The Missouri Angel Investment Incentive is an economic development tool designed to help Missouri entrepreneurs and startups secure private investment. The program encourages angel investors to invest in eligible early-stage companies by providing a state tax credit for qualifying investments. The incentive helps existing investors stretch their investment dollars across more companies and, by reducing the risk associated with investing in young companies, encourages new investors to enter the market. Over time, this can increase the amount of capital available to Missouri startups and growing businesses, helping achieve the program’s goal of building Missouri’s startup capital market.

Angel investors are accredited investors who provide capital to startups and early-stage businesses with strong growth potential. These investments help entrepreneurs develop products, hire employees, reach new customers, and attract additional investment. Because young companies often have limited access to traditional financing, angel investors play an important role in helping promising businesses start, grow, and create jobs. Moreover, many angel investors provide coaching and guidance to the companies they invest in, sharing industry expertise and business know-how with startups.

An angel investor tax credit is a state incentive that encourages investment in startups and early-stage businesses. Investors who make qualifying investments in approved companies receive a state tax credit for a portion of their investment. By reducing risk for investors, angel investor tax credits help attract more private capital to growing businesses.

Businesses must apply to the Missouri Technology Corporation (MTC) and be approved as Qualified Missouri Businesses before investors can receive credits. Generally, eligible businesses must be innovation-driven, based in Missouri or have significant operations or production in Missouri, and meet requirements related to revenue, age, business activity, job creation potential, and use of qualified securities. Businesses must also agree to reporting requirements and maintain compliance with program rules.

A Qualified Missouri Business is a company that has been certified by the Missouri Technology Corporation (MTC) as eligible to participate in the Missouri Angel Investment Incentive. Generally, qualified businesses are early-stage, growth-oriented companies with significant operations in Missouri that are developing innovative products, services, or technologies. Businesses must apply for approval and meet specific statutory requirements before investors can receive tax credits for qualifying investments. Only approved Qualified Missouri Businesses may use allocated tax credits to help attract angel investment.

Businesses must apply to the Missouri Technology Corporation (MTC) for designation as a Qualified Missouri Business. The application must include information about the business, its management, product, market, financial plan, expected economic impact, proposed securities, planned use of investment proceeds, and requested tax credits. Qualified Missouri Businesses must renew their designation annually.

Yes. The Missouri Technology Corporation (MTC) will establish application fees for Qualified Missouri Businesses, investors, or transferees. These fees will help cover the cost of administering the program, issuing credits, and reviewing applications.

The program is intended for accredited investors who make qualifying investments in Qualified Missouri Businesses. Eligible investors may participate as individuals or through certain investment entities, including partnerships, corporations, trusts, nonprofit organizations, and some LLCs established for investment purposes. Investors who serve as executives, officers, or employees of the business receiving investment are not eligible to receive credits for that investment, though directors may qualify.

The value of the credit depends on where the Qualified Missouri Business receiving investment is located. Investors may receive a tax credit equal to:

• 60% of a qualifying investment in a business located within a certified Missouri Innovation Zone;

• 50% of a qualifying investment in a business located in a rural county; or

• 40% of a qualifying investment in any other Qualified Missouri Business.

Investors who make qualifying investments in approved businesses located within certified Missouri Innovation Zones may be eligible for a tax credit equal to 60% of their investment. This enhanced credit is intended to encourage investment, entrepreneurship, and economic activity in designated areas.

An investor may receive no more than $75,000 in tax credits for investment in a single Qualified Missouri Business and no more than $300,000 in total tax credits in a single tax year.

To receive a credit, an investor must make a cash investment in qualified securities of a Qualified Missouri Business. The business must be approved by the Missouri Technology Corporation (MTC) before the investment is made. After investment, the business must submit required investor and investment information to MTC so the Missouri Department of Economic Development may issue the credits.

Angel investor tax credits are scheduled to become available for tax years beginning on or after January 1, 2027.

In general, a Missouri startup will apply to the Missouri Technology Corporation (MTC) for approval as a Qualified Missouri Business. If approved, MTC may allocate tax credits to the business. The business may then use those allocated credits to help attract qualifying investments from angel investors. After investment, the business submits required documentation to MTC, and the Missouri Department of Economic Development issues the credits to eligible investors.

The program is capped at $6 million in tax credits in both 2027 and 2028. Beginning in 2029, the annual cap may increase to $7 million if all credits were issued in the previous year. The cap may later increase to $8 million if the full $7 million is issued in the prior year.

Yes. If the amount of the credit exceeds an investor’s Missouri tax liability in a given year, the unused portion may be carried forward for up to two years or until the full credit is used, whichever comes first.

Yes. Investors who make qualifying investments may transfer their tax credits to another natural person, as long as the investor has not already claimed the credit against their Missouri income tax liability. Transfers must be documented in a manner established by the Missouri Technology Corporation (MTC) and the Missouri Department of Economic Development.

MTC is responsible for reviewing businesses, designating Qualified Missouri Businesses, and allocating tax credits.

The Missouri Department of Economic Development is responsible for issuing tax credits to investors in Qualified Missouri Businesses.

The Missouri Angel Investment Incentive is currently authorized through December 31, 2032.

NEXT Missouri will continue to provide updates on implementation, program guidance, and outcomes. Sign up for updates to stay informed as MTC and the state develop application procedures and launch the program.