Bill > HB136

This bill modifies Missouri's income tax law by making several changes to how research and experimentation costs are treated for tax purposes. Specifically, for tax years beginning on or after January 1, 2026, the bill requires taxpayers to add back to their federal adjusted gross income the amount of research and experimental expenditures that are required to be charged to capital account under Section 174(a)(2)(B) of the Internal Revenue Code. Conversely, the bill also allows taxpayers to subtract from their federal adjusted gross income the amount of specified research or experimental expenditures that are charged to capital account under Section 174(a)(2)(A), after any reduction required under Section 280C(c). These changes align Missouri's tax treatment of research and experimentation expenses with recent federal tax law modifications, potentially impacting how businesses can account for research-related costs on their state tax returns. The bill is part of ongoing efforts to update state tax codes to reflect changes in federal tax regulations, particularly those affecting research and development expenses.

Budget and Finance, Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB136&year=2025&code=R