Bank Franchise Tax Credit (BFT)

Purpose

Permits corporations to claim a bank franchise tax credit if the bank is unable to use the credit on its financial institution tax return.

For tax returns filed on or after January 1, 2001, including returns based on income in the year 2000 and after, a banking institution shall be entitled to an annual tax credit equal to one-sixtieth of one percent of its outstanding shares and surplus employed in this state if the outstanding shares and surplus exceed one million dollars.

In the event the corporation franchise tax in Chapter 147, RSMo, is repealed by the general assembly, there shall also be a reduction in the taxation of banks as follows: in lieu of the loss of the corporation franchise tax credit reduction in Subdivision (1) of Subsection 2 of Section 148.030, the bank shall receive a tax credit equal to one and one-half percent of net income as determined in this chapter. This Subsection shall take effect at the same time the corporation franchise tax in Chapter 147, RSMo is repealed.

This tax credit shall be taken as a dollar-for-dollar credit against the bank tax provided for in Subdivision (2) of Subsection 2 of Section 148.030; if such bank tax was already reduced to zero by other credits, then against the corporate income tax provided for in Chapter 143, RSMo.
Attach a copy of your completed Form INT-2, INT-2-1, and MO-TC to your corporate income tax return.