The Missouri Partnership is a public-private economic development partnership and a top economic development organization in the US

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Missouri incentive and tax reform news

New Missouri Works Incentive

We're excited to announce the latest improvements to Missouri’s toolbox of incentives available to companies expanding in and relocating to our state. Missouri Governor Jay Nixon recently signed into law "Missouri Works," new legislation that will streamline a number of existing incentive programs while enabling job-creation projects in Missouri to qualify for higher potential benefits. To learn more, click here.

New Apportionment Option

Another law recently took effect in Missouri that adopts a new elective single-sales factor apportionment methodology. 

Taxpayers having multi-state activities now have three apportionment options.  Missouri is one of only a few states that allows taxpayers to choose their own income allocation formula (three-factor or single-factor), whichever results in the lesser corporate income tax liability.   

Under the original single sales factor method, a sale of tangible personal property is in Missouri if the sales transaction is wholly within Missouri, i.e. in-state shipping point and in-state destination point.  A sale of tangible personal property is treated as 50% in Missouri if the sales transaction is partly within Missouri, i.e. in-state shipping point and out-of-state destination point or vice-versa. 

The new law provides another option entitled alternative single sales factor method.  This option states that a sale of tangible personal property is in Missouri if the purchaser’s destination point is in Missouri.  A sale of tangible personal property is not in Missouri if the purchaser’s destination point is outside Missouri.  The purchaser’s destination point is determined without regard to the F.O.B. point or other conditions of the sale, and the destination point is not in Missouri if the purchaser received the tangible personal property from the seller in Missouri for delivery to the purchaser’s location outside Missouri.

Military Service Member Tax Exemption

In 2013, 60 percent of a military pension income is exempt from Missouri state tax. This tax deduction will increase 15 percent annually until January 1, 2016, when all military pension income will be tax free. Pension Exemption may be taken on the Form MO-1040, MO-A, Part 3, Section D.

Click here for more information regarding the Military Spouse’s Residency Relief Act and other Military related issues.

Contact Us Today To Learn More

To learn more about any of our incentive programs, tax rates, or doing business in Missouri, contact one of our Vice Presidents of Business Recruitment (toll free) at +1.877.725.0949.