4 CSR 85-5.020 - Applications
(1)
Preliminary Application.
(A) All applicants
seeking an authorization of tax credits for a project shall submit a
preliminary application to the department.
(B) The department shall post on its website
a checklist of required information for a preliminary application. If a
preliminary application submitted to the department is incomplete, the
department will give an applicant one (1) opportunity to provide information or
documents to cure any deficiencies within fifteen (15) business days of being
notified by the department. The department will reject all preliminary
applications that remain incomplete after one (1) opportunity to
cure.
(C) A complete preliminary
application shall be evaluated by the department for eligibility of the
project.
1. Eligibility criteria for a
preliminary application include that the project is an eligible property, is a
certified historic structure or structure in a certified historic district,
meets the requirements in section 253.559.2, RSMo, and other statutory
requirements.
(D)
Subsection (1)(E) of this rule shall not apply to projects to receive less than
two hundred seventy-five thousand dollars ($275,000) of tax credits.
(E) The preliminary application shall include
the following:
1. Signed letters of support
for the project from the local elected officials in the local municipality in
which the project is located, as set forth in
4 CSR
85-5.060(1)(B);
2. The type and amount of local incentives or
public financing committed to the project;
3. Private financing and developer
equity;
4. The estimated number of
net new jobs created in the state as a result of the project;
5. The amount of projected net fiscal benefit
of the project to the municipality, which may be provided by the applicant, or
if the applicant so chooses, determined by the department, based on information
provided by the applicant. The projected net fiscal benefit to the municipality
shall include the potential multiplier effect for the project and shall clearly
state the period in which the municipality would realize such net fiscal
benefit;
6. Information regarding
the vacancy or underutilization prior to rehabilitation; and
7. A statement of whether the project's
address is located in an economically distressed area as set forth in
4 CSR
85-5.050(1)(A) through (E), and if
so, which type of area, as well as evidence of same.
(F) A complete preliminary application will
be evaluated for eligibility and scored by the department in accordance with
section 253.559.3(1), RSMo, subsection (1)(J) of this rule, and 5 CSR 85-5.030,
5.040, 5.050, and 5.060.
(G) The
department shall accept preliminary applications and excess tax credits
applications in one (1) cycle for each state fiscal year. The application cycle
for each state fiscal year shall open no later than July 1 and shall close on
June 30.
(H) Pursuant to section
253.559.1, RSMo, preliminary applications and excess tax credits applications
within each cycle shall be prioritized for review in the order of the date on
which the application was postmarked, with the oldest postmarked date within
the cycle receiving priority. For preliminary applications and excess tax
credit applications postmarked on the same day, the lottery process used to
determine the order in which an application was received by the department will
rely on digital timestamps, with the applications being reviewed from oldest to
newest, regardless of whether the application is a preliminary application or
an excess tax credits application.
(I) Subject to sufficient QCT tax credit cap
or statewide tax credit cap, as applicable, preliminary applications for
projects meeting the following requirements are not subject to the application
cycle set forth in subsection (1)(G) of this rule and shall be accepted by the
department at any time:
1. The applicant or
an entity with a direct or indirect controlling interest in applicant has
received a formal, written proposal for business development incentives
executed by the director of the department with regard to the
project;
2. The project will be
occupied by the applicant or an entity with a direct or indirect controlling
interest in applicant upon completion; and
3. The applicant or an entity with a direct
or indirect controlling interest in applicant has committed to relocating to
Missouri from another state.
(J) Prior to an application cycle, the
department shall post on its website the program guidelines, the checklist
described in subsection (1)(B) of this rule, scoring criteria, and a scorecard
for the cycle.
1. The scoring criteria and
scorecard shall set forth the maximum points assigned to the required criteria
in section 253.559.3, RSMo.
2. The
program guidelines, scoring criteria, and scorecard shall state the minimum
amount of points necessary for a project to be authorized tax credits. Projects
scoring below that threshold will be denied.
(K) The department shall not authorize tax
credits for a project in a preliminary application until such preliminary
application has received written unconditional or conditional approval from
State Historic Preservation Office or the National Park Service of the U.S.
Department of the Interior.
(L) For
projects that are located within a qualified census tract, credits shall first
be authorized from the QCT tax credit cap before being authorized from the
statewide tax credit cap.
(M)
Except as otherwise provided, no applicant shall submit a preliminary
application to the department within five (5) years following the issuance of
tax credits in connection with the same property. The department shall deny any
such preliminary application it receives.
(2) Final Application.
(A) An applicant seeking issuance of tax
credits, other than excess tax credits, for a completed project shall submit a
final application to the department.
(B) The department shall post on its website
a checklist of required information for a final application.
(C) The department shall accept final
applications year-round.
(D) The
department, in consultation with the State Historic Preservation Office, shall
determine the final amount of QRE on the project and whether the completed
rehabilitation meets the standards of the Secretary of the U.S. Department of
the Interior for rehabilitation as determined by the State Historic
Preservation Office.
(E) Subject to
section 253.559.9, RSMo, an applicant may obtain an independent review of an
applicant's cost certification by one (1) or more third-party certified public
accountant firms to be paid entirely by the applicant. The cost certification
review shall not constitute QRE under the program. The department may publish
guidance regarding such independent cost certification review in the program
guidelines.
(F) The eligibility of
project costs as QREs shall be evaluated using the rules and statutes in effect
on the date the applicant's preliminary application was submitted to the
department.
(G) The following
applies in determining whether a cost is a QRE:
1. An applicant's hard costs set forth in a
preliminary application will be QREs only if such costs are-
A. Incurred on or after the date on which the
department receives the preliminary application, except that certain hard costs
incurred no earlier than one (1) year prior to the date on which the department
receives the preliminary application will be QRE if such costs are-
(I) Limited to costs necessary for
stabilization of the structure that are cost-mitigating (delaying stabilization
would result in higher QRE) or to make the structure suitable for safe entry
and inspection; and
(II) Not in an
amount in excess of ten percent (10%) of the QRE amount sought in the
preliminary application. The amount up to ten percent (10%) may be QRE, but
amounts exceeding ten percent (10%) shall not be QRE;
2. An applicant's soft costs set
forth in a preliminary application will be QREs only if such costs are incurred
no earlier than one (1) year prior to the date on which the department receives
the preliminary application;
3. To
be a QRE, all sources of funds for payment of project costs, invoices for
project costs, and other documentation relating to the project must be in
applicant's name and authorized by applicant.
A. Project costs shall not be QREs if paid by
the third party on behalf of the applicant, regardless of whether applicant
reimburses the third party.
B. A
title company paying on behalf of an applicant shall not be considered a third
party for purposes of this paragraph;
4. All loans related to the project must be
made to applicant, provided that loans may be made to applicant's owner if
applicant is a single member limited liability company where the single member
is an individual. Project costs paid with proceeds of loans not as described in
this paragraph shall be considered costs paid by a third party, and shall not
be QREs; and
5. Additional
limitations on QREs are in
4 CSR
85-5.080, Phased Projects,
4 CSR
85-5.090, Developer Fees and General Contractor
Overhead and Profit, and
4 CSR
85-5.100,
Not-for-Profits.
(3) Excess Tax Credits Application.
(A) All applicants seeking excess tax credits
shall submit an excess tax credits application to the department.
(B) If an excess tax credits application
submitted to the department is incomplete, the department will give an
applicant one (1) opportunity to provide information or documents to cure any
deficiencies within fifteen (15) business days of being notified by the
department. The department will reject all excess tax credits applications that
remain incomplete after one (1) opportunity to cure.
(C) A complete excess tax credits application
shall be evaluated by the department for eligibility of the project.
1. Eligibility criteria for an excess tax
credits application include that the department previously issued tax credits
after determining the total QRE for the project after a final application was
submitted, and the amount of QREs for the project exceeded the amount of QREs
for which tax credits were issued by the department, and other statutory
requirements.
(D) The
excess tax credits application shall include the information and documents set
forth for a preliminary application in subsection (1)(E) of this
rule.
(E) A complete excess tax
credits application will be evaluated for eligibility and scored by the
department in accordance with section 253.559.3(1), RSMo, subsection (1)(J) of
this rule, and 4 CSR 85-5.030, 5.040, 5.050,
and 5.060.
(F) Subsection (3)(E) of
this rule shall not apply to an excess tax credits application if the project
received its authorization of tax credits in 2019 or later. Such a project will
not be reevaluated or re-scored, and the evaluation or score given the project
for the evaluation and scoring of the project's preliminary application will be
used for the excess tax credits application.
(G) The department shall accept excess tax
credits applications in the same cycle as preliminary applications, as set
forth in subsection (1)(G) of this rule.
(H) Excess tax credits applications will be
reviewed and scored in the order set forth in subsection (1)(H) of this
rule.
(I) Prior to an application
cycle, in addition to the required information and documents in subsection
(1)(J) of this rule, the department shall post on its website a checklist for
excess tax credits applications.
(J) Except as set forth in subsection (3)(F)
of this rule, excess tax credits applications will be scored in the same
manner, using the same scoring criteria and scorecard as preliminary
applications described in subsection (1)(J) of this rule. Projects scoring
below the minimum amount of points necessary for a project to be authorized tax
credits will be denied.
(K) Excess
tax credits applications will be apportioned to the QCT tax credit cap or
statewide tax credit cap in the manner set forth in subsection (1)(L) of this
rule.
Notes
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