JEFFERSON CITY – The Missouri Department of Economic Development (DED) today announced that 10 Missouri small business incubators have been approved for a total of $500,000 in state tax credits under the Small Business Incubator Tax Credit program (Incubator). The tax credits will leverage $1 million for the local incubators.
The funds leveraged by these credits must be used for capital and other non-operating expenditures and support new business creation throughout the state. Missouri ranks No. 1 nationally in new business creation, according to the U.S. Census Bureau, and Missouri’s new business creation recently surged by an impressive 16 percent while most states saw a decrease.
Additionally, in Fiscal Year 2015 Missouri ranked—for the first time ever—as a Top 10 state for startup funding, according to Forbes.
All contributions must be received by the Incubator between January 1, 2016, and December 31, 2016, in order to qualify for the tax credits. Applications from the following small business incubators have been approved:
- Direct Impact Business Education Center in Bridgeton has been approved for $20,000.
- Independence Regional Ennovation Center has been approved for $11,000.
- The eFactory at Missouri State University in Springfield has been approved for $75,000.
- Joseph Newman Business and Technology Innovation Center in Joplin has been approved for $25,000.
- Life Sciences Business Incubation Center in Columbia has been approved for $95,000.
- Ozark Foothills Development Association in Poplar Bluff has been approved for $57,000.
- Ozarks Small Business Incubator in West Plains has been approved for $50,000.
- Saint Louis Fashion Incubator has been approved for $50,000.
- Center for Emerging Technologies in St. Louis has been approved for $67,000.
- Institute for Industrial and Applied Life Sciences DBA Innovation Stockyard at Missouri Western State University in St. Joseph has been approved for $50,000.
The Small Business Incubator Tax Credit program is designed to generate private funds to be used to establish a “protective business environment” (incubator) in which a number of small businesses can collectively operate, fostering growth and development during a business’ start-up period. Business incubators must apply to the Department of Economic Development for designation as an approved incubator. Once certified by DED, incubator programs may be eligible to apply for incentive packages if the program meets strict criteria.