Bill > HB152

This bill establishes comprehensive requirements for municipal green bonds in Missouri, defining an "eligible green project" as an environmentally beneficial initiative across ten broad categories including renewable energy, energy efficiency, pollution prevention, sustainable land use, biodiversity conservation, clean transportation, water management, climate change adaptation, circular economy products, and green buildings. To be certified as a green bond, at least 85% of the bond proceeds must be used for these eligible projects. The bill provides a state income tax exemption for interest earned on these green bonds, with an exception for bonds issued to finance private entity projects. The state auditor is authorized to conduct audits of municipal green bonds to ensure compliance, and if less than 85% of proceeds are used for eligible green projects, the bond's green rating will be voided, and the tax exemption will be nullified. Additionally, municipalities issuing green bonds must establish a protective fund equal to the annual interest amount multiplied by the top state income tax rate to safeguard bond holders in case of non-compliance. This legislation aims to incentivize environmentally sustainable municipal investments while providing accountability mechanisms.

https://house.mo.gov/Bill.aspx?bill=HB152&year=2025&code=R