Missouri Revised Statutes
Chapter 135
Tax Relief
←135.500
Section 135.503.1
135.505→
August 28, 2015
Amount of credit, how calculated, reduction--insurance companies not required to pay retaliatory tax, when--carry forward--limitation on amounts of certified capital, allocation of certified capital--notification of limitation.
135.503. 1. Any investor that makes an investment of certified capital
shall, in the year of investment, earn a vested credit against state premium
tax liability equal to the applicable percentage of the investor's investment
of certified capital. An investor shall be entitled to take up to ten percent
of the vested credit in any taxable year of the investor. Any time after
three years after August 28, 1996, the director, with the approval of the
commissioner of administration, may reduce the applicable percentage on a
prospective basis. Any such reduction in the applicable percentage by the
director shall not have any effect on credits against state premium tax
liability which have been claimed or will be claimed by any investor with
respect to credits which have been earned and vested pursuant to an investment
of certified capital prior to the effective date of any such change.
2. An insurance company claiming a state premium tax credit earned
through an investment in a certified capital company shall not be required to
pay any additional retaliatory tax levied pursuant to section 375.916 as a
result of claiming such credit.
3. The credit against state premium tax liability which is described in
subsection 1 of this section may not exceed the state premium tax liability
of the investor for any taxable year. All such credits against state premium
tax liability may be carried forward indefinitely until the credits are
utilized. The maximum amount of certified capital in one or more certified
capital companies for which earned and vested tax credits will be allowed in
any year to any one investor or its affiliates shall be limited to ten million
dollars.
4. Except as provided in subsection 5 of this section, the aggregate
amount of certified capital for which earned and vested credits against state
premium tax liability are allowed for all persons pursuant to sections
135.500 to 135.529 shall not exceed the following amounts: for calendar year
1996, $0.00; for calendar year 1997, an amount which would entitle all
Missouri certified capital company investors to take aggregate credits of
five million dollars; and for any year thereafter, an additional amount to be
determined by the director but not to exceed aggregate credits of ten million
dollars for any year with the approval of the commissioner of administration
and reported to the general assembly as provided in subsection 2 of section
33.282, provided that the amount so determined shall not impair the ability of
an investor with earned and vested credits which have been allowed in
previous years to take them, pursuant to subsection 1 of this section.
During any calendar year in which the limitation described in this subsection
will limit the amount of certified capital for which earned and vested credits
against state premium tax liability are allowed, certified capital for which
credits are allowed will be allocated in order of priority based upon the
date of filing of information described in subdivision (1) of subsection 5 of
section 135.516. Certified capital limited in any calendar year by the
application of the provisions of this subsection shall be allowed and
allocated in the immediately succeeding calendar year in the order of
priority set forth in this subsection. The department shall make separate
allocations of certified capital for which credits are allowed under the
limitations described in this subsection and under the limitations described
in subsection 5 of this section.
5. In addition to the maximum amount pursuant to subsection 4 of this
section, the aggregate amount of certified capital for which earned and
vested credits against state premium tax liability are allowed for persons
pursuant to sections 135.500 to 135.529 shall be the following: for calendar
year 1999 and for any year thereafter, an amount to be determined by the
director which would entitle all Missouri certified capital company investors
to take aggregate credits not to exceed four million dollars for any year
with the approval of the commissioner of administration and reported to the
general assembly as provided in subsection 2 of section 33.282, provided that
the amount so determined shall not impair the ability of an investor with
earned and vested credits which have been allowed in previous years or
pursuant to the provisions of subsection 4 of this section to take them,
pursuant to subsection 1 of this section. For purposes of any requirement
regarding the schedule of qualified investments for certified capital for
which earned and vested credits against state premium tax liability are
allowed pursuant to this subsection only, the definition of a "qualified
Missouri business" as set forth in subdivision (14) of subsection 2 of
section 135.500 means a Missouri business that is located in a distressed
community as defined in section 135.530, and meets all of the requirements of
subdivision (14) of subsection 2 of section 135.500. During any calendar
year in which the limitation described in this subsection limits the amount
of additional certified capital for which earned and vested credits against
state premium tax liability are allowed, additional certified capital for
which credits are allowed shall be allocated in order of priority based upon
the date of filing of information described in subdivision (1) of subsection
5 of section 135.516 with respect to such additional certified capital. The
department shall make separate allocations of certified capital for which
credits are allowed under the limitations described in this subsection and
under the limitations described in subsection 4 of this section. No
limitation applicable to any certified capital company with respect to
certified capital for which credits are allowed pursuant to subsection 4 of
this section shall limit the amount of certified capital for which credits
are allowed pursuant to this subsection. No limitation applicable to any
certified capital company with respect to certified capital for which credits
are allowed pursuant to this subsection shall limit the amount of certified
capital for which credits are allowed pursuant to subsection 4 of this
section.
6. The department shall advise any Missouri certified capital company, in
writing, within fifteen days after receiving the filing described in
subdivision (1) of subsection 5 of section 135.516 whether the limitations of
subsection 3 of this section then in effect will be applicable with respect
to the investments and credits described in such filing with the department.
(L. 1996 H.B. 1237, A.L. 1997 2d Ex. Sess. S.B. 1, A.L. 1998 H.B.
1656, A.L. 2003 H.B. 289)
CROSS REFERENCE:
Tax Credit Accountability Act of 2004, additional requirements,
135.800 to 135.830
1999
1999
135.503. 1. Any investor that makes an investment of certified capital
shall, in the year of investment, earn a vested credit against state premium
tax liability equal to the applicable percentage of the investor's investment
of certified capital. An investor shall be entitled to take up to ten percent
of the vested credit in any taxable year of the investor. Any time after
three years after August 28, 1996, the director, with the approval of the
commissioner of administration, may reduce the applicable percentage on a
prospective basis. Any such reduction in the applicable percentage by the
director shall not have any effect on credits against state premium tax
liability which have been claimed or will be claimed by any investor with
respect to credits which have been earned and vested pursuant to an investment
of certified capital prior to the effective date of any such change.
2. An insurance company claiming a state premium tax credit earned
through an investment in a certified capital company shall not be required to
pay any additional retaliatory tax levied pursuant to section 375.916, RSMo,
as a result of claiming such credit.
3. The credit against state premium tax liability which is described in
subsection 1 of this section may not exceed the state premium tax liability of
the investor for any taxable year. All such credits against state premium tax
liability may be carried forward indefinitely until the credits are utilized.
The maximum amount of certified capital in one or more certified capital
companies for which earned and vested tax credits will be allowed in any year
to any one investor or its affiliates shall be limited to ten million dollars.
4. Except as provided in subsection 5 of this section, the aggregate
amount of certified capital for which earned and vested credits against state
premium tax liability are allowed for all persons pursuant to sections 135.500
to 135.529 shall not exceed the following amounts: for calendar year 1996,
$0.00; for calendar year 1997, an amount which would entitle all Missouri
certified capital company investors to take aggregate credits of five million
dollars; and for any year thereafter, an additional amount to be determined by
the director but not to exceed aggregate credits of ten million dollars for
any year with the approval of the commissioner of administration and reported
to the general assembly as provided in subsection 2 of section 33.282, RSMo,
provided that the amount so determined shall not impair the ability of an
investor with earned and vested credits which have been allowed in previous
years to take them, pursuant to subsection 1 of this section. During any
calendar year in which the limitation described in this subsection will limit
the amount of certified capital for which earned and vested credits against
state premium tax liability are allowed, certified capital for which credits
are allowed will be allocated in order of priority based upon the date of
filing of information described in subdivision (1) of subsection 5 of section
135.516. Certified capital limited in any calendar year by the application of
the provisions of this subsection shall be allowed and allocated in the
immediately succeeding calendar year in the order of priority set forth in
this subsection. The department shall make separate allocations of certified
capital for which credits are allowed under the limitations described in this
subsection and under the limitations described in subsection 5 of this
section.
5. In addition to the maximum amount pursuant to subsection 4 of this
section, the aggregate amount of certified capital for which earned and vested
credits against state premium tax liability are allowed for persons pursuant
to sections 135.500 to 135.529 shall be the following: for calendar year 1999
and for any year thereafter, an amount to be determined by the director which
would entitle all Missouri certified capital company investors to take
aggregate credits not to exceed four million dollars for any year with the
approval of the commissioner of administration and reported to the general
assembly as provided in subsection 2 of section 33.282, RSMo, provided that
the amount so determined shall not impair the ability of an investor with
earned and vested credits which have been allowed in previous years or
pursuant to the provisions of subsection 4 of this section to take them,
pursuant to subsection 1 of this section. For purposes of any requirement
regarding the schedule of qualified investments for certified capital for
which earned and vested credits against state premium tax liability are
allowed pursuant to this subsection only, the definition of a "qualified
Missouri business" as set forth in subdivision (13) of subsection 2 of section
135.500 means a Missouri business that is located in a distressed community as
defined in section 135.530, and meets all of the requirements of subdivision
(13) of subsection 2 of section 135.500, except that its gross sales during
its most recent complete fiscal year shall not have exceeded five million
dollars. During any calendar year in which the limitation described in this
subsection limits the amount of additional certified capital for which earned
and vested credits against state premium tax liability are allowed, additional
certified capital for which credits are allowed shall be allocated in order of
priority based upon the date of filing of information described in subdivision
(1) of subsection 5 of section 135.516 with respect to such additional
certified capital. The department shall make separate allocations of
certified capital for which credits are allowed under the limitations
described in this subsection and under the limitations described in subsection
4 of this section. No limitation applicable to any certified capital company
with respect to certified capital for which credits are allowed pursuant to
subsection 4 of this section shall limit the amount of certified capital for
which credits are allowed pursuant to this subsection. No limitation
applicable to any certified capital company with respect to certified capital
for which credits are allowed pursuant to this subsection shall limit the
amount of certified capital for which credits are allowed pursuant to
subsection 4 of this section.
6. The department shall advise any Missouri certified capital company,
in writing, within fifteen days after receiving the filing described in
subdivision (1) of subsection 5 of section 135.516 whether the limitations of
subsection 3 of this section then in effect will be applicable with respect to
the investments and credits described in such filing with the department.
Top
Missouri General Assembly
Copyright © Missouri Legislature, all rights reserved.