Section 253.550 - Tax credits, qualified persons or entities, maximum amount, limitations - exceptions1.(1) Any taxpayer incurring costs and expenses for the rehabilitation of eligible property, which is a certified historic structure or structure in a certified historic district, may, subject to the provisions of this section and section 253.559, receive a credit against the taxes imposed pursuant to chapters 143 and 148, except for sections 143.191 to 143.265, on such taxpayer in an amount equal to twenty-five percent of the total costs and expenses of rehabilitation incurred after January 1, 1998, which shall include, but not be limited to, qualified rehabilitation expenditures as defined under Section 47(c)(2)(A) of the Internal Revenue Code of 1986, as amended, and the related regulations thereunder, provided the rehabilitation costs associated with rehabilitation and the expenses exceed fifty percent of the total basis in the property and the rehabilitation meets standards consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation as determined by the state historic preservation officer of the Missouri department of natural resources.(2) Any taxpayer incurring costs and expenses for the rehabilitation of eligible property that is in a qualifying county and is a certified historic structure shall, subject to the provisions of this section and section 253.559, receive a credit against the taxes imposed under chapters 143 and 148, excluding withholding tax imposed under sections 143.191 to 143.265, on such taxpayer in an amount equal to thirty-five percent of the total costs and expenses of rehabilitation incurred on or after July 1, 2024. Ten percent of the total costs and expenses of rehabilitation upon which the tax credit is based may be incurred for investigation assessments and building stabilization before the taxpayer submits the application for tax credits under sections 253.544 to 253.559. Such total costs and expenses of rehabilitation shall include, but not be limited to, qualified rehabilitation expenditures as defined under 26 U.S.C. Section 47(c)(2)(A), as amended, and related regulations, if: (a) Such qualified rehabilitation expenditures exceed fifty percent of the total basis in the property; and(b) The rehabilitation meets the qualified rehabilitation standards of the Secretary of the United States Department of the Interior for rehabilitation of historic structures.(3) State historic rehabilitation standards shall not be more restrictive than the Secretary of the Interior's Standards for Rehabilitation set forth under 36 CFR 67.2.(1) The department shall not approve applications for tax credits for properties not located in a qualified census tract under the provisions of subsections 5 and 11 of section 253.559 which, in the aggregate, exceed ninety million dollars, increased by any amount of tax credits for which approval shall be rescinded under the provisions of section 253.559. The limitations provided under this subsection shall not apply to applications approved under the provisions of subsection 5 of section 253.559 for projects to receive less than two hundred seventy-five thousand dollars in tax credits.(2) For each fiscal year beginning on or after July 1, 2018, the department shall authorize an amount up to, but not to exceed, an additional thirty million dollars in tax credits issued under subsections 5 and 11 of section 253.559, provided that such tax credits are authorized solely for projects located in a qualified census tract. Projects that receive preliminary approval that are located within a qualified census tract may receive an authorization of tax credit under either subdivision (1) of this subsection or this subdivision, but such projects shall first be authorized from the tax credit amount in this subdivision before being authorized from the tax credit amount in subdivision (1) of this subsection.(3) For each fiscal year beginning on or after July 1, 2018, if the maximum amount of tax credits allowed in any fiscal year as provided under subdivisions (1) and (2) of this subsection is authorized, the maximum amount of tax credits allowed under subdivisions (1) and (2) of this subsection shall be adjusted by the percentage increase in the Consumer Price Index for All Urban Consumers, or its successor index, as such index is defined and officially reported by the United States Department of Labor, or its successor agency. Only one such adjustment shall be made for each instance in which the provisions of this subdivision apply. The director of the department shall publish such adjusted amount.3.(1) For all applications for tax credits approved on or after January 1, 2010, no more than two hundred fifty thousand dollars in tax credits may be issued for eligible costs and expenses incurred in the rehabilitation of an eligible property that is a nonincome-producing single-family residential property occupied by the taxpayer applicant or any relative within the third degree of consanguinity or affinity of such applicant and that is either a certified historic structure or a structure in a certified historic district.(2) For all applications for tax credits, an amount equal to the applicable percentage may be issued for eligible costs and expenses incurred in the rehabilitation of an eligible property that is a nonincome-producing single-family residential property occupied by the taxpayer applicant or any relative within the third degree of consanguinity or affinity of such applicant and that is either a certified historic structure or a structure in a certified historic district. For properties not located in a qualifying county, tax credits shall not be issued under this subdivision unless the property is located in a distressed community, as defined under section 135.530.4. The limitations on tax credit authorization provided under the provisions of subsection 2 of this section shall not apply to:(1) Any application submitted by a taxpayer, which has received approval from the department prior to October 1, 2018; or(2) Any taxpayer applying for tax credits, provided under this section, which, on or before October 1, 2018, has filed an application with the department evidencing that such taxpayer:(a) Has incurred costs and expenses for an eligible property which exceed the lesser of five percent of the total project costs or one million dollars and received an approved Part I from the Secretary of the United States Department of Interior; or(b) Has received certification, by the state historic preservation officer, that the rehabilitation plan meets the qualified rehabilitation standards, and the rehabilitation costs and expenses associated with such rehabilitation shall exceed fifty percent of the total basis in the property.5. A single-resource certified historic structure of more than one million gross square feet with a Part I approval or on the National Register before January 1, 2024, shall be subject to the dollar caps under subsection 2 of this section, provided that, for any such projects that are eligible for tax credits in an amount exceeding sixty million dollars, the total amount of tax credits for such project counted toward the annual limits provided in subsection 2 of this section shall be spread over a period of six years with one-sixth of such amount allocated each year if:(1) The project otherwise meets all the requirements of this section;(2) The project meets the ten percent incurred costs test under subsection 9 of section 253.559 within thirty-six months after an award is issued; and(3) The taxpayer agrees with the department of economic development, on a form prescribed by the department, to then claim the entire award of the original "state historical tax credits" over three state fiscal years with the initial year being the calendar year when the tax credits are issued.Amended by 2024 Mo. Laws, HB 2062,s A, eff. 8/28/2024.Amended by 2018 Mo. Laws, SB 773,s A, eff. 8/28/2018.Amended by 2018 Mo. Laws, SB 590,s A, eff. 8/28/2018.L. 1997 2d Ex. Sess. S.B. 1, A.L. 2009H.B. 191
Effective 6/4/2009