HB 804 -- Small Business Investment Tax Credit

Sponsor:  Grisamore

This bill changes the laws regarding the small business
investment tax credit.  In its main provisions, the bill:

(1)  Reduces the amount of the tax credit for a qualified
investment in a small business from 40% to 30% of the investment,
unless the small business is located in a distressed community,
in which case the tax credit is reduced from 60% to 40%.  A tax
credit equal to 40% of an investment made in a small business
located in a rural area is allowed.  Tax credits will only be
issued on investments up to $100,000;

(2)  Removes the 50% tax credit for investment in a community
bank or community development corporation;

(3)  Requires that $10 million in tax credits be available each
fiscal year for qualified investments in small businesses,
regardless of the location of the business.  Currently, the total
amount of tax credits available for qualified investments in
Missouri small businesses cannot exceed $13 million with $4
million reserved for distressed communities;

(4)  Removes the requirement that $500,000 be available for tax
credits for qualified investments in Missouri small businesses,
community banks, or community development corporations from the
Neighborhood Assistance Program; and

(5)  Prohibits the Department of Economic Development from
issuing certificates without the approval of the Small Business
Tax Credit Review Committee, which must review and determine the
eligibility of all tax credit applications.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am