- Qualified Research Expense Tax Credit Program – Missouri incentive for increasing research spending.
- Additional Qualified Research Expenses – Spending above the average of prior years.
- Qualified Research Expenses (QREs) – Costs eligible for the research tax credit.
- Missouri Department of Economic Development (DED) – Agency overseeing economic growth and incentives.
- Missouri Department of Revenue (DOR) – State agency collecting taxes and enforcing laws.
- Public or Private College or University in Missouri – Eligible partners for specific research credit boosts.
- Annual Program Cap ($10 million) – Maximum total credits issued per year state-wide.
- Reserved Cap ($5 million) – Credit amount set aside for specific applicants.
- Maximum Credit Per Taxpayer ($300,000) – Limit on credit claimed by one entity.
- Corporate Income Tax (Chapter 143) – Tax levied on corporations’ Missouri income.
- Financial Institutions Tax (Chapter 148) – Specific tax regime for banks and lenders.
- Unrelated Business Taxable Income (UBTI) – Taxable income from non-exempt activities.
- Minority Business Enterprise – Business owned/controlled by minority group members.
- Women’s Business Enterprise – Business owned and controlled by women.
- Small Business – Business meeting specific size and revenue criteria.
- Taxable Year – Fiscal period for reporting tax liability.
- Tax Credit Authorization – Official approval to claim the tax credit.
- Credit Carry Forward – Unused credits applied to future tax years.
- Maximum Carry Forward Period (12 years) – Time limit to use carried-over credits.
- Nonrefundable Credit – Credit cannot exceed tax liability; no refund.
- Tax Credit Transfer, Sale, or Assignment – Selling credits to other taxpayers for cash.
- Notarized Endorsement – Legal verification required for credit transfer documents.
- Pro-Rata Allocation – Distributed share based on ownership percentage.
- New Business (less than five years old) – Startups operating for under five years.
- Internal Revenue Code (IRC) Section 41 – Federal law defining the research tax credit.
- Internal Revenue Code (IRC) Section 174 – Federal rules for deducting research costs.
- Qualified Services – Employee activities directly supporting qualified research.
- Wages for Qualified Services – Salaries paid to employees performing research.
- Supplies Used in Research – Materials consumed during the experimentation process.
- Contract Research Expenses (65%) – Allowable portion of payments to third parties.
- In-House Research Expenses (100%) – Fully claimable internal research costs.
- Qualified Research – Activities meeting specific technical and experimental tests.
- Four-Part Test – Criteria determining if research activity qualifies.
- Technological in Nature – Relies on principles of physical or biological science.
- Permitted Purpose – Intent to improve performance, quality, or reliability.
- Elimination of Uncertainty Test – Process to discover unknown information about design.
- Process of Experimentation Test – Systematic evaluation of alternatives to achieve result.
- Average Qualified Research Expenses (Base) – Historical spending baseline for credit calculation.
- Three Immediately Preceding Tax Years – Timeframe used to calculate the base amount.
- Maximum Percentage of Average QREs (200%) – Cap on the increase used for calculation.
- House Bill 2400 (H.B. 2400) – Legislation modifying Missouri research tax credit rules.
- Missouri Revised Statutes (RSMo) § 620.1039 – Statute authorizing the research tax credit program.
- Sales and Use Tax Exemption for R&D Equipment – Tax break for purchasing research machinery.
- Missouri-Qualified Research and Development Equipment – Machinery eligible for sales tax exemption.
- Annual Application Window (August 1 to September 30) – Period to submit tax credit applications.
- Missouri Tax Clearance Certificate – Proof that no taxes are owed to state.
- Certificate of SOS Good Standing – Proof entity is authorized to do business.
- Flow-Through Tax Treatment – Income passed directly to owners’ personal returns.
- Partnership, S-Corporation, LLC – Business structures utilizing pass-through taxation.
- Tax Credit Accountability Act Reporting Form – Mandatory report on credit usage and impact.
