Bill > HB1242

This bill modifies Missouri's low-income housing tax credit program by introducing a new priority allocation system for projects located in federally declared natural disaster areas. Specifically, beginning August 28, 2025, tax credits will first be allocated to eligible projects in disaster areas that meet additional requirements. To qualify for this priority, a project must be located in an area declared a federal disaster under the Stafford Act and receive either Community Development Block Grant Disaster Recovery (CDBG-DR) funds from the U.S. Department of Housing and Urban Development or funds from a local affordable housing trust fund. Developers must submit a letter of intent to the director of economic development at least 15 days before placing the project into service, verifying their receipt of disaster recovery funds. The bill maintains the existing annual cap of six million dollars in tax credits for projects financed through tax-exempt bond issuance and allows the economic development department to establish additional program criteria and procedures for implementing this priority allocation system. The tax credits remain non-refundable and can be carried back three years or forward five years if they exceed the taxpayer's tax liability in a given year.

https://house.mo.gov/Bill.aspx?bill=HB1242&year=2025&code=R