Missouri would offer capped tax credits to homeless-service providers

Eligible providers may claim a Missouri income-tax credit of up to $10,000 per tax year. The taxpayer must do business in Missouri and be subject to its income tax, including a tax-exempt charity with Missouri unrelated business income subject to that tax. The taxpayer must be certified as a provider of job services, employment, or housing for homeless people. The credit cannot be refunded or transferred, but unused amounts may be carried forward for up to three tax years. All credits together are capped at $1 million per fiscal year, and applications are approved first come, first served. The credit would apply to tax years beginning on or after January 1, 2027.

The Department of Economic Development would certify providers and approve credit applications. These standards apply to taxpayers seeking certification in the job-services, employment, or housing categories. Job-service providers must show they offer services or training designed to help homeless people find and secure meaningful work. Employers must provide at least one homeless person with work of at least 28 hours per week at no less than the state minimum wage. Housing providers must lease, rent, or provide free adequate income-based housing to homeless people. Each certification would last 12 months and could be renewed. A credit application must show certification or renewal within the prior calendar year.

The program would sunset unless the General Assembly reauthorizes it. This applies to the tax-credit program described in the bill. The sunset would not affect the state's obligations for credits authorized, issued, or redeemed before the program sunsets. The program would sunset on December 31, 2032, and this section would terminate on September 1 of the following calendar year.