Summary — HB 1735 (Missouri) — Tax Credit for Critical Revitalization Property
Status (from provided material)
- Introduced in the Missouri House (Second Regular Session, by Rep. Wellenkamp). Bill text replaces sections 135.478, 135.481, 135.484, and 135.487, RSMo. Check the Missouri General Assembly website for the bill’s current status and any later amendments or enactment.
Purpose
- To amend Missouri’s tax-credit statute chapter (sections 135.478–135.487) to (re)define terms and establish/clarify refundable/nonrefundable tax credits targeted to encourage new construction, rehabilitation, and renovation of residential and mixed‑use properties in economically vulnerable areas — with a new emphasis on “critical revitalization property” located in National Register‑listed historic districts.
Key definitions (selected)
- Critical revitalization area: a National Register‑listed historic district.
- Critical revitalization property: an occupied property that is a contributing resource in a National Register‑listed historic district and zoned residential, commercial, or mixed use.
- Eligible costs for critical revitalization properties: renovation expenses, including surveys, architectural/engineering services, and construction costs related to maintenance, functional use, and property viability.
- Eligible costs for new residences and rehabilitation: acquisition, development/site preparation (excluding demolition for new residences), surveys, A&E, construction, remodeling, structural work, and other necessary expenses; grant/forgivable‑loan funded costs (other than tax credits) are ineligible.
- Other defined terms: distressed community, eligible residence, qualifying residence, substantial rehabilitation, historic district, tax liability, taxpayer.
Key provisions (from available text)
- Repeals and replaces prior statutory sections to restate definitions and tax‑credit structure.
- New‑construction provision excerpted: taxpayers who incur eligible costs for a new residence in a distressed community or specified low‑income census block groups (or certain owner‑occupied multiple‑unit condominiums) are eligible for a tax credit equal to 15% of such eligible costs, capped at $40,000 per new residence in any 10‑year period.
- The bill organizes tax credits for:
- New residences (including certain owner‑occupied units/condominiums),
- Rehabilitation or substantial rehabilitation of older residences,
- Renovation/maintenance of critical revitalization (historic contributing) properties.
- The Department of Economic Development is identified as the administering authority (director defined).
Who would be affected
- Property owners and developers undertaking new construction, rehabilitation, or historic renovations in eligible areas (distressed communities, certain low‑income census block groups, and National Register historic districts).
- Owner‑occupants of qualifying residences (single‑family or certain condominiums).
- The Department of Economic Development (administration/approval/oversight duties).
- State revenue/payors, because tax credits reduce state tax liability (potential fiscal impact).
Potential impacts and considerations
- Intended effect: stimulate private investment in deteriorated neighborhoods and historic downtowns by lowering net renovation/new‑construction costs.
- Historic preservation: creates an incentive to maintain and reuse contributing properties within National Register districts.
- Fiscal effect: likely reduces state tax receipts to the extent credits are claimed; actual budgetary impact would depend on uptake, caps, and credit transfer/refundability rules (not fully shown in the excerpt).
- Program design details matter (carryforward, transferability, refundable vs. nonrefundable, application and certification process, per‑project caps, cumulative caps) but are not fully visible in the provided text — consult the full bill or legislative analysis for those specifics.
Procedural/timeline notes
- The provided material indicates this bill replaces the existing statutory language and reorganizes definitions and credit rules. Because the provided legislative-action history includes entries from multiple states and multiple bills titled HB 1735, verify the accurate Missouri bill number/status on the Missouri General Assembly site or with legislative staff to confirm final text, amendments, committee referrals, and fiscal notes.
For further review
- Recommended: obtain the full current text and the fiscal note (cost estimate) from the Missouri General Assembly, and review any implementing regulations or administrative guidance from the Department of Economic Development to understand eligibility certification, application procedures, and fiscal limits.
