PURPOSE: This rule establishes guide lines and criteria to assist businesses and neighborhood organizations to participate in special programs. A tax credit of up to seventy percent will be allowed for investments in programs where activities fall within the scope of special priorities established with the approval of the governor.

1. (1) Contribution to a Neighborhood Assistance Program as named in section 32.105, RSMo which has been approved by the director of the Department of Economic Development and which is carried out in a specific impoverished urban neighborhood by an organization controlled by residents of that area will qualify for a tax credit of seventy percent (70%) of the total amount contributed by the business firm as provided in section 32.115, RSMo.

2. (2) For the purpose of this special program priority, the following terms shall mean:

   1. (A) Impoverished urban neighborhood, a specific geographic area within a standard metropolitan statistical area (SMSA) where the median income is eighty percent (80%) or less than the median income of the entire SMSA; and
   2. (B) Controlled by residents, having a board of directors of which at least fifty-one percent (51%) of its members are residents of the specific neighborhood where the project is to be carried out who are selected through a democratic process open to all residents of the neighborhood.
3. (3) Application for approval of proposals for this special program priorities shall be made according to the provisions of 4 CSR 85- 2.020.
4. (4) Approval and granting of tax credits shall be done according to the provisions of 4 CSR 85-2.030 and 4 CSR 85-2.040 respectively.

AUTHORITY: section 32.115, RSMo Supp. 1990.* Original rule filed Aug. 28, 1980, effective Feb. 10, 1981. Amended: Filed Jan. 3, 1992, effective Aug. 6, 1992. *Original authority: 32.115, RSMo 1977, amended 1980,