MO HB389

Changes qualified research expenses definition to limit credits to research and development of agricultural biotechnology, plant genomics products, diagnostic and therapeutic medical devices, prescription pharmaceuticals for animals, and power system technology for aerospace, space, defense, or implantable/wearable medical devices.

Authorizes tax credit up to 6.5 percent of qualified research expenses exceeding the average of the preceding three taxable years, with no credit allowed on expenses exceeding 200 percent of the three-year average.

Increases annual aggregate tax credit cap from $9.7 million to $10 million, and implements pro-rata allocation formula when claims exceed the annual cap.

Establishes application filing period from January 1 through July 1 following the tax year, with director action required between August 1-15 of each year.

Limits any single taxpayer to receiving no more than 30 percent of the total annual tax credits authorized under the section.