Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 200 - Insurance Solvency and Company Regulation › Chapter 3 - Insurance Taxes Other Than Surplus Lines › Section 20 CSR 200-3.200 - New Business Facility Tax Credit

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule implements and effectuates the
				  legislative intent of the amendments to sections 135.100-135.150.1., RSMo in
				  House Bill No. 566 (Laws 1993), allowing insurance companies to receive the new
				  business facility tax credit when eligibility for this credit is certified by
				  the Department of Economic Development. This rule is necessary to process
				  credits following certification by the Director of Economic
				  Development.
(1) An insurance
				company which wants to receive credit for a new business facility shall include
				the amount of the credit in the designated place in the company's premium tax
				return. The credit and the amount of it shall be supported by including a copy
				of the certification by the Director of Economic Development with the premium
				tax return filed with the Department of Commerce and Insurance. The new
				business facility tax credit shall be taken first against the direct premium
				tax, but only after all credits and deductions are made from the premium taxes
				otherwise due.
(2) To the extent
				the amount of the new business facility tax credit exceeds the amount necessary
				to reduce the net Missouri premium tax due to zero (0), this excess may be
				applied as a credit against any retaliatory tax amount otherwise due.
(3) If an insurance company, which is also a
				taxpayer, has income derived from the operation of a new business facility as
				well as from other activities conducted with this state, the direct premiums
				derived by the insurance company from the operation of the new business
				facility is determined by multiplying the insurance company's direct premiums,
				computed in accordance with Chapter 148, RSMo, by a fraction, the numerator of
				which is the property factor, as defined in subsection (3)(A) of this rule,
				plus the payroll factor, as defined in subsection (3)(B) of this rule, and the
				denominator which is two (2).
(A) The
				property factor is a fraction, the numerator of which is the new business
				facility investment certified for the tax period, and the denominator of which
				is the average value of all the taxpayer's real and depreciable tangible
				personal property owned or rented and used in this state during the tax period.
				The average value of all this property is determined as provided in Chapter 32,
				RSMo.
(B) The payroll factor is a
				fraction, the numerator of which is the total amount paid during the tax period
				by the taxpayer for compensation to persons qualifying as new business facility
				employees, as determined by section 135.110.4., RSMo at the new business
				facility, and the denominator of which is the total amount paid in this state
				during the tax period by the taxpayer for compensation. The compensation paid
				in this state is determined as provided in Chapter 32, RSMo. For the purpose of
				this section, other activities conducted within this state include activities
				previously conducted at any time during the tax period immediately prior to the
				tax period in which commencement of commercial operations occurred.