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Committee hears bill to create angel-investor tax credit for early-stage Missouri companies
Summary
Representative Sherry Gallick presented House Bill 18 45 to create a capped angel-investor tax credit aimed at keeping early-stage Missouri startups in state; the program would prioritize Missouri-based businesses with revenue under $5 million, include rural/urban credit rates, annual caps, reporting and oversight by the Missouri Technology Corporation and Department of Economic Development.
Representative Sherry Gallick told the Commerce Committee that House Bill 18 45 is a targeted, accountable economic-development tool designed to fill an early-stage capital gap for Missouri startups.
Gallick said the credit would be limited to Missouri-based businesses with revenue under $5,000,000 and that the program includes a stronger incentive for rural investment (a 50% tax credit) and a 40% credit in non-rural areas. She described a $6,000,000 statewide cap in the first two years, per-investor limits (the sponsor cited $75,000 per investor and a $300,000 total cap for certain measures), and a sunset of December 2033. The sponsor emphasized oversight: the Missouri Technology Corporation would monitor compliance and reporting, with annual reports to the Department of Economic Development and state leadership.
Committee members questioned the tax base the credit would apply to (references in the bill point to chapter 143) and whether the credit functioned against income tax or other tax types. Members asked about carryover, transferability, clawback mechanisms if businesses fail to meet commitments, and how the credit would interact with any future income-tax changes. Gallick and supporting witnesses—representatives from entrepreneurial coalitions, BioSTL and chambers of commerce—said they would provide additional detail and documentation and noted that other states, including neighboring jurisdictions, have similar temporary credits.
Several witnesses, including Ben Johnson (Next Missouri coalition), Chance Hepla (Missouri Chamber of Commerce and Industry), Brandon Koch (Missouri Insurance Coalition) and others, went on record in support, citing the credit's potential to catalyze early investment and keep companies and jobs in Missouri.
Next steps: the committee heard the bill and entered testimony; sponsors and stakeholders will exchange additional details and language on carryback/clawback and technical questions ahead of any committee action.
