PURPOSE: The purpose of this rule is to explain the application process for the Amateur Sporting Tax Credit Program.

1. (1) The application process will be comprised of the following steps:

   1. (A) In the project proposal step the department will—

      1. 1. Determine if the project meets the

statutory criteria for eligibility;

1. 2. Evaluate the economic impact of the

sporting event upon the state of Missouri. The evaluation of economic impact will determine if the sporting event has a positive economic impact upon the state using one (1) of two (2) methods—

1. A. Require proof of a positive econom-

ic impact. Project proposals which include major regional, national, and international sports associations, amateur organizations, or major regional, national, and international organizations must provide data which will be analyzed by the department to find if the sporting event has a positive return of general revenue proceeds to the state in the same state fiscal year as the event. That analysis shall be performed by the department as a benefit cost analysis using data provided by the applicant in the project proposal; or

1. B. Meet a presumption of a positive

economic impact. The department will presume that the project generates a positive economic impact if the project proposal uses any of the following site selection organizations:

1. (I) The National Collegiate Athlet-

ic Association (NCAA);

1. (II) An NCAA member conference,

university, or institution;

1. (III) The National Association of

Intercollegiate Athletics (NAIA);

1. (IV) The United States Olympic

Committee (USOC);

1. (V) A national governing body

1. (NGB) or international federation of a sport recognized by the USOC;

   1. (VI) The United States Golf Asso-

ciation (USGA);

1. (VII) The United States Tennis

Association (USTA); or Community Services

(VIII) The Amateur Softball Asso-

ciation of America (ASA).

1. 3. Tax credits will be reserved for a pro-

ject proposal if that project proposal meets the statutory criteria for eligibility, and the project proposal is determined to have a positive economic impact;

1. 4. A project proposal will be denied if

that project proposal either fails to meet the statutory criteria for eligibility, or if it is determined that the sporting event does not have a positive economic impact upon the state. Applicants will be informed of a denied project proposal by the department in writing;

1. (B) The applicant submits its support contract for department review;

   1. 1. The department will review a support

contract only—

1. A. After reserving tax credits as part

of the project proposal; or

1. B. In conjunction with a project pro-

posal.

1. 2. The department review of a support

contract will include a determination of statutory compliance;

1. 3. A project, with tax credits reserved,

will be authorized to receive tax credits after a support contract is deemed to be in statutory compliance;

1. 4. The support contract need not be made

available for DED review prior to submission of the event notification, or prior to the sporting event, but in no event can approval or issuance of tax credits be made prior to receipt of an executed support contract.

1. (C) The event notification step in which the applicant notifies the department of an upcoming sporting event;

   1. 1. The event notification must be sub-

mitted to the department no less than thirty (30) days, and no more than sixty (60) days prior to the sporting event;

1. (D) The sporting event takes place;

2. (E) The applicant submits a cost certification in which the department determines eligibility and the potential amount of any tax credit award;

   1. 1. The cost certification must be sub-

mitted no later than thirty (30) days following the end of the sporting event or the project is denied;

1. 2. The department and the director may

determine the total number of tickets sold at face value for a sporting event within seven (7) days following the end of the sporting event;

1. A. If the department and the director

do not determine the total number of tickets sold at face value for a sporting event, the department shall determine the number of admissions tickets sold to the event through evidence submitted by the applicant with the cost certification; and

1. (F) No later than sixty (60) days immediately following the receipt of the cost certification, the DED will issue tax credits equal to the lesser of one hundred percent (100%) of the eligible costs incurred by the applicant, or five dollars ($5) for each admission ticket sold to the sporting event.

AUTHORITY: section 67.3000, RSMo Supp. 2013.* Emergency rule filed April 1, 2014, effective April 11, 2014, expired July 30, 2014. Original rule filed Feb. 7, 2014, effective July 30, 2014. *Original authority: 67.3000, RSMo 2013.