MO HB1985

Changes the historic structures rehabilitation tax credit from discretionary ("may") to mandatory ("shall"), allowing taxpayers to receive a 25% credit on rehabilitation costs for certified historic structures or structures in certified historic districts.

Reduces tax credit limits effective July 1, 2013: annual approval caps decrease from $140 million to $110 million, and single-family residential property limits drop from $250,000 to $125,000 in tax credits.

Modifies carryforward provisions for credits authorized after July 1, 2013, allowing excess credits to be carried back one year and forward five years (instead of three years back and ten years forward).

Establishes a new appeals process allowing taxpayers to appeal any departmental decisions regarding applications to an independent third-party appeals officer within 30 days.

Adds provisions for two-tier tax credit issuance with initial (75%) and final certifications, requirements for certified public accountant verification of rehabilitation costs, and accountability measures for accrued developer fees.