State R&D Tax Credits

Missouri

Credit Name: Missouri Qualified Research Expense Tax Credit

Expiration Date: 12/31/2028

Does it apply to C corps and pass-through entities?: Yes

Credit Carry forward: 12 years; may be transferred, sold, or assigned to other taxpayers.

Description: Credit is either 15% of a taxpayer’s “additional qualified research expenses” or 20% of the “additional qualified research expenses” relating to research conducted in conjunction with a Missouri public or private college or university. “Additional qualified research expenses” are defined as the excess of qualified research expenses over the average of the taxpayer’s qualified research expenses incurred in the three immediately preceding tax years. The credit may not exceed 200% of the taxpayer’s average qualified research expenses incurred during the three immediately preceding tax years or $300,000. The aggregate credit is capped at $10 million annually with $5 million specifically reserved for small businesses (50 or fewer FT employees) and businesses that are at least 50% owned by minorities or women. If total eligible claims exceed the annual cap, each eligible claimant shall be issued credits based upon a pro-rata basis, given that all new businesses (less than 5 years old) are issued full tax credits first.

Eligibility: Taxpayers must meet criteria provided in IRC Section 41 and incur QREs in Missouri.

Other Notes: Credit is effective for tax years beginning on or after January 1, 2023. No additional guidance provided yet.