This Missouri House Economic Development Committee often takes on very serious issues to promote economic development in the state, and most recently took on two issues that many Missourians love – movies and drinks.
House Bill 1628, sponsored by Rep. Bart Korman, R-High Hill, would expand the tax credit for wine and grape producers to also include distillers and microbreweries. Missouri’s current law provides tax credits to assist vineyards and wine producers with the purchase of new equipment and materials. This bill would give producers of beer and spirits the same benefits that winemakers currently receive.
House Bill 1451, sponsored by Rep. Kathy Swan, R-Cape Girardeau, would extend the sunset on film tax credits for another six years. The Film Production Tax Credit Program was started in 1999 and has offered credits to film productions for up to 35 percent of their in-state expenditures. Any film-production company with an expected in-state expenditure budget of at least $100,000 for films longer than 30 minutes, and at least $50,000 for films shorter than 30 minutes, is eligible to apply for the tax credits. Only in-state expenditures necessary for the production of the film may be claimed, such as equipment rental, lodging and property rentals and payroll expenditures for Missouri residents. The entire tax-credit program is capped at $4.5 million.
Swan’s district was home to a large film production in the fall of 2013 when 20th Century Fox spent nearly a month in Cape Girardeau filming the 2014 release “Gone Girl” which is based on a novel by Missourian Gillian Flynn.
Both bills were heard in committee but no action was taken.
For more information about tax credits, please contact Tracy King, vice president of governmental affairs for the Missouri Chamber, at firstname.lastname@example.org or by phone at 573-634-3511.
Another round of economic development legislation was heard in the Missouri Senate Jobs, Economic Development and Local Government Committee this week, gathering the support of the business community.
Senate Bill 698, sponsored by Kansas City Sen. Jolie Justus, would provide tax credits to investors that provide early stage “angel” capital to qualified employers in the state and would be administered by the Missouri Technology Corporation (MTC) with the primary goal of encouraging individuals to provide seed-capital financing for emerging Missouri businesses engaged in the development, implementation, and commercialization of innovative technologies, products, and services. This bill, unlike many tax credit bills, has a ten year sunset provision.
“You can have a great idea, but without a little bit of seed money or a little bit of assistance, you won’t be able to get the idea off the ground,” Tracy King, vice president of governmental affairs for the Missouri Chamber, said. “This is about investing in individuals and ideas and allowing the entrepreneur to create the newest market and the newest product; this is the basis of all economic development.”
The committee took no action on the bill but may vote on the bill next week.
The Missouri Chamber is supportive of Angel investment tax credits and has testified in favor of similar legislation in the House. For more information about tax issues, please contact Tracy King, vice president of governmental affairs for the Missouri Chamber, at email@example.com or by phone at 573-634-3511.
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 firstname.lastname@example.org or by phone at 573-634-3511.