What’s new?

In short, the Missouri Department of Economic Development (DED) is moving to a semi-annual, competitive application process, similar to that used in Ohio. Historic tax credit applications will be accepted in April and October.

The DED has also indicated changes to the way they will score historic tax credit applications. Specifically, the department is seeking projects that:

• Create jobs
• Are located in a qualified census tract (QCT)
• Demonstrate a positive economic return to the state and locality
• Have financing commitments and approved Part 2s

When will these changes go into effect?

The emergency rules and regulations will become effective March 31, 2019 and apply to all historic tax credit applications received after August 28, 2018. The biggest questions on our mind:

• How will the new rules be applied to projects already in the queue?
• How will the timeframe address the ongoing backlog at SHPO?

When the new rules and regulations are published in the Missouri Register on May 1, developers have 30 days to submit comments. DED will have 59 days to respond to comments. They may either approve or reject comments, but all rejected comments will include a rationale. Starting on June 1, there is another 30-day deadline for the Missouri legislature’s Joint Committee on Administrative Rules (JCAR) to submit their own questions and comments.

Where can I learn more?

The DED has pledged to set up a webinar to review the new rules and guidelines with developers. Date and time are TBD.

HRM has also stated that they will establish historic tax credit education and training forums to address the new rules and regulations, along with the new application and scoring processes. Dates and locations are TBD, but will be conducted during April in the following cities:

• Kansas City/St. Joseph
• St. Louis
• Springfield
• Cape Girardeau
• Columbia