100.297. Tax credit for owner of revenue bonds or notes, purpose, when, amount, limitation.
Tax credit for owner of revenue bonds or notes, purpose, when, amount,limitation.
100.297. 1. The board may authorize a tax credit, as described inthis section, to the owner of any revenue bonds or notes issued by theboard pursuant to the provisions of sections 100.250 to 100.297, forinfrastructure facilities as defined in subdivision (9) of section 100.255,if, prior to the issuance of such bonds or notes, the board determinesthat:
(1) The availability of such tax credit is a material inducement tothe undertaking of the project in the state of Missouri and to the sale ofthe bonds or notes;
(2) The loan with respect to the project is adequately secured by afirst deed of trust or mortgage or comparable lien, or other securitysatisfactory to the board.
2. Upon making the determinations specified in subsection 1 of thissection, the board may declare that each owner of an issue of revenue bondsor notes shall be entitled, in lieu of any other deduction with respect tosuch bonds or notes, to a tax credit against any tax otherwise due by suchowner pursuant to 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 one hundred percent of theunpaid principal of and unpaid interest on such bonds or notes held by suchowner in the taxable year of such owner following the calendar year of thedefault of the loan by the borrower with respect to the project. Theoccurrence of a default shall be governed by documents authorizing theissuance of the bonds. The tax credit allowed pursuant to this sectionshall be available to the original owners of the bonds or notes or anysubsequent owner or owners thereof. Once an owner is entitled to a claim,any such tax credits shall be transferable as provided in subsection 7 ofsection 100.286. Notwithstanding any provision of Missouri law to thecontrary, any portion of the tax credit to which any owner of a revenuebond or note is entitled pursuant to this section which exceeds the totalincome tax liability of such owner of a revenue bond or note shall becarried forward and allowed as a credit against any future taxes imposed onsuch owner within the next ten years pursuant to the provisions of chapter143, RSMo, excluding withholding tax imposed by sections 143.191 to143.261, RSMo, chapter 147, RSMo, or chapter 148, RSMo. The eligibility ofthe owner of any revenue bond or note issued pursuant to the provisions ofsections 100.250 to 100.297 for the tax credit provided by this sectionshall be expressly stated on the face of each such bond or note. The taxcredit allowed pursuant to this section shall also be available to anyfinancial institution or guarantor which executes any credit facility assecurity for bonds issued pursuant to this section to the same extent as ifsuch financial institution or guarantor was an owner of the bonds or notes,provided however, in such case the tax credits provided by this sectionshall be available immediately following any default of the loan by theborrower with respect to the project. In addition to reimbursing thefinancial institution or guarantor for claims relating to unpaid principaland interest, such claim may include payment of any unpaid fees imposed bysuch financial institution or guarantor for use of the credit facility.
3. The aggregate principal amount of revenue bonds or notesoutstanding at any time with respect to which the tax credit provided inthis section shall be available shall not exceed fifty million dollars.
(L. 1985 H.B. 416, A.L. 1994 H.B. 1248 & 1048, A.L. 1997 2d Ex. Sess. S.B. 1)Effective 12-23-97
CROSS REFERENCE:
Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830