PURPOSE: This rule establishes the total amounts of tax credits, computation of tax credits and proof of contribution for the Affordable Housing Assistance Program.

1. (1) The tax credit shall not exceed fifty-five percent (55%) of the total amount invested by the business firm during the taxable year.
2. (2) The total tax credit approved for a business firm shall not exceed one (1) million dollars annually in any given geographic area, as defined by the commission, unless the commission determines that there are no other appropriate applications for the tax credits.
3. (3) No tax credit shall be approved for any bank, bank and trust company, insurance company, trust company, national bank, savings association, or building and loan association for activities that are part of its normal course of business. If there are any questions concerning the normal course of business, the commission shall determine this on a caseby-case basis.
4. (4) Any portion of the tax credit not claimed by the business firm in the period the investment was made may be carried over for the next ten (10) succeeding calendar or fiscal years or until the full credit has been issued, whichever occurs first.

5. (5) Computation of a tax credit depends on the form of the investment. Credits for investments by a business firm shall be computed by the commission. Evidence of proof of investments may include, but not necessarily be limited to, one (1) of the following:

   1. (A) Cash investments shall require a copy of both sides of the cancelled check(s). When a program is sponsored by an organization that conducts many varied programs, an investment in the form of a check under an approved project name must be made payable to the organization and specifically noted for that project. The organization must endorse the checks in the name of the specific program and, in certain instances, open a separate bank account in the program’s name;
   2. (B) Real estate investments shall have a copy of the deed and a copy of the appraiser’s report by an independent appraiser;
   3. (C) Equipment or supplies, or both types of investments, shall have a copy of the invoice or other documentation showing the cost to the donor and a copy of the invoice(s) signed by the receiver of goods (the project), describing the costs of the goods to the donor; and
   4. (D) Technical assistance shall include a statement signed by the employee, employer, project director and recipient of service itemizing time spent on the project.
6. (6) In the event that a tax credit was improperly approved or issued, the commission shall notify the business firm of the reason for the adjustment and notify the Department of Revenue that the tax credit has been adjusted and the reason for the adjustment.
7. (7) The executive director of the commission shall transmit in writing to the director of the Department of Revenue the necessary information on the amount of tax credit allowable to the business firm.

AUTHORITY: Chapter 215 and section 215.030(5), (12) and (19), RSMo Supp. 1989). Original rule filed Dec. 4, 1990, effective June 10, 1991. Amended: Filed Dec. 3, 1991, effective April 9, 1992.

*Original authority: 215.010, RSMo 1969, amended 1974, 1982, 1985; 215.020, RSMo 1969; 215.030, RSMo 1969, amended 1974, 1982, 1985, 1989; 215.035, RSMo 1989; 215.040–215.050, RSMo 1969; 215.060, RSMo 1969, amended 1974, 1982, 1985; 215.062, RSMo 1991; 215.070, RSMo 1969, amended 1972, 1974, 1975, 1985; 215.080, RSMo 1969; 215.090, RSMo 1969, amended 1974, 1985, 1989; 215.100–215.150, RSMo 1969; 215.160, RSMo 1969, amended 1974, 1985; 215.170–215.250, RSMo 1969; and 215.300–215.318, RSMo 1989.