SB 91 - This act creates the Missouri Angel Investment Incentive Act and modifies language relating to the New Markets tax credit.
Currently, under a provision of the New Markets tax credit program, no new equity investments may be accepted after July 1, 2010, unless the General Assembly adopts a concurrent resolution authorizing the Department of Economic Development to approve investments for the program and specifying the amount of tax credits available for the next fiscal year. This act repeals that provision, so that taxpayers may again make new equity investments in specialized financial institutions called Community Development Entities and be provided with tax credits for these investments.
The Missouri Angel Investment Incentive Act provides tax credits to investors in certain companies. Under this program businesses may apply to regional Small Business and Technology Development centers to be designated a qualified business. Each quarter, the regional Small Business and Technology Development centers allocate tax credits to these qualified businesses. The tax credit will then be issued to investors and equal to fifty percent of their investment in the business. The tax credits may be transferred once to an individual or carried forward up to five years. No more than six million dollars in tax credits may be allocated each tax year. Unissued tax credits will be carried over to the next year. No tax credits shall be allocated or issued after December 31, 2024. The Department of Revenue is prohibited from allowing tax credits of more than fifty thousand dollars per qualified business or more than two hundred fifty thousand dollars per investor or owner of an entity investor.
Qualified businesses allocated tax credits are required to report to the regional Small Business and Technology Development centers annually. Regional Small Business and Technology Development centers are required to report to the Department of Economic Development quarterly. The Department of Economic Development is required to report annually to the Department of Revenue, the Governor, the President pro tempore of the Senate, and the Speaker of the House of Representatives.
The provisions of law creating the Missouri Angel Investment Incentive Act expire on December 31, 2024.
This act is similar to HB 182 (2013), HB 191 (2013), and HB 1593 (2012). The act is similar to provisions contained in SCS/HCS/HB 222 (2013), HCS#2/HB 698 (2013), HCS/SB 23 (2013), HCS/SS/SCS/SB 83 (2013), HCS/SB 112 (2013), and SS/SCS/SB 120 (2013).