Missouri taxpayers can now benefit from R&D investments thanks to the Qualified Research Expenses Tax Credit

It’s been nearly two decades since Missouri taxpayers have been able to utilize an R&D state credit related to their qualified research expenditures (QREs), but a new bill sparks hope for the new year.

The Qualified Research Expenses Tax Credit was implemented in January 2023 as part of the House Bill 2400, and allows Missouri taxpayers to utilize the research and development tax credit. This new law essentially reinstates the previous 2004 state tax credit for qualifying activities conducted in the state.

Now, Missouri joins the majority with 38 US states currently offering a state tax incentive for QREs incurred within the state.

Some key takeaways from the new Missouri 2023 tax law include:

• the state credit is 15% of additional qualified research expenses
• and 20% if the qualified research relates to a state college or university
• Any unused state credit may be carried forward 12 years

Who qualifies?

To be eligible for this credit, the QREs must relate to the activities that meet the criteria in the IRS Four-Part Test (IRC §41).

This new tax credit is now available to claim on your 2023 tax return, and our experts can help you get the most out of your R&D investments!

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