Missouri State Tax Credits

More ways to save your hard-earned money from the tax man!

Missouri has some great State Tax Credits for you....

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap

 
Missouri

Missouri MOScholars Tax Credit Program

Overview:
The Missouri MOScholars Tax Credit offers a 100% credit to individuals and businesses that donate $500 or more to certified Educational Assistance Organizations (EAOs), helping fund scholarships for students with IEPs or from low-income families. The credit can offset up to 50% of a donor's Missouri state tax liability.

Who It’s For:
Missouri taxpayers—individuals or businesses—who want to support educational opportunities for underserved students while reducing their state income tax liability.

Four Key Highlights:

  1. 100% Tax Credit on Donations

    • Receive a dollar-for-dollar credit up to 50% of your Missouri tax liability for contributions of $500 or more.

  2. Supports Student Scholarships

    • Contributions fund private school scholarships for students with IEPs or from qualifying low-income households.

  3. Carryforward for Unused Credits

    • If your credit exceeds your tax liability, you can carry the unused portion forward for up to four years.

  4. Reservation Required Before Donating

    • Tax credits must be reserved via the MOScholars portal before making a contribution to an approved EAO.

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Missouri Headquarters Expansion Tax Credit

Overview:
The Missouri Headquarters Expansion Tax Credit encourages large-scale headquarters growth by offering credits based on job creation and capital investment. Eligible businesses can reduce their tax liability by investing at least $1 million annually and creating 25+ new jobs while meeting long-term expansion goals.

Who It’s For:
Missouri-based companies (SIC 8711, 8712, 8721) with a 50+ year history in the state seeking to establish or expand their headquarters while committing to substantial job creation and investment.

Four Key Highlights:

  1. Targets Major Employers

    • Requires at least 25 new jobs per year, 500 total new employees, and a $20M+ long-term investment.

  2. Annual Investment Requirement

    • Businesses must invest a minimum of $1 million per year in qualifying assets to remain eligible.

  3. Qualifying Assets Defined

    • Includes machinery, equipment, land, buildings, and furniture—plus rental property valued at 8x the annual lease rate.

  4. Not for Inventory or Short-Term Projects

    • Inventory is excluded from eligible costs; only long-term asset investments count toward the credit.

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Missouri Works Program

Overview:
The Missouri Works Program is the state’s premier incentive tool to support business expansion and job creation. It allows qualifying companies to retain withholding taxes or claim tax credits to fund new jobs, facility growth, and workforce upskilling, depending on program tier and location.

Who It’s For:
For-profit and nonprofit businesses creating new jobs or expanding operations in Missouri, including manufacturers, logistics firms, and tech companies—especially those in rural areas or Enhanced Enterprise Zones.

Four Key Highlights:

  1. Tiered Incentives Based on Job Creation & Wages

    • Programs range from small expansions (2 jobs, 80–90% county wage) to mega projects (100+ jobs, 120–140% county wage).

  2. Retain Withholding or Earn Payroll Credits

    • Zone, Rural, and Statewide tiers retain state withholding tax; Mega Works receives 6–7% of new payroll.

  3. 5–6 Year Benefit Terms

    • Businesses active in Missouri for over 10 years qualify for an extended 6-year benefit window.

  4. Must Apply Before Breaking Ground

    • Pre-approval is required before announcing, purchasing, or starting construction to remain eligible.

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Missouri Intern and Apprentice Recruitment Act (IARA) Tax Credit

Overview:
Missouri’s IARA Tax Credit offers $1,500 per qualifying intern or apprentice to incentivize businesses to expand workforce training opportunities. Designed to promote long-term employment and skill development, this credit supports companies hiring more interns or apprentices than their three-year average.

Who It’s For:
Missouri-based businesses, LLCs, S-corps, partnerships, and individuals subject to Missouri state income tax who employ eligible interns or registered apprentices in relevant fields of study.

Four Key Highlights:

  1. $1,500 Per Intern or Apprentice
    Credit available for qualifying hires; capped at $9,000 per business per year.

  2. Must Exceed 3-Year Hiring Average
    Only interns or apprentices hired in excess of a business’s prior 3-year average count are eligible.

  3. Strict Eligibility Requirements
    Interns must be college students with 30+ credit hours; apprentices must be in U.S. Dept. of Labor programs and meet training thresholds.

  4. Limited, Non-Transferable Funds
    $1 million annual cap statewide; credits are non-refundable, non-transferable, and cannot be carried forward.

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Missouri Qualified Research Expense (QRE) Tax Credit Program

Overview:
The Missouri QRE Tax Credit encourages in-state research and development by offering up to 20% in tax credits for qualified research expenses. With a special allocation for small, minority, and women-owned businesses, the program aims to stimulate innovation and broaden economic participation across Missouri.

Who It’s For:
Missouri businesses—including individuals, partnerships, corporations, and nonprofits with unrelated business income—engaged in qualified R&D activities. Special funding is reserved for minority-, women-, and small business enterprises.

Four Key Highlights:

  1. Earn Up to 20% in R&D Credits
    15% credit for additional qualified research expenses, or 20% if partnering with a Missouri college or university.

  2. $300,000 Annual Cap Per Business
    Individual businesses can claim up to $300,000 in tax credits per year.

  3. $5M Reserved for Diverse & Small Businesses
    Half of the program’s $10 million annual cap is earmarked for minority-, women-, and small-business applicants.

  4. Limited Filing Window
    Apply online via Submittable between August 1 and September 30, 2025, with IRS Form 6765 and state compliance docs required.

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