HB 1928 -- Missouri Discovery Alliance

Sponsor:  Ervin

This bill creates the Missouri Discovery Fund and establishes the
Missouri Discovery Alliance in the Department of Economic
Development to assist with the recruitment, relocation, and
expansion of technology businesses.  The alliance replaces the
Missouri Technology Corporation, and the bill establishes a
13-member board of directors for the alliance.  If an innovation
center's annual report of its activities and operational plans to
coordinate with the small business development centers is not
approved by the department or the alliance, the department can
withhold 75% of the state-allocated center's funding until the
report is accurate and complete.  The innovation center must
provide 100% match for any funding received from the discovery
fund.  Beginning July 1, 2008, existing and new innovation
centers established after that date will receive funding through
the Missouri Discovery Fund for no more than five years.

The alliance may authorize up to $10 million in tax credits
annually.  A taxpayer will receive a 30% tax credit for a
contribution toward the first $500,000 in venture capital
contributed to a qualifying company or a 40% tax credit if the
company invested in is located in a rural area or distressed
community.  The alliance can reserve tax credits for investors
who have a net loss of investment within five years of
contributing the first $5 million in venture capital to an
approved company.  A taxpayer will receive a 50% tax credit for
contributions to a technology commercialization infrastructure
project or for expenditures for industrial research conducted at
a public research institution or private not-for-profit
collaborative research project approved by the alliance.  The
credits can be used against current income tax, carried over for
three consecutive years, or transferred.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:45 am