Mo. Code Regs. tit. 13 § 35-100.010
Current through Register Vol. 49, No. 20, October 15, 2024
Section 13 CSR 35-100.010 - Residential Treatment Agency Tax CreditPURPOSE: This rule describes the procedures for the implementation of section 135.1150, RSMo, Residential Treatment Agency Tax Credit Act.
(1) In general, a qualified residential treatment agency may apply for tax credits on behalf of taxpayers who make cash donations to the agency. The amount of total credits available to any qualified residential treatment agency cannot exceed the total funds received from the Department of Social Services in the preceding twelve (12) months. Those who donate to qualifying providers are eligible to receive a tax credit up to fifty percent (50%) of their donation. Qualified residential treatment agencies that accept these donations are required to remit payments equivalent to the amount of the tax credit to the state of Missouri.(2) Definition of terms- (A) "Certificate," a tax credit certificate issued to a taxpayer who makes an eligible donation to a qualified residential treatment agency as described under section 135.1150, RSMo;(B) "Eligible donation," donations received from a taxpayer by a qualified residential treatment agency that are used solely to provide direct care services to children who are residents of this state. Direct care services include, but are not limited to, increasing the quality of care and service for children through improved employee compensation and training. Eligible donations may include cash, publicly traded stocks and bonds, and real estate;(C) "Qualified residential treatment agency," a residential treatment care facility that- 1. Is licensed under section 210.484, RSMo; and2. Is accredited by- A. Council on Accreditation (COA); orB. Joint Commission on Accreditation of Healthcare Organizations (JCAHO); orC. Commission on Accreditation of Rehabilitation Facilities (CARF); and3. Is under contract with the Department of Social Services to provide treatment services for children who are residents or wards of residents of this state; and4. Receives donations. Any agency that operates more than one (1) facility or at more than one (1) location can only be eligible for the tax credit for eligible donations made to facilities or locations of the agency which are licensed and accredited;(D) "Taxpayer," any of the following individuals or entities who make eligible donations to a qualified residential treatment agency- 1. A person, firm, partner in a firm, corporation, or a shareholder in an S corporation doing business in the state of Missouri, and subject to the state income tax imposed in Chapter 143, RSMo;2. A corporation subject to the annual corporation franchise tax imposed in Chapter 147, RSMo;3. An insurance company paying an annual tax on its gross premium receipts in this state;4. Any other financial institution paying taxes to the state of Missouri or any political subdivision of the state under Chapter 148, RSMo; or5. Any charitable organization which is exempt from federal income tax and whose Missouri unrelated business taxable income, if any, would be subject to the state income tax imposed under Chapter 143, RSMo; and(E) "State tax liability," any tax liability due under Chapters 147, 148, or 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, as identified in section 135.1142, RSMo.(3) Beginning January 1, 2007, any taxpayer will be allowed to claim a credit against their state tax liability, as defined in subsection (2)(E) of this rule, equivalent to fifty percent (50%) of the eligible donation the taxpayer made to a qualified residential treatment agency. The amount of the tax credit claimed may not exceed the amount of the taxpayer's state income tax liability in the tax year that the credit is being claimed. (A) Any tax credit that cannot be claimed in the taxable year during which the contribution is made, will not be refunded but allowed to be carried forward and used against the taxpayer's state tax liability for four (4) subsequent years.(4) Qualified residential treatment agencies must apply for the tax credit on behalf of the taxpayers. Required information includes: (A) A complete and accurate Residential Treatment Agency Tax Credit Application (Attachment A, included herein). Applications may be obtained by writing to- Department of Social Services Attention: Residential Treatment
Agency Tax Credit
PO Box 853
Jefferson City, MO 65102-0853;
(B) Verification of accreditation status;(C) A statement attesting to the receipt of an eligible donation, which includes the following information: 1. Taxpayer type and supporting documentation, when applicable;3. Taxpayer's identification number;4. Amount of the eligible donation and supporting documentation, when applicable;5. Amount of anticipated tax credit;6. Date the donation was received by the agency; and7. Signature of the executive director;(D) Payment from the qualified residential treatment agency equal to the value of the tax credit for which the application is being submitted. Checks must be made payable to the Department of Social Services; and(E) Verifying documentation must be attached to the tax credit application. The type of documentation required will depend on the type of donation. Required documentation includes the following: 1. Cash-legible receipt from the residential treatment agency which indicates the name and address of the organization; name, address, and telephone number of the contributor; amount and date the contribution was received; and signature of a representative of the residential treatment agency receiving the contribution;2. Check-photocopy of the canceled check, front and back-if not possible then copy of the original check and a receipt from the residential treatment agency including the same information required of a cash donation as described in paragraph (4)(E)1. of this rule;3. Credit card-legible transaction receipt with the name and address of the residential treatment agency; contributor's name, address, and telephone number; amount and date the contribution was received; and signature of a representative of the residential treatment agency receiving the contribution. Receipts should have the credit card account number blacked out;4. Money order or cashier's check-legible copy of the original document with the name and address of the residential treatment agency; contributor's name, address, and telephone number; amount and date the contribution was received; and signature of a representative of the residential treatment agency receiving the contribution;5. Values of contributed stocks and bonds must be determined by a reputable source (e.g., Wall Street Journal, New York Stock Exchange (NYSE), National Association of Securities Dealers Automated Quotations (NASDAQ), etc.). Information required when submitting applications for tax credit shall include the source and date the stock was valued and how the bond amount was determined;6. The value of contributions of real estate shall be equal to the lowest of at least two (2) qualified independent appraisals for commercial, vacant, or residential property that has been determined to have a value of over twenty-five thousand dollars ($25,000). Commercial, vacant, or residential property having a value of twenty-five thousand dollars ($25,000) or less will require only one (1) appraisal; and7. Contributions that include a benefit to the donor-documentation required will depend on how the type of contribution was made (i.e., cash, check, etc.). The same information is required as described in paragraphs (4)(E)1.-4. of this rule. Additional information required includes the type of function or event from which the benefit was received, description of the benefit received (if an auction item, identify the item received), gross amount of the contribution, fair market value of the benefit, and how the fair market value of the benefit was determined. (5) All applications and payments must be submitted within twelve (12) months from date the eligible donation was received from the taxpayer. Tax credit applications submitted more than one (1) year following the date of the contribution will be void and the right to the tax credit will be forfeited.(6) Information required in sections (4) and (5) of this rule, must be submitted to: Department of Social Services Attention: Residential Treatment
Agency Tax Credit
PO Box 853
Jefferson City, MO 65102-0853.
(7) Total tax credits issued for any qualified residential treatment agency cannot exceed the total payments made by the Department of Social Services to the qualified residential treatment agency in the twelve (12) months preceding the month the application for the tax credit was received. In the event the total credits exceed the total payments made to a qualified residential treatment agency by the Department of Social Services, the application and payment will be returned to the qualified residential treatment agency and may be resubmitted by the agency within thirty (30) days of the date the application was returned or within twelve (12) months from the date the donation was received by the agency, whichever is later.(8) Upon receipt of the information required in subsection (4)(C) the Department of Social Services will verify with the Department of Revenue any outstanding balances due from taxpayer's prior year's state tax liability. If a balance due is outstanding, the amount of tax credit issued under this rule will be reduced by that amount.(9) Upon verification of the information required in sections (4) through (8) of this rule, the Department of Social Services will issue a certificate to the taxpayer indicating the amount of tax credit that was approved. (A) Certificates will be mailed to the taxpayer at the address provided on the application submitted by the qualified residential treatment agency.(B) The Department of Social Services will not provide information regarding taxpayers' state tax liability to unauthorized individuals.(C) In the event a taxpayer's tax credit is reduced as a result of delinquent taxes, a refund will not be issued to the qualified residential treatment agency.(10) Approved tax credit certificates will be issued within forty-five (45) days of receipt of the completed application submitted by the qualified residential treatment agency.(11) The owner of a residential treatment agency tax credit certificate may assign, transfer, sell, or otherwise convey the certificate. The new owner will have the same rights as the original owner. When a certificate is assigned, transferred, sold, or otherwise conveyed, a notarized endorsement must be submitted to the Department of Social Services within thirty (30) days of the date of the transaction. Information submitted must include: AUTHORITY: section 135.1150, RSMo Supp. 2012.* Emergency rule filed Sept. 18, 2006, effective Oct. 1, 2006, expired March 29, 2007. Original rule filed Sept. 18, 2006, effective March 30, 2007. Amended: Filed Feb. 25, 2013, effective Aug. 30, 2013. *Original authority: 135.1150, RSMo 2006, amended 2007, 2012.