HB 1593 Summary

• Repeals and revises section 135.680 relating to the Missouri New Markets Development Program, which provides tax credits for investments in qualified community development entities that fund low-income community businesses.

• Establishes the Missouri Angel Investment Incentive Act (sections 348.273 and 348.274) to encourage angel investors to provide seed capital to emerging Missouri businesses developing innovative technologies, products, and services.

• Allows individual and entity investors to claim a tax credit equal to 50 percent of their cash investments in qualified Missouri businesses, with a maximum credit of $50,000 per business and $250,000 per investor per year, capped at $6 million total annually.

• Requires businesses seeking to qualify for the program to apply through regional Small Business and Technology Development Centers (SBTDCs), which evaluate applications based on criteria including revenue limits, years in operation, innovation, and job creation potential.

• Tax credits under the Angel Investment Incentive Act expire December 31, 2022, and may be carried forward or transferred to other natural persons, with qualified investors required to hold investments in approved businesses.