For a list of Missouri economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.
UPDATED TAX INCENTIVES
Bring Jobs Home Act: Existing out-of-state companies looking to relocate to Missouri may qualify for an income tax deduction equal to 50% of the expenses associated with eliminating a business unit located outside Missouri and reestablishing that unit in Missouri. The elimination must occur under a written in-sourcing plan, but the elimination and relocation need not take place in the same year.
Chapters 100 Sales Tax Exemption, Personal Property: Provides a state and local sales tax exemption on the lease of tangible personal property purchased on a tax exempt basis with the local government 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.)
Scroll down for more tax incentives.
UPDATED WORKFORCE DEVELOPMENT RESOURCES
Missouri Works Training: Provides Missouri businesses training assistance for new and existing workers allowing companies to stay competitive and create jobs. The program provides training resources and funding to eligible company start-ups, expansions and existing companies needing to upgrade workers’ skills. Missouri Works Training emphasizes company-specific training through a state team of experts to in-house company training. Assistance ranges from recruiting the best talent to customized training. Eligible businesses mirror those in Missouri Works and must be creating net, new jobs in the state or making substantial capital investment. Assistance is contingent on appropriation of funds.
FINANCING & GRANTS
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:
- 143 Income tax, excluding withholding tax
- 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.
Data Center Sales Tax Exemption Program: Provides an incentive to locate and expand data centers in the state by providing a time-specified exemption of sales and utility taxes. This exemption includes state and local sales and use taxes for a specified maximum amount each year for 10 years for existing facilities, and 15 years for new facilities. The threshold for participation for an expanding facility includes at least five new full-time jobs with average wages at 150% of the county average wage within 24 months and $5 million in new investment within 12 months of the conditional approval of a Notice of Intent (NOI). The threshold for participation for a new facility includes at least 10 new full-time jobs with average wages at or above 150% of the county average wage and $25 million in new investment within 36 months of the conditional approval of an NOI. The applicant must submit a proposed plan that includes estimated investment and full-time job creation at the project facility. The Department of Economic Development determines if the fiscal impact of the proposed plan provides a positive net fiscal return to the State. Eligible applicants include taxpayers engaged in data processing, hosting or related services, and taxpayers engaged in Internet publishing, broadcasting, and web search portals (NAICS codes of 518210 or 519130) at its business facility.
Missouri Works: Helps businesses access capital through withholdings or tax credits to embark on facility expansions and create jobs. This program can also help businesses purchase equipment to maintain its facility in Missouri. 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.
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.