§ 135.1125 RSMo — Definitions — tax credit, amount — application — rulemaking authority — sunset provision

1. As used in this section, the following terms shall mean:

(1) "Certificate" , a tax credit certificate issued under this section;

(2) "Department" , the Missouri department of social services;

(3) "Eligible donation" , a donation of cash, stock, bonds or other marketable securities, or real property made to an eligible provider;

(4) "Eligible provider" , an organization that provides funding for unmet health, hunger, and hygiene needs of children in school;

(5) "Taxpayer" , a person, firm, partner in a firm, corporation, or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed in chapter 143 , an insurance company paying an annual tax on its gross premium receipts in this state, any other financial institution paying taxes to the state of Missouri or any political subdivision of this state under chapter 148 , or any charitable organization which is exempt from federal income tax and whose Missouri unrelated business taxable income, if any, would be subject to the state income tax imposed under chapter 143 .

2. For all taxable years beginning on or after January 1, 2019, any taxpayer shall be allowed a credit against the taxes otherwise due under chapter 143 or 148 , excluding withholding tax under sections 143.191 to 143.265 , in an amount equal to fifty percent of the amount of an eligible donation. The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state income tax liability in the tax year for which the credit is claimed. Any amount of credit that the taxpayer is prohibited by this section from claiming in a tax year shall not be refundable, but may be carried forward to any of the taxpayer's four subsequent taxable years.

3. To claim the credit authorized in this section, a provider may submit to the department an application for the tax credit authorized by this section on behalf of taxpayers. The department shall verify that the provider has submitted the following items accurately and completely:

(1) A valid application in the form and format required by the department;

(2) A statement attesting to the eligible donation received, which shall include the name and taxpayer identification number of the individual making the eligible donation, the amount of the eligible donation, and the date the eligible donation was received by the provider; and

(3) A payment from the eligible provider in an amount equal to fifty percent of the eligible donation.

4. Tax credits issued under this section may be assigned, transferred, sold, or otherwise conveyed, and the new owner of the tax credit shall have the same rights in the credit as the taxpayer. Whenever a certificate is assigned, transferred, sold, or otherwise conveyed, a notarized endorsement shall be filed with the department specifying the name and address of the new owner of the tax credit or the value of the credit.

5. The department shall promulgate rules to implement the provisions of this section. Any rule or portion of a rule, as that term is defined in section 536.010 , that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028 . This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2018, shall be invalid and void.

6. Pursuant to section 23.253 of the Missouri sunset act:

(1) The provisions of this section shall automatically sunset six years after August 28, 2018, unless reauthorized by an act of the general assembly; and

(2) If such program is reauthorized, the program authorized under this section shall automatically sunset twelve years after the effective date of the reauthorization of this section; and

(3) This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized under this section is sunset.