For the first time since 2004, Missouri has re-authorized the R&D Tax Credit. The credit is equal to 15% of QREs that exceed the prior three years’ average QREs. The amount of credit increases to 20% if the expenses relate to research conducted in conjunction with a public or private college or university located in the state. The credit is limited to the lesser of the actual credit amount calculated as described above, $300,000, or 200% of the prior three years’ average QREs.
While the details of the application process have yet to be published by the MO Department of Economic Development, the statute clarifies that the application is due within one year from the close of the tax year in which the expenses are incurred. The credit may be claimed against corporate income tax or financial institutions tax. Taxpayers may transfer, sell, or assign 100% of the tax credit by filing a notarized endorsement with the Department of Economic Development.
The aggregate of all R&D tax credits claimed in the state shall not exceed $10 million in any year. Of the $10 million aggregate tax credit maximum, $5 million is reserved for minority-owned, women-owned, and small businesses.
Please contact the MASSIE team if you want to discuss this topic further or require assistance with your calculations.
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.
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