September 2011: Missouri Deduction for Small Business Jobs

Missouri has enacted a new income tax deduction for each new job that is created by a small business. A small business is defined as any business with 50 or fewer full- or part-time employees. The law provides for a $10,000 deduction for each new job created that pays an annual salary of at least the county average wage as determined by the Missouri Department of Economic Development. To qualify as a new job, the employee must work an average of at least 35 hours a week for a 52-week period. If the business pays at least the county average wage and offers health insurance for which it pays at least 50% of the premium cost, the deduction for the business is $20,000. The Missouri Department of Revenue will issue specific guidance for claiming the deduction. The tax savings on the $10,000 or $20,000 Missouri deduction would be $600 or $1,200, respectively.

The deduction applies for taxable years beginning on or after January 1, 2011 and is available for years ending on or before December 31, 2014.

Full text of the bill can be found: Job Creation Bill