HCS/HBs 191 & 182 - This act creates the Missouri Angel Investment Incentive Act which provides tax credits to investors in certain companies. Under this program businesses may apply to regional Small Business and Technology Development Centers (SBTDC) 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 for tax years 2014 and 2015. Thereafter, the cap will be increased by 20% each year in which the previous years cap on issuance was met. If the cap is not met in a year, the next years cap will be the same as the previous year. Unissued tax credits will be carried over to the next year. Amounts carried forward will not count towards the calculation of the cap for a given year.
No tax credits shall be allocated or issued after December 31, 2023. 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 must convey a 2% equity interest to the Department of Economic Development before accepting investments that may qualify for the tax credit. The Department may not hold the interest beyond December 31, 2023 and the proceeds from the sale of equity interests must be used to further the goal of the act.
Qualified businesses allocated tax credits are required to report to the regional SBTDC annually. Regional SBTDCs are required to report to the SBTDC home office quarterly. Each regional SBTDC and the SBTDC home office is required to report annually to the Department of Economic Development, the Governor, the Senate Committee on Commerce, Consumer Protection, Energy, and the Environment, and the House Committee on Economic Development.
The provisions of law creating the Missouri Angel Investment Incentive Act expire on December 31, 2023.
This act is similar to SB 91 (2013), HB 182 (2013), and HB 1593 (2012). This 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).
MIKE HAMMANN