620.1039. Tax credit for qualified research expenses, exception--certification by director of economic development--transfer of credits, application, restrictions and procedure--limitations on credit-
Tax credit for qualified research expenses, exception--certificationby director of economic development--transfer of credits,application, restrictions and procedure--limitations oncredit--tax credits prohibited, when.
620.1039. 1. As used in this section, the term "taxpayer" means anindividual, a partnership, or any charitable organization which is exemptfrom federal income tax and whose Missouri unrelated business taxableincome, if any, would be subject to the state income tax imposed underchapter 143, RSMo, or a corporation as described in section 143.441 or143.471, RSMo, or section 148.370, RSMo, and the term "qualified researchexpenses" has the same meaning as prescribed in 26 U.S.C. 41.
2. For tax years beginning on or after January 1, 2001, the directorof the department of economic development may authorize a taxpayer toreceive a tax credit against the tax otherwise due pursuant to chapter 143,RSMo, or chapter 148, RSMo, other than the taxes withheld pursuant tosections 143.191 to 143.265, RSMo, in an amount up to six and one-halfpercent of the excess of the taxpayer's qualified research expenses, ascertified by the director of the department of economic development, withinthis state during the taxable year over the average of the taxpayer'squalified research expenses within this state over the immediatelypreceding three taxable years; except that, no tax credit shall be allowedon that portion of the taxpayer's qualified research expenses incurredwithin this state during the taxable year in which the credit is beingclaimed, to the extent such expenses exceed two hundred percent of thetaxpayer's average qualified research expenses incurred during theimmediately preceding three taxable years.
3. The director of economic development shall prescribe the manner inwhich the tax credit may be applied for. The tax credit authorized by thissection may be claimed by the taxpayer to offset the tax liability imposedby chapter 143, RSMo, or chapter 148, RSMo, that becomes due in the taxyear during which such qualified research expenses were incurred. Wherethe amount of the credit exceeds the tax liability, the difference betweenthe credit and the tax liability may only be carried forward for the nextfive succeeding taxable years or until the full credit has been claimed,whichever first occurs. The application for tax credits authorized by thedirector pursuant to subsection 2 of this section shall be made no laterthan the end of the taxpayer's tax period immediately following the taxperiod for which the credits are being claimed.
4. Certificates of tax credit issued pursuant to this section may betransferred, sold or assigned by filing a notarized endorsement thereofwith the department which names the transferee and the amount of tax credittransferred. The director of economic development may allow a taxpayer totransfer, sell or assign up to forty percent of the amount of thecertificates of tax credit issued to and not claimed by such taxpayerpursuant to this section during any tax year commencing on or after January1, 1996, and ending not later than December 31, 1999. Such taxpayer shallfile, by December 31, 2001, an application with the department which namesthe transferee, the amount of tax credit desired to be transferred, and acertification that the funds received by the applicant as a result of thetransfer, sale or assignment of the tax credit shall be expended withinthree years at the state university for the sole purpose of conductingresearch activities agreed upon by the department, the taxpayer and thestate university. Failure to expend such funds in the manner prescribedpursuant to this section shall cause the applicant to be subject to theprovisions of section 620.017.
5. No rule or portion of a rule promulgated under the authority ofthis section shall become effective unless it has been promulgated pursuantto the provisions of chapter 536, RSMo. All rulemaking authority delegatedprior to June 27, 1997, is of no force and effect and repealed; however,nothing in this section shall be interpreted to repeal or affect thevalidity of any rule filed or adopted prior to June 27, 1997, if such rulecomplied with the provisions of chapter 536, RSMo. The provisions of thissection and chapter 536, RSMo, are nonseverable and if any of the powersvested with the general assembly pursuant to chapter 536, RSMo, includingthe ability to review, to delay the effective date, or to disapprove andannul a rule or portion of a rule, are subsequently held unconstitutional,then the purported grant of rulemaking authority and any rule so proposedand contained in the order of rulemaking shall be invalid and void.
6. The aggregate of all tax credits authorized pursuant to thissection shall not exceed nine million seven hundred thousand dollars in anyyear.
7. For all tax years beginning on or after January 1, 2005, no taxcredits shall be approved, awarded, or issued to any person or entityclaiming any tax credit under this section.
(L. 1993 H.B. 566 § 10, A.L. 1996 H.B. 1237, A.L. 1997 2d Ex. Sess. S.B. 1, A.L. 1998 S.B. 827, A.L. 2000 S.B. 894, A.L. 2004 S.B. 1155, A.L. 2007 1st Ex. Sess. H.B. 1)Effective 11-28-07
CROSS REFERENCE:
Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830