Domestic Violence Shelter Tax Credit
What is the Domestic Violence Shelter Tax Credit?
By donating cash, stock, bonds, real property or other marketable securities to a qualified domestic violence shelter, Missouri taxpayers:
- Help fund temporary shelters for victims of domestic violence, and
- Can receive a tax credit for up to 50% of their contribution of $100 or more.
What is a qualified shelter?
…attempting to cause or causing bodily injury to a family or household member, or placing a family or household member by threat of force in fear of imminent physical harm…
Qualified shelters meet the following statutory requirements:
- A facility established to provide temporary residential service or facilities to family or household members who are victims of domestic violence, or
- A shelter which:
- Is incorporated in Missouri as a nonprofit corporation;
- Has trustees representative of the community serviced, with at least one member possessing personal experience in confronting or mitigating the problems of domestic violence;
- Receives 25% of its funds from sources other than marriage license fees or surcharges on civil cases filed in the circuit court
- Provides residential service or facilities for children when accompanied by a parent, guardian or custodian who is a victim of domestic violence and who is receiving temporary residential service at the shelter;
- Requires employees and volunteers to maintain the confidentiality of individuals served by the shelter; and,
- Informs individuals served by the shelter of the nature and scope of the confidentiality before providing advocacy services.
How does a domestic violence shelter become a qualified shelter?
To qualify, each year the shelter submits:
- A completed Application for Agency Eligibility Verification form;
- A copy of their certificate of incorporation;
- A tax-exempt certificate from the Internal Revenue Service; and,
- A brief statement of their primary business functions including facility capacity and number of people served annually.
Where are the qualified domestic violence shelters located?
The link below lists where qualified domestic violence shelters are located for the current state fiscal year.
What role does Department of Social Services' (DSS) play for this tax credit?
DSS administers the tax credit.
Who can claim this tax credit?
- A person, firm, partner in a firm, corporation, or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed in chapter 143 RSMo;
- A corporation subject to the annual corporation franchise tax imposed in chapter 147 RSMo;
- An insurance company paying an annual tax on its gross premium receipts in this state;
- Any other financial institution paying taxes to the state of Missouri or any political subdivision of this state under chapter 148 RSMo;
- An express company which pays an annual tax on its gross receipts in this state pursuant to Chapter 153 RSMo;
- An individual subject to the state income tax imposed in Chapter 143, RSMo.
- Any charitable organization which is exempt from federal income tax and whose Missouri unrelated business taxable income, if any, would be subject to the state income tax imposed under chapter 143, RSMo.
The amount of the claimed tax credit may not exceed the amount of the taxpayer’s state income tax liability for the year the credit is being claimed and can not exceed fifty thousand dollars ($50,000) per taxable year.
Any tax credit that cannot be claimed in the tax year associated with the contribution may be carried forward and used against a taxpayer’s state tax liability for four subsequent years.
How does the credit work?
- (Step 1) Annually, domestic violence shelters desiring to participate in this tax credit program must submit an Agency Eligibility Verification application and supporting documentation to DSS to determine qualification status for the next state fiscal year.
- (Step 2) DSS notifies domestic violence shelters of their eligibility and equally apportions the total available tax credits among eligible agencies. These credits are available beginning July 1 of each state fiscal year. The total amount of credits available can not exceed $2 million in any state fiscal year (July 1 through June 30).
(Step 3) If determined eligible by DSS, the domestic violence center may begin receiving contributions eligible for the tax credit beginning July, 1. Note: Centers are permitted to decline a contribution from a taxpayer.
Annually, DSS publishes a list of qualified agencies which are eligible for the Domestic Violence Shelter Tax Credit. To request a copy, call (573) 751-7533 or write to the following address:
Department of Social Services
Attention: Domestic Violence Shelter Tax Credit Program
PO Box 216
Jefferson City, MO 65102-0216
If a domestic violence shelter has a change in business functions that impacts their qualifying status, they must contact the Department of Social Services within 30 days. The Department of Social Services will review the eligibility to participate in the tax credit and notify the agency of the determination within 30 days of receiving the notification of change.
- (Step 4) A donor contributes to a qualified domestic violence shelter. Note: There is a $100 minimum contribution, of which 50% is tax-credit-eligible. Donors can claim up to a $50,000 credit per tax year.
(Step 5) The domestic violence shelter and the taxpayer must complete their portion of the Domestic Violence Shelter Tax Credit Application. Applications and supporting documentation must be submitted to DSS by the qualified shelter within twelve (12) months of the donation date. Applications received after one year of the donation date will be void and the right to the tax credit is forfeited. Required documentation varies depending on the type of donation:
Supporting Documentation Required:
- For a cash contribution, a legible receipt indicating the name and address of the domestic violence shelter; name, address and telephone number of the contributor; amount and date the contribution was received; and, signature of a representative of the domestic violence shelter receiving the contribution.
- For a contribution made by check, a photocopy of the canceled check, front and back (if not possible, then a copy of the original check and a receipt from the domestic violence shelter including the same information required of a cash donation).
- For a contribution made by credit card, a legible transaction receipt with the name and address of the domestic violence shelter; contributor’s name, address and telephone number; amount and date the contribution was received; and, signature of a representative of the domestic violence shelter receiving the contribution. Note: Receipts should have the credit card account number blacked out.
- For a contribution made by money order or cashiers check, a legible copy of the original document with the name and address of the domestic violence shelter; contributor’s name, address and telephone number; amount and date the contribution was received; and, signature of a representative of the domestic violence shelter receiving the contribution.
- For a contribution made by stock, bonds and other marketable securities, values of contributed stocks and bonds must be determined by a reputable source (e.g., Wall Street Journal, New York Stock Exchange [NYSE], National Association of Securities Dealers Automated Quotations [NASDAQ], etc.) Required information includes the source, value and date the stock was valued and how the bond amount was determined.
- For a contribution of real estate, the value of contributions of real estate shall be equal to the lower of at least two qualified independent appraisals for commercial, vacant or residential property with a value of more than $25,000. Commercial, vacant or residential property having a value of $25,000 or less requires one appraisal.
- For contributions that include a benefit to the donor, documentation will depend on how the type of contribution is made (i.e., cash, check, etc., please see above.) Additional information required includes the type of function or event from which the benefit was received, description of the benefit received (if an auction item, identify the item received), gross amount of the contribution, fair market value of the benefit and how the fair market value of the benefit was determined.
- (Step 6) Within 45 days of receipt of the
tax credit application, DSS determines tax credit eligibility and will
notify the following parties:
- Taxpayer (notification will include the approved tax credit amount);
- Missouri Director of Revenue.
Note: DSS issues tax credits in the order applications are received.
How are the tax credits redistributed?
- At least quarterly, DSS reviews the cumulative amount of approved tax credits. If a domestic violence shelter fails to use all or some percentage of its apportioned tax credits during a predetermined period, DSS may redistribute unused tax credits to other eligible shelters. Redistribution during a fiscal year will ensure, to the maximum extent possible, that taxpayers can claim all available tax credits.
- DSS will notify domestic violence shelters affected by the reapportionment of tax credits. DSS will allow a 30-day comment period on redistribution and consider planned future uses of the tax credit allocation. DSS decisions regarding reapportionment are final.
Important Domestic Violence Shelter Tax Credit Links:
- Domestic Violence Shelter Tax Credit Statutes (RSMo 455.200, 455.220, 488.445)
- Form and Instructions to Apply to Become an Agency Benefiting from This Credit
- Domestic Violence Shelter Tax Credit Application
- To Claim the Tax Credit use form MO-TC Missouri Department of Revenue
- Regulations Governing the Processing And Awarding of Tax Credits (13 CSR 40-79.010)
- Where Can I Donate? (Addresses for qualified agencies)
- To Learn More About Agency Eligibility Contact Department of Social Services at 573-751-7533 (M-F, 8:00-5:00)
- To Learn More About Claiming the Tax Credit Contact Department of Revenue, E-mail: [email protected]mo.gov or Phone 573-522-6864 (for individual tax) or Phone 573-751-4541 (for business tax)