Mo. Code Regs. tit. 13 § 10-3.050

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

Section 13 CSR 10-3.050 - Maternity Home Tax Credit

PURPOSE: This proposed amendment implements changes to the Maternity Home Tax Credit calculation pursuant to House Bill 430 (2021).

(1) A maternity home may apply for tax credits on behalf of taxpayers who make contributions to the agency. For fiscal years ending on or before June 30, 2022, the amount of tax credit issued may be equivalent to up to fifty percent (50%) of the contribution to the agency. For fiscal years starting on or after July 1, 2022, the amount of tax credits issued may be equivalent to up to seventy percent (70%) of the contribution to the agency. Initial credits issued cannot be less than fifty dollars ($50). The amount of credit claimed by a taxpayer cannot exceed the amount of the taxpayer's state tax liability for the taxable year the credit is claimed and cannot exceed fifty thousand dollars ($50,000) per taxable year. The total amount of tax credits issued under this rule cannot exceed the amount stated in section 135.600, RSMo, in a fiscal year.

(2) Definitions.

(A) "Agency," in the context of this rule, is a qualified maternity home.

(B) "Director," means the director of the Department of Social Services or designee.

(C) "Qualified maternity home," for the purpose of the Maternity Home Tax Credit, means a maternity home that meets the definition stated in section 135.600, RSMo.

(3) The director will annually develop and maintain a list of centers which are qualified for the Maternity Home Tax Credit. A copy of the maternity home listing is posted on the Department of Social Services website: www.dss.mo.gov.

(4) Annually, the director of the Department of Social Services or the director's designee will determine which facilities in Missouri may be classified as maternity homes for purposes of the Maternity Home Tax Credit.

(A) In order for the director of the Department of Social Services to make such determinations, maternity homes seeking qualification should submit the following information:

1. A complete and accurate application. The process to be followed is found on the Maternity Home Tax Credit Application for Agency Eligibility Verification form available on the Department of Social Services website: www.dss.mo.gov or by writing to:

Department of Social Services

Attn: Maternity Home Tax Credit Program

PO Box 626

Jefferson City, MO 65102-0626;

2. A copy of the articles of incorporation;

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

4. A brief program description including the primary business function as it relates to the mission of helping pregnant women, number and ages of pregnant women served annually, facility capacity, and services provided.

(B) Facilities serving women under age eighteen (18) must provide proof of licensure with the Department of Social Services, Children's Division (i.e. license certificate or letter of good standing).

(C) Facilities considered exempt from licensure as described in section 210.516, RSMo, must attest to that status.

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

(5) All maternity homes must establish their qualification for the Maternity Home Tax Credit Program on an annual basis.

(6) Prior to the beginning of each state fiscal year, maternity homes must submit an application for eligibility along with the documentation as stated in subsection (4)(A) of this rule no later than June 1.

(7) Within forty-five (45) days of receipt of the necessary information, the director will make a determination of qualification and notify the maternity home of the determination in writing. Upon a determination of qualification, a maternity home will automatically be added to the maternity home listing.

(8) Qualified maternity homes 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 this tax credit program and notify the agency of the determination in writing.

(9) A qualified maternity home shall report the receipt of any contribution it believes qualifies for the tax credit on a form provided by the Department of Social Services. This form is known as the Maternity Home Tax Credit Application for Claiming Tax Credits.

(A) Maternity homes 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. of this rule.

(B) Maternity homes are permitted to decline a contribution from a taxpayer.

(C) The tax credit application shall be submitted to the Department of Social Services, by the maternity home, 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 Maternity Home. The type of documentation necessary will depend on the type of donation. Necessary documentation includes:

1. Cash-legible receipt from the maternity home, which indicates the name and address of the maternity home; 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 maternity home 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 maternity home including the same information needed for a cash donation as described in paragraph (9)(D)1. of this subsection;

3. Credit card-legible transaction receipt with the name and address of the maternity home; name, address, and telephone number of the contributor; amount and date the contribution was received; and a signature of a representative of the maternity home 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 maternity home; 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 maternity home 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 needed when submitting applications for tax credit shall include the source and date the stock was donated and how the bond amount was determined, and confirmation documentation of the transfer from the contributor's account to the maternity home. The division shall directly determine the stock value by calculating the average of the high and low prices for the stock on the date the facility received the stock, multiplied by the number of shares donated; and

6. The value of contributions of real estate is 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.

(E) Contributions that include a benefit to the donor- in addition to the documentation necessary in paragraphs (9)(D)1.-6., the maternity home should 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.

(10) 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 is subject to the confidentiality and penalty provisions of section 32.057, RSMo, relating to the disclosure of tax information.

(11) 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.

(12) For fiscal years ending on or before June 30, 2022, the director shall equally apportion the total available tax credits among all qualified maternity homes and the apportionment will be effective the first day of each state fiscal year (FY). Beginning July 1, 2022, no apportionment is necessary because there is no limit imposed on the cumulative amount on the tax credit.

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

(B) The director will no less than quarterly, review the cumulative amount of apportioned tax credits being utilized by each qualified maternity home. Upon request by the director, maternity homes will provide in writing the amount their agency plans to utilize in tax credits for the fiscal year along with supporting documentation. Maternity homes seeking additional apportionment should submit requests and supporting documentation to the director in writing. If a maternity home fails to use all or a portion of their available tax credits throughout the fiscal year, the director may reapportion any 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 maternity homes in writing that would be affected by the reapportioned tax credit. The director will consider comments the maternity homes 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.

13 CSR 10-3.050

Renumbered from 35-100.050 by Missouri Register February 1, 2019/Volume 44, Number 3, effective 4/1/2019

Amended by Missouri Register February 15, 2022/Volume 47, Number 4, effective 3/31/2022