HB 2058 -- Tax Incentives for Business Development

Sponsor:  Pearce

This bill changes the laws regarding tax incentives for business
development.  In its main provisions, the bill:

(1)  Increases the fiscal year cap for economic development tax
credits that are approved as part of the Neighborhood Assistance
Program from $4 million to $6 million;

(2)  Increases the annual cap on the amount of tax credits the
Department of Economic Development may authorize for the Enhanced
Enterprise Zone Program from $14 million to $24 million;

(3)  Exempts from state and local sales and use tax all personal
property included on the United States munitions list that is
sold to or purchased by a foreign government for a governmental
purpose;

(4)  Allows the Missouri Technology Corporation to authorize up
to $5 million in tax credits per year to encourage equity
investment in technology-based early stage Missouri companies.
Investors who contribute the first $500,000 in equity investment
to a qualified Missouri business may be issued a tax credit equal
to 30% of the investment or 40% if the qualified business is in a
rural area or distressed community.  An investor can receive a
credit of up to $50,000 for an investment in a single qualified
business and up to $100,000 for investments in more than one
qualified business per year.  Credits can be carried forward for
up to three years or sold;

(5)  Increases the aggregate cap on the amount of tax credits the
department may authorize for the Small Business Incubators
Program from $500,000 to $2 million;

(6)  Allows Quality Jobs tax credits to be issued for job
retention projects until August 30, 2013.  Tax credits for this
project type were only authorized through August 30, 2007; and

(7)  Increases the annual cap on the amount of tax credits the
department may issue for the Quality Jobs Program from $40
million to $60 million.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm