The Missouri Department of Economic Development this month approved tax credits totaling $500,000 for seven business incubators in the state.
The DEDs’ Small Business Incubator program allows donors to receive tax credits for up to 50% of contributions to certified incubators or accelerators.
The organizations approved for 2019 tax credits are:
- The eFactory (Springfield) – $100,000
- Center for Emerging Technologies (St. Louis) – $95,000
- MU Life Science Business Incubator (Columbia) – $85,162
- Joseph Newman Business and Technology Innovation Center (St. Joseph) – $65,074
- Ozarks Small Business Incubator (West Plains) – $55,264
- St. Louis Fashion Fund (St. Louis) – $50,000
- IT Entrepreneur Network (St. Louis) – $49,500
Incubators certified under the DED can apply for credits by sending in a proposed budget by Jan. 31. Eligible costs include construction, rehabilitation, equipment or furniture purchases, business development purchases or “in-hand” donations.
The University of Missouri Life Science Business Incubator in Columbia has received credits each year since becoming a DED certified incubator in 2004. Quinten Messbarger, vice president of the Missouri Innovation Center, which manages the incubator, said the tax credits were “instrumental” to its efforts.
“It just makes a world a difference in us being able to attract those donations,” Messbarger said. “We could not have finished building out this building without the support of the tax credits and without the tax program, so these are hugely critical for us to continue doing the work we do.”
The Ozarks Small Business Incubator in West Plains hopes to utilize the tax credits in expanding the mentorship program it offers to entrepreneurs, including workshops and seminars.
“Tax credits help us (fill) the gap,” said Heather Fisher, the incubator’s executive director. “They’re definitely a need for our organization. They help us leverage local community dollars, and so it makes a big difference for us.”
The deadline for contributions to these incubators to be eligible for tax credits is Dec. 31.