Missouri Department of Economic Development Community Development Group

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Missouri Department of Economic
DevelopmentCommunity Development Group

• Ann Perry
• Investment Tax Credit, Manager

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Historic Tax Credit Program Neighborhood
Preservation Tax Credit Program State TIF
Program Brownfield Redevelopment Program
Programs
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Brownfield Redevelopment Program

• Basic Eligibility
• Abandoned or underutilized (more than 3 years or
  gt35)
• Public ownership or endorsed by the city
• Accepted into VCP
• Need for assistance
• 10 new jobs must be created or 25 jobs retained
• Commercial development

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Brownfield Remediation Tax Credits

• Approval Method
• Discretionary by DED
• Based on need for assistance
• Submit application prior to commencement
• Credit issued to
• Party that pays for the remediation
• Features
• Sellable
• Carry forward 20 years

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Brownfield Remediation Tax Credits

• Credits are provided for remediation of hazardous
  substances
• Up to 100 of costs
• Limited to the Net State Economic Benefit
• All work must be done in compliance with the
  Voluntary Cleanup Program

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Other BenefitsBrownfield Program

• Brownfield Tax Benefits
• Jobs/Investment credits
• Similar to Enterprise Zone
• Demolition Tax Credit

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Brownfield Redevelopment Program

• Brownfield Tax Benefits
• Up to 1300 per new job
• Credits provided for 2 of new investment
• Up to 50 tax exemption
• Provided 1-10 years
• Local government must provide either tax
  abatement or tax increment financing (TIF)

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Due Diligence Grant
Demolition Tax Credit

• Credits are provided for demolition not part of
  the Voluntary Remediation Activities but on the
  property or adjacent to the contaminated
  property.
• Up to 100 of costs
• Limited to the Net State Economic Benefit and
  Least Amount Necessary.

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Brownfield Redevelopment Program

• Prior to incurring costs
• VCP application to DNR
• Brownfield application to DED
• Upon payment of remediation costs
• Up to 75 credits provided
• Upon issuance of a Clean Letter from DNR
• Remaining credits provided

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Brownfield Redevelopment ProgramMO Voluntary
Cleanup Program

• DNR oversees site assessment and cleanup
• Approval of both DNR DED is necessary before
  work can begin

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Historic Tax Credit

• To be eligible a property must be HISTORIC. This
  is defined as either
• Listed individually in the National Register of
  Historic Places, or
• Be a contributing element of National Register of
  Historic Places Historic District, or
• Be a contributing element of a Local Historic
  District that has been certified by U.S.
  Department of the Interior as substantially
  meeting National Register criteria

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HTC Cont.

• The rehabilitation must meet standards consistent
  with the standards of the Secretary of the United
  States Department of the Interior for
  rehabilitation as determined by the State
  Historic Preservation Officer of the Missouri
  Department of Natural Resources

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HTC Cont.

• The rehabilitation costs and expenses must exceed
  50 of the TOTAL BASIS in the property
• Basis is defined as the cost or fair market value
  of the property at the time of acquisition or as
  otherwise defined in the United States Internal
  Revenue Code

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HTC Cont.

• The tax credit is equal to 25 of the total costs
  and expenses of rehabilitation incurred on a
  project after January 1, 1998
• Total costs incurred on rehabilitation shall
  include, but not be limited to qualified
  rehabilitation expenditures as defined under
  section 47(c)(2)(A) of the Internal Revenue Code
  of 1986 as amended.

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Contact Informationwww.missouridevelopment.org
573/522-8004