HB 1925 -- Tax Credits for Qualified Research

Co-Sponsors:  Scheve, May (108), Froelker, Foley, O'Toole,
Hanaway, Gibbons

This bill authorizes credits against income tax, corporate
franchise tax, or financial institution tax liability for
certain types of research expenses.  Businesses which employ no
more than 150 employees and are engaged, on a for-profit basis,
in the development of medical instruments, medical diagnostic or
therapeutic devices, plant science products, pharmaceutical or
veterinary products with agricultural applications, or other
life or biomedical science products may qualify for the tax
credits if they engage in qualified research, as defined in the
bill.  "Qualified research" refers to research undertaken to
discover information of a technological nature.  Eligible
businesses may receive a tax credit equal to 10% of their
qualified research expenses; expenses incurred in a distressed
community qualify the business for a 25% tax credit.  These tax
credits may be transferred, sold, or assigned.  The Department
of Economic Development is to administer the tax credit program
and certify the amount of any credit awarded to the Department
of Revenue.  Individual businesses are allowed a maximum credit
of $500,000; if the qualified research expenses are incurred in
a distressed community, the maximum tax credit per business is
$1,250,000.  Credits exceeding tax liability may be carried
forward 10 years; the credit may also be carried back 3 years if
the tax credit is awarded for expenses incurred in a distressed
community.  If the tax credit has already been applied against
the tax liability of a business which transfers its qualified
research outside of Missouri within 3 years of receiving the
credit, the business must repay the amount of the tax credit
related to the transferred research.  The total amount of tax
credits available through this program is not to exceed $10
million, with $2 million of the total reserved for qualified
research expenses incurred in a distressed community.  The bill
authorizes the Department of Economic Development to promulgate
rules to implement the provisions of the bill.