Information Regarding the SB 590 – Historic Credit Bill

Updated June 1, 2018

SB 590 (bill linked below) modifies the Missouri Historic Tax Credit (Mo HTC), the bill was signed by Governor Greitens before he left office.

Highlights of the changes are as follows:

  • Cap on Mo HTC for Fiscal years beginning on and after July 1, 2018 – $90M (indexed to Consumer Price Index) down from $140M
  • Cap applies to applications approved after October 1, 2018, to meet deadline one of the following two qualifications must be met
    • Incurred cost and expenses for an eligible property which exceed the lesser of five percent of the total project costs or $1M and received an approved Part 1, OR
    • Has received certification by the state historic preservation officer that rehabilitation plan meets the standards consistent with the standards of the Secretary of the US Dept of the Interior and the rehabilitation costs and expenses shall exceed 50% of the total basis in the property
  • Additional $30M in Mo HTCs can be authorized for projects in Qualified Census Tracts (poverty rate of 20% or higher)
  • Additional Application Requirements
    • For applications receiving approval on or after July 1, 2019, taxpayer must submit evidence of the capacity to finance the costs and expenses of the rehabilitation of the eligible property within 60 days of the award of credits.
    • Copy of all land use/building approvals necessary
  • Department of Economic Development (DED) shall also consider
    • Net fiscal benefit of project
    • Overall size and quality of project including estimated of new jobs
    • Level of economic distress in area
    • Input from local municipality re the importance of project (includes alderman for the City)
  • Applications receiving approval on or after the effective date of the act (August 28, 2018) shall commence rehabilitation within 9 months (rather than 2 years) of the date of the issuance of the letter from the DED granting approval for Mo HTCs
  • DED fee is 4% of the issued Mo HTCs (up from 2.5%)

To view the SB 590 bill, click here.

For more information, you may contact Kelly Rock, Michael Markenson or Brian Beck.