HB 2249 -- Tax Credit for Qualified Research Costs

Sponsor:  Onder

Beginning January 1, 2008, this bill authorizes a tax credit for
qualified research costs.  The credit will be 30% of the
qualified research costs incurred by a qualified Missouri
business or 40% if the qualified business incurs the costs in
partnership with any public university, college, or community
college in this state.  The cumulative amount of tax credits
which may be issued in any fiscal year is $5 million.  These
credits are not refundable but can be sold.

Each qualified business that receives the tax credit must submit
an application to the Department of Revenue.  The bill specifies
the requirements of the application.  The department must submit
an annual report to the President Pro Tem of the Senate and the
Speaker of the House of Representatives by July 1 with certain
specified data.

A "qualified Missouri business" is defined as an independently
owned and operated business which is headquartered and located in
Missouri.  The business cannot have more than 200 employees, 80%
of which must be employed in this state.  The business must be
involved in commerce for the purpose of manufacturing,
processing, or assembling products; conducting research and
development; or providing services in interstate commerce.
Retail, real estate, real estate development, insurance, and
professional services provided by accountants, lawyers, or
physicians are excluded.  The business must meet the requirements
of the United States Small Business Administration's
qualification size standards for its venture capital program.

"Qualified research" is defined as research undertaken for the
purpose of discovering information that is technological in
nature and the application of which is intended to be useful in
the development of a new or improved business component.  It does
not include research after commercial production has begun,
adaptation or duplication of an existing business component,
surveys or studies, certain computer software, or funded
research.

The provisions of the bill will expire December 31 six years from
the effective date.

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