Daniel P. Mehan, President and CEO | Missouri Chamber of Commerce and Industry
Daniel P. Mehan, President and CEO | Missouri Chamber of Commerce and Industry
The Missouri Chamber of Commerce and Industry is backing a legislative proposal designed to stimulate private investment in startup businesses throughout the state. The proposed legislation, titled the “Missouri Angel Investment Incentive Act” (SB 461), is sponsored by Sen. Kurtis Gregory (R-Marshall). This initiative allows investors to claim a tax credit of 40 percent on their investment in a qualified business, with an increased credit of 50 percent for businesses operating in rural counties.
During a recent hearing with the Senate Economic and Workforce Development Committee, Senator Gregory clarified that an individual investor would not be permitted to receive more than $75,000 in tax credits per year for investments in a single business.
If enacted, the program is scheduled to start on January 1, 2026, and end on December 31, 2032. It may be reapproved by the General Assembly for extension. The Missouri Technology Corporation, a division of the Missouri Department of Economic Development, would oversee the administration of this program.
“It can be really tough to get a startup off the ground in this state,” Gregory stated. “This bill incentivizes investors to devote resources to these new businesses and help them be successful.”
Senator Gregory also highlighted that several neighboring states, including Illinois, Kansas, and Tennessee, are already offering angel investment tax credits.
Cade Tremain, Manager of Governmental Affairs at the Missouri Chamber, expressed strong support: “Missouri is a nationally recognized site for innovation, and we believe this bill can serve as an economic development powerhouse because it encourages investment in innovative Missouri businesses right from the start.”
A related piece of legislation, HB 235, has been introduced by Rep. Sherri Gallick (R-Belton).
Those seeking further information can reach Tremain via email at ctremain@mochamber.com or by phone at (573) 634-3511.