MO SB246

Creates a tax credit equal to 30% of equity investments in approved technology-based early stage Missouri companies, available only when the business ceases operations through liquidation, winding up, cancellation, or dissolution within 6 years of investment.

Eligible investors include accredited individuals (as defined in federal securities law) and approved entities established to make preseed and seed stage investments; businesses must have no more than 200 employees with 80% employed in Missouri.

Qualified businesses must have annual gross revenues not exceeding $3 million, cannot be publicly traded, and cannot be primarily engaged in banking, professional services, real estate, insurance, construction, consulting, or passive investment activities.

Tax credits are limited to $50,000 per investor per company investment and $100,000 per investor annually, with total credits not to exceed $5 million per tax year or the amount appropriated.

Credits may be used in the year issued or carried forward for three consecutive tax years and can be sold, assigned, or transferred; the department must provide annual reports on credit usage, businesses benefited, and job creation results.