Missouri Economic Development Department outlines tax credit program for small businesses

The Missouri State Legislature has introduced House Bill 1007, aimed at enhancing community improvement through targeted tax credits for small businesses. Introduced on April 9, 2025, the bill seeks to provide financial incentives for businesses to comply with the Americans with Disabilities Act (ADA) by offering a tax credit of up to $5,000. This credit would cover 50% of eligible access expenditures that exceed the monetary cap set by federal law.

Key provisions of the bill include the establishment of a framework for the Department of Economic Development to collaborate with local municipalities and counties. This partnership will help identify eligible projects, estimate costs, and set completion dates. Additionally, the department is tasked with conducting annual evaluations of the tax credit program to assess its economic impact and recommend modifications for improvement.

A notable aspect of House Bill 1007 is its sunset provision, which stipulates that the program will automatically expire on August 28, 2031, unless reauthorized by the General Assembly. This provision ensures that the program is regularly reviewed and adjusted as necessary.

The bill has sparked discussions among lawmakers, particularly regarding its potential economic implications. Supporters argue that it will encourage small businesses to invest in accessibility improvements, thereby fostering inclusivity and potentially boosting local economies. However, some opposition has emerged, focusing on concerns about the long-term sustainability of the tax credits and the administrative burden on the Department of Economic Development.

As the bill progresses through the legislative process, its future remains uncertain. If passed, House Bill 1007 could significantly impact small businesses in Missouri, promoting accessibility and community development while also requiring ongoing legislative oversight to ensure its effectiveness and relevance.