Nonprofit research and development

From the 2024 DOR Tax Exemption Study

82.04.260(3) - Nonprofit research and development Description Income from nonprofit corporations and associations performing research and development (R&D) services is subject to a B&O tax rate of 0.484%. Purpose To support the advancement of nonprofit R&D. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this preferential rate would not increase revenue because currently no exemption taxpayers use it. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions No taxpayers are currently reporting this preferential tax rate. We expect no usage during the forecasted period of this study. Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category: Nonprofit Year Enacted: 1965 Primary Beneficiaries: Nonprofit corporations and associations Taxpayer Count: 0 Program Inconsistency: None evident JLARC Review: Expedited review completed in 2016 and 2023 2024 Tax Exemption Study Page 34