SB 0958 Authorizes a tax credit for research and development
LR Number:4380S.01I Fiscal Note:4380-01
Committee:Commerce and Environment
Last Action:02/14/00 - Referred S Commerce & Environment Committee Journal page:S224
Effective Date:August 28, 2000
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Current Bill Summary

SB 958 - This act provides tax relief for research and development. An eligible taxpayer who incurs qualified research expenses is eligible for a tax credit. "Qualified research expenses" are the sum of amounts of in-house research expenses and contract research expenses which are paid by the taxpayer during the taxable year for qualified research taking place in Missouri. "Qualified research" is any research which is undertaken for the purpose of discovering information which is technological in nature.

The credit allowed is equal to 10% of the taxpayer's qualified research expenses. If the qualified research expenses are in a distressed community, then the credit is 25% of the taxpayer's qualified research expenses. The total amount of tax credits available is ten million dollars. Two million dollars of the ten million dollars will be reserved for taxpayers incurring qualified research expenses in a distressed community. An individual taxpayer is allowed a maximum credit of five hundred thousand dollars. The maximum credit for qualified research expenses in a distressed community is one million two hundred fifty thousand dollars.

The Department of Economic Development will issue the taxpayer a certificate of tax credit if it is satisfied that the taxpayer meets all the requirements. The tax credit will be claimed on the taxpayer's return for the tax year in which the qualified research expense was incurred. The amount of the credit which exceeds the tax liability of the taxpayer may be carried forward for ten subsequent years. For qualified research expenses in a distressed community, the credit may also be carried back to any of the taxpayer's prior three years. A tax credit may be revoked if a taxpayer transfers the conduct of the qualified research to a location outside of Missouri.