HCS HB 2260 -- TAX CREDITS FOR QUALIFIED RESEARCH EXPENSES

SPONSOR:  Richard (Storch)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Job Creation and Economic Development by a vote of 11 to 0.

Currently, no tax credits for qualified research expenses can be
approved, awarded, or issued.  This substitute removes these
restrictions allowing a tax credit equal to no more than 6.5% of
the 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, 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 substitute requires that the credits be issued and that the
department director act on tax credits applications filed between
January 1 and July 1 for claims for the previous year between
August 1 and August 15.

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.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $64,208
to $10,064,208 in FY 2009, $69,289 to $10,069,289 in FY 2010, and
$71,367 to $10,071,367 in FY 2011.  No impact on Other State
Funds in FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that this is a very important tax
credit program to reinstate because Missouri is poised to become
a leader in life sciences research.  Businesses, universities,
and research institutes engaged in these activities create good
jobs, and this program will encourage them to begin or continue
research and development in specific areas related to life
sciences.

Testifying for the bill were Representative Storch; Missouri
Economic Development Council; Associated Industries of Missouri;
Taxpayers Research Institute of Missouri; Missouri Biotechnology
Association; Jim Kroman, Boehringer Ingelheim Vetmedica,
Incorporated; Pfizer, Incorporated; Monsanto; Missouri Chamber of
Commerce and Industry; EaglePicher Technologies, LLC; Center for
Emerging Technologies; and St. Louis Community College.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm