Do a little good this holiday season, and make a donation to one of three small business incubators within 417-land. In 2018, The efactory, Ozarks Small Business Incubator and the Joseph Newman Innovation Center all received Small Business Incubator Tax Credits through the Missouri Department of Economic Development. As a result, both individuals and businesses have until December 31 to make a donation and receive a 50 percent tax credit through the state of Missouri. Those who donate will then be able to use this credit when they file their taxes.
This year, the department awarded The efactory $65,000, Ozarks Small Business Incubator $99,852 and the Joseph Newman Innovation Center $20,000 to give to those who donate.
In years past, The efactory used donations for the addition of five conference rooms, two seminar rooms and updates throughout the building. Last year, Ozarks Small Business Incubator used donations to renovate its second floor and fund specialized training programs. If the organization does not use the full amount given by the Missouri Department of Economic Development, the department can re-allocate the funds.
Individuals or businesses with Missouri tax liability are eligible to donate. Each donation will receive a 50 percent credit (for instance, someone who donates $10,000 would receive a $5,000 tax credit). Those who donate can carry the tax credits forward up to five years and all donations must go toward future tax liability.
In addition to the state tax credit, donations may also be taken as a charitable deduction against federal income tax, according to The efactory Director Rachel Anderson. There is no limit to the monetary value of donations and all donations must be received by December 31.
The purpose of the program, according to the Missouri Department of Economic Development’s website, is to “leverage funds to use for working capital and other non-operating expenditures that support new business creation in communities.” Organizations who receive the Small Business Incubator Tax Credits must be certified by the state of Missouri. According to the department’s website, there are 15 certified small business incubators and all are eligible to apply for the program. Three of these are located in 417-land, all of which applied for the credits and received a specific sum.
To donate, visit one of the three small business incubators or visit their websites for more information.