Missouri House Bill HB2271

Missouri 2022 Regular Session

• Introduced: 1/5/22
• Refer: 5/13/22

Caption

Authorizes a tax credit for establishing a new business in a distressed community

Impact

The passage of HB 2271 would have significant implications for state laws regarding business taxes and local economic development strategies. By creating a tax credit specifically for new businesses in identified distressed communities, the state may see an influx of entrepreneurs willing to open operations in these areas. This could lead to job creation, increased local spending, and improved services as economic activity rises, potentially reshaping the landscape of small business across various jurisdictions.

Summary

House Bill 2271 seeks to authorize a tax credit for new businesses that establish themselves in distressed communities. This initiative is designed to stimulate economic development by providing financial incentives for entrepreneurs to invest in areas that may struggle with high unemployment and economic decline. Through this measure, the bill aims to promote the growth of local economies by attracting business investments to neighborhoods that need revitalization.

Contention

While many support the bill for its potential benefits to struggling communities, there are concerns regarding the long-term effectiveness of tax credits as an economic development tool. Critics argue that it may encourage businesses to relocate rather than invest in community improvement. Additionally, there is apprehension about whether the criteria for determining 'distressed communities' are too broad, which could lead to unintended consequences where tax credits are misused or do not result in substantive community benefits.