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Missouri Incentives and Workforce Development Guide

Visit Real Street's website to learn more about this event. The updated Missouri incentives guide is brought to you by Real Street Expo, a new event sponsored by Business Facilities and Today’s Facility Manager magazines.

For a list of Missouri economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

Financing

Action Fund Loan::
Provides a loan to certain types of for-profit companies that need funds for start-up or expansion and have exhausted other sources. Projects can only be in a “non-entitlement” area—a city under 50,000 in population or a county under 200,000 in population.
Brownfield Redevelopment Program:
Provides financial incentives for the redevelopment of commercial/industrial sites that are contaminated with hazardous substances and have been abandoned or underutilized for at least three years.
BUILD:
Provides a financial incentive for the location or expansion of large business projects. The incentives are designed to reduce necessary infrastructure and equipment expenses if a project can demonstrate a need for funding. An eligible industry in manufacturing, processing, assembly, R&D, agricultural processing or services in interstate commerce must invest a minimum of $15 million; or $10 million for an office industry (regional, national or international headquarters, telecommunications operations, computer operations, insurance companies or credit card billing and processing centers) in an economic development project; and create a minimum of 100 new jobs for eligible employees at the project or a minimum of 500 jobs if the project is an office industry or a minimum of 200 new jobs if the project is an office industry located within a distressed community as defined in Section 135.530, RSMo. Retail, health or professional services, intra-state relocations or replacement facilities are ineligible. The minimum bond issue is $500,000. The bonds may be used to finance public or private infrastructure to support the project, or the new capital improvements of the business at the project location. Bond proceeds may not be used for working capital, inventory or other operating costs of the business or another entity. This tax credit can be applied to:
  • Ch. 143 – Income tax, excluding withholding tax
  • Ch. 148 – Bank Tax, Insurance Premium Tax, Other Financial Institution Tax
Industrial Infrastructure Grant:
Assists local governments in the development of public infrastructure that allows industries to locate new facilities, expand existing facilities, prevent the closing of a facility or the relocation of a facility outside the state. Projects can only be in a “non-entitlement” area—a city under 50,000 in population or a county under 200,000 in population. More than one business must potentially benefit from the facilities to be funded. For-profit manufacturing, processing and assembly companies that will have wages above the county average and provide medical benefits are prioritized. Grant funds may be used for public streets, water or sewer lines, engineering and other public facilities necessary to support the project. A public entity must own the facilities to be funded.

Tax Incentives

Work Opportunity Tax Credit:
Provides a federal income tax credit to businesses for hiring from nine targeted groups with barriers to employment. The Internal Revenue Service specifies that the State Workforce Agency (SWA) is responsible for administering the Work Opportunity Tax Credit Program. The Missouri Department of Economic Development, through the Division of Workforce Development, administers the program in the state of Missouri. Eligible applicants include any private, for-profit business. There is no limit on the number of qualifying new hires per business or total amount of tax credits distributed per year.
Small Business Incubator Tax Credit:
Generates private funds to be used to establish a “protective business environment” (incubator) in which a number of small businesses can collectively operate, fostering growth and development during a business’ start-up period. The overall maximum amount of tax credits that can be authorized under this program in any one calendar year is $500,000. This 50% tax credit can be applied to:
  • Ch. 143 – Income tax, excluding withholding tax
  • Ch. 147 – Corporate franchise tax
  • Ch. 148 – Bank Tax, Insurance Premium Tax, Other Financial Institution Tax
Chapters 100 Sales Tax Exemption, Personal Property:
Provides a sales tax exemption on tangible personal property purchased through Chapter 100 bonds for non-manufacturing purchases. Any company for which Chapter 100 bonds are issued that purchases personal property is eligible. Companies eligible for Chapter 100 bond financing include manufacturing, warehousing, distribution, office, research and development, agricultural processing, and services in interstate commerce. Retail, services in intrastate commerce and others are not eligible. The project cannot have been announced; bonds already approved/issued; or personal property already purchased. The project must:
  • Involve competition with another state; therefore, a comprehensive state/local incentive proposal will be involved in an attempt to win the project;
  • Have above-average wages with benefits, or be in an economically distressed or blighted area;
  • Include local incentives provided to the project commensurate with the state incentives, relative to the new state/local tax revenues created by the project;
  • Have a positive state fiscal benefit, including all the state incentives proposed for the project; and
  • Have an indication that the city and county have approved the local sales tax exemption. (The local sales tax exemption may also be provided independent of the state sales tax)
Automotive Manufacturing Jobs Program:
Allows a qualified automotive manufacturing company, beginning January 1, 2012, upon approval of a notice of intent by the department, to retain 100% of the withholding taxes from full-time jobs at the facility for 10 years if it manufactures a new product, or to retain 50% of withholding taxes from full-time jobs for seven years if it modifies or expands the manufacture of an existing product. Also allows a qualified supplier, upon approval of a notice of intent by the department, to retain 100% of the withholding taxes from new jobs for three years. If the qualified supplier pays wages for the new jobs that are equal to or greater than 120% of the county average wage for Missouri as determined by the department using NAICS industry classifications, it can retain the withholding taxes for five years. Limits the amount of retained withholding taxes authorized under the Act for any one qualified manufacturing company to $10 million per year and limits the aggregate amount of retained withholding taxes authorized under the Act to $15 million per year.

Workforce Development

Missouri Works:
Facilitates the creation of new jobs by targeted business projects for for-profit and non-profit businesses (except for gambling, retail trade, food and drinking places, public utilities, educational services, religious organizations, ethanol distillation or production facilities, biodiesel production facilities, healthcare, and public administration companies or businesses that are delinquent in non-protested taxes or other payments or any company that has filed for or has publicly announced its intention to file for bankruptcy). Headquarters, administrative offices and R&D of otherwise excluded businesses that serve a multi-state area may qualify in some cases. The average wage of the new jobs must equal or exceed 90% of the county average wage (as published by DED), and the company must offer health insurance and pay at least 50% of the premium for all full time employees in MO. The business must create a minimum number of 10 new jobs at the project facility prior to the “deadline” date. There is no annual cap on the retained withholding taxes.
Missouri Works New Jobs Training Program:
Provides assistance in reducing the cost associated with expanding a workforce or locating a new facility in the state of Missouri through training services—training customized to the specific needs of the industry and general occupational skill training. Businesses with a sound credit rating currently located in or locating to MO that are creating a substantial number of new jobs in Missouri by locating a new facility or expanding an existing workforce in the state.
Missouri Works Job Retention Training Program:
Provides assistance in reducing the cost associated with retraining an existing workforce for the purpose of retaining jobs in the state of Missouri through training services—training designed for the specific needs of the industry and general occupational skill training. Businesses with a sound credit rating currently located in Missouri that have retained at that site the level of employment for at least one year, and a minimum of 100 employees for two consecutive calendar years preceding the year in which the application for the program was made. In addition, the business must make a capital investment of at least one million dollars to acquire long-term assets.
Missouri Works Customized Training Program:
Provides assistance to eligible Missouri businesses to reduce training costs and improve productivity. An eligible project may be located anywhere within the state of Missouri. Individual businesses creating net new jobs in the state or retaining existing jobs in Missouri as a result of a substantial capital investment are eligible. Funding for this program is contingent on the availability of funds.

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About The Author

Schwartz joined Group C Media in April 1989 as managing editor of Today's Facility Manager. In September 2012, she transitioned to a new role dedicated to developing online content for Business Facilities and Today's Facility Manager. Schwartz can be reached at [email protected]

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