The Missouri Chamber of Commerce and Industry supports legislation aimed at encouraging private investment in startup businesses across Missouri.
Known as the Missouri Angel Investment Incentive Act, SB 1004 is sponsored by Sen. Kurtis Gregory (R-Marshall). It would create a tax credit to attract capital for emerging companies. Under the bill, investors could claim a credit equal to 40 percent of their investment in a qualified business, or 50 percent if the business is in a rural county.
During testimony before the Senate Economic and Workforce Development Committee, Gregory noted that the legislation includes safeguards to ensure broad participation, including a cap of $75,000 in tax credits per investor per year for investments in a single business.
“Statistics that I’ve been given show that startup companies, businesses that are less than five years old, are responsible for 80 percent of new job creation,” Gregory said. “The program is designed to keep these startups from leaving for neighboring states like Tennessee, Kansas and Illinois, because that is where money is flowing for new startups.”
If approved by lawmakers, the program would be in effect from Jan. 1, 2027, through Dec. 31, 2033, unless reauthorized by the General Assembly. The Missouri Technology Corporation, part of the Missouri Department of Economic Development, would administer the program.
Missouri Chamber Vice President of Government Affairs Jared Hankinson testified in favor of the bill saying, “This is innovative legislation that we’re proud to support. We don’t have any early-stage capital investment program in Missouri. There’s other states with programs like this that have proven to be effective.”
Hankinson cited Missouri Chamber member Sentio BioSciences and co-founder Flavia D’Souza. The Maryland Heights company focuses on on-shoring pharmaceutical manufacturing.
“She would qualify for a program like this,” Hankinson said. “She has taken her operation from 10 employees to now having over 30 employees. Tools like the Angel Investment Incentive Act would allow D’Souza to expand her operations.”
For more information, contact Hankinson at jhankinson@mochamber.com or call (573) 634-3511.
