Qualified Research Expense Tax Credit Program

The Missouri Qualified Research Expense Tax Credit Program is a program that provides incentives for additional research expenses for tax years beginning on or after January 1, 2023. Taxpayers may be authorized to receive a credit against the Missouri corporate income tax and financial institutions tax equal to 15% of a taxpayer’s “additional qualified research expenses” or the credit is increased to 20% if such expenses relate to research conducted in conjunction with a public or private Missouri college or university. The highest amount of credit a single taxpayer may claim in one year is $300,000 and the aggregate of all tax credits shall not exceed $10 million in any single year. The $5 million of all tax credits is set aside for women-owned businesses. Eligible Applicants The following entities are eligible to apply for the Program: any charitable organization which is exempt from federal income tax and whose Missouri unrelated business taxable income, if any, would be subject to the state income tax imposed under chapter 143, or a corporation as described in section 143.441 or 143.471, or section 148.370; If Applicant is a type of entity required to register with the Missouri Secretary of State (SOS) to conduct business in Missouri, the Applicant must be registered and in good standing with the SOS. Eligible Minority, Women and Small Business Applicants In addition to meeting the criteria in section 4.1, applicants meeting the criteria below are eligible for funds set aside for small businesses: 1. Minority business enterprise: A sole proprietorship owned and controlled by a minority; A partnership or joint venture owned and controlled by minorities in which at least fifty-one percent of the ownership interest is held by minorities and the management and daily business operations of which are controlled by one or more of the minorities who own it; or A corporation or other entity whose management and daily business operations are controlled by one or more minorities who own it and that is at least fifty-one percent owned by one or more minorities or, if stock is issued, at least fifty-one percent of the stock is owned by one or more minorities; 2. Small business: A proprietorship, or other business entity, including its affiliates, that: Is independently owned and operated; and Employs fifty or fewer full-time employees; 3. Women's business enterprise: A sole proprietorship owned and controlled by a woman; A partnership or joint venture owned and controlled by women in which at least fifty-one percent of the ownership interest is held by women and the management and daily business operations of which are controlled by one or more of the women who own it; or A corporation or other entity whose management and daily business operations are controlled by one or more women who own it and that is at least fifty-one percent owned by women or, if stock is issued, at least fifty-one percent of the stock is owned by one or more women. Applicants applying as women or minority business enterprises must self-attest that they meet the criteria above. Applicants will not be required to be certified by any government entity to be eligible, but if a business is so certified, it may submit proof of certification instead of a self-attestation. Ineligible Applicants Ineligible applicants for this program include: Entities or persons not meeting the requirements above or; Governmental entities Tax Credit Percentage Taxpayers may be authorized to receive a credit against the Missouri corporate income tax and financial institutions tax equal to: Fifteen percent of the taxpayer's additional qualified research expenses; or If such qualified research expenses relate to research conducted in conjunction with a public or private college or university located in this state, twenty percent of the taxpayer's additional qualified research expenses.

Eligible Applicants The following entities are eligible to apply for the Program: any charitable organization which is exempt from federal income tax and whose Missouri unrelated business taxable income, if any, would be subject to the state income tax imposed under chapter 143, or a corporation as described in section 143.441 or 143.471, or section 148.370; If Applicant is a type of entity required to register with the Missouri Secretary of State (SOS) to conduct business in Missouri, the Applicant must be registered and in good standing with the SOS. Eligible Minority, Women and Small Business Applicants In addition to meeting the criteria in section 4.1, applicants meeting the criteria below are eligible for funds set aside for small businesses: 1. Minority business enterprise: A sole proprietorship owned and controlled by a minority; A partnership or joint venture owned and controlled by minorities in which at least fifty-one percent of the ownership interest is held by minorities and the management and daily business operations of which are controlled by one or more of the minorities who own it; or A corporation or other entity whose management and daily business operations are controlled by one or more minorities who own it and that is at least fifty-one percent owned by one or more minorities or, if stock is issued, at least fifty-one percent of the stock is owned by one or more minorities; 2.