MO HB227

Repeals and replaces Section 135.680, RSMo to modify Missouri's qualified equity investment tax credit program for community development entities making low-income community investments.

Establishes two separate program tracks: subsections 1-5 apply to investments made between September 4, 2007 and July 1, 2010; subsections 6-12 apply to investments made after August 28, 2013, with higher applicable tax credit percentages (11-12% vs. 7-8%).

Allows taxpayers making qualified equity investments to earn vested tax credits calculated as a percentage of the adjusted purchase price or purchase price, with credits limited to $25 million annually and non-refundable except for pass-through entities allocating to partners/members/shareholders.

Requires qualified community development entities to invest at least 85% of cash proceeds in qualified low-income community businesses within 12 months and maintain compliance through the seventh anniversary, with recapture penalties for failure to meet investment requirements or early redemption.

Establishes a one-half percent fee paid to the Department of Economic Development and creates a "New Markets Performance Guarantee Fund," plus implements a binding mechanism ("bound" status) restricting distributions to qualified community development entity equity holders until compliance with all requirements is demonstrated.