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 85-2.010 - General

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment deletes entities which were
				  eligible for the Development Tax Credit portion of the program, which has
				  expired.
(1) Neighborhood
				Assistance Programs (NAPs) are those programs designed to give assistance to
				endangered neighborhoods and their residents in the improvement of the quality
				of life. Assistance can be granted if the neighborhood does not have the
				ability within its own resources to deal with the factors which are endangering
				its existence as a viable and stable neighborhood. An NAP is any type of
				community development project which improves the neighborhood by community
				services, crime prevention, education, job training, physical revitalization or
				economic development, as named in section
				32.105,
				RSMo.
(2) The Department of
				Economic Development shall administer the NAP with the cooperation of the
				Department of Revenue. The department shall provide necessary assistance to
				neighborhood organizations and business firms wishing to take advantage of the
				Neighborhood Assistance Act.
(3) As
				used in the implementation of the Neighborhood Assistance Act, the following
				terms mean:
(A) Community services may
				include, but are not limited to: individual, group and family counseling;
				mental health services; primary care and community medical health centers;
				child day care services; senior citizen service centers; recreation programs;
				nutrition programs; emergency shelters for persons suffering from physical
				abuse or rape; services for the handicapped; sheltered workshops, vocational
				counseling; substance abuse counseling; and referral services;
(B) Crime prevention programs include
				activities such as services to ex-offenders, local civilian organizations to
				help prevent crime or aid to victims of crime, or both, mediation services
				aimed at resolving disputes and conflicts before they become criminal incidents
				or services to juveniles who have had contact with the court or
				police;
(C) Education programs
				include literacy programs, adult basic education and General Educational
				Development (GED) certificate programs and training for physically or mentally
				challenged; and education for person(s) disenfranchised by public primary or
				secondary school systems;
(D) Job
				training may include those activities which provide specific vocational skills
				including special apprenticeship or on-the-job training programs not otherwise
				available;
(E) Physical
				revitalization programs are those aimed at the physical improvement of any part
				or all of a neighborhood area. These activities may include such programs as
				commercial area revitalization; housing construction or rehabilitation;
				improvements to, acquisition or construction of facilities used by nonprofit
				organizations for community purposes or related planning and promotional
				activities designed to aid in those programs;
(F) Business firm, person, firm, a partner in
				a firm, corporation or a shareholder in an S corporation doing business in
				Missouri and subject to the state income tax imposed by the provisions of
				Chapter 143, RSMo, or a corporation subject to the annual corporation franchise
				tax imposed by the provisions of Chapter 147, RSMo, or an insurance company
				paying an annual tax on its gross premium receipts in this state, or other
				financial institution paying taxes to Missouri, or any political subdivision of
				this state under the provisions of Chapter 148, RSMo, or an express company
				which pays an annual tax on its gross receipts in this state;
(G) Neighborhood organization, any
				organization incorporated as a not-for-profit corporation under the provisions
				of Chapter 355, RSMo; designated as a community development corporation under
				the provisions of Title VII of the Economic Opportunity Act of 1964; or holding
				a ruling from the Internal Revenue Service of the United States Department of
				Treasury that the organization is exempt from federal income tax. The sole
				ruling which shall be considered as appropriate is section 501(c)(3) of the
				Internal Revenue Code of 1986;
(H)
				Contribution may consist of cash, material or supplies, real estate, labor,
				professional services, technical assistance or equipment. Financial
				institutions and insurance companies are prohibited from earning tax credits
				for investments which are part of their normal course of business;
(I) Neighborhood, a specific geographic area
				certified by the Division of Community and Economic Development of the
				Department of Economic Development which has a readily identifiable residential
				population. Ordinarily in urban and suburban areas and cities with over ten
				thousand (10,000) in population, a neighborhood is smaller than a city. Small
				cities with under ten thousand (10,000) in population and regions within a
				rural area have many of the characteristics of urban neighborhoods. Whenever
				the word neighborhood is used, it should be read as applying to these areas as
				well. Some of the factors which could be demonstrated in defining a
				neighborhood include:
1. A sense of belonging
				or identity that ties residents to a given area:
2. Social, cultural, political or economic
				activities around which people organize themselves;
3. The existence of cohesive organizations
				formed by residents; and
4. A
				history of acting or being treated as a distinct or cohesive unit;
(J) Problems endangering the
				area's existence as a viable and stable neighborhood, a neighborhood will be
				considered to have these problems when some or all of the following factors, or
				similar factors, are present: declining population, high percentage of people
				dependent on public assistance, persistent or substantial unemployment or
				underemployment, lower than average family incomes, financial disinvestment,
				insurance and financial redlining, general weakened market conditions on the
				neighborhood commercial strip as indicated by declining rents or vacant stores,
				excessive abandonment, a significant percentage of neighborhood residents on
				fixed incomes, unsanitary or inadequate housing, overcrowding, property
				speculation, high rates of crime and delinquency, high degrees of drug or
				alcohol abuse, increasing cases of mental health problems, significant numbers
				of single parent households, high degree of infant mortality and disease,
				disabilities, general unsanitary conditions in the area, or poor city and
				public utility services;
(K) Doing
				business, among other methods of doing business in Missouri, individuals
				operating a sole proprietorship or having rental, royalty or farm income, as
				well as a partner in a firm or a shareholder in an S corporation if this firm
				or S corporation is doing business in Missouri; and
(L) S corporation, a corporation described in
				Section 1361(a)(1) of the
United States Internal Revenue Code
and not subject to the taxes imposed by section
				143.071,
				RSMo, by reason of section
				143.471,
				RSMo.