Missouri Code of State Regulations › Title 4 - Department of Economic Development › Division 85 - Division of Business and Community › Chapter 2 - Neighborhood Assistance Tax Credit Program › Section 4 CSR 85-2.030 - Approval and Notification for Tax Credits to Business Firms

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment removes restrictions that are
				  not required by statute and updates outdated terms and
				  processes.
(1) In order to
				qualify for credit, donations must occur during the approved project period
				(with the exception of donated audit services, which may occur anytime during
				the six- (6-) month period following the project period) and must be directly
				related to the approved project.
(2) Business firms wishing to apply for
				credit must complete an Application for Claiming Tax Credits.
(3) Tax credit applications are to be signed
				by the neighborhood organization and submitted directly to the respective
				Neighborhood Assistance Program (NAP) field office of the department no later
				than one (1) year following the date of donation.
(4) The order in which completed credit
				applications are received by the department will determine the order in which
				credits are approved. Facsimile copies will not be considered complete
				applications.
(5) The department
				shall examine all submitted applications and determine whether the donation
				meets the eligibility criteria.
(6)
				A tax credit not to exceed fifty percent (50%) of the total amount contributed
				during the business firm's taxable year may be allowed by the department, with
				the exception of up to a seventy percent (70%) tax credit for special programs
				as referred to in subsection (6)(A), or a seventy percent (70%) credit for
				projects located in any rural community as referred to in subsection (6)(B).
(A) A special credit of up to seventy percent
				(70%) may be allowed for donations to programs where activities fall within the
				scope of special programs or priorities as defined by regulations promulgated
				by the director of the department and approved by the governor.
(B) A special credit of up to seventy percent
				(70%) may be allowed for projects located in rural communities defined as
				follows:
1. Any city, town, or village having
				a population of fewer than fifteen thousand (15,000) inhabitants located in a
				county-
A. That is not part of a standard
				metropolitan statistical area (SMSA) as defined by the United States Department
				of Commerce or its successor agency;
B. Designated as part of an SMSA, but having
				a substantial number of persons in that county who derive their income from
				agriculture; or
C. Designated as
				part of an SMSA with only one (1) city in that county having a population of
				more than fifteen thousand (15,000) inhabitants; and
2. These tax credits equal to seventy percent
				(70%) of donations to projects in rural communities shall not exceed six (6)
				million dollars in any fiscal year.
(C) The following method will be used to
				determine the value of donations of real or personal property:
1. Outright gifts of real or personal
				property shall be equal to the lowest of at least two (2) qualified independent
				appraisals, with the following exceptions: commercial property whose value is
				less than fifty thousand dollars ($50,000) and vacant or residential property
				which value is less than twenty-five thousand dollars ($25,000) will only
				require one (1) appraisal. When the tax credit application is submitted, the
				actual cost of the appraisals may be included as part of the donation on which
				a tax credit is requested, provided that documentation of the costs is included
				in the application; and
2. When
				businesses do not transfer full title to real or personal property, but merely
				offer the use of real or personal property, the amount of the donation shall
				equal either the comparable market value of the rental, or the actual rental
				value, whichever is less.
(D) The following method will be used to
				determine the value of other forms of in-kind contributions:
1. Outright gifts of equipment, materials,
				supplies, or other goods shall equal either the cost to the donor or the fair
				market value, whichever is less. Fair market value and cost to the donor shall
				be determined by the department and may be based on the applicant's support of
				the amounts by documentation either from the applicant itself or from an
				independent appraiser. If an appraisal by an independent appraiser is submitted
				by the applicant and adopted by the department, the actual costs of the
				appraisal may be included as part of the contribution. Cost to the donor may
				include reasonable overhead expenses incurred in making the
				contribution;
2. When businesses
				contribute the use of items, the amount of the donation shall equal the actual
				cost of the item's use to the contributor, but not more than the fair market
				value of that use. Cost and fair market value shall be determined in the same
				fashion as in the case of outright gifts;
3. Contributions of food items will be
				eligible to receive credit, but will be limited to organizations involved
				primarily in food redistribution.
A. The value
				of the contribution shall equal the cost to the donor or the fair market value
				of the items, whichever is less. Fair market value and cost to the donor shall
				be determined by the department and may be based on the applicant's support of
				those amounts. In certain cases, a simple factor for spoilage may be applied
				against the donor's cost to arrive at fair market value. Cost to the donor may
				include reasonable overhead expenses incurred in making the
				contribution.
B. Required
				documentation shall be determined by the department and shall include, in every
				case, a copy of the receipt signed by the project director of the recipient
				organization or his/her designee; and
4. Effective for all projects approved in
				Fiscal Year 1993 or later, credit will be allowed on the donation of stock,
				bonds, or both, as follows:
A. Market value on
				the actual date of donation will determine the value that the credit will be
				based on; and
B. Credit will only
				be approved once the stock, bonds, or both, have been sold, however, the amount
				of sale proceeds received by the organization will have no effect on the value
				of the donation for NAP purposes.
(E) Business firms lending personnel to
				render expertise and assistance to a neighborhood organization are eligible for
				tax credit. Personnel time must be prorated based on the employee's hourly wage
				from the firm. The exact amount of time spent on the project must be verified,
				in writing, by the project director.
(F) Contributions of professional services
				are also eligible for tax credits. At the discretion of the department,
				individuals may be required to document similar payment for similar work during
				the six- (6-) month period prior to the date of contribution, whether to the
				same organization or not.