Bill to Spur Angel Investing Attracts Support

The market for early-stage investing in promising new Missouri businesses does not currently meet the needs of entrepreneurs. That’s why NEXT Missouri is leading the charge to create new tax creates to jumpstart this market.

The Missouri Angel Investment Incentive Act (HB 2226 and SB 1178) will help startups access much-needed capital to fuel business growth by incentivizing angel investment.

Most of the states neighboring Missouri offer similar tax benefits to encourage early-stage investing. In Kansas, for example, the state’s angel investor tax credit helped 533 Kansas businesses raise more than $589 million and create 2,358 new jobs between 2005-2022. 

To spur that kind of business growth and investment in Missouri, the House Financial Institutions Committee approved HB 2226 in February. 

Before passing the legislation, the House committee made several changes, including shortening the authorization of the program from 10 to 6 years and expanding the definition of a “rural county” so that more Missouri businesses will be able to offer investors a larger tax credit. These changes are being carried forward in the Senate version of the bill. 

The Senate Economic Development and Tax Policy Committee held a hearing on the Missouri Angel Investment Incentive Act on March 11.  Several organizations, including NEXT Missouri, testified in support. No one spoke in opposition.

Read our January post about the Missouri Angel Investment Incentive Act to learn more about this effort to support Missouri entrepreneurs.