Missouri Economic Development Directory

Missouri State Incentives

LOAN GUARANTEE FEE TAX CREDIT PROGRAM: Provides state tax credits to an eligible small business—defined in Section 44 of the IRS code, must (in the prior tax year) have gross receipts of less than $1 million; or if more than $1 million, less than 30 full time employees—for the amount of a guarantee fee paid to either the U.S. Small Business Administration or the U.S. Department of Agriculture for a small business loan. There is no limit on the amount per business or total amount distributed annually.

ENHANCED ENTERPRISE ZONE: Provides state tax credits to new or expanding businesses in a Missouri Enhanced Enterprise Zone. Can be applied to Ch. 143 Income tax, excluding withholding tax and can only be applied to tax liability for the year in which they were earned. Tax credits will be based on the state economic benefit, supported by the number of new jobs, wages and new capital investment that the project will create. Tax credits issued under this program are limited to $24,000,000 annually.

2010 AUTOMOTOVE MANUFACTURING JOBS ACT: Allows qualified manufacturing facilities or suppliers that bring next-generation production lines to Missouri to retain withholding taxes typically remitted to the state.

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.

COMMUNITY DEVELOPMENT BLOCK GRANT: Offers grants to small MO communities to improve local facilities, address critical health and safety concerns and develop a greater capacity for growth. Projects can range from housing and street repairs to industrial loans and job training.

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.

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.

URBAN ENTERPRISE LOAN: The Missouri Department of Economic Development (DED) contracts for the administration of a micro-lending program to assist Missouri’s small business owners with the creation, expansion and retention of their business enterprise, located in the St. Louis and Kansas City urban areas. The loan amount cannot exceed 50 percent of the borrower’s total financial need. Loans range from a minimum of $10,000 to a maximum of $100,000 per business. Funds may be used to:

• Start a new business
• Purchase business equipment, inventory, working capital, acquisition of business assets or other expansion purposes of an existing small business
• Provide an equity match for leveraging a commercial loan
• Secure lines of credit or gap financing from a conventional commercial lender

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 percent 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

NEW MARKETS TAX CREDIT PROGRAM (NMTC): Provides state and federal tax credits to investors that make investments into approved funds, which will make investments in eligible projects located in low income census tracks in Missouri. This program does not provide tax credits directly to businesses. Eligible businesses interested in obtaining funding should contact the approved “Community Development Entities.”