HB 1616 -- Tax Credits for Qualified Research Expenses

Sponsor:  Storch

Currently, no tax credits for qualified research expenses can be
approved, awarded, or issued.  This bill removes these
restrictions and authorizes a tax credit equal to no more than
6.5% of a taxpayer's qualified research expenses.  The annual
aggregate cap on the amount of these tax credits that can be
authorized by the Department of Economic Development is $10
million.

Qualified research expenses will be limited to those incurred in
the research and development of agricultural biotechnology, plant
genomics products, diagnostic and therapeutic medical devices,
and prescription pharmaceuticals consumed by humans or animals.
Expenses incurred in the research, development, and manufacturing
of power system technology for aerospace, space, defense, or
implantable or wearable medical devices are also permitted.

The department director may allow a taxpayer to transfer up to
40% of the tax credits issued, but not yet claimed, between
January 1, 2011, and December 31, 2017.  The department director
must act between August 1 and August 15 on tax credit
applications filed between January 1 and July 1 for claims from
the previous year.

The formula is specified by which tax credits will be issued if
the eligible claims for the credits exceed the annual cap.  No
one taxpayer can be issued more than 30% of the total amount of
tax credits authorized in any calendar year.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:11 pm