December 8, 2010

Tax Credits Available for Incubator Contributions

The Independence Regional Ennovation Center is making a last-minute push for 2010 donations that come with a state tax credit and other incentives.

The Ennovation Center, which opened earlier this year, has received $60,000 in small business incubator tax credits. Missouri taxpayers can make a contribution and offset their state tax liability by half of that amount.

The Independence Economic Development Council, which runs the center, applied for the tax credit early in the year, but the state delayed approving the tax credits until late November. The Ennovation Center was at some advantage because this credit favors facilities that are new and those on the western side of the state, though the delay has shortened the time to take advantage of it, said Tom Lesnak, president of the EDC.

“So we’re really trying to play catchup,” Lesnak said.

Those looking to drop their tax liability can see a significant change. For example, a $1,000 contribution brings a $500 tax credit under this program. In addition, assuming the donor is in the 28 percent tax bracket, federal and state charitable deductions and other offsets bring the out-of-pocket cost of that $1,000 contribution to $300.

The money would not go for operations but could pay for equipment or office costs. The center, on the site of the old Independence Regional Health Center in western Independence, has space for startup companies, specifically those in biotechnology, food services, and business and technology. For example, one small business making gluten-free and vegan products uses kitchen space there as needed, saving the cost of investing in its own facilities. The idea also is to help start-up business with shared resources and services such as meeting space and administrative support.

For more information, call the EDC at 816-252-5777.