100.286. Loans secured by certain funds--standards--information required--review and certification by participating lender--board approval--fee, tax credit, limitation. - Missouri Statutes

Loans secured by certain funds--standards--informationrequired--review and certification by participating lender--boardapproval--fee, tax credit, limitation.

100.286. 1. Within the discretion of the board, the development andreserve fund, the infrastructure development fund or the export financefund may be pledged to secure the payment of any bonds or notes issued bythe board, or to secure the payment of any loan made by the board or aparticipating lender which loan:

(1) Is requested to finance any project or export trade activity;

(2) Is requested by a borrower who is demonstrated to be financiallyresponsible;

(3) Can reasonably be expected to provide a benefit to the economy ofthis state;

(4) Is otherwise secured by a mortgage or deed of trust on real orpersonal property or other security satisfactory to the board; providedthat loans to finance export trade activities may be secured by exportaccounts receivable or inventories of exportable goods satisfactory to theboard;

(5) Does not exceed five million dollars;

(6) Does not have a term longer than five years if such loan is madeto finance export trade activities; and

(7) Is, when used to finance export trade activities, made to smallor medium size businesses or agricultural businesses, as may be defined bythe board.

2. The board shall prescribe standards for the evaluation of thefinancial condition, business history, and qualifications of each borrowerand the terms and conditions of loans which may be secured, and may requireeach application to include a financial report and evaluation by anindependent certified public accounting firm, in addition to suchexamination and evaluation as may be conducted by any participating lender.

3. Each application for a loan secured by the development and reservefund, the infrastructure development fund or the export finance fund shallbe reviewed in the first instance by any participating lender to whom theapplication was submitted. If satisfied that the standards prescribed bythe board are met and that the loan is otherwise eligible to be secured bythe development and reserve fund, the infrastructure development fund orthe export finance fund, the participating lender shall certify the sameand forward the application for final approval to the board.

4. The securing of any loans by the development and reserve fund, theinfrastructure development fund or the export finance fund shall beconditioned upon approval of the application by the board, and receipt ofan annual reserve participation fee, as prescribed by the board, submittedby or on behalf of the borrower.

5. The securing of any loan by the export finance fund for exporttrade activities shall be conditioned upon the board's compliance with anyapplicable treaties and international agreements, such as the generalagreement on tariffs and trade and the subsidies code, to which the UnitedStates is then a party.

6. Any taxpayer, including any charitable organization that is exemptfrom federal income tax and whose Missouri unrelated business taxableincome, if any, would be subject to the state income tax imposed underchapter 143, RSMo, may, subject to the limitations provided undersubsection 8 of this section, receive a tax credit against any taxotherwise due under the provisions of chapter 143, RSMo, excludingwithholding tax imposed by sections 143.191 to 143.261, RSMo, chapter 147,RSMo, or chapter 148, RSMo, in the amount of fifty percent of any amountcontributed in money or property by the taxpayer to the development andreserve fund, the infrastructure development fund or the export financefund during the taxpayer's tax year, provided, however, the total taxcredits awarded in any calendar year beginning after January 1, 1994, shallnot be the greater of ten million dollars or five percent of the averagegrowth in general revenue receipts in the preceding three fiscal years.This limit may be exceeded only upon joint agreement by the commissioner ofadministration, the director of the department of economic development, andthe director of the department of revenue that such action is essential toensure retention or attraction of investment in Missouri. If the boardreceives, as a contribution, real property, the contributor at suchcontributor's own expense shall have two independent appraisals conductedby appraisers certified by the Master Appraisal Institute. Both appraisalsshall be submitted to the board, and the tax credit certified by the boardto the contributor shall be based upon the value of the lower of the twoappraisals. The board shall not certify the tax credit until the propertyis deeded to the board. Such credit shall not apply to reserveparticipation fees paid by borrowers under sections 100.250 to 100.297.The portion of earned tax credits which exceeds the taxpayer's taxliability may be carried forward for up to five years.

7. Notwithstanding any provision of law to the contrary, any taxpayermay sell, assign, exchange, convey or otherwise transfer tax creditsallowed in subsection 6 of this section under the terms and conditionsprescribed in subdivisions (1) and (2) of this subsection. Such taxpayer,hereinafter the assignor for the purpose of this subsection, may sell,assign, exchange or otherwise transfer earned tax credits:

(1) For no less than seventy-five percent of the par value of suchcredits; and

(2) In an amount not to exceed one hundred percent of annual earnedcredits.

The taxpayer acquiring earned credits, hereinafter the assignee for thepurpose of this subsection, may use the acquired credits to offset up toone hundred percent of the tax liabilities otherwise imposed by chapter143, RSMo, excluding withholding tax imposed by sections 143.191 to143.261, RSMo, chapter 147, RSMo, or chapter 148, RSMo. Unused credits inthe hands of the assignee may be carried forward for up to five years,provided all such credits shall be claimed within ten years following thetax years in which the contribution was made. The assignor shall enterinto a written agreement with the assignee establishing the terms andconditions of the agreement and shall perfect such transfer by notifyingthe board in writing within thirty calendar days following the effectiveday of the transfer and shall provide any information as may be required bythe board to administer and carry out the provisions of this section.Notwithstanding any other provision of law to the contrary, the amountreceived by the assignor of such tax credit shall be taxable as income ofthe assignor, and the excess of the par value of such credit over theamount paid by the assignee for such credit shall be taxable as income ofthe assignee.

8. Provisions of subsections 1 to 7 of this section to the contrarynotwithstanding, no more than ten million dollars in tax credits providedunder this section, may be authorized or approved annually. The limitationon tax credit authorization and approval provided under this subsection maybe exceeded only upon mutual agreement, evidenced by a signed and properlynotarized letter, by the commissioner of the office of administration, thedirector of the department of economic development, and the director of thedepartment of revenue that such action is essential to ensure retention orattraction of investment in Missouri provided, however, that in no caseshall more than twenty-five million dollars in tax credits be authorized orapproved during such year. Taxpayers shall file, with the board, anapplication for tax credits authorized under this section on a formprovided by the board. The provisions of this subsection shall not beconstrued to limit or in any way impair the ability of the board toauthorize tax credits for issuance for projects authorized or approved, bya vote of the board, on or before the thirtieth day following the effectivedate of this act*, or a taxpayer's ability to redeem such tax credits.

(L. 1985 H.B. 416, A.L. 1986 S.B. 731, A.L. 1989 H.B. 378, A.L. 1990 H.B. 1564, A.L. 1993 H.B. 566, A.L. 1994 H.B. 1248 & 1048, A.L. 2007 1st Ex. Sess H.B. 1, A.L. 2009 H.B. 191)

Effective 6-04-09

*"This act" (H.B. 191, 2009) contained multiple effective dates.

CROSS REFERENCE:

Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830