FIRSTREGULARSESSION
HOUSEBILLNO.1168
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEKNIGHT.
2588H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsection620.2010,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
financialincentivesforbusinessdevelopment.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section620.2010,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection620.2010,toreadasfollows:
620.2010.1.Inexchangefortheconsiderationprovidedbythenewtaxrevenuesand
2othereconomicstimulithatwillbegeneratedbythenewjobscreated,aqualifiedcompany
3may,foraperiodoffiveyearsfromthedatethenewjobsarecreated,orforaperiodofsix
4yearsfromthedatethenewjobsarecreatedifthequalifiedcompanyisanexistingMissouri
5business,retainanamountequaltothewithholdingtaxascalculatedundersubdivision(38)
6ofsection620.2005fromthenewjobsthatwouldotherwisebewithheldandremittedbythe
7qualifiedcompanyundertheprovisionsofsections143.191to143.265if:
8 (1)Thequalifiedcompanycreatestenormorenewjobs,andtheaveragewageofthe
9newpayrollequalsorexceedsninetypercentofthecountyaveragewage;
10 (2)Thequalifiedcompanycreatestwoormorenewjobsataprojectfacilitylocated
11inaruralarea,theaveragewageofthenewpayrollequalsorexceedsninetypercentofthe
12countyaveragewage,andthequalifiedcompanycommitstomakingatleastonehundred
13thousanddollarsofnewcapitalinvestmentattheprojectfacilitywithintwoyears;or
14 (3)Thequalifiedcompanycreatestwoormorenewjobsataprojectfacilitylocated
15withinazonedesignatedundersections135.950to135.963,theaveragewageofthenew
16payrollequalsorexceedseightypercentofthecountyaveragewage,andthequalified
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17companycommitstomakingatleastonehundredthousanddollarsinnewcapitalinvestment
18attheprojectfacilitywithintwoyearsofapproval.
19 2.Inadditiontoanybenefitsavailableundersubsection1ofthissection,the
20departmentmayawardaqualifiedcompanythatsatisfiessubdivision(1)ofsubsection1of
21thissectionadditionaltaxcredits,issuedeachyearforaperiodoffiveyearsfromthedatethe
22newjobsarecreated,orforaperiodofsixyearsfromthedatethenewjobsarecreatedifthe
23qualifiedcompanyisanexistingMissouribusiness,inanamountequaltoorlessthansix
24percentofnewpayroll;providedthatinnoeventmaythetotalamountofbenefitsawardedto
25aqualifiedcompanyunderthissectionexceedninepercentofnewpayrollinanycalendar
26year.Theamountoftaxcreditsawardedtoaqualifiedcompanyunderthissubsectionshall
27notexceedtheprojectednetfiscalbenefittothestate,asdeterminedbythedepartment,and
28shallnotexceedtheleastamountnecessarytoobtainthequalifiedcompany'scommitmentto
29initiatetheproject.Indeterminingtheamountoftaxcreditstoawardtoaqualifiedcompany
30underthissubsectionoraqualifiedmanufacturingcompanyundersubsection3ofthis
31section,thedepartmentshallconsiderthefollowingfactors:
32 (1)Thesignificanceofthequalifiedcompany'sneedforprogrambenefits;
33 (2)Theamountofprojectednetfiscalbenefittothestateoftheprojectandtheperiod
34inwhichthestatewouldrealizesuchnetfiscalbenefit;
35 (3)Theoverallsizeandqualityoftheproposedproject,includingthenumberofnew
36jobs,newcapitalinvestment,manufacturingcapitalinvestment,proposedwages,growth
37potentialofthequalifiedcompany,thepotentialmultipliereffectoftheproject,andsimilar
38factors;
39 (4)Thefinancialstabilityandcreditworthinessofthequalifiedcompany;
40 (5)Thelevelofeconomicdistressinthearea;
41 (6)Anevaluationofthecompetitivenessofalternativelocationsfortheproject
42facility,asapplicable;and
43 (7)Thepercentoflocalincentivescommitted.
44 3.(1)Thedepartmentmayawardtaxcreditstoaqualifiedmanufacturingcompany
45thatmakesamanufacturingcapitalinvestmentofatleastfivehundredmilliondollarsnot
46morethanthreeyearsfollowingthedepartment'sapprovalofanoticeofintentandthe
47executionofanagreementthatmeetstherequirementsofsubsection4ofthissection.Such
48taxcreditsshallbeissuednoearlierthanJanuary1,2023,andmaybeissuedeachyearfora
49periodoffiveyears.Aqualifiedmanufacturingcompanymayqualifyforanadditionalfive-
50yearperiodunderthissubsectionifitmakesanadditionalmanufacturingcapitalinvestment
51ofatleasttwohundredfiftymilliondollarswithinfiveyearsofthedepartment'sapprovalof
52theoriginalnoticeofintent.
HB1168 2 53 (2)Themaximumamountoftaxcreditsthatanyonequalifiedmanufacturing
54companymayreceiveunderthissubsectionshallnotexceedfivemilliondollarspercalendar
55year.Theaggregateamountoftaxcreditsawardedtoallqualifiedmanufacturingcompanies
56underthissubsectionshallnotexceedtenmilliondollarspercalendaryear.
57 (3)If,attheprojectfacilityatanytimeduringtheprojectperiod,thequalified
58manufacturingcompanydiscontinuesthemanufacturingofthenewproduct,ordiscontinues
59themodificationorexpansionofanexistingproduct,anddoesnotreplaceitwitha
60subsequentoradditionalnewproductorwithamodificationorexpansionofanexisting
61product,thecompanyshallimmediatelyceasereceivinganybenefitawardedunderthis
62subsectionfortheremainderoftheprojectperiodandshallforfeitallrightstoretainor
63receiveanybenefitawardedunderthissubsectionfortheremainderofsuchperiod.
64 (4)Notwithstandinganyotherprovisionoflawtothecontrary,anyqualified
65manufacturingcompanythatisawardedbenefitsunderthissectionshallnotsimultaneously
66receivetaxcreditsorexemptionsundersections100.700to100.850forthejobscreatedor
67retainedorcapitalimprovementthatqualifiedforbenefitsunderthissection.Theprovisions
68ofsubsection5ofsection285.530shallnotapplytoaqualifiedmanufacturingcompanythat
69isawardedbenefitsunderthissection.
70 4.Uponapprovalofanoticeofintenttoreceivetaxcreditsundersubsection2,3,6,
71or7ofthissection,thedepartmentandthequalifiedcompanyshallenterintoawritten
72agreementcoveringtheapplicableprojectperiod.Theagreementshallspecify,ata
73minimum:
74 (1)Thecommittednumberofnewjobs,newpayroll,andnewcapitalinvestment,or
75themanufacturingcapitalinvestmentandcommittedpercentageofretainedjobsforeachyear
76duringtheprojectperiod;
77 (2)Thedateortimeperiodduringwhichthetaxcreditsshallbeissued,whichmaybe
78immediatelyoroveraperiodnottoexceedtwoyearsfromthedateofapprovalofthenotice
79ofintent;
80 (3)Clawbackprovisions,asmayberequiredbythedepartment;
81 (4)Financialguaranteeprovisionsasmayberequiredbythedepartment,provided
82thatfinancialguaranteeprovisionsshallberequiredbythedepartmentfortaxcreditsawarded
83undersubsection7ofthissection;and
84 (5)Anyotherprovisionsthedepartmentmayrequire.
85 5.Inlieuofthebenefitsavailableundersubsections1and2ofthissection,andin
86exchangefortheconsiderationprovidedbythenewtaxrevenuesandothereconomicstimuli
87thatwillbegeneratedbythenewjobscreatedbytheprogram,aqualifiedcompanymay,fora
88periodoffiveyearsfromthedatethenewjobsarecreated,orforaperiodofsixyearsfrom
89thedatethenewjobsarecreatedifthequalifiedcompanyisanexistingMissouribusiness,
HB1168 3 90retainanamountequaltothewithholdingtaxascalculatedundersubdivision(38)ofsection
91620.2005fromthenewjobsthatwouldotherwisebewithheldandremittedbythequalified
92companyundertheprovisionsofsections143.191to143.265equalto:
93 (1)Sixpercentofnewpayrollforaperiodoffiveyearsfromthedatetherequired
94numberofnewjobswerecreatedifthequalifiedcompanycreatesonehundredormorenew
95jobsandtheaveragewageofthenewpayrollequalsorexceedsonehundredtwentypercent
96ofthecountyaveragewageofthecountyinwhichtheprojectfacilityislocated;or
97 (2)Sevenpercentofnewpayrollforaperiodoffiveyearsfromthedatetherequired
98numberofjobswerecreatedifthequalifiedcompanycreatesonehundredormorenewjobs
99andtheaveragewageofthenewpayrollequalsorexceedsonehundredfortypercentofthe
100countyaveragewageofthecountyinwhichtheprojectfacilityislocated.
101
102Thedepartmentshallissuearefundabletaxcreditforanydifferencebetweentheamountof
103benefitallowedunderthissubsectionandtheamountofwithholdingtaxretainedbythe
104company,intheeventthewithholdingtaxisnotsufficienttoprovidetheentireamountof
105benefitduetothequalifiedcompanyunderthissubsection.
106 6.Inadditiontothebenefitsavailableundersubsection5ofthissection,the
107departmentmayawardaqualifiedcompanythatsatisfiestheprovisionsofsubsection5of
108thissectionadditionaltaxcredits,issuedeachyearforaperiodoffiveyearsfromthedatethe
109newjobsarecreated,orforaperiodofsixyearsfromthedatethenewjobsarecreatedifthe
110qualifiedcompanyisanexistingMissouribusiness,inanamountequaltoorlessthanthree
111percentofnewpayroll;providedthatinnoeventmaythetotalamountofbenefitsawardedto
112aqualifiedcompanyunderthissectionexceedninepercentofnewpayrollinanycalendar
113year.Theamountoftaxcreditsawardedtoaqualifiedcompanyunderthissubsectionshall
114notexceedtheprojectednetfiscalbenefittothestate,asdeterminedbythedepartment,and
115shallnotexceedtheleastamountnecessarytoobtainthequalifiedcompany'scommitmentto
116initiatetheproject.Indeterminingtheamountoftaxcreditstoawardtoaqualifiedcompany
117underthissubsection,thedepartmentshallconsiderthefactorsprovidedundersubsection2
118ofthissection.
119 7.Inlieuofthebenefitsavailableundersubsections1,2,5,and6ofthissection,and
120inexchangefortheconsiderationprovidedbythenewtaxrevenuesandothereconomic
121stimulithatwillbegeneratedbythenewjobsandnewcapitalinvestmentcreatedbythe
122program,thedepartmentmayawardaqualifiedcompanythatsatisfiestheprovisionsof
123subdivision(1)ofsubsection1ofthissectiontaxcredits,issuedwithinoneyearfollowingthe
124qualifiedcompany'sacceptanceofthedepartment'sproposalforbenefits,inanamountequal
125toorlessthanninepercentofnewpayroll.Theamountoftaxcreditsawardedtoaqualified
126companyunderthissubsectionshallnotexceedtheprojectednetfiscalbenefittothestate,as
HB1168 4 127determinedbythedepartment,andshallnotexceedtheleastamountnecessarytoobtainthe
128qualifiedcompany'scommitmenttoinitiatetheproject.Indeterminingtheamountoftax
129creditstoawardtoaqualifiedcompanyunderthissubsection,thedepartmentshallconsider
130thefactorsprovidedundersubsection2ofthissectionandthequalifiedcompany's
131commitmenttonewcapitalinvestmentandnewjobcreationwithinthestateforaperiodof
132notlessthantenyears.Forthepurposesofthissubsection,eachqualifiedcompanyshall
133haveanaveragewageofthenewpayrollthatequalsorexceedsonehundredpercentofthe
134countyaveragewage.Notwithstandingtheprovisionsofsection620.2020tothecontrary,
135thissubsectionshallexpireonJune30,[2025] 2031.
136 8.Nobenefitsshallbeavailableunderthissectionforanyqualifiedcompanythathas
137performedsignificant,project-specificsiteworkattheprojectfacility,purchasedmachinery
138orequipmentrelatedtotheproject,orhaspubliclyannounceditsintentiontomakenew
139capitalinvestmentormanufacturingcapitalinvestmentattheprojectfacilitypriortoreceipt
140ofaproposalforbenefitsunderthissectionorapprovalofitsnoticeofintent,whichever
141occursfirst.
142 9.Inlieuofanyotherbenefitsunderthischapter,thedepartmentofeconomic
143developmentmayawardataxcredittoanindustrialdevelopmentauthorityforaqualified
144militaryprojectinanamountequaltotheestimatedwithholdingtaxesassociatedwiththe
145part-timeandfull-timecivilianandmilitarynewjobslocatedatthefacilityanddirectly
146impactedbytheproject.Theamountofthetaxcreditshallbecalculatedbymultiplying:
147 (1)Theaveragepercentageoftaxwithheld,asprovidedbythedepartmentofrevenue
148tothedepartmentofeconomicdevelopment;
149 (2)Theaveragesalariesofthejobsdirectlycreatedbythequalifiedmilitaryproject;
150and
151 (3)Thenumberofjobsdirectlycreatedbythequalifiedmilitaryproject.
152
153Iftheamountofthetaxcreditrepresentstheleastamountnecessarytoaccomplishthe
154qualifiedmilitaryproject,thetaxcreditsmaybeissued,butnotaxcreditsshallbeissuedfora
155termlongerthanfifteenyears.Noqualifiedmilitaryprojectshallbeeligiblefortaxcredits
156underthissubsectionunlessthedepartmentofeconomicdevelopmentdeterminesthe
157qualifiedmilitaryprojectshallachieveanetpositivefiscalimpacttothestate.
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