SQL Server 2008 Express edition which supports reporting services

You can work with Reporting Services using the SQL Server 2008 Express free software from Microsoft. Please search for license information on Microsoft site. Get the highlighted version

SQL Express 2008 is available in three flavors as displayed when you click on the link at the bottom:
   
*  SQL Server 2008 Express with Tools
          o SQL Server database engine - create, store, update and retrieve your data
          o SQL Server Management Studio Basic - visual database management tool for creating, editing and 
             managing databases
* SQL Server 2008 Express with Advanced Services
          o SQL Server database engine - create, store, update and retrieve your data
          o SQL Server Management Studio Basic - visual database management tool for creating, editing and
             managing databases
          o Full-text Search - powerful, high-speed engine for searching text-intensive data
          o Reporting Services - integrated report creation and design environment to create reports
   
* SQL Server 2008 Express (Runtime Only)
          o SQL Server database engine - create, store, update and retrieve your data

Download site:
http://www.microsoft.com/express/sql/download/default.aspx