HCS/HB 389 - This act reauthorizes a tax credit for qualified research expenses. A taxpayer will be entitled to an income tax credit in an amount up to 6.5% of the qualified research expenses in excess of the prior three years' average qualified research expenses. The act limits the tax credit to certain research areas. Applications must be made between January first and July first of the calendar year following the year in which the expenses occurred. The Department of Economic Development must act on applications between August first and August fifteenth after the application is filed.
Unclaimed portions of the tax credit may be transferred during the years 2014 to 2020. A $10 million per calendar year cap is set for the tax credit. The act establishes a calculation to reduce the amount applicants will receive if the number of eligible claims exceeds the annual cap. No one taxpayer may be issued more than 30% of the tax credits authorized in a calendar year.
This act is similar to SB 333 (2013), SB 252 (2011), and SB 353 (2009). This act is similar to a provision contained in HCS/SB 112 (2013).
MIKE HAMMANN