Bill > SB537

This bill establishes the Missouri Defense and Energy Independence Act, which creates a tax credit and grant program designed to support nontraditional defense contractors in reducing reliance on foreign-produced materials. Specifically, the bill allows qualified companies (defined as firms registered in Missouri that are nontraditional defense contractors) to claim tax credits for costs associated with converting their production to create chemicals, metals, gases, or rare earth minerals used in energy or Department of Defense projects. The tax credit program is capped at $40 million per year, with individual companies limited to claiming 15% of that total, distributed over four years. Additionally, the bill creates a "Grants for Independence from Foreign Influence Fund" with at least $10 million, from which the Department of Economic Development can award grants up to $500,000 per qualified company to support conversion costs. The tax credits are transferable but not refundable, and the entire program is set to automatically sunset after six years unless reauthorized by the Missouri General Assembly. The bill aims to enhance Missouri's economic and strategic independence by incentivizing domestic production of critical materials.

Business and Industry

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=1465879