Missouri Tax Credit FAQ

What Is The Missouri Department Of Economic Development Youth Opportunities Program (YOP)?

The Missouri Department of Economic Development has approved the OTC Foundation to receive over $183,000 in Missouri tax credits. This will encourage donations to establish the Middle College, an alternative education site for bright, capable, at-risk high school students.

What Is The Process To Use YOP Tax Credits On The Donor's Tax Return?

The donor makes a contribution to an approved YOP project, submits Form CDTC-770 with the required documentation, and receives a certification from the Department of Economic Development. The taxpayer may then file their tax return at the end of their tax year, using the MO-TC form. The tax credits are applied to their total tax liability incurred for that tax period. For example, a contributor makes a $1,000 contribution to an approved YOP project:

Total tax liability for tax year 20XX:	$2000
Tax Credits:	$500
Adjusted tax liability:	$1,500

If The Donor Does Not Have Enough Tax Liability In The Tax Year The Contribution Is Made, Can The Credits Be Used On Subsequent Tax Returns?

Yes. The contributor has the tax year the contribution was given and five succeeding tax periods in which to use the credits.

What Is The Turnaround Time For Processing Tax Credit Applications?

Approximately 2 weeks. However, depending on the volume received from December 1-April 15, the turnaround time may be slower.

How Long Does A Donor Have To Submit The Tax Credit Application Into YOP Before The Donor Must Forfeit The Tax Credits?

Twelve months from the date of contribution (date on the check).

Which Taxes Can YOP Tax Credits Be Used To Offset?

The tax credits can be used to offset state income tax due pursuant to:

RSMo chapter 143- individual state income tax, excluding withholding tax imposed by sections 143.191 to 143.265;
RSMo chapter 147-corporate franchise tax;
RSMo chapter 148-gross premium receipts tax of insurance companies and tax of banks and other financial institutions; or
RSMo chapter 153-gross receipts tax of express companies.

Are Stocks, Bonds or Donated Professional Services Eligible Contributions?

Eligible Contributions:

Cash,
Publicly-traded stocks and bonds (starting January 1, 2001),
Materials, equipment, or property specifically used for the YOP project, and
Wages paid to youth in an approved internship/apprenticeship/employment project.

Ineligible Contributions:

Labor and professional services,
Contributions to pay for fund raising activities, and
Used clothing.

Is There A Maximum Amount A Donor Can Contribute For YOP Tax Credits?

Yes. A donor may receive no more than $200,000 in YOP tax credits in one tax year for contributions made to one or more YOP approved projects unless the projects are located in blighted or distressed areas of the state.

How Can The Donor Obtain The Forms Needed To Claim The Tax Credits?

Form CDTC-770 Tax Credit Application can be obtained from the OTC Foundation office, Ozarks Technical Community College, 1001 East Chestnut Expressway, Springfield, MO 65802, Information Commons 206, (417) 447-2651.

Are The Tax Credits Sellable Or Transferable?

No.

NOTE: Again, the information provided here is not offered as legal or tax advice. For this advice, please contact your attorney and/or tax professional.