SB 78 - This act establishes the Missouri Angel Investment Incentive Act. For all tax years beginning on or after January 1, 2018, this act allows an investor, as defined in the act, to claim a tax credit in an amount equal to fifty percent of the investor’s investment in the qualified securities of a qualified Missouri business, as defined in the act. If the amount of the tax credit exceeds the investor's tax liability in any one tax year, the credit may be carried forward for up to five subsequent tax years. No investor shall receive more than fifty thousand dollars in tax credits in a single year for contributions to a single qualified Missouri business, and shall not receive more than two hundred fifty thousand dollars in tax credits in total in a single tax year. A tax credit may be transferred by a qualified investor. The total amount of tax credits issued in a single tax year by the Missouri Technology Corporation (MTC) shall not exceed five million dollars. To be designated as a qualified Missouri business, a business shall apply to the MTC, as described in the act. The designation of a business as a qualified Missouri business shall be made annually by the MTC. In addition to other requirements described in the act, a qualified Missouri business shall not have had annual gross revenues of more than five million dollars in the most recent tax year of the business, and the business shall not have been in operation longer than five years if the business is not a bioscience business, or longer than ten years if the business is a bioscience business. Each business that has been allocated tax credits by the MTC shall submit a report containing certain information, as described in the act, to the MTC before such tax credits are issued. The state of Missouri shall not be held liable for any damages to an investor that makes an investment in any qualified security of a qualified Missouri business, any business that applies to be a qualified Missouri business but is turned down, or any investor that makes an investment in a business that applies to be a qualified Missouri business but is turned down. The MTC shall annually review the activities undertaken by this act to ensure they are in compliance with the provisions of the act. If the MTC determines that a business is not in substantial compliance, it may inform the business that such business will lose its designation if it does not come into compliance within one hundred twenty days. If the business does not come into compliance, the MTC may revoke its designation. If a business loses its designation as a qualified Missouri business, it shall be precluded from being allocated any additional tax credits. However, investors in such a business shall be entitled to keep all of the tax credits properly issued prior to the loss of designation by the business. The MTC shall report certain information annually, as described in the act, to the Department of Economic Development, the governor, the president pro tempore of the Senate, and the speaker of the House of Representatives. This act shall sunset after six years unless reauthorized by the General Assembly. JOSHUA NORBERG