HB 507 -- Certain Tax Credit Programs of the Department of
Economic Development

Sponsor:  Yates

This bill authorizes a tax credit to encourage equity investments
in technology-based early stage Missouri companies, commonly
known as angel investments.  The Department of Economic
Development may issue up to $6 million in tax credits per year
for equity investments in qualified Missouri companies until
2016.  Investors who contribute in equity investment to a
qualified Missouri business may be issued a tax credit equal to
50% of the investment.  An investor can receive a credit of up to
$50,000 for an investment in a single, qualified business and up
to $250,000 for investments in more than one qualified business
per year.  Credits can be carried forward for up to three years
or transferred.

If within seven years of receiving these tax credits a qualified
Missouri business relocates its headquarters out of Missouri,
ceases to employ 80% of its employees in Missouri, alters the
principal nature of its operations, or divests itself of key
assets, it will immediately pay the state an amount equal to the
amount of credits issued to its contributors.

The bill also eliminates the annual cap on the Quality Jobs
Program.  Currently, the annual cap is $60 million.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am