PURPOSE This rule establishes the requirements and procedures for claiming the tax credit on the agricultural unemployed person provided in sections 135.275–135.287, RSMo.

1. (1) The following definitions will be used in conjunction with sections 135.275–135.287, RSMo:

   1. (A) Accountant—someone who normally received monetary compensation for preparation of financial statements;
   2. (B) Lost possession—no longer owns, leases or rents;
   3. (C) Operated—owned, leased or rented;
   4. (D) Property—any tangible asset allowed in the calculation of the debt-to-asset ratio as defined in section 135.275(3), RSMo; and
   5. (E) Three (3)-month period—same day, three (3) months after the beginning date. Example: January 15 through April 15.
2. (2) Notification to the Department of Revenue as referenced in section 135.282, RSMo shall mean that the business is required to notify the Department of Revenue of the date when employees are hired, discharged for cause or voluntarily terminated. Notification to the Department of Revenue of those dates will be required on the income tax return for the taxable year on which these credits apply. Notification to the Division of Employment Security shall be given within thirty (30) days of hiring, discharge for cause or voluntary termination.
3. (3) The tax credit given to businesses for employing agriculturally unemployed persons may be claimed from the date of hiring of the individual. If an individual does not have a certificate of eligibility at the time of his/her hiring but obtains a certificate of eligibility within thirty (30) days after that, the business may begin claiming a credit which shall accrue from the date of hiring.
4. (4) No credit will be granted for a period of fewer than three (3) months’ continual service of at least twenty (20) hours each week.
5. (5) Businesses claiming tax credit for hiring an agricultural unemployed person must submit with their tax returns all original portions of the certificate of eligibility of each employee for which the credit is claimed. The business must also prepare and submit with its tax return, a summary page listing each employee’s name, Social Security number, date of employment and amount of credit claimed for each employee. The total credit claimed for all employees must be shown also.
6. (6) The aggregate of tax credits claimed through New Business Facility and Enterprise Zone credit listed in Chapter 135, RSMo and agricultural unemployed person credit may not exceed eight hundred dollars ($800) per employee if the agricultural unemployed person credit is used in conjunction with either of the Chapter 135, RSMo credits.
7. (7) The credit for agricultural unemployed persons is a nonrefundable credit.
8. (8) Credits shall not accrue after July 1, 1988. Any unused credits may be used on a return filed prior to December 31, 1991. Credits may be claimed by any taxpayer whose taxable year ends after August 13, 1986, if the taxpayer has employed a certified agricultural unemployed person for at least three (3) consecutive months.
9. (9) Any person who receives certification from the Division of Employment Security as an agricultural unemployed person shall retain this status for a period of one (1) year. If employment is not found within this one (1)-year period, the certification will be void and the person must reapply for certification as agriculturally unemployed. Once a person is certified as an agricultural unemployed person and hired, the tax credit may be claimed by the employer, subsequent employer, or both, for a period of two (2) calendar years from the date of employment without the agricultural unemployed person having to apply for certification again.

AUTHORITY: section 135.285, RSMo 1994.* Emergency rule filed Nov. 18, 1986, effective Nov. 28, 1986, expired March 28, 1987. Original rule filed Nov. 18, 1986, effective March 12, 1987.

*Original authority: 135.285, RSMo 1986.