HCS HB 2260 -- TAX CREDITS FOR QUALIFIED RESEARCH EXPENSES
(Storch)

COMMITTEE OF ORIGIN:  Special Committee on Job Creation and
Economic Development

Currently, no tax credits for qualified research expenses can be
approved, awarded, or issued.  This substitute removes these
restrictions and allows a tax credit equal to no more than 6.5%
of a 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, diagnostic and therapeutic medical devices,
and 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 department director may allow a taxpayer to transfer up to
40% of the tax credits issued, but not yet claimed, between
January 1, 2009, and December 31, 2015.  The substitute requires
that the credits be issued and that the department director act
on tax credit 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.

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