Missouri Enterprise Zone Income Modification
The Missouri Enterprise Zone Income Modification allows taxpayers to reduce their Missouri taxable income by half of the income attributable to a business facility located in an approved enterprise zone. This modification is designed to encourage economic development in designated areas of the state.
Eligibility and Calculation
- Only income from a business facility located in an enterprise zone approved by the Missouri Department of Economic Development qualifies.
- Taxpayers must enter one-half of the Missouri taxable income attributed to the new business facility in the enterprise zone.
- Refer to the Worksheet for Calculating Business Facility Credit, Enterprise Zone Modification and Enterprise Zone Credit (Form 4354) for detailed calculations.
How to Claim the Modification
When filing Form MO-1040, taxpayers should report the eligible income on the appropriate line, applying the 50% reduction as per the instructions. The modification is applied to the Missouri taxable income derived from the enterprise zone business facility.
Important Notes
- The modification applies only to income from business facilities located in approved enterprise zones.
- Documentation and verification may be required during audits or reviews.
- Ensure that the enterprise zone status is current and approved by the Department of Economic Development.
Source:
Form MO-1040 Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.