HB2457--RESEARCHANDEXPERIMENTATION COSTS
SPONSOR: Justus
COMMITTEEACTION:Voted"DoPass"bytheSpecialCommitteeonTax
Reformbyavoteof10to0.
Currently,Missouritaxpayersareunabletodeductcertainresearch
andexperimentation expendituresfromtheiradjustedgrossincome
fortaxpurposes. ThislimitationisaresultoftheFederal"Tax
CutsandJobsAct"of2017.
Thisbillde-couplesMissourifromtheprovisionsoftheFederal
law,andallowstaxpayerstodeductspecifiedresearchand
experimentalexpendituresfromtheirFederaladjustedgrossincome,
beginningwiththe2022taxyear.
PROPONENTS: Supporterssaythatbusinessesarenolongerableto
deductcertainexpensesbecauseofaFederaltaxchange,whichhas
resultedinthebusinessrealizingamuchhighernettaxable
income.SuchadeductioninMissouriwillgreatlybenefit
businessesthatconductalotofexperimentation inthedevelopment
oftheirproducts.
TestifyinginpersonforthebillwereRepresentative Justus;and
theMissouriChamberofCommerceandIndustry.
OPPONENTS: Therewasnooppositionvoicedtothecommittee.
OTHERS:Otherstestifyingonthebillsaythatifthedeductionis
tobemaderetroactive,itcouldresultinfutureConstitutional
issuesorchallenges.
TestifyinginpersononthebillwastheDepartmentofRevenue.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.