Governor signs major tax legislation supported by Associated Industries of MO

July 1, 2022 - Governor Mike Parson today signed HB 2400, a bill containing many tax provisions supported by Associated Industries of Missouri (AIM).

The bill contains a provisions that costs the state nothing but allows Missouri taxpayers to fully deduct state and local taxes paid to Missouri and other states on their federal income tax returns. The bill also enacts the “SALT Parity Act” in section 143.436 to provide equity for Missouri S corporations and partnerships with their counterparts in other states. We support these changes to ensure Missouri S corporation shareholders and partners are allowed full credit for taxes they have paid. Many other states have enacted similar provisions.

The bill modifies sections 144.010 and 144.011 to prevent the double collection of sales taxes from hotel operators: once when they purchase utilities, and again when they rent rooms to their guests and collect tax on the full amount charged (which includes the cost of the utilities). This will restore the tax treatment applied to these transactions before the Missouri Department of Revenue changed course based on an unrelated case involving hotel furniture, an action we fully support. A refund is allowed for taxes paid prior to the effective date of 8/28/22.

We are also very happy, after 18 years of trying, that we were successful in restoring a state level credit for research and development expenditures by amending section 620.1039. The credit is designed to boost collaboration between companies and universities that are providing research, part of the credit is set aside to allow small business and minority owned and women owned businesses priority in receiving the credit, and the credit has a responsible limit on the amount that may be obtained by any single company. We need to encourage research and development infrastructure here in Missouri so the products and services developed by such research will be made or provided by companies here in Missouri.

Finally, we fully support the changes allowing participants in the Missouri Works program to suspend their projects during the COVID pandemic. These companies had promised to create a certain number of jobs and make investments prior to the devastating impact of the COVID pandemic on our state and national economy. We believe this language will fairly allow those companies the additional time they need to perform as originally intended when the agreements were established with the Missouri Department of Economic Development.

The bill also contains an extension of the headquarters tax credit currently used by Burns and McDonnell, some changes to the Tax Credit Accountability Act, changes to the Missouri One Start Program, and more. Click HERE for the summary of the finally passed bill that will be effective 8/28/2022.

We thank Chuck Pierce for his help on all these tax provisions. Without his dedication and hard work, none of these items would have likely passed this session.

We are also very thankful for Governor Parson's leadership in signing this bill and several others that were the result of a lot of hard work during the legislative session that most, including me, believed would yield very little. In the end, it was truly an historic session as we passed several items we have been trying to pass for decades, including the R&D credit.

Thank you for your company's support of Associated Industries of Missouri!