The Missouri Department of Economic Development has filed emergency rules to address new requirements outlined in SB590. The new rules will bring sweeping changes to the credit application and procurement process. Any real estate developer in Missouri looking at historic tax credits for their next project should familiarize themselves with these changes. Here’s our read on the situation.
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:
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:
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.
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:
As you can tell, there is much to learn about how historic tax credits in Missouri will be handled in the future. Sunflower Development Group is already researching the rule changes and determining how to best leverage them for developers across the state. We encourage you to contact us with any questions or concerns about the new historic tax credit rules.Reach Out