Biggins Lacy Shapiro & Company, LLC

Missouri Economic Development Incentive Programs

TAX credits

Missouri Works: Businesses that create at least two full-time jobs with wages exceeding 80% to 140% of the average county wage (dependent on project location) may have the ability to retain the state withholding tax of newly created jobs and, in some cases, receive a refundable, sellable, or transferable corporate income tax credit equivalent to a percentage of new payroll created.  The actual value of the incentive award will be based on the number of jobs created, project location, and total payroll. Incentive awards are up to five years with existing Missouri companies eligible for an additional year of benefits.

Business Use Incentives for Large Scale Development (BUILD) Bonds:  Large economic development projects locating in Missouri may be eligible for refundable tax credits generated through the BUILD financing program.  Through the program, a project’s capital investment is financed through BUILD bonds with the company making principal and interest payments.  The Department of Revenue issues refundable tax credits equal to the debt service payments for the company to use. To be eligible, manufacturing and R&D projects must invest a minimum of $15 million and create at least 100 jobs.  Office and headquarters projects must invest a minimum of $10 million and create at least 500 jobs (200 if in a distressed community).

JOB TRAINING

Skilled Workforce Missouri: Missouri’s training programs are designed to be extremely flexible so companies can effectively train their current and future workforce in new or improved processes. Funding can be targeted to include areas such as technical training, quality training, or soft skills training. Eligible companies can be reimbursed for training expenses incurred through hired training partners, community colleges, its own internal resources, or any combination of all three.

TAX EXEMPTIONS & INCENTIVES

Data Center Sales and Utility Tax Exemption: Businesses that create 10 full-time jobs with wages that are at or above 150% of the county average wage and invest $25 million in a new data center facility within a 36-month window may receive a full 15-year exemption of sales and utility taxes.  A 10-year exemption is available for companies that expand an existing data center facility by investing $5 million within 12 months and creating at least 5 full-time jobs with wages that are at or above 150% of the county average wage within 24 months.

Sales Tax Exemption for Manufacturers: Energy, machinery, and equipment used or consumed in the manufacturing process is exempt from state sales and use tax.  

Chapter 100 Industrial Revenue Bonds:  Local governments in Missouri can offer real and/or personal property tax abatements to businesses through the issuing of Chapter 100 Industrial Revenue Bonds.  The incentive could potentially also provide a sales tax exemption on tangible personal property purchased through Chapter 100 bonds for non-manufacturing purchases as well as building materials for real property investment. Companies eligible for Chapter 100 bond financing include manufacturing, warehousing, distribution, office, research and development, agricultural processing, and services in interstate commerce.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com