accurate Pregnancy Resource Center Tax Credit Application for Agency Eligibility Verification. Applications may be obtained at the Department of Social Services website: www.dss.mo.gov or by writing to-

Department of Social Services

Attn: Pregnancy Resource Center Tax Credit Program

PO Box 863

Jefferson City, MO 65102-0863;

2. A copy of certificate of incorporation;

3. Verification of Internal Revenue Service (IRS) tax-exempt status;

4. A brief program description including the number and ages of women served annually and the capacity of the facility;

5. All information should be submitted to the address referenced in paragraph (4)(A)1.

(B) All pregnancy resource centers must establish their eligibility for the Pregnancy Resource Center Tax Credit on an annual basis by submitting an application for eligibility along with the required documentation as stated in subsection (4)(A) of this rule no later than June 1.

(C) Within forty-five (45) days of receipt of the required information, the director will make a determination of eligibility and notify the pregnancy resource center of the determination in writing. Upon a determination of eligibility, a center will automatically be added to the pregnancy resource center listing.

(D) Qualified centers must contact the Department of Social Services within thirty (30) days of any changes in business functions that could impact their qualifying status. The department will review the agency's eligibility for participation in the tax credit program and notify the agency of the determination in writing.

(5) The director shall apportion the total available tax credits equally among all qualified pregnancy resource centers and the apportionment will be effective the first day of each state fiscal year (FY).

(A) The director shall inform each qualified pregnancy resource center of its share of the apportioned credits no later than thirty (30) days following July 1 of each fiscal year.

(B) The director shall no less than quarterly review the amount of apportioned tax credits being utilized by each qualified pregnancy resource center. Upon request by the director, pregnancy resource centers will provide in writing the amount their agency plans to utilize in tax credits for the fiscal year. Pregnancy resource centers seeking additional apportionment must submit a request to the director in writing. If a pregnancy resource center fails to use all, or a portion of its available credits throughout the fiscal year, the director may reapportion these unused tax credits to maximize the amount of tax credits available to taxpayers.

(C) Within thirty (30) days of any reapportionment, the director shall notify those pregnancy resource centers that would be affected by the reapportioned tax credit. The director will consider comments the pregnancy resource centers submit concerning planned future uses of the agency's tax credit allocation prior to the end of the thirty- (30-) day period. The director's decision regarding reapportionment shall be final.

(D) The cumulative amount of tax credits that may be claimed by taxpayers contributing to the centers shall not exceed the amount stated in section 135.630, RSMo.

(6) A qualified pregnancy resource center shall report the receipt of any contribution it believes qualifies for the tax credit on a form provided by the director. This form is known as the Pregnancy Resource Center Tax Credit Application For Claiming Tax Credits.

(A) Pregnancy resource centers may request the tax credit application at the Department of Social Services website www.dss.mo.gov or by writing to the address referenced in paragraph (4)(A)1.

(B) Pregnancy resource centers are permitted to decline a contribution from a taxpayer.

(C) The tax credit application shall be submitted to the director, by the pregnancy resource center within one (1) calendar year of the receipt of the contribution. Tax credit applications submitted more than one (1) year following the date of the contribution will be void and the right to the tax credit will be forfeited.

(D) Verifying documentation must be attached to the tax credit application when submitted by the Pregnancy Resource Center. The type of documentation required will depend on the type of donation. Required documentation includes the following:

1. Cash-legible receipt from the pregnancy resource center, which indicates the name and address of the organization; name, address, and telephone number of the contributor; amount of the cash donation and the date the contribution was received; and a signature of a representative of the pregnancy resource center receiving the contribution;

2. Check-photocopy of the canceled check, front and back-if not possible then copy of the original check and a receipt from the pregnancy resource center including the same information required of a cash donation as described in paragraph (6)(D)1. of this rule;

3. Credit card-legible transaction receipt with the name and address of the pregnancy resource center; name, address, and telephone number of the contributor; amount and date the contribution was received; and a signature of a representative of the pregnancy resource center receiving the contribution. Receipts should have the credit card account number blacked out;

4. Money order or cashier's check-legible copy of the original document with the name and address of the pregnancy resource center; name, address, and telephone number of the contributor; amount of the cash donation and the date the contribution was received; and a signature of a representative of the pregnancy resource center receiving the contribution;

5. Regarding contributions of stocks and bonds, the amount of the contribution is the fair market value of the item as of the date of the donation. Information required when submitting applications for tax credit shall include the source and date the stock was valued and how the bond amount was determined;

6. The value of a contribution of real estate shall be the fair market value of the real estate within three (3) months of the date of the donation. The fair market value is the lower of at least two (2) qualified independent appraisals for commercial, vacant, or residential property that has been determined to have a value of over fifty thousand dollars ($50,000). Commercial, vacant, or residential property having a value of fifty thousand dollars ($50,000) or less will require only one (1) appraisal. The appraisals will be conducted by two (2) different licensed real estate appraisers; and

7. Contributions that include a benefit to the donor- in addition to the documentation needed in paragraphs (6)(D)1.-6., the pregnancy resource center must provide written documentation of the type of function or event from which the benefit was received, description of the benefit received (if an auction item, identify the item received), gross amount of the contribution, fair market value of the benefit, and how the fair market value of the benefit was determined.

(7) The director will verify with the Department of Revenue any outstanding balances due from the taxpayer's prior year's state tax liability. If a balance due is outstanding, the amount of tax credit issued under this rule will be reduced by that amount. The director shall be subject to the confidentiality and penalty provisions of section 32.057, RSMo, relating to the disclosure of tax information.

(8) Within forty-five (45) days of receipt of the tax credit application, the director will provide written notification of its decision to approve the application to the following parties:

(A) Taxpayer (notification to the taxpayer will include the amount of tax credit that was approved); and

(B) Missouri Department of Revenue.

13 CSR 10-3.020

Renumbered from 35-100.020 by Missouri Register February 1, 2019/Volume 44, Number 3, effective 4/1/2019