What do I need to know about the new Missouri R&D Credit?

For the first time since 2004, Missouri has re-authorized the R&D Tax Credit. Missouri calculates the credit at 15% of QREs that exceed the prior three years’ average QREs. That rate increases to 20% when a taxpayer conducts research in conjunction with a public or private college or university located in the state. Missouri caps the credit at the lesser of three amounts: the calculated credit amount, $300,000, or 200% of the prior three years’ average QREs.

The MO Department of Economic Development has not yet published the full application details. However, the statute sets a clear deadline: taxpayers must file within one year from the close of the tax year in which the expenses are incurred. Taxpayers may claim the credit against corporate income tax or financial institutions tax. Taxpayers may also transfer, sell, or assign 100% of the credit by filing a notarized endorsement with the Department of Economic Development.

Missouri caps total R&D tax credits at $10 million per year across all claimants. Of that amount, the state reserves $5 million specifically for minority-owned, women-owned, and small businesses.

Our team works directly with tax executives and CFOs on state R&D credit strategy and calculations. Let’s talk through how Missouri’s credit applies to your organization.

Disclaimer: The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation.