PURPOSE: This rule describes the procedures for the implementation of section 135.1180, RSMo (2012), Developmental Disability Care Provider Tax Credit Program, to reflect the requirements of HB 1172 (2012).

1. (1) In general, a qualified developmental disability care provider may apply for tax credits on behalf of taxpayers who make donations to the provider as provided herein. Those who donate to qualifying providers are eligible to receive a tax credit up to fifty percent (50%) of their donation. Qualified developmental disability care providers 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 donation to a qualified developmental disability care provider as described under section 135.1180, RSMo;
   2. (B) “Eligible donation,” eligible donations may include cash, publicly traded stocks and bonds, and real estate;

   3. (C) “Qualified developmental disability care provider”—

      1. 1. Provides assistance to persons with

developmental disabilities;

1. 2. Is accredited by one (1) or more of

the following:

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); or

1. 3. Is under contract with the Department

of Social Services or the Department of Mental Health to provide treatment services to persons with developmental disabilities; and

1. 4. Receives 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 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 donations to a qualified developmental disability care provider—

   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;

1. 4. Any other financial institution paying

taxes to the state of Missouri or any political subdivision of the state under Chapter 148, RSMo;

1. 5. An individual subject to the state

income tax imposed in Chapter 143, RSMo; or

1. 6. 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, RSMo; and

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.

1. (3) Beginning January 1, 2012, 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 donation the taxpayer made to a qualified developmental disability care provider. 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 will be allowed to be carried forward and used against the taxpayer’s state tax liability for up to four (4) subsequent years.

2. (4) Qualified developmental disability care providers must apply for the tax credit on behalf of the taxpayers. Acceptable applications for the tax credit require—

   1. (A) A complete and accurate application (Attachment A, included herein). Applications may also be obtained by writing to— Department of Social Services Attention: Developmental Disability Care Provider Tax Credit PO Box 853 Jefferson City, MO 65102-0853;

   2. (B) A statement attesting to the receipt of an eligible donation, which includes the following information: 13 CSR 35-100

      1. 1. Taxpayer type and supporting docu-

mentation, when applicable;

1. 2. Taxpayer’s name;
2. 3. Taxpayer’s identification number;
3. 4. Amount of the eligible donation and

supporting documentation, when applicable;

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

agency; and

1. 7. The signature of the executive direc-

tor of the qualified developmental disability care provider;

1. (C) Payment from the qualified developmental disability care provider 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; and

2. (D) Verifying documentation must be attached to the tax credit application. The type of documentation required will depend on the type of donation. Required documentation includes the following:

   1. 1. Cash—legible receipt from the devel-

opmental disability care provider which indicates the name and address of the organization; name, address, and telephone number of the contributor; and amount and date the contribution was received; signature of a representative of the developmental disability care provider receiving the contribution;

1. 2. Check—photocopy of the canceled

check, front and back—if not possible then copy of the original check and a receipt from the developmental disability care provider including the same information required of a cash donation as described in paragraph (4)(D)1. of this rule;

1. 3. Credit card—legible transaction

receipt with the name and address of the developmental disability care provider; contributor’s name, address, and telephone number; amount and date the contribution was received; and signature of a representative of the developmental disability care provider receiving the contribution. Receipts should have the credit card account number blacked out;

1. 4. Money order or cashier’s check—leg-

ible copy of the original document with the name and address of the developmental disability care provider; contributor’s name, address, and telephone number; amount and date the contribution was received; and signature of a representative of the developmental disability care provider receiving the contribution;

1. 5. Values of contributed stocks and bonds

must be determined by a reputable source (e.g., Wall Street Journal, New York Stock Exchange (NYSE), National Association of Securities Dealers Automated Quotations (NASDAQ), etc.). Information required when submitting applications for tax credit shall include the source and date the stock was valued and how the bond amount was determined;

1. 6. The value of contributions of real

estate shall be equal to the lowest of at least two (2) qualified independent appraisals for commercial, vacant, or residential property that has been determined to have a value of over twenty-five thousand dollars ($25,000). Commercial, vacant, or residential property having a value of twenty-five thousand dollars ($25,000) or less will require only one (1) appraisal; and

1. 7. Contributions that include a benefit to

the donor—documentation required will depend on how the type of contribution was made (i.e., cash, check, etc.). The same information is required as described in paragraphs (4)(D)1.–4. of this rule. Additional information required includes the type of function or event from which the benefit was received, description of the benefit received (if an auction item, identify the item received), gross amount of the contribution, fair market value of the benefit, and how the fair market value of the benefit was determined.

1. (5) All applications and payments must be submitted within twelve (12) months from the date the eligible donation was received from the taxpayer. The date of submission will be determined by the date that the application and payment are postmarked. 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: Developmental Disability Care Provider Tax Credit PO Box 853 Jefferson City, MO 65102-0853.
4. (7) Upon receipt of the information required in subsection (4)(C), the Department of Social Services will verify with the Department of Revenue whether or not the taxpayer has any outstanding balances due from the 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.

5. (8) Upon verification of the information required in sections (4) through (7) of this rule, the Department of Social Services will issue a certificate to the taxpayer indicating the amount of tax credit that is approved for the application.

   1. (A) Certificates will be mailed to the taxpayer at the address provided on the application submitted by the qualified developmental disability care provider.
   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 developmental disability care provider.
6. (9) Approved tax credit certificates will be issued within forty-five (45) days of receipt of the completed application submitted by the qualified developmental disability care provider.
7. (10) The owner of a developmental disability care provider tax credit certificate 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 to effectuate such a transfer must include a complete and accurate Department of Social Services Tax Credit Transfer Form (Attachment B, included herein). Forms may be obtained by writing to the address provided in subsection (4)(A) and section (6) of this rule. AUTHORITY: section 135.1180, RSMo Supp. 2012.* Original rule filed Sept. 19, 2012, effective April 30, 2013.

*Original authority: 135.1180, RSMo 2012.