Bank Tax Credit (BTC)
- This tax credit is available to shareholders of subchapter S corporations that are banks, bank holding companies, savings and loan associations, and/or credit institutions.
- The tax credit authorized in this subsection shall be permitted only to the shareholders that qualify as S corporation shareholders, provided the stock at all times during the taxable period qualifies as S corporation stock as defined in 26 U.S.C. Section 1361, and such stock is held by the shareholder during the taxable period.
How the Program Works
- A pro rata share of the tax credit for the tax payable pursuant to Chapter 148, RSMo, shall be allowed against each S corporation shareholders' state income tax as follows, provided the bank otherwise complies with Section 148.112, savings and loan association otherwise complies with Section 148.655, and/or the credit institution otherwise complies with Section 148.657.
Eligible Use of Tax Credit
- If the shareholder cannot use all or part of the tax credit in the taxable period of receipt, the shareholder may carry forward the tax credit for a period of the lesser of five years or until used, provided such credits are used as soon as the taxpayer has Missouri taxable income.
Procedures to Claim the Credit
- The credit allowed by this subsection shall be equal to the bank franchise tax calculated, or the savings and loan association tax calculated, or a credit institution tax calculated pursuant to Chapter 148, RSMo. The credit is based on bank income, savings and loan association income, or a credit institution income that makes an election pursuant to 26 U.S.C. Section 1362, and such credit shall be allocated to the qualifying shareholder according to stock ownership, determined by multiplying a fraction, where the numerator is the shareholder's stock, and the denominator is the total stock issued by such bank, savings and loan association, or credit institution.
- To file a claim for the credit with the Missouri Department of Revenue, banks and bank holding companies need to attach a copy of the Federal K-1, Form Int-2, and Form MO-BTC. Savings and loan associations need to attach a copy of the Federal K-1, Form Int-3, and Form MO-BTC. Credit institutions need to attach a copy of the Federal K-1, Form 2823, and Form MO-BTC.
Contact Missouri Department of Revenue, Taxation Division:
- E-mail: [email protected]
- Phone: 573-522-6864 (for individual tax) 573-751-4541 (for business tax)