Bank Tax Credit (BTC)

Purpose

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.

Eligible Applicants

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.

Forms

• Form MO-TC, Miscellaneous Tax Credits
• Form MO-BTC
• Individual Income Tax Forms
• Business Tax Forms

Contact Missouri Department of Revenue, Taxation Division:

• Email: income@dor.mo.gov
• Phone: 573-522-6864 (for individual tax) 573-751-4541 (for business tax)