Missouri 2026 Regular Session Status: Enacted

SB 1553 — Authorizes incentives for producing certain critical materials and pharmaceuticals

Last action — Signed by Governor

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 13, 2026. Enacted.

Signed by Governor Mike Kehoe (Republican) on July 13, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 50% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

The bill provides tax incentives for producing critical materials and pharmaceuticals in Missouri.

This legislation modifies tax exemptions and establishes a program to offer credits and grants to companies producing critical materials and pharmaceuticals. It also sets eligibility criteria and funding limits for the incentives.

What this means for you
  • Workers: New job opportunities may arise as companies expand or build facilities for producing critical materials and pharmaceuticals.
  • Small Business: If you're a small business in Missouri involved in production, you may benefit from new tax credits for significant investments.

Summary

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

Bill Text

What changed in the latest version

3 added · 3 removed

Plain-language change summary

In the latest version of Bill SB 1553, the language has been updated to indicate that it has been fully approved and passed. This marks an important step in the legislative process, signifying that the bill is ready to be sent for official signing into law. The previous wording, which referred to the bill as "perfected," has been removed to reflect its final status. This change matters because it highlights the bill's progression and readiness for implementation.

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SECOND REGULAR SESSION [PERFECTED] SENATE SUBSTITUTE FOR SENATE BILLNO.
SECOND REGULAR SESSION [TRULYAGREED TOAND FINALLY PASSED] SENATE SUBSTITUTE FOR SENATE BILLNO.
1553 103RD GENERALASSEMBLY INTRODUCED BY SENATOR GREGORY (21).
1553 103RD GENERALASSEMBLY 6232S.02T ANACT To repeal section 144.054, RSMo, and to enact in lieu thereof two new sections relating to incentives for producing certain critical materials and pharmaceuticals.
6232S.02P KRISTINAMARTIN, Secretary ANACT To repeal section 144.054, RSMo, and to enact in lieu thereof two new sections relating to incentives for producing certain critical materials and pharmaceuticals.
EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted and is intended to be omitted in the law.
(3) "Nuclear security enterprise", the same meaning as defined in 50 U.S.C.
SS SB 1553 2 (3) "Nuclear security enterprise", the same meaning as defined in 50 U.S.C.
Section 2501, inclusive of buildings, EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted and is intended to be omitted in the law.
Section 2501, inclusive of buildings, structures, and infrastructure constructed for use as a defense nuclear facility as defined in 50 U.S.C.
SS SB 1553 2 structures, and infrastructure constructed for use as a defense nuclear facility as defined in 50 U.S.C.
In addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the provisions of this chapter and the local sales tax law as defined in section 32.085 and from the computation of the tax levied, assessed, or payable under this chapter and the local sales tax law as defined in section 32.085, electrical energy and gas, whether natural, artificial, or propane, water, coal, and energy sources, chemicals, machinery, equipment, and materials used or consumed in the manufacturing, processing, compounding, mining, or producing of any product, or used or consumed in the processing of recovered materials, or used in research and development SS SB 1553 3 related to manufacturing, processing, compounding, mining, or producing any product.
In addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the provisions of this chapter and the local sales tax law as defined in section 32.085 and from the computation of the tax levied, assessed, or payable under this chapter and the local sales tax law as defined in section 32.085, electrical energy and gas, whether natural, artificial, or propane, water, coal, and energy sources, chemicals, machinery, equipment, and materials used or consumed in the manufacturing, processing, compounding, mining, or producing of any product, or used or consumed in the processing of recovered materials, or used in research and development related to manufacturing, processing, compounding, mining, or producing any product.
The construction and application of this subsection as expressed by the Missouri supreme court in DST Systems, Inc.
The construction and application SS SB 1553 3 of this subsection as expressed by the Missouri supreme court in DST Systems, Inc.
In addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the SS SB 1553 4 provisions of this chapter and the local sales tax law as defined in section 32.085, and from the computation of the tax levied, assessed, or payable under this chapter and the local sales tax law as defined in section 32.085, all sales and purchases of tangible personal property, utilities, services, or any other transaction that would otherwise be subject to the state or local sales or use tax when such sales are made to or purchases are made by a private partner for use in completing a project under sections 227.600 to 227.669.
In addition to all other exemptions granted under this chapter, there is hereby specifically exempted from the provisions of this chapter and the local sales tax law as defined in section 32.085, and from the computation of the SS SB 1553 4 tax levied, assessed, or payable under this chapter and the local sales tax law as defined in section 32.085, all sales and purchases of tangible personal property, utilities, services, or any other transaction that would otherwise be subject to the state or local sales or use tax when such sales are made to or purchases are made by a private partner for use in completing a project under sections 227.600 to 227.669.
In addition to all other exemptions granted pursuant to this chapter, there is hereby exempted from the provisions of and the computation of the tax levied, assessed, or payable pursuant to this chapter and the local sales tax law as defined in section 32.085, all sales and purchases of tangible personal property, building materials, equipment, fixtures, manufactured goods, machinery, and SS SB 1553 5 parts for the purposes of constructing all or any portion of a nuclear security enterprise located in any city with more than four hundred thousand inhabitants and located in more than one county.
In addition to all other exemptions granted pursuant to this chapter, there is hereby exempted from the provisions of and the computation of the tax levied, assessed, or payable pursuant to this chapter and the local sales tax law as defined in section 32.085, all sales and purchases of tangible personal property, building materials, equipment, fixtures, manufactured goods, machinery, and parts for the purposes of constructing all or any portion of a nuclear security enterprise located in any city with more SS SB 1553 5 than four hundred thousand inhabitants and located in more than one county.
SS SB 1553 6 (6) "Project facility", the building or buildings used by a qualified company at which critical materials or critical pharmaceuticals will be produced or processed;
(6) "Project facility", the building or buildings used by a qualified company at which critical materials or critical pharmaceuticals will be produced or processed;
(7) "Qualified company", a firm, partnership, joint venture, association, private or public corporation regardless of whether organized for profit, or headquarters of such entity registered to do business in Missouri, that is a nontraditional defense contractor, as such term is defined in 10 U.S.C.
SS SB 1553 6 (7) "Qualified company", a firm, partnership, joint venture, association, private or public corporation regardless of whether organized for profit, or headquarters of such entity registered to do business in Missouri, that is a nontraditional defense contractor, as such term is defined in 10 U.S.C.
SS SB 1553 7 (b) "Qualified project costs" shall not include any costs incurred by a qualified company utilizing a contractor unless:
(b) "Qualified project costs" shall not include any costs incurred by a qualified company utilizing a contractor unless:
a.
SS SB 1553 7 a.
and SS SB 1553 8 (b) For qualified companies that incur qualified project costs of at least fifteen million dollars, twenty- five percent of qualified project costs.
and (b) For qualified companies that incur qualified project costs of at least fifteen million dollars, twenty- five percent of qualified project costs.
(2) Tax credits authorized by this section shall not be refundable, but may be carried forward for ten subsequent tax years or until the full amount of the tax credit has been redeemed, whichever occurs first.
(2) Tax credits authorized by this section shall not be refundable, but may be carried forward for ten subsequent SS SB 1553 8 tax years or until the full amount of the tax credit has been redeemed, whichever occurs first.
(1) The types and amounts of critical materials that will be produced or processed at the project facility, along SS SB 1553 9 with any supporting information from the federal Department of the Interior, Department of Energy, or Department of Defense indicating a shortage or threat to supply of such critical materials;
(1) The types and amounts of critical materials that will be produced or processed at the project facility, along with any supporting information from the federal Department of the Interior, Department of Energy, or Department of Defense indicating a shortage or threat to supply of such critical materials;
(2) The types and amounts of critical pharmaceuticals that will be produced or processed at the project facility, along with any supporting information from the federal Food and Drug Administration, Department of Defense, Department of Veterans Affairs, or Department of Health and Human Services indicating a shortage or threat to supply of such critical pharmaceuticals;
SS SB 1553 9 (2) The types and amounts of critical pharmaceuticals that will be produced or processed at the project facility, along with any supporting information from the federal Food and Drug Administration, Department of Defense, Department of Veterans Affairs, or Department of Health and Human Services indicating a shortage or threat to supply of such critical pharmaceuticals;
(2) Notwithstanding the provisions of section 33.080 to the contrary, any moneys remaining in the fund at the end SS SB 1553 10 of the biennium shall not revert to the credit of the general revenue fund.
(2) Notwithstanding the provisions of section 33.080 to the contrary, any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund.
Any interest and moneys earned on such investments shall be credited to the fund.
Any SS SB 1553 10 interest and moneys earned on such investments shall be credited to the fund.
Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the SS SB 1553 11 authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.
Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.
This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2026, shall be invalid and void.
This section and chapter 536 are nonseverable and SS SB 1553 11 if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2026, shall be invalid and void.
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Action History

  1. Signed by Governor

  2. Reported Duly Enrolled Rules, Joint Rules, Resolutions & Ethics Committee

  3. Signed by Senate President Pro Tem

  4. Signed by House Speaker

  5. Delivered to Governor

  6. Voted Do Pass H Fiscal Review

  7. Reported Do Pass H Fiscal Review

  8. H Third Read and Passed

  9. Truly Agreed To and Finally Passed

  10. Bill Placed on H Informal Calendar

  11. Executive Session Action postponed H Fiscal Review

  12. Referred H Fiscal Review Committee

  13. Voted Do Pass H Rules - Legislative

  14. Reported Do Pass H Rules - Legislative

  15. Reported Do Pass H Commerce

  16. Referred H Rules - Legislative

  17. Hearing Conducted H Commerce

  18. Voted Do Pass H Commerce

  19. Referred H Commerce

  20. H Second Read

  21. Voted Do Pass S Fiscal Oversight Committee

  22. Reported from S Fiscal Oversight Committee

  23. S Third Read and Passed

  24. H First Read

  25. Reported Truly Perfected S Rules, Joint Rules, Resolutions and Ethics Committee

  26. Referred S Fiscal Oversight Committee

  27. SS S offered (Gregory-21)--(6232S.02F)

  28. SA 1 to SS S offered & withdrawn (Moon)--(6232S02.02S)

  29. SA 2 to SS S offered & adopted (Lewis)--(6232S02.01S)

  30. SA 3 to SS S offered (Beck)--(6232S02.03S)

  31. SA 1 to SA 3 to SS S offered & adopted (Gregory-21)--(6232S02.06S)

  32. SA 3 to SS, as amended, S adopted

  33. SA 4 to SS S offered & adopted (Nicola)--(6232S02.05S)

  34. SS, as amended, S adopted

  35. Perfected

  36. Reported from S Economic and Workforce Development Committee

  37. Voted Do Pass S Economic and Workforce Development Committee

  38. Hearing Conducted S Economic and Workforce Development Committee

  39. Second Read and Referred S Economic and Workforce Development Committee

  40. S First Read

Sponsors

  • Kurtis Gregory (21) · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 198 not signed on

Sponsors (1)

  • Gregory (21), Kurtis

Co-sponsors (0)

None.

Not signed on (198)

198 members have not signed on to this bill.

Show all 198 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation healthcare labor technology agriculture energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 1553 do?
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
Who sponsors SB 1553?
SB 1553 is sponsored by Gregory (21), Kurtis.
What is the current status of SB 1553?
This bill has been enacted into law. Introduced January 13, 2026. Enacted.
Where can I track SB 1553?
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