written by Melinda Thurman
This is article number four in our series of Tax Credits. The first, second and third articles can be found here.
Would you like to reduce your Missouri personal and corporate tax liability? At The Whitlock Company, we are always looking for ways to help businesses and individuals reduce their tax liability. We have several clients that have benefited with a direct, dollar-for-dollar reduction in tax liability by utilizing various tax credits.
We are going to highlight various Missouri credits that would be beneficial to our clients. Each credit will be summarized with the possible benefits. The list below contains common credits that may benefit various people. Are you taking full advantage?
- Small business guaranty fees credit allows an eligible small business who pays a SBA or Department of Agricultural guarantee fee as part of their small business loan to take a credit for that amount paid in that same year only.
- Wine and grape credit assists vineyards and wine producers with the purchase of new equipment and materials used directly in the growing of grapes or producing wine by granting a tax credit equal to 25% of the purchase price.
- Missouri quality jobs credit facilitates the creation of quality jobs by targeted business projects. The credit is equal to the state withholding tax of the new jobs. The credits are only available if the company meets the average wage and health insurance requirements. Technology and high impact businesses are eligible for additional credits.
- Remediation tax credits provide financial incentives for the redevelopment of commercial/industrial sites that are contaminated with hazardous substances and have been abandoned or underutilized for at least three years. *
- Distressed area land assemblage credit supports redevelopment of blighted areas into productive use. The re-developer must have incurred acquisition cost for at least 50 acres of eligible parcels, have been appointed the re-developer of the area by a city or county, have entered into a re-development agreement, and have been approved for redevelopment incentives for the area. Tax credits are provided to the re-developer based on 50% of the acquisition costs and 100% of the interest costs incurred for a period of five years after the acquisition of an eligible parcel. Maintenance costs may also be included as acquisition costs. *
- Rebuilding communities credit stimulates business activity in the distressed communities by providing tax credits to eligible businesses that locate, relocate or expand their business within a distressed community. Eligible new or relocating businesses may choose one of the 40% tax credits and the employees may receive the 1.5% employee tax credit. Eligible businesses already located in a distressed community may be eligible for the 25% equipment tax credit. Existing businesses that double the number of full time employees in the distressed community from the previous year, may choose one of the 40% tax credits. *
- Historic preservation credit provides an incentive for the redevelopment of commercial and residential historic structures. The tax credit is equal to 25% of eligible costs and expenses of the rehabilitation of approved historic structures. The costs and expenses associated with the rehabilitation must exceed 50% of the total basis of the property (acquisition cost). *
* Unused tax credits may be sold, assigned or transferred. If you think you may benefit from any of these credits, please contact us today.