SB 1553 MO
SS/SB 1553 - This act modifies provisions relating to incentives for producing certain critical materials and pharmaceuticals. MANUFACTURING SALES TAX EXEMPTION Current law authorizes a sales tax exemption for energy, machinery, equipment, and materials used or consumed in the manufacturing, processing, compounding, mining, or producing of any product. This act modifies the definition of "product" to include critical materials and critical pharmaceuticals, as defined in the act. (Section 144.054) MISSOURI DEFENSE AND ENERGY INDEPENDENCE ACT This act establishes the "Missouri Defense and Energy Independence Act". For all tax years beginning on or after January 1, 2027, this act authorizes the Department of Economic Development to award tax credits to a qualified company for qualified project costs incurred by the qualified company on or after January 1, 2027, as such terms are defined in the act. No tax credit shall be authorized for any qualified company that incurs less than $5 million in qualified project costs. The amount of tax credits shall be equal to 20% of qualified project costs for qualified companies that incur at least $5 million but fewer than $15 million in qualified project costs, and 25% of qualified project costs for qualified companies that incur at least $15 million in qualified project costs. Qualified project costs are those costs incurred by a qualified company for the construction, expansion, or conversion of facilities and the acquisition of equipment for the production of critical materials or critical pharmaceuticals, as such terms are defined in the act. Qualified project costs shall not include any costs incurred by a qualified company utilizing a contractor unless such contractor is selected through an open bidding process, is headquartered in Missouri, has at least 85% of its workforce residing in Missouri, and maintains an existing U.S. Department of Labor registered apprenticeship program. Tax credits authorized by the act shall not be refundable, but may be carried forward for ten subsequent tax years or until the full amount of the tax credit is redeemed, whichever occurs first. The tax credits may also be transferred, sold, or otherwise assigned. The cumulative amount of tax credits that may be authorized in any fiscal year shall not exceed $40 million. A qualified company seeking tax credits under the act shall submit a notice of intent to the Department, and shall enter into a written agreement specifying the types and amounts of critical materials and critical pharmaceuticals that will be produced or processed, the estimated amount of capital investment and number of new jobs to be created at the project facility, clawback provisions, and other provisions the Department requires. This act also establishes the "Grants for Independence from Foreign Influence Fund", which shall consist of at least $10 million in appropriated moneys. The fund shall be used by the Department of Economic Development to provide grants to qualified companies in an amount not to exceed $500,000. Grant funds shall be administered by the Missouri Development Finance Board as the third-party administrator, and shall be used solely for qualified project costs incurred before the completion of the project facility. This act shall sunset on December 31, 2036, unless reauthorized by the General Assembly. This act is substantially similar to SB 1406 (2026), HB 3027 (2026), SB 537 (2025), HB 1511 (2025), SB 1360 (2024), and HB 1834 (2024), and to a provision in HCS/HB 1935 (2024). JOSH NORBERG
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Summary
Missouri Senate Bill 1553 would establish the Missouri Defense and Energy Independence Act to provide tax credits and grants for companies producing critical materials and pharmaceuticals. The bill would authorize tax credits equal to 20-25% of qualified project costs (minimum $5 million) for qualifying companies and would establish a $10 million grant fund providing up to $500,000 per company. The bill would also extend sales tax exemption to critical materials and pharmaceuticals, require contractors to be Missouri-based with 85% Missouri workforce and registered apprenticeship programs, and would sunset December 31, 2036.
AI-generated plain-language summary of the bill (from the OpenStates abstract — no full text available yet) — neutral, and may be imperfect.
Official abstract
SS/SB 1553 - This act modifies provisions relating to incentives for producing certain critical materials and pharmaceuticals. MANUFACTURING SALES TAX EXEMPTION Current law authorizes a sales tax exemption for energy, machinery, equipment, and materials used or consumed in the manufacturing, processing, compounding, mining, or producing of any product. This act modifies the definition of "product" to include critical materials and critical pharmaceuticals, as defined in the act. (Section 144.054) MISSOURI DEFENSE AND ENERGY INDEPENDENCE ACT This act establishes the "Missouri Defense and Energy Independence Act". For all tax years beginning on or after January 1, 2027, this act authorizes the Department of Economic Development to award tax credits to a qualified company for qualified project costs incurred by the qualified company on or after January 1, 2027, as such terms are defined in the act. No tax credit shall be authorized for any qualified company that incurs less than $5 million in qualified project costs. The amount of tax credits shall be equal to 20% of qualified project costs for qualified companies that incur at least $5 million but fewer than $15 million in qualified project costs, and 25% of qualified project costs for qualified companies that incur at least $15 million in qualified project costs. Qualified project costs are those costs incurred by a qualified company for the construction, expansion, or conversion of facilities and the acquisition of equipment for the production of critical materials or critical pharmaceuticals, as such terms are defined in the act. Qualified project costs shall not include any costs incurred by a qualified company utilizing a contractor unless such contractor is selected through an open bidding process, is headquartered in Missouri, has at least 85% of its workforce residing in Missouri, and maintains an existing U.S. Department of Labor registered apprenticeship program. Tax credits authorized by the act shall not be refundable, but may be carried forward for ten subsequent tax years or until the full amount of the tax credit is redeemed, whichever occurs first. The tax credits may also be transferred, sold, or otherwise assigned. The cumulative amount of tax credits that may be authorized in any fiscal year shall not exceed $40 million. A qualified company seeking tax credits under the act shall submit a notice of intent to the Department, and shall enter into a written agreement specifying the types and amounts of critical materials and critical pharmaceuticals that will be produced or processed, the estimated amount of capital investment and number of new jobs to be created at the project facility, clawback provisions, and other provisions the Department requires. This act also establishes the "Grants for Independence from Foreign Influence Fund", which shall consist of at least $10 million in appropriated moneys. The fund shall be used by the Department of Economic Development to provide grants to qualified companies in an amount not to exceed $500,000. Grant funds shall be administered by the Missouri Development Finance Board as the third-party administrator, and shall be used solely for qualified project costs incurred before the completion of the project facility. This act shall sunset on December 31, 2036, unless reauthorized by the General Assembly. This act is substantially similar to SB 1406 (2026), HB 3027 (2026), SB 537 (2025), HB 1511 (2025), SB 1360 (2024), and HB 1834 (2024), and to a provision in HCS/HB 1935 (2024). JOSH NORBERG
Sponsor (1)
- Gregory (21), Kurtis · primary
Action history (40)
- Jul 13, 2026 Signed by Governor · executive
- May 28, 2026 Delivered to Governor · executive
- May 28, 2026 Signed by House Speaker · lower
- May 28, 2026 Signed by Senate President Pro Tem · upper
- May 28, 2026 Reported Duly Enrolled Rules, Joint Rules, Resolutions & Ethics Committee · upper
- May 15, 2026 Truly Agreed To and Finally Passed · upper
- May 15, 2026 H Third Read and Passed · lower
- May 15, 2026 Reported Do Pass H Fiscal Review · lower
- May 15, 2026 Voted Do Pass H Fiscal Review · lower
- May 14, 2026 Executive Session Action postponed H Fiscal Review · lower
- May 14, 2026 Bill Placed on H Informal Calendar · lower
- May 12, 2026 Referred H Fiscal Review Committee · lower
- May 11, 2026 Reported Do Pass H Rules - Legislative · lower
- May 11, 2026 Voted Do Pass H Rules - Legislative · lower
- May 5, 2026 Referred H Rules - Legislative · lower
- May 5, 2026 Reported Do Pass H Commerce · lower
- May 4, 2026 Voted Do Pass H Commerce · lower
- May 4, 2026 Hearing Conducted H Commerce · lower
- Apr 28, 2026 Referred H Commerce · lower
- Apr 14, 2026 H Second Read · lower
- Apr 13, 2026 H First Read · lower
- Apr 13, 2026 S Third Read and Passed · upper
- Apr 13, 2026 Reported from S Fiscal Oversight Committee · upper
- Apr 13, 2026 Voted Do Pass S Fiscal Oversight Committee · upper
- Apr 2, 2026 Referred S Fiscal Oversight Committee · upper
- Apr 2, 2026 Reported Truly Perfected S Rules, Joint Rules, Resolutions and Ethics Committee · upper
- Apr 1, 2026 Perfected · upper
- Apr 1, 2026 SS, as amended, S adopted · upper
- Apr 1, 2026 SA 4 to SS S offered & adopted (Nicola)--(6232S02.05S) · upper
- Apr 1, 2026 SA 3 to SS, as amended, S adopted · upper
- Apr 1, 2026 SA 1 to SA 3 to SS S offered & adopted (Gregory-21)--(6232S02.06S) · upper
- Apr 1, 2026 SA 3 to SS S offered (Beck)--(6232S02.03S) · upper
- Apr 1, 2026 SA 2 to SS S offered & adopted (Lewis)--(6232S02.01S) · upper
- Apr 1, 2026 SA 1 to SS S offered & withdrawn (Moon)--(6232S02.02S) · upper
- Apr 1, 2026 SS S offered (Gregory-21)--(6232S.02F) · upper
- Mar 25, 2026 Reported from S Economic and Workforce Development Committee · upper
- Feb 25, 2026 Voted Do Pass S Economic and Workforce Development Committee · upper
- Feb 18, 2026 Hearing Conducted S Economic and Workforce Development Committee · upper
- Feb 5, 2026 Second Read and Referred S Economic and Workforce Development Committee · upper
- Jan 13, 2026 S First Read · upper
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