Lawmakers invest in future through R&D tax credit
The Missouri House today gave final approval to legislation that includes a provision to create a Research and Development (R&D) tax credit in Missouri. The amendment was offered by Sen. Brian Williams on a bill (HB 2400) sponsored by Rep. Dan Houx. Both lawmakers are founding leaders of the recently created Legislative Tech Caucus, a growing group of legislators who champion policy to advance Missouri’s tech and innovation economy.
“Innovation is critical to our economy and this legislation will enable businesses to develop products and jobs to fuel our future,” said Daniel P. Mehan, president and CEO of the Missouri Chamber of Commerce and Industry. “Since our R&D tax credit program expired in 2005, Missouri has been without this economic development tool that the majority of other states have. If we want to be home to the life-changing products of tomorrow, we must invest today in the foundation of innovation – our employers.”
The tax credit will help businesses finance the research and development of new products and services, or improve existing ones. The legislation sets aside $10 million for R&D tax credits and dedicates $5 million to small businesses, minority-owned businesses and women-owned businesses. It provides a tax credit for 15 percent of qualified research expenses and up to 20 percent if the research is done through a Missouri university.
The original R&D tax credit bill was filed by Rep. Don Mayhew, who has advocated for this legislation for several years.
The legislation now awaits Gov. Parson’s signature.