Missouri Senate Bill SB1060

Missouri 2024 Regular Session

• Introduced: 1/3/24
• Refer: 1/25/24

Caption

Modifies provisions relating to tax credits

Impact

This legislation introduces a framework for awarding tax credits that aims to attract large manufacturing firms to the state, potentially leading to significant job creation and economic revitalization. The measure outlines the distribution of tax credits based on performance requirements, demanding not only capital investment but also the creation of at least five hundred new jobs. Annual limits are set on the total credits awarded, capped at two hundred million dollars, which ensures that while incentives are provided, state revenue remains a priority in balancing economic interests.

Summary

Senate Bill 1060 seeks to modify the existing provisions concerning tax credits in Missouri, particularly aimed at incentivizing manufacturing investments. The primary component of the bill establishes the criteria for qualified manufacturing companies to receive substantial tax credits if they invest significantly in capital and create new jobs. Under the proposed provisions, a qualified manufacturing company making a capital investment of at least one billion dollars could be awarded a tax credit of up to twenty percent for a period of five years, demonstrating a strong commitment to economic growth in the state.

Contention

Notable points of contention surrounding SB 1060 include concerns about the fiscal impact on state revenue and the adequacy of the job creation mandate. Critics argue that such large tax credits may divert essential funds from other public services. Furthermore, there is debate over whether the anticipated job creation from qualified manufacturing companies will effectively materialize, with emphasis on monitoring and enforcement mechanisms needed to ensure compliance with job creation targets. Proponents defend the bill by highlighting its potential to boost the local economy and positioning Missouri as a competitive player in attracting manufacturing operations.