Land Assemblage Tax Credit Programs

PURPOSE
Support redevelopment of blighted areas into productive use.

AUTHORIZATION
Section 99.1205, RSMo. (HB1, Special Session, 2007)

ELIGIBLE AREAS

  • An area of at least 75 acres;
  • At least 80% must be within a Distressed Area (applicable to other DED programs) or a federal “Qualified Census Tract” (26 U.S.C. Section 42);
  • The redeveloper must acquire at least 50 acres of the area;
  • The average parcels per acre must be four or more; and
  • Less than five percent of the acreage for acquisition by the redeveloper under the redevelopment plan shall consist of owner-occupied residences.

ELIGIBLE APPLICANTS
Redeveloper, which is a person, firm, partnership, trust, limited liability company, or corporation.

ELIGIBILITY CRITERIA
The redeveloper must have incurred acquisition cost for at least 50 acres of eligible parcels, have been appointed the redeveloper of the area by a city or county, have entered into a redevelopment agreement, and have been approved for redevelopment incentives for the area.

PROGRAM BENEFITS/ELIGIBLE USES
State tax credits are provided to the redeveloper based on 50% of the acquisition costs and 100% of the interest costs incurred for a period of five years after the acquisition of an eligible parcel. Maintenance costs (boarding up and securing vacant structures, costs of removing trash, and costs of cutting grass and weeds) may also be included as acquisition costs.

FUNDING LIMITS

  • Maximum aggregate amount of tax credits for all projects: $95 million.
  • Maximum annual amount of tax credits, all projects (by one or more redevelopers): $10 million. If the amount to be issued to more than one redeveloper exceeds $10 million/year, the amount will be pro-rated between the redevelopers. Any amount of tax credits that exceeds the $10 million annual cap shall be carried forward for the benefit of the redevelopers to subsequent years.

APPLICATION/APPROVAL PROCEDURE
A redeveloper may submit an application to the Department of Economic Development (DED). The redeveloper must identify the boundaries of the eligible project area in the application. The department shall verify that the municipal authority held the requisite hearings and gave the requisite notices for such hearings in accordance with the applicable economic incentive act and municipal ordinances.

REPORTING REQUIREMENTS
Redevelopers must submit satisfactory evidence of all acquisition, maintenance, and interest costs to DED annually prior to November 15. If maintenance costs are to be included, DED must post on its website the type and amount of such costs.

SPECIAL PROGRAM REQUIREMENTS
  • No tax credits shall be authorized after August 28, 2013. Any tax credits which have been authorized on or before August 28, 2013, but not issued, may be issued, subject to the limitations provided under this subsection, until all such authorized tax credits have been issued.
  • Tax credits may be applied against the taxes imposed under chapters 143, 147, and 148, RSMo, except for
    sections 143.191 to 143.265, RSMo., or any unused portion may be carried forward for credit against the taxes imposed under chapters 143, 147, and 148, RSMo, for the succeeding six years, or until the full credit is used, whichever occurs first. The applicant shall not be entitled to a tax credit for taxes imposed under sections 143.191 to 143.265.
  • Unused tax credits may be sold, assigned, or transferred. Such transfer must be submitted to DED on Form MO-TF.

CONTACT:
LAND ASSEMBLAGE TAX CREDIT PROGRAM
MISSOURI DEPARTMENT OF ECONOMIC DEVELOPMENT
Missouri Department of Economic Development
Division of Business and Community Services • Development Finance Team
301 West High Street • Room 770 • P.O. Box 118
Jefferson City • MO • 65102
Phone: 573-522-8004 • Fax: 573-522-9462
E-mail: dedfin@ded.mo.gov • Web: www.MissouriDevelopment.org