HCS/HB 1590 - This act modifies several provisions relating to incentives for new businesses.
By no later than June 30, 2024, and annually thereafter, this act requires the Commissioner of Administration to file a report with the General Assembly that includes information on contracts awarded to businesses that have been in operation for less than three years, as described in the act.
This act also requires the Commissioner of Administration, in conjunction with the Office of Entrepreneurship, which is established by the act, to file a report with the General Assembly making recommendations on improving access and resources for new Missouri businesses that have been in operation for less than three years, including minority-owned businesses. (Section 34.195)
TAXATION OF BUSINESSES
Current law allows a taxpayer to subtract a percentage of the taxpayer's business income from the taxpayer's federal adjusted gross income. This act allows a taxpayer that begins business operations on or after January 1, 2023, to reduce such taxpayer's remaining business income by a further twenty percent for the first three years in which the taxpayer's business is in operation. (Section 143.022)
Current law provides for a corporate income tax of 4%. For all tax years beginning on or after January 1, 2023, for corporations beginning operations in this state on or after January 1, 2023, this act reduces such rate of tax to 3% for the first $100,000 of income, with the corporation's remaining income to be taxed at 4%. Beginning with the fourth year in which the corporation maintains operations in this state, all of such corporation's income shall be taxed at 4%. (Section 143.071)
OFFICE OF ENTREPRENEURSHIP
This act creates the Office of Entrepreneurship within the Department of Economic Development. The Office shall employ an individual to promote policies and initiatives to support the growth of entrepreneurship, including minority entrepreneurship, in this state. (Section 620.3800)
This act is identical to provisions in HCS/SS/SB 807 (2022) and SS/HCS/HB 2587 (2022).