The Missouri R&D tax credit, explained
Missouri's R&D credit pays 15% to 20% of qualified research growth, is transferable, and carries forward for 12 years.
Last verified July 2026 against Missouri Department of Economic Development guidance.
The short answer
Yes, Missouri has a state R&D tax credit. The Qualified Research Expense Tax Credit, under RSMo 620.1039, came back in 2023 after Missouri's original R&D credit had expired for almost two decades.
How the Missouri credit works
The credit equals 15% of the increase in Missouri qualified research expenses over a three year base, or 20% if the research is done in partnership with a Missouri public or private college or university. The increase is capped at 200% of the prior three year average, so a huge one time spike in spending will not fully qualify.
The credit is nonrefundable, but it can be sold or transferred to another taxpayer, which gives an early stage company a way to get value from it even without Missouri tax liability. It requires certification from the Missouri Department of Economic Development before it can be claimed.
How it stacks with the federal credit
Missouri's credit stacks with the federal R&D credit, which is worth roughly 6% to 10% of qualified research spend. Both credits use the same underlying qualified research expenses, though Missouri applies its own three year base and 200% growth cap.
Startups under $5 million in revenue can also apply the federal credit against up to $500,000 a year in payroll taxes. Missouri's credit does not offer a payroll offset, but its transferability feature means a pre-revenue company can sell the certificate rather than wait to owe Missouri income tax.
Example: a Missouri manufacturing tech company with 10 engineers and an average salary of $105,000 spends about $1,050,000 a year on qualified research. If that is $350,000 more than its three year base, the standard 15% rate gives a state credit of about $52,500, well under the $300,000 per company cap. The federal credit on the same spend runs roughly $73,500. Combined, that is about $126,000 in credits for one year.
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Eligibility and how to claim it
Missouri companies of any size doing qualified research in the state can apply, from software startups to manufacturers, as long as the work meets the same four part test used for the federal credit.
The company must first apply to the Missouri Department of Economic Development and receive a certificate before claiming the credit. Once certified, the credit is claimed on Form MO-TC, Miscellaneous Income Tax Credits, using credit code REC, attached to the company's Missouri return.
Claimship preps the qualified research documentation the Department of Economic Development application needs. The company's CPA files the Missouri return and claims the certified credit. The Department of Economic Development administers the program and can be reached through its official site.
Official source: Missouri Department of Economic Development.
Carryforward and deadlines
Unused credit carries forward for 12 years or until it is fully used, whichever comes first. There is no carryback.
The statewide cap is $10 million a year, with $5 million reserved for minority owned, women owned, and small businesses with 50 or fewer employees. The application window typically runs from August 1 through September 30 each year, and companies should apply as soon as the window opens since the credit is prorated if total requests exceed the cap. New businesses under five years old get their full authorized credit before proration applies to others.