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Section: 135.0503 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. RSMO...


Published: 2015

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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.



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