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Taxes

Simplified, Pro-Business Opportunities

Missouri and its communities offer a low overall tax burden with strategic benefits for business investment.

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Corporate Income Tax

  • Missouri has a flat 4% corporate income tax rate, one of the lowest in the nation.
  • The state ranks 4th in the nation for corporate tax climate, according to the Tax Foundation.
  • A single-factor apportionment model based on in-state sales simplifies multistate tax calculations.
  • Missouri does not require worldwide or nationwide unitary tax reporting, easing compliance for multinational companies.

No Inventory Tax

  • Missouri does not tax business inventory at the state or local level.
  • This reduces overhead for manufacturers and distributors and supports better working capital management.

Local Property Tax Abatements

  • Chapter 100 Bonds provide property tax abatements and sales tax exemptions on eligible real and personal property for qualified business investments.
  • Enhanced Enterprise Zones (EEZs) offer 50–75% property tax abatements for up to 10 years, negotiated locally based on job creation and capital investment.
  • Personal property tax relief may be available for new equipment and machinery, particularly through Chapter 100 financing agreements.

Sales Tax Exemptions

  • Machinery, equipment, and materials used directly in manufacturing are exempt from Missouri state sales tax.
  • Certain R&D materials and processes also qualify for sales tax exemptions under specific programs.
  • Construction materials may be exempt when used in qualified economic development projects, such as those supported by Chapter 100 Bonds.
  • Utilities (electricity, gas, water) used directly in manufacturing processes may qualify for sales tax exemptions.

Additional Tax Benefits

  • Research & Development Tax Credit: Qualifying businesses can receive a 15% state tax credit for R&D expenses—20% if conducted in partnership with a Missouri university (subject to a $300,000 annual cap).
  • Historic Preservation Tax Credit: Projects to rehabilitate historic buildings may qualify for 25% in Missouri state credits, which can be combined with federal credits for total benefits of up to 45–55% depending on location.
  • Data Center Exemption Program: Qualifying data centers can receive sales and use tax exemptions on equipment, utilities, and construction materials.
  • Brownfield Redevelopment Program: Environmental remediation projects may receive up to 100% in state tax credits for eligible cleanup costs.
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Your Next Move Starts Here

Our team is ready to help you take full advantage of available tax benefits.