Currently, under a provision of the New Markets tax credit program, no new equity investments may be accepted after July 1, 2010, unless the general assembly adopts a concurrent resolution authorizing the Department of Economic Development to approve investments for the program and specifying the amount of tax credits available for the next fiscal year. This act repeals this provision, so that taxpayers may again make new equity investments in specialized financial institutions called Community Development Entities and be provided with tax credits for these investments.

The Missouri Angel Investment Incentive Act provides tax credits to investors in certain companies. Under this program businesses may apply to regional Small Business and Technology Development centers to be designated a qualified business. Each quarter, the regional Small Business and Technology Development centers allocate tax credits to these qualified businesses. The tax credit will be equal to fifty percent of the investor's investment in the business. The tax credits may be transferred once to an individual, or carried forward until the credit is used. No more than six million dollars in tax credits may be allowed each tax year. The Department of Revenue is prohibited from allowing tax credits of more than fifty thousand dollars per qualified business or more than two hundred fifty thousand dollars per investor or owner of a entity investor.

Qualified businesses are required to report to the regional Small Business and Technology Development centers before the center issues the tax credit and annually. The home office of the Small Business and Technology Development center is required to report annually to the Department of Revenue. Each regional Small Business and Technology Development center is required to report annually to the Governor, the director of the Department of Economic Development, the Senate Committee on Commerce, Consumer Protection, Energy, and the Environment, and the House Committee on Economic Development.

The provisions of law creating the Missouri Angel Investment Incentive Act expire on December 31, 2022.

EMILY KALMER