135.220. Income earned by business, revenue producing enterprise, in zone, residential units, exemption, how computed. - Missouri Statutes

Income earned by business, revenue producing enterprise, in zone,residential units, exemption, how computed.

135.220. 1. The provisions of chapter 143, RSMo,notwithstanding, one-half of the Missouri taxable incomeattributed to a new business facility in an enterprise zone whichis earned by a taxpayer establishing and operating a new businessfacility located within an enterprise zone shall be exempt fromtaxation under chapter 143, RSMo. A taxpayer operating a revenueproducing enterprise as defined in paragraph (d) of subdivision(6) of section 135.200 may elect to exempt from taxation underchapter 143, RSMo, one-half of the Missouri taxable incomeattributed to a new business facility in an enterprise zone ormay elect to claim a fifty-dollar credit against the tax imposedunder chapter 143, RSMo, excluding withholding tax imposed bysections 143.191 to 143.265, RSMo, for each room constructed foruse as a bedroom for each qualifying residential unit. A"bedroom" is defined as a structurally separate room usedprimarily for sleeping, and not as a living room, dining room,kitchen or closet. That portion of income attributed to the newbusiness facility shall be determined in a manner prescribed inparagraph (b) of subdivision (6) of section 135.100, except thatcompensation paid to truck drivers, or rail or barge vehicleoperators shall be excluded from the fraction.

2. In the case of a small corporation described in section143.471, RSMo, or a partnership, in computing the Missouritaxable income of the taxpayers described in subdivisions (1) and(2) of this subsection, a deduction apportioned in proportion totheir share of ownership of the business on the last day of thetaxpayer's tax period for which such tax credits are beingclaimed, shall be allowed from their Missouri adjusted grossincome in the amount of one-half of the Missouri taxable incomeearned by the new business facility, as determined by the methodprescribed in subsection 1 of this section located within theenterprise zone, as defined in this section, to the following:

(1) The shareholders of a small corporation described insection 143.471, RSMo;

(2) The partners in a partnership.

(L. 1982 H.B. 1713, et al. § 6, A.L. 1983 H.B. 559, A.L. 1986 S.B. 727, A.L. 1991 H.B. 294 & 405, A.L. 1992 S.B. 661 & 620, A.L. 1994 H.B. 1248 & 1048)