Federal small business innovation grants

From the 2024 DOR Tax Exemption Study

82.04.4261 - Federal small business innovation grants Description Grants received under the federal small business innovation research program are exempt from B&O tax. Purpose Encourages research and development in high-technology small businesses. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.210 $0.218 $0.228 $0.239 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.200 $0.228 $0.239 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the service and other activities B&O tax growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Economic and Revenue Forecast Council, March 2023 forecast - National Institute of Health, Small Business Innovation Research and Small Business Technology Transfer award data Additional Additional Information Information Category: Business Year Enacted: 2004 Primary Beneficiaries: Sma