Cape News

Missouri lawmakers are considering a bill that would encourage private investment in companies looking to start and locate in Missouri.

Senate Bill 413, sponsored by Sen. Denny Hoskins (R-Warrensburg), creates the Missouri Angel Investment Incentive Act. This would allow investors to claim a tax credit for contributions to a qualified Missouri business. The Missouri Technology Corporation (MTC) would determine which businesses qualify, but most would be new startups in operation for less than five years.

During a hearing in the Senate Economic Development and Tax Policy Committee, Sen. Hoskins said both Kansas and Arkansas already have similar incentive programs.

“Our Department of Economic Development has tracked several promising startups that are locating just across the border in Kansas City, Kansas, because of the investment money they are able to access in part due to the utilization of the angel credit,” Hoskins said. “Similar scenarios have been found in southwest Missouri.”

The bill would allocate a certain amount of money to each congressional district, allowing for equal opportunity across the state.

Phillip Arnzen, director of legislative affairs for the Missouri Chamber, testified in support of the legislation.

“Anything we can do to help entrepreneurs and attract talent to our state is beneficial,” said Arnzen. “Missouri has become a top state for tech. In numerous areas we’re in the top 10, such as women in tech and tech manufacturing. We’d like to continue that trend and make sure that capital is coming to our state and staying in our state.”

A companion bill, HB 727, is sponsored by Rep. Travis Smith (R-Dora) in the House.

For more information, contact Arnzen at parnzen@mochamber.com.

Original source can be found here.