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PURPOSE:
To generate private funds to be used to establish a “protective business environment” (incubator) in which a number of small businesses can collectively operate, fostering growth and development during a business’ start-up period.

AUTHORIZATION:
Section 620.495, RSMo

ELIGIBLE AREAS:
Statewide.

ELIGIBLE APPLICANTS:
Missouri taxpayers who make a contribution to an approved incubator sponsor in Missouri

PROGRAM BENEFITS/ELIGIBLE USES:
This 50% tax credit can be applied to:

  • Ch. 143 – Income tax, excluding withholding tax
  • Ch. 147 – Corporate franchise tax
  • Ch. 148 –
    -  Bank Tax 
    -  Insurance Premium Tax 
    -  Other Financial Institution Tax

FUNDING LIMITS:
The overall maximum amount of tax credits that can be authorized under this program in any one calendar year is $500,000.

APPLICATION/APPROVAL PROCEDURE:
SPONSOR
An incubator sponsor must apply to the Department of Economic Development (DED) for designation as an approved incubator.  DED reviews and approves applications based on the following criteria:

  • Ability of the sponsor to carry out the provisions of §620.495, RSMo;
  • Economic impact of the incubator on the community;
  • Conformance with area-wide and local economic development plans, if they exist; and
  • Location of the incubator (encouraging geographic distribution of incubators throughout the state).

CONTRIBUTOR
Any taxpayer, including non-for-profit corporations, except those that benefit directly from General Revenue such as public universities, may be a contributor. Applications can be submitted to DED year-round, but decisions will be made on a first-come basis, based on the annual amount of tax credits allocated to an approved incubator.

 

CONTACT

Missouri Department of Economic Development
Division of Business and Community Services
Finance Management Team
301 West High Street, Room 770
P.O. Box 118
Jefferson City,   MO  65102
Phone: (573) 751-4539   Fax: (573) 522-4322
E-Mail: dedfin@ded.mo.gov