JEFFERSON CITY — The Senate Economic and Workforce Development Committee heard testimony Wednesday on a proposal to spur investment in Missouri companies.
The bill, called the Angel Investor …
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JEFFERSON CITY — The Senate Economic and Workforce Development Committee heard testimony Wednesday on a proposal to spur investment in Missouri companies.
The bill, called the Angel Investor Incentive Act, is sponsored by Sen. Kurtis Gregory, R-Marshall. It would allow an investor to claim a tax credit worth 40% of their investment in a qualified business, or 50% if the business is located in a rural county.
Gregory said that his bill, SB 1004, aims to incentivize investors to devote resources to what are seen as high risk but high growth companies.
With several border states, such as Illinois, Kansas and Tennessee, already establishing angel investment credits to successfully spur early investment, many startup companies are leaving Missouri. However, within the past five years, startups have been responsible for 80% of the job growth within Missouri, Gregory said.
Ben Johnson of NEXT Missouri, a coalition of Missouri-based entrepreneurs, testified in support of the bill.
“If we want to drive growth in Missouri, this credit is a tool to keep capital here and lock in the long-term growth of the economy in the state by leveraging the innovation skills of Missourians,” Johnson said.
Jared Hankinson, the vice president of public affairs for the Missouri Chamber of Commerce, also testified in favor of the bill. He said that funding innovation not only aids Missouri, but can also leave lasting effects on the country.
According to a summary of the bill, no individual can get more than $75,000 in credits for contributions made to a single business. There is a $300,000 limit on credits that can be claimed by any investor overall.
If passed by lawmakers, the Angel Investment Program would run until 2033, unless reauthorized by the General Assembly. The Missouri Technology Corporation, which is part of the Missouri Department of Economic Development, would administer the program, which is limited to $6 million in tax credits for the first two years.
This act is identical to that of HB 235, which was approved by a House committee last year.
