Angel Tax Credits are once again a topic in the Missouri legislature. Bill 1310 offered by representatives Noel Torpey, R-Independence, and HB 1236 offered by Denny Hoskins, R-Warrensburg, were both heard in the House Small Business Committee on Wednesday. Both bills would create tax credits to promote seed-financing capital for emerging businesses throughout the state.
“This legislation is vital to help us compete with other states,” Hoskins testified. “It also helps to promote entrepreneurship and small business here in the state of Missouri.”
The bills would provide tax credits to investors that provide early stage “angel” capital to qualified employers in the state. The tax credits are equal to 50% of the cash investment made by an investor. The bills, however, differ in who administers the tax credits. HB 1236 states the regional Missouri Small Business Technology Development Center must administer the credits, while HB1310 delegates the administration of the tax credits to the Missouri Technology Corporation. The maximum tax credit allowed is $50,000 for a single, qualified Missouri business, or a total of $250,000 in tax credits in a single year per investor. Both bills are capped at $6 million per year and have a ten year sunset provision.
The Missouri Chamber has had a long-standing position of support for angel tax credits and testified on behalf of the bill. “Missouri is a great state for innovation and entrepreneurship,” King said. “The problem occurs when new incubated businesses get to a particular stage of growth, they’re lured away by states that have the Angel Tax Credits. We must enact this legislation before we lose more potential businesses to other states.”
For more information about angel credits, please contact Tracy King, vice president of governmental affairs for the Missouri Chamber of Commerce and Industry at email@example.com or by phone at 573-634-3511.