If you own a business in Missouri, you might qualify for one of the state’s business tax incentive programs. Certain programs allow eligible business owners to get tax credits and tax exemptions to meet specific requirements.
Ready to see if you qualify? Read on for Gusto’s full list of Missouri business tax programs below.
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Missouri business tax incentives
Business Facility Headquarters Tax Credit Program
Certain Missouri businesses in engineering, architecture, and accounting may qualify for the Business Facility Headquarters Tax Credit Program. Under the program, eligible businesses get tax credits for commencing new headquarters operations or expanding operations within Missouri before December 31, 2024.
Businesses have to meet the following criteria to qualify:
- Be an engineering firm classified as SIC 8711, an architectural firm classified as SIC 8712, or an accounting firm classified as SIC 8721.
- Maintain an average of at least 500 new business facility employees
- Create at least 25 new jobs at the facility
- Invest at least $1 million and maintain an average of at least $20 million in business facility investment
If a business qualifies as a new headquarters, it can receive $400 for each new business facility employee it hires and 4% of new business facility investment, or $500 for each new business facility employee and $500 for each $100,000 of new business facility investment.
The credit amount is based on the original cost of machinery, equipment, furniture, fixtures, land and building, software, hardware, and/or eight times the annual rental or license rate paid for the same.
Learn more about the program and apply here.
Missouri Qualified Research Expense Tax Credit Program
In Missouri, eligible businesses can get a tax credit for incurring research expenses within the state. The credit amount is equal to 15% of a business’s additional qualified research expenses or 20% if the expenses relate to research conducted in conjunction with a Missouri college or university. The maximum credit amount is $300,000 per year.
Individuals, partnerships, minority-owned businesses, women-owned businesses, and small businesses based in Missouri are all eligible to apply.
To qualify as a minority-owned business, a business needs to be at least 51% owned, operated, and controlled by someone who belongs to a minority group. To qualify as a woman-owned business, a business needs to be at least 51% owned, operated, and controlled by a woman. To qualify as a small business, an operation needs to be independently owned and have fewer than 50 employees.
Get more information—and application details—on the program here.
Related: What qualifies as federal research expenses? See a full breakdown here.
Entertainment Industry Jobs Act Tax Credit Program
The Entertainment Industry Jobs Act Tax Credit Program incentivizes touring companies to rehearse and perform in Missouri. Eligible companies can get a tax credit equal to 30% of qualified rehearsal and tour expenses, including marketing costs, equipment, staff payroll, and food and lodging.
To qualify, a touring company has to be registered as a Missouri taxpayer and complete a preliminary application for eligibility. Find out everything about the application process here.
Advanced Industrial Manufacturing Zones Act
The Advanced Industrial Manufacturing Zones Act encourages Missouri businesses to start or expand operations in a designated Port Authority AIM Zone. Under the program, businesses can retain 50% of their state tax withholdings for new employees hired to work in the designated zone.
To be eligible, businesses need to increase the number of full-time employees located at the project facility and pay those new employees at or above the state average wage.
Learn more about the program here.
Plus, everything you need to know to start and run a business in Missouri.
Brownfield Remediation Program
Missouri businesses that restore designated brownfield areas may be eligible for tax credits under the Brownfield Remediation Program. The credit amount is up to 100% of the cost of remediation. The credit can also include up to 100% of the cost of demolition, if demolition was separate from the remediation activities.
To qualify for the credit, a business needs to propose a brownfield remediation project that has the potential to create at least 10 new jobs or retain at least 25 jobs by a private commercial operation.
Learn how to apply here.
Business Use Incentives for Large-Scale Development (BUILD) Program
The Business Use Incentives for Large-Scale Development (BUILD) Program incentivizes major enterprises to create new jobs and make large capital investments in Missouri. To qualify, a company needs to meet the below criteria:
- Invest at least $15 million in an economic development project and create at least 100 new jobs if you’re in one of the following industries: manufacturing, processing, assembly, research and development, agricultural processing, or services in interstate commerce.
- Invest at least $10 million in an economic development project and create at least 500 new jobs if you’re in one of the following office industries: regional, national or international headquarters; telecommunications operations; computer operations; insurance companies; or credit card billing and processing centers.
Companies that qualify can get bonds of up to $500,000 to finance their project, or apply as a tax credit to their income tax, bank tax, insurance premium tax, and other financial institution tax.
Find out more about the BUILD program here.
Missouri Works
The Missouri Works program is a job incentive program that encourages businesses to undertake economic development projects that create new jobs and stimulate the economy. Eligible businesses can get state tax credits and retain state withholding taxes on the new jobs they create.
The program requirements—and exact payroll benefits—for businesses vary depending on which zone they’re located in. Businesses in Zone Works, for example, need to create a minimum of two new jobs that pay 80% of the county average wage and invest at least $100,000 in their project. If they do, they won’t have to pay state withholding taxes for their new jobs for five to six years.
See the complete breakdown of Missouri zones and requirements here.
For more information on Missouri business taxes, read our updated guide.
Motion Media Production Tax Credit Program
The Motion Media Production Tax Credit Program incentivizes production companies to set their film and post-production projects within Missouri. A variety of film and TV projects qualify, including feature-length films, short films, documentaries, pilots, commercials, and animated films.
To qualify for the program, a production company has to meet these minimum thresholds:
- Incur expenses of at least $50,000 if your project is under 30 minutes or fewer than 30 script pages
- Incur expenses of at least $100,000 if your project is over 30 minutes or longer than 30 script pages
Production companies also have to hire a certain number of Missouri apprentices or veterans to work on the project—ranging from two to eight—depending on how much they spend on qualifying expenses.
The exact credit amount depends on various factors, but the default amount is 20% of the company’s qualified expenses.
Learn more about the program here.
Make sure you follow these key steps when hiring employees in Missouri.
Targeting Industrial Manufacturing Enhancement (TIME) Zones Act
The Targeting Industrial Manufacturing Enhancement (TIME) Zones Act encourages Missouri businesses to start or expand operations in a designated TIME Zone. Under the program, businesses can get a retention of 25% of their state tax withholdings for new employees hired to work in the designated zone.
To be eligible, businesses need to increase the number of full-time employees located at the business, and pay those new employees at or above 90% of the county average wage.
The number of new jobs businesses must create depends on the population in each TIME Zone. If a zone has fewer than 5,000 people, for example, businesses must create at least five new jobs. If the zone’s population is over 150,000, businesses must create a minimum of 25 new jobs.
Learn more about the program here.
Missouri business tax exemptions
Chapter 100 Program
The Chapter 100 Program gives eligible businesses a state and local sales tax exemption on tangible personal property leased from a city or county and used in qualified economic development projects.
Eligible companies include those involved in manufacturing, warehousing, distribution, office, research and development, agricultural processing, and services in interstate commerce. Qualified projects must be competitive, have comprehensive local incentive participation, have above-average wages with benefits or be located in an economically distressed area,
have a positive state fiscal impact and indicate that the municipality has offered the local Chapter 100 exemptions.
See program details here.
Data Center Sales Tax Exemption
Data centers that build a new facility or expand an existing one in Missouri can qualify for a tax exemption. Businesses that qualify won’t have to pay sales and use taxes on various activities necessary to start or expand operations.
To qualify, a data center needs to meet the following thresholds:
- For expanding an existing facility: 1) Create at least five new full-time jobs with average wages of 150% of the county average wage within 24 months and 2) Put at least $5 million toward a new investment within 12 months.
- For starting a new facility: 1) Create at least ten new full-time jobs with average wages at or above 150% of the county average wage within 36 months, and 2) Put at least $25 million toward a new investment within 36 months.
Find out each county’s average wage and get details on applying here.
Missouri City and County tax credits
Many Missouri counties and cities offer local business tax credits or exemptions. Make sure you visit the economic development hub of your city or county’s website to find out about your options.
Financing for Missouri-based businesses
Businesses at every stage of growth can benefit from financing. Whether you need a short-term loan or an industry-specific grant, Missouri has options. Check out Gusto’s guide to business grants and loans in Missouri to get started.
