PURPOSE: This rule describes the procedures for the implementation of section 135.1150, RSMo Supp. 2006, Residential Treatment Agency Tax Credit Act, to reflect the requirements of SB 614 (2006).

1. (1) In general, a qualified residential treatment agency may apply for tax credits on behalf of taxpayers who make cash donations to the agency. The amount of total credits available to any qualified residential treatment agency cannot exceed forty percent (40%) of the total funds received from the Department of Social Services in the preceding twelve (12) months. Those who donate to qualifying providers are eligible to receive a tax credit up to fifty percent (50%) of their donation. Qualified residential treatment agencies that accept these donations are required to remit payments equivalent to the amount of the tax credit to the state of Missouri.

2. (2) Definition of terms:

   1. (A) “Certificate,” a tax credit certificate issued to a taxpayer who makes an eligible monetary donation to a qualified residential treatment agency as described under section 135.1150, RSMo;
   2. (B) “Eligible monetary donation,” a cash donation received from a taxpayer by a qualified residential treatment agency that is used solely to provide direct care services to children who are residents of this state. Direct care services include but are not limited to increasing the quality of care and service for children through improved employee compensation and training;

   3. (C) “Qualified residential treatment agency,” a residential treatment care facility that—

      1. 1. Is licensed under section 210.484,

RSMo; and

1. 2. Is accredited by—

   1. A. Council on Accreditation (COA);

or

1. B. Joint Commission on Accreditation

of Healthcare Organizations (JCAHO); or

1. C. Commission on Accreditation of

Rehabilitation Facilities (CARF); and

1. 3. Is under contract with the Department

of Social Services to provide treatment services for children who are residents or wards of residents of this state; and

1. 4. Receives monetary donations. Any

agency that operates more than one (1) facility or at more than one (1) location can only be eligible for the tax credit for eligible monetary donations made to facilities or locations of the agency which are licensed and accredited;

1. (D) “Taxpayer,” any of the following individuals or entities who make eligible monetary donations to a qualified residential treatment agency:

   1. 1. 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, RSMo;

1. 2. A corporation subject to the annual

corporation franchise tax imposed in Chapter 147, RSMo;

1. 3. An insurance company paying an

annual tax on its gross premium receipts in this state or any other financial institution paying taxes to the state of Missouri or any political subdivision of the state under Chapter 148, RSMo;

1. (E) “State tax liability,” any tax liability due under Chapters 147, 148, or 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, as identified in section 135.1142, RSMo.

1. (3) Beginning January 1, 2007, any taxpayer will be allowed to claim a credit against their state tax liability, as defined in subsection (2)(E) of this rule, equivalent to fifty percent (50%) of the eligible monetary donation the taxpayer made to a qualified residential treatment agency. The amount of the tax credit claimed may not exceed the amount of the taxpayer’s state income tax liability in the tax year that the credit is being claimed.

   1. (A) Any tax credit that cannot be claimed in the taxable year during which the contribution is made, will not be refunded but allowed to be carried forward and used against the taxpayer’s state tax liability for four (4) subsequent years.

2. (4) Qualified residential treatment agencies must apply for the tax credit on behalf of the taxpayers. Required information includes:

   1. (A) A complete and accurate application (Attachment A, included herein). Applications may be obtained by writing to: Department of Social Services Attention: Residential Treatment Agency Tax Credit PO Box 853 Jefferson City, MO 65102-0853; 13 CSR 35-100
   2. (B) Verification of accreditation status;

   3. (C) A statement attesting to the receipt of an eligible monetary donation, which includes the following information:

      1. 1. Taxpayer’s name;
      2. 2. Taxpayer’s identification number;
      3. 3. Amount of the eligible monetary

donation;

1. 4. Amount of anticipated tax credit;
2. 5. Date the donation was received by the

agency;

1. 6. Signature of the executive director;
2. (D) Payment from the qualified residential treatment agency equal to the value of the tax credit for which the application is being submitted. Checks must be made payable to the Department of Social Services.

1. (5) All applications and payments must be submitted within twelve (12) months from date the eligible monetary donation was received from the taxpayer. Tax credit applications submitted more than one (1) year following the date of the contribution will be void and the right to the tax credit will be forfeited.
2. (6) Information required in sections (4) and
3. (5) of this rule, must be submitted to: Department of Social Services Attention: Residential Treatment Agency Tax Credit PO Box 853 Jefferson City, MO 65102-0853.
4. (7) Total tax credits issued for any qualified residential treatment agency cannot exceed forty percent (40%) of the total payments made by the Department of Social Services to the qualified residential treatment agency in the twelve (12) months preceding the month the application for the tax credit was received. In the event the total credits exceed forty percent (40%) of the total payments made to a qualified residential treatment agency by the Department of Social Services, the application and payment will be returned to the qualified residential treatment agency and may be resubmitted by the agency within thirty (30) days of the date the application was returned or within twelve (12) months from the date the monetary donation was received by the agency, whichever is later.
5. (8) Upon receipt of the information required in subsection (4)(C) the Department of Social Services will verify with the Department of Revenue any outstanding balances due from taxpayer’s prior year’s state tax liability. If a balance due is outstanding, the amount of tax credit issued under this rule will be reduced by that amount.

6. (9) Upon verification of the information required in sections (4) through (8) of this rule, the Department of Social Services will issue a certificate to the taxpayer indicating the amount of tax credit that was approved.

   1. (A) Certificates will be mailed to the taxpayer at the address provided on the application submitted by the qualified residential treatment agency.
   2. (B) The Department of Social Services will not provide information regarding taxpayers’ state tax liability to unauthorized individuals.
   3. (C) In the event a taxpayer’s tax credit is reduced as a result of delinquent taxes, a refund will not be issued to the qualified residential treatment agency.
7. (10) Approved tax credit certificates will be issued within forty-five (45) days of receipt of the completed application submitted by the qualified residential treatment agency.

8. (11) The owner of a certificate indicating a residential treatment agency tax credit may assign, transfer, sell, or otherwise convey the certificate. The new owner will have the same rights as the original owner. When a certificate is assigned, transferred, sold, or otherwise conveyed a notarized endorsement must be submitted to the Department of Social Services within thirty (30) days of the date of the transaction. Information submitted must include:

   1. (A) New owner name;
   2. (B) New owner address;
   3. (C) New owner taxpayer identification number;
   4. (D) Value of the tax credit (amount of claimable tax credit remaining);
   5. (E) Date of transaction. AUTHORITY: section 135.1150 RSMo Supp. 2006*. Emergency rule filed Sept. 18, 2006, effective Oct. 1, 2006, expired March 29, 2007. Original rule filed Sept. 18, 2006, effective March 30, 2007.

*Original authority: 135.1150, RSMo 2006.