Reauthorizes a tax credit for certain research expenses
One of the key features of SB688 is that it establishes a tiered system for tax credits. Under the new provisions, a taxpayer could receive a tax credit equal to fifteen percent of their additional qualified research expenses incurred or even up to twenty percent if the research is conducted in association with a public or private educational institution in Missouri. This adjustment is expected to encourage companies to boost their research investments, potentially leading to job creation and innovation in the state.
Senate Bill 688 aims to reauthorize a tax credit for certain research expenses incurred by taxpayers in Missouri. The bill seeks to amend the existing statute regarding tax credits related to qualified research expenses, enhancing incentives for individuals and businesses to invest in research and development activities within the state. The proposed changes would allow for a more significant percentage of credits based on newly incurred research expenses, particularly if those expenses are associated with collaborations with local colleges or universities.
Key points of contention surrounding SB688 may include the distribution of benefits among various segments of society. There are provisions specifically reserving a portion of the tax credits for minority and small business enterprises, which has been a point of discussion. While supporters argue this ensures equitable access to the financial benefits of the program, opponents might claim that it complicates the allocation process and could deter larger businesses from participating due to perceived limitations.
If enacted, SB688 would especially impact businesses involved in research and development across various sectors. The implications of these changes in tax credit policy could encourage both new and established companies to enhance their research efforts, thereby supporting broader economic growth objectives within the state. However, it also sets a framework that requires careful oversight to ensure the effective allocation of the reserved credits and alignment with the state's overall economic goals.