SB 0373 Changes tax credits for investment in small businesses and distressed communities
LR Number:1292S.03C Fiscal Note:1292-03
Committee:Ways and Means
Last Action:05/18/01 - S Inf Calendar S Bills for Perfection Journal page:
Title:SCS SB 373
Effective Date:August 28, 2001
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Current Bill Summary

SCS/SB 373 - This act makes several changes in tax credits available to those who invest in Missouri small businesses.

This act reduces the ownership percentage which a person must hold in a small business to qualify for the small business investment tax credits, from 50% to 20%. It also increases the aggregate percentage ownership which investors may hold and still qualify for tax credits, from 50% to 80%. Under current law, tax credits for investments in small businesses cannot exceed $13 million total per year and at least $4 million per year must be invested in distressed communities. This act reduces the total available credits to $6 million per year, with at least $3 million per year made available for investments in small businesses in distressed communities. Qualifying investments in Missouri small businesses must be held for a minimum of 2 years; down from 5 years under current law. This act prohibits any revocation of a tax credit issued pursuant to these sections from applying to a subsequent good faith purchaser.

The act also reduces the maximum amount of annual tax credits authorized for contributions to innovation centers from $9 million to $5 million.

The act also increases the annual tax credits available for research and development) expenses, from $9.7 million to $14.7 million, with at least $5 million of that amount made available for use by Missouri-based companies which engage in life science research and which have fewer than 150 employees.

This act also reduces the maximum tax credits available for investments in transportation development in distressed communities, from $10 million per year to $8 million per year. The act also requires that unused transportation tax credits be made available for investments in innovation centers.

The act also repeals the Missouri Individual Training Account Program.

This act has an emergency clause.