SB 578 - This act modifies provisions relating to economic development.LINKED DEPOSITS
This act modifies the definition of "eligible small business" for the purposes of the linked deposit program to include a person who receives a loan from the Small Business Administration, provided that such linked deposit shall not exceed ten percent of the amount of the Small Business Administration loan or $250,000, whichever is less. (Section 30.750)
STATE CONTRACTS
This act requires five percent of all state contracts to be awarded to businesses that have been in operation for less than five years. (Section 34.195)
This provision is substantially similar to a provision contained in HCS/HB 1202 (2021).
CORPORATE INCOME TAX
This act establishes the "Right to Start Act".
For all tax years beginning on or after January 1, 2022, eligible new businesses, as defined in the act, shall have a portion of such business's corporate income tax be subject to a reduced rate of taxation. Such reduced rate shall equal 0% on the first $250,000 of income in the first year of the eligible new business, and shall increase annually until the fourth year, in which the reduced rate shall equal 3% on the first $1 million of income. Beginning in the fifth year of the eligible new business, all income shall be taxed at 4%. (Section 143.073)
For all tax years beginning on or after January 1, 2022, this act also provides that any taxpayer who is a corporation or other business entity with a taxable income of less than $5,000 may have such taxpayer's filing deadline extended by the Department of Revenue for one year, at which time such taxes shall be filed. No interest or penalties shall be imposed on such taxes, provided that the taxes are paid by the extended deadline. (Section 143.513)
COVENANT NOT TO COMPETE
This act voids any covenant not to compete, as defined in the act. (Section 431.203)
This provision is substantially similar to SB 77 (2021) and to a provision contained in HCS/HB 1202 (2021).
DEPARTMENT OF ECONOMIC DEVELOPMENT
This act creates the "Office of Entrepreneurship" within the Department of Economic Development. Such office shall be funded subject to appropriation from the federal State Small Business Credit Incentive funds. (Section 620.3800)
This provision is substantially similar to a provision contained in HCS/HB 1202 (2021).
JOSH NORBERG