FIRSTREGULARSESSION
HOUSEBILLNO.1319
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEFOGLE.
1455H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections620.2005and620.2010,RSMo,andtoenactinlieuthereoftwonew
sectionsrelatingtofinancialincentivesforbusinessdevelopment.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections620.2005and620.2010,RSMo,arerepealedandtwonew
2sectionsenactedinlieuthereof,tobeknownassections620.2005and620.2010,toreadas
3follows:
620.2005.1.Asusedinsections620.2000to620.2020,thefollowingtermsmean:
2 (1)"Averagewage",theaggregategrossnewpayrolldividedbythe[numberofnew
3jobs]aggregateactualhoursworkedfornewjobsmultipliedbytwothousandeighty, or
4theaggregategrosspayrolloftheretainedjobsdividedbythe[numberofretainedjobs]
5aggregateactualhoursworkedforretainedjobsmultipliedbytwothousandeighty;
6 (2)"Commencementofoperations",thestartingdateforthequalifiedcompany'sfirst
7newemployee,whichshallbenolaterthantwelvemonthsfromthedateoftheapproval;
8 (3)"Contractor",aperson,employer,orbusinessentitythatentersintoanagreement
9toperformanyserviceorworkortoprovideacertainproductinexchangeforvaluable
10consideration.Thisdefinitionshallincludebutnotbelimitedtoageneralcontractor,
11subcontractor,independentcontractor,contractemployee,projectmanager,orarecruitingor
12staffingentity;
13 (4)"Countyaveragewage",theaveragewagesineachcountyasdeterminedbythe
14departmentforthemostrecentlycompletedfullcalendaryear.However,ifthecomputed
15countyaveragewageisabovethestatewideaveragewage,thestatewideaveragewageshall
16bedeemedthecountyaveragewageforsuchcountyforthepurposeofdeterminingeligibility.
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17Thedepartmentshallpublishthecountyaveragewageforeachcountyatleastannually.
18Notwithstandingtheprovisionsofthissubdivisiontothecontrary,foranyqualifiedcompany
19thatinconjunctionwiththeirprojectisrelocatingemployeesfromaMissouricountywitha
20highercountyaveragewage,thecompanyshallobtaintheendorsementofthegoverningbody
21ofthecommunityfromwhichjobsarebeingrelocatedorthecountyaveragewagefortheir
22projectshallbethecountyaveragewageforthecountyfromwhichtheemployeesarebeing
23relocated;
24 (5)"Department",theMissouridepartmentofeconomicdevelopment;
25 (6)"Director",thedirectorofthedepartmentofeconomicdevelopment;
26 (7)"Employee",apersonemployedbyaqualifiedcompany,excluding:
27 (a)Ownersofthequalifiedcompanyunlessthequalifiedcompanyisparticipatingin
28anemployeestockownershipplan;or
29 (b)Ownersofanoncontrollinginterestinstockofaqualifiedcompanythatis
30publiclytraded;
31 (8)"ExistingMissouribusiness",aqualifiedcompanythat,fortheten-yearperiod
32precedingsubmissionofanoticeofintenttothedepartment,hadaphysicallocationin
33Missouriandfull-timeemployeeswhoroutinelyperformedjobdutieswithinMissouri;
34 (9)"Full-timeemployee",anemployeeofthequalifiedcompanythatisscheduledto
35workanaverageofatleastthirty-fivehoursperweekforatwelve-monthperiod,andonefor
36whichthequalifiedcompanyoffershealthinsuranceandpaysatleastfiftypercentofsuch
37insurancepremiums.Anemployeethatspendslessthanfiftypercentoftheemployee'swork
38timeatthefacilityshallbeconsideredtobelocatedatafacilityiftheemployeereceiveshis
39orherdirectionsandcontrolfromthatfacility,isonthefacility'spayroll,onehundredpercent
40oftheemployee'sincomefromsuchemploymentisMissouriincome,andtheemployeeis
41paidatorabovetheapplicablepercentageofthecountyaveragewage;
42 (10)"Grosswages",thetotalcompensationpaidbyanemployertoanemployee
43asreportedinbox5oftheemployee'sW-2;
44 (11)"Industrialdevelopmentauthority",anindustrialdevelopmentauthority
45organizedunderchapter349thathasenteredintoaformalwrittenmemorandumof
46understandingwithanentityoftheUnitedStatesDepartmentofDefenseregardinga
47qualifiedmilitaryproject;
48 [(11)](12)"Infrastructureprojects",highways,roads,streets,bridges,sewers,traffic
49controlsystemsanddevices,waterdistributionandsupplysystems,curbing,sidewalks,storm
50wateranddrainagesystems,broadbandinternetinfrastructure,andanyothersimilarpublic
51improvements,butinnocaseshallinfrastructureprojectsincludeprivatestructures;
52 [(12)] (13)"Localincentives",thepresentvalueofthedollaramountofdirectbenefit
53receivedbyaqualifiedcompanyforaprojectfacilityfromoneormorelocalpolitical
HB1319 2 54subdivisions,butthistermshallnotincludeloansorotherfundsprovidedtothequalified
55companythatshallberepaidbythequalifiedcompanytothepoliticalsubdivision;
56 [(13)] (14)"Manufacturingcapitalinvestment",expendituresmadebyaqualified
57manufacturingcompanytoretoolorreconfigureamanufacturingprojectfacilitydirectly
58relatedtothemanufacturingofanewproductortheexpansionormodificationofthe
59manufactureofanexistingproduct;
60 [(14)] (15)"Memorandumofunderstanding",anagreementexecutedbyanindustrial
61developmentauthorityandanentityoftheUnitedStatesDepartmentofDefense,acopyof
62whichisprovidedtothedepartmentofeconomicdevelopment,thatstates,butisnotlimited
63to:
64 (a)Arequirementforthemilitarytoprovidethetotalnumberofexistingjobs,jobs
65directlycreatedbyaqualifiedmilitaryproject,andaveragesalariesofsuchjobstothe
66industrialdevelopmentauthorityandthedepartmentofeconomicdevelopmentannuallyfor
67thetermofthebenefit;
68 (b)Arequirementforthemilitarytoprovideanaccountingoftheexpendituresof
69capitalinvestmentmadebythemilitarydirectlyrelatedtothequalifiedmilitaryprojecttothe
70industrialdevelopmentauthorityandthedepartmentofeconomicdevelopmentannuallyfor
71thetermofthebenefit;
72 (c)Theprocessbywhichtheindustrialdevelopmentauthorityshallmonetizethetax
73creditsannuallyandanytransactioncostoradministrativefeechargedbytheindustrial
74developmentauthoritytothemilitaryonanannualbasis;
75 (d)Arequirementfortheindustrialdevelopmentauthoritytoprovideprooftothe
76departmentofeconomicdevelopmentofthepaymentmadetothequalifiedmilitaryproject
77annually,includingtheamountofsuchpayment;
78 (e)Thescheduleofthemaximumamountoftaxcreditswhichmaybeauthorizedin
79eachyearfortheprojectandthespecifiedtermofthebenefit,asprovidedbythedepartment
80ofeconomicdevelopment;and
81 (f)Arequirementthattheannualbenefitpaidshallbethelesserof:
82 a.Themaximumamountoftaxcreditsauthorized;or
83 b.Theactualcalculatedbenefitderivedfromthenumberofnewjobsandaverage
84salaries;
85 [(15)] (16)"NAICS"or"NAICSindustryclassification",theclassificationprovided
86bythemostrecenteditionoftheNorthAmericanIndustryClassificationSystemasprepared
87bytheExecutiveOfficeofthePresident,OfficeofManagementandBudget;
88 [(16)] (17)"Newcapitalinvestment",shallincludecostsincurredbythequalified
89companyattheprojectfacilityafteracceptancebythequalifiedcompanyoftheproposalfor
90benefitsfromthedepartmentortheapprovalnoticeofintent,whicheveroccursfirst,forreal
HB1319 3 91orpersonalproperty,andmayincludethevalueoffinanceorcapitalleasesforrealor
92personalpropertyforthetermofsuchleaseattheprojectfacilityexecutedafteracceptanceby
93thequalifiedcompanyoftheproposalforbenefitsfromthedepartmentortheapprovalofthe
94noticeofintent;
95 [(17)] (18)"Newdirectlocalrevenue",thepresentvalueofthedollaramountof
96directnetnewtaxrevenuesofthelocalpoliticalsubdivisionslikelytobeproducedbythe
97projectoveraten-yearperiodascalculatedbythedepartment,excludinglocalearningstax,
98andnetnewutilityrevenues,providedthelocalincentivesincludeadiscountorotherdirect
99incentivesfromutilitiesownedoroperatedbythepoliticalsubdivision;
100 [(18)] (19)"Newjob",thenumberoffull-timeemployeeslocatedattheproject
101facilitythatexceedstheprojectfacilitybaseemploymentlessanydecreaseinthenumberof
102full-timeemployeesatrelatedfacilitiesbelowtherelatedfacilitybaseemployment.Nojob
103thatwascreatedpriortothedateofthenoticeofintentshallbedeemedanewjob;
104 [(19)] (20)"Newpayroll",theamountofgrosswagespaidforallnewjobs,locatedat
105theprojectfacilityduringthequalifiedcompany'staxyearthatexceedstheprojectfacility
106basepayroll. Foraqualifiedcompanythatoffershealthinsurancetoallfull-time
107employeesofallfacilitieslocatedinthisstate,andcertifiesthatitpaysonehundred
108percentofsuchinsurancepremiums,"newpayroll"shallincludeallamountspaidby
109thequalifiedcompanyforsuchinsurancepremiums;
110 [(20)] (21)"Newproduct",anewmodelorlineofamanufacturedgoodthathasnot
111beenmanufacturedinMissouribyaqualifiedmanufacturingcompanyatanytimepriortothe
112dateofthenoticeofintent,oranexistingbrand,model,orlineofamanufacturedgoodthatis
113redesigned;
114 [(21)] (22)"Noticeofintent",aformdevelopedbythedepartmentandavailable
115online,completedbythequalifiedcompany,andsubmittedtothedepartmentstatingthe
116qualifiedcompany'sintenttorequestbenefitsunderthisprogram.Thenoticeofintentshall
117beaccompaniedwithadetailedplanbythequalifyingcompanytomakegoodfaitheffortsto
118employ,ataminimum,commensuratewiththepercentageofminoritypopulationsinthestate
119ofMissouri,asreportedinthepreviousdecennialcensus,thefollowing:racialminorities,
120contractorswhoareracialminorities,andcontractorsthat,inturn,employataminimum
121racialminoritiescommensuratewiththepercentageofminoritypopulationsinthestateof
122Missouri,asreportedinthepreviousdecennialcensus.Ataminimum,suchplanshall
123includemonitoringtheeffectivenessofoutreachandrecruitmentstrategiesinattracting
124diverseapplicantsandlinkingwithdifferentoradditionalreferralsourcesintheeventthat
125recruitmenteffortsfailtoproduceadiversepipelineofapplicants. Thenoticeofintentshall
126beaccompaniedbyanaffidavitsignedbythequalifiedcompany'shumanresourceslead
HB1319 4 127orchieffinancialofficerattestingtotheestimatednumberofnewjobs,positiontypes,
128andnewpayroll;
129 [(22)] (23)"Percentoflocalincentives",theamountoflocalincentivesdividedbythe
130amountofnewdirectlocalrevenue;
131 [(23)] (24)"Program",theMissouriworksprogramestablishedinsections620.2000
132to620.2020;
133 [(24)] (25)"Projectfacility",thebuildingorbuildingsusedbyaqualifiedcompanyat
134whichneworretainedjobsandanynewcapitalinvestmentareorwillbelocatedorbya
135qualifiedmanufacturingcompanyatwhichamanufacturingcapitalinvestmentisorwillbe
136located.Aprojectfacilitymayincludeseparatebuildingslocatedwithinsixtymilesofeach
137othersuchthattheirpurposeandoperationsareinterrelated;providedthatwherethe
138buildingsmakinguptheprojectfacilityarenotlocatedwithinthesamecounty,theaverage
139wageofthenewgrosspayrollshallexceedtheapplicablepercentageofthehighestcounty
140averagewageamongthecountiesinwhichthebuildingsarelocated.Uponapprovalbythe
141department,asubsequentprojectfacilitymaybedesignatedifthequalifiedcompany
142demonstratesaneedtorelocatetothesubsequentprojectfacilityatanytimeduringthe
143projectperiod.Forqualifiedmilitaryprojects,theterm"projectfacility"meansthemilitary
144baseorinstallationatwhichsuchqualifiedmilitaryprojectisorshallbelocated;
145 [(25)] (26)"Projectfacilitybaseemployment",thegreaterofthenumberoffull-time
146employeeslocatedattheprojectfacilityonthedateofthenoticeofintentor,forthetwelve-
147monthperiodpriortothedateofthenoticeofintent,theaveragenumberoffull-time
148employeeslocatedattheprojectfacility.Intheeventtheprojectfacilityhasnotbeenin
149operationforafulltwelve-monthperiod,theaveragenumberoffull-timeemployeesforthe
150numberofmonthstheprojectfacilityhasbeeninoperationpriortothedateofthenoticeof
151intent;
152 [(26)] (27)"Projectfacilitybasepayroll",theannualizedgrosspayrollfortheproject
153facilitybaseemploymentorthetotalamountof[taxable] grosswagespaidbythequalified
154companytofull-timeemployeesofthequalifiedcompanylocatedattheprojectfacilityinthe
155twelvemonthspriortothenoticeofintent.Forpurposesofcalculatingthebenefitsunderthis
156program,theamountofbasepayrollshallincreaseeachyearbasedonanappropriate
157measure,asdeterminedbythedepartment;
158 [(27)] (28)"Projectperiod",thetimeperiodwithinwhichbenefitsareawardedtoa
159qualifiedcompanyorwithinwhichthequalifiedcompanyisobligatedtoperformunderan
160agreementwiththedepartment,whicheverisgreater;
161 [(28)] (29)"Projectednetfiscalbenefit",thetotalfiscalbenefittothestatelessany
162statebenefitsofferedtothequalifiedcompany,asdeterminedbythedepartment;
HB1319 5 163 [(29)] (30)"Qualifiedcompany",afirm,partnership,jointventure,association,
164privateorpubliccorporationwhetherorganizedforprofitornot,orheadquartersofsuch
165entityregisteredtodobusinessinMissourithatistheowneroroperatorofaprojectfacility,
166certifiesthatitoffershealthinsurancetoallfull-timeemployeesofallfacilitieslocatedinthis
167state,andcertifiesthatitpaysatleastfiftypercentofsuchinsurancepremiums.Forthe
168purposesofsections620.2000to620.2020,theterm"qualifiedcompany"shallnotinclude:
169 (a)Gamblingestablishments(NAICSindustrygroup7132);
170 (b)Storefrontconsumer-basedretailtradeestablishments(underNAICSsectors44
171and45),exceptwithrespecttoanycompanyheadquarteredinthisstatewithamajorityofits
172full-timeemployeesengagedinoperationsnotwithintheNAICScodesspecifiedinthis
173subdivisionandexceptforanysuchestablishmentslocatedinacountyofthethirdorfourth
174classification;
175 (c)Foodanddrinkingplaces(NAICSsubsector722);
176 (d)Publicutilities(NAICS221includingwaterandsewerservices);
177 (e)Anycompanythatisdelinquentinthepaymentofanynonprotestedtaxesorany
178otheramountsduethestateorfederalgovernmentoranyotherpoliticalsubdivisionofthis
179state;
180 (f)Anycompanyrequestingbenefitsforretainedjobsthathasfiledfororhas
181publiclyannounceditsintentiontofileforbankruptcyprotection.However,acompanythat
182hasfiledfororhaspubliclyannounceditsintentiontofileforbankruptcymaybeaqualified
183companyprovidedthatsuchcompany:
184 a.Certifiestothedepartmentthatitplanstoreorganizeandnottoliquidate;and
185 b.Afteritsbankruptcypetitionhasbeenfiled,itproducesproof,inaformandat
186timessatisfactorytothedepartment,thatitisnotdelinquentinfilinganytaxreturnsor
187makinganypaymentduetothestateofMissouri,includingbutnotlimitedtoalltax
188paymentsdueafterthefilingofthebankruptcypetitionandunderthetermsoftheplanof
189reorganization.Anytaxpayerwhoisawardedbenefitsunderthissubsectionandwhofilesfor
190bankruptcyunderChapter7oftheUnitedStatesBankruptcyCode,Title11U.S.C.,shall
191immediatelynotifythedepartmentandshallforfeitsuchbenefitsandshallrepaythestatean
192amountequaltoanystatetaxcreditsalreadyredeemedandanywithholdingtaxesalready
193retained;
194 (g)Educationalservices(NAICSsector61);
195 (h)Religiousorganizations(NAICSindustrygroup8131);
196 (i)Publicadministration(NAICSsector92);
197 (j)Ethanoldistillationorproduction;
198 (k)Biodieselproduction;or
199 (l)Healthcareandsocialservices(NAICSsector62).
HB1319 6 200
201Notwithstandinganyprovisionofthissectiontothecontrary,theheadquarters,administrative
202offices,orresearchanddevelopmentfacilitiesofanotherwiseexcludedbusinessmayqualify
203forbenefitsiftheofficesorfacilitiesserveamultistateterritory.Intheeventanational,state,
204orregionalheadquartersoperationisnotthepredominantactivityofaprojectfacility,thejobs
205andinvestmentofsuchoperationshallbeconsideredeligibleforbenefitsunderthissectionif
206theotherrequirementsaresatisfied;
207 [(30)] (31)"Qualifiedmanufacturingcompany",acompanythat:
208 (a)Isaqualifiedcompanythatmanufacturesmotorvehicles(NAICSgroup3361);
209 (b)ManufacturesgoodsatafacilityinMissouri;
210 (c)Manufacturesanewproductorhascommencedmakingamanufacturingcapital
211investmenttotheprojectfacilitynecessaryforthemanufacturingofsuchnewproduct,or
212modifiesorexpandsthemanufactureofanexistingproductorhascommencedmakinga
213manufacturingcapitalinvestmentfortheprojectfacilitynecessaryforthemodificationor
214expansionofthemanufactureofsuchexistingproduct;and
215 (d)Continuestomeettherequirementsofparagraphs(a)to(c)ofthissubdivisionfor
216theprojectperiod;
217 [(31)] (32)"Qualifiedmilitaryproject",theexpansionorimprovementofamilitary
218baseorinstallationwithinthisstatethatcauses:
219 (a)Anincreaseoftenormorepart-timeorfull-timemilitaryorciviliansupport
220personnel:
221 a.Whoseaveragesalariesequalorexceedninetypercentofthecountyaveragewage;
222and
223 b.Whoareofferedhealthinsurance,withanentityoftheUnitedStatesDepartment
224ofDefensepayingatleastfiftypercentofsuchinsurancepremiums;and
225 (b)Investmentinrealorpersonalpropertyatthebaseorinstallationexpresslyforthe
226purposesofservinganeworexpandedmilitaryactivityorunit.
227
228Forthepurposesofthissubdivision,part-timemilitaryorciviliansupportpersonnelshallbe
229convertedtofull-timenewjobsby,inhiredateorder,countingonefull-timenewjobfor
230everythirty-fiveaveragedhoursworkedperweekbypart-timemilitaryorciviliansupport
231personnelinjobsdirectlycreatedbythequalifiedmilitaryproject.Foreachsuchfull-time
232newjob,thesumofthegrosswagesofthepart-timemilitaryorciviliansupportpersonnel
233combinedandconvertedtoformthenewjobshallbethewagefortheonefull-timenewjob.
234Eachpart-timemilitaryorciviliansupportpersonnelwhosejobiscombinedandconverted
235forsuchafull-timenewjobshallbeofferedhealthinsuranceasdescribedinsubparagraphb
236ofparagraph(a)ofthissubdivision;
HB1319 7 237 [(32)] (33)"Relatedcompany",shallmean:
238 (a)Acorporation,partnership,trust,orassociationcontrolledbythequalified
239company;
240 (b)Anindividual,corporation,partnership,trust,orassociationincontrolofthe
241qualifiedcompany;or
242 (c)Corporations,partnerships,trustsorassociationscontrolledbyanindividual,
243corporation,partnership,trust,orassociationincontrolofthequalifiedcompany.Asusedin
244thisparagraph,"controlofaqualifiedcompany"shallmean:
245 a.Ownership,directlyorindirectly,ofstockpossessingatleastfiftypercentofthe
246totalcombinedvotingpowerofallclassesofstockentitledtovoteinthecaseofaqualified
247companythatisacorporation;
248 b.Ownershipofatleastfiftypercentofthecapitalorprofitinterestinsuchqualified
249companyifitisapartnershiporassociation;
250 c.Ownership,directlyorindirectly,ofatleastfiftypercentofthebeneficialinterest
251intheprincipalorincomeofsuchqualifiedcompanyifitisatrust,andownershipshallbe
252determinedasprovidedinSection318oftheInternalRevenueCodeof1986,asamended;
253 [(33)] (34)"Relatedfacility",afacilityoperatedbythequalifiedcompanyorarelated
254companylocatedinthisstatethatisdirectlyrelatedtotheoperationsoftheprojectfacilityor
255inwhichoperationssubstantiallysimilartotheoperationsoftheprojectfacilityare
256performed;
257 [(34)] (35)"Relatedfacilitybaseemployment",thegreaterofthenumberoffull-time
258employeeslocatedatallrelatedfacilitiesonthedateofthenoticeofintentor,forthetwelve-
259monthperiodpriortothedateofthenoticeofintent,theaveragenumberoffull-time
260employeeslocatedatallrelatedfacilitiesofthequalifiedcompanyorarelatedcompany
261locatedinthisstate;
262 [(35)] (36)"Relatedfacilitybasepayroll",theannualizedgrosspayrolloftherelated
263facilitybasepayrollorthetotalamountof[taxable] grosswagespaidbythequalified
264companytofull-timeemployeesofthequalifiedcompanylocatedatarelatedfacilityinthe
265twelvemonthspriortothefilingofthenoticeofintent.Forpurposesofcalculatingthe
266benefitsunderthisprogram,theamountofrelatedfacilitybasepayrollshallincreaseeach
267yearbasedonanappropriatemeasure,asdeterminedbythedepartment;
268 [(36)] (37)"Ruralarea",acountyinMissouriwithapopulationlessthanseventy-five
269thousandorthatdoesnotcontainanindividualcitywithapopulationgreaterthanfifty
270thousandaccordingtothemostrecentfederaldecennialcensus;
271 [(37)] (38)"Taxcredits",taxcreditsissuedbythedepartmenttooffsetthestatetaxes
272imposedbychapters143and148,orwhichmaybesoldorrefundedasprovidedforinthis
273program;
HB1319 8 274 [(38)] (39)"Taxablewages",theemployee'stotalcompensationsubjecttotaxas
275reportedinbox16oftheemployee'sW-2;
276 (40)"Withholdingtax",thestatetaximposedbysections143.191to143.265.For
277purposesofthisprogram,thewithholdingtaxshallbecomputedusingascheduleas
278determinedbythedepartmentbasedonaveragewages.
279 2.Thissectionissubjecttotheprovisionsofsection196.1127.
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
17companycommitstomakingatleastonehundredthousanddollarsinnewcapitalinvestment
18attheprojectfacilitywithintwoyearsofapproval; or
19 (4)Intheeventthattheaveragewageforallnewjobsfailstomeettheaverage
20wagerequirementundersubdivision(1),(2),or(3)ofthissubsection,thequalified
21companymayretainwithholdingtaxfortheminimumnumberofrequiredjobs.The
22departmentmaychoosewhichnewjobstoincludeintheminimumnumbertobe
23averagedthatwillmeetorexceedtheaveragewagerequirement.
24 2.Inadditiontoanybenefitsavailableundersubsection1ofthissection,the
25departmentmayawardaqualifiedcompanythatsatisfiessubdivision(1)ofsubsection1of
26thissectionadditionaltaxcredits,issuedeachyearforaperiodoffiveyearsfromthedatethe
27newjobsarecreated,orforaperiodofsixyearsfromthedatethenewjobsarecreatedifthe
28qualifiedcompanyisanexistingMissouribusiness,inanamountequaltoorlessthansix
29percentofnew[payroll] taxablewages; providedthatinnoeventmaythetotalamountof
30benefitsawardedtoaqualifiedcompanyunderthissectionexceedninepercentofnew
31[payroll] taxablewagesinanycalendaryear.Theamountoftaxcreditsawardedtoa
HB1319 9 32qualifiedcompanyunderthissubsectionshallnotexceedtheprojectednetfiscalbenefittothe
33state,asdeterminedbythedepartment,andshallnotexceedtheleastamountnecessaryto
34obtainthequalifiedcompany'scommitmenttoinitiatetheproject.Indeterminingtheamount
35oftaxcreditstoawardtoaqualifiedcompanyunderthissubsectionoraqualified
36manufacturingcompanyundersubsection3ofthissection,thedepartmentshallconsiderthe
37followingfactors:
38 (1)Thesignificanceofthequalifiedcompany'sneedforprogrambenefits;
39 (2)Theamountofprojectednetfiscalbenefittothestateoftheprojectandtheperiod
40inwhichthestatewouldrealizesuchnetfiscalbenefit;
41 (3)Theoverallsizeandqualityoftheproposedproject,includingthenumberofnew
42jobs,newcapitalinvestment,manufacturingcapitalinvestment,proposedwages,growth
43potentialofthequalifiedcompany,thepotentialmultipliereffectoftheproject,andsimilar
44factors;
45 (4)Thefinancialstabilityandcreditworthinessofthequalifiedcompany;
46 (5)Thelevelofeconomicdistressinthearea;
47 (6)Anevaluationofthecompetitivenessofalternativelocationsfortheproject
48facility,asapplicable;[and]
49 (7)Thepercentoflocalincentivescommitted;
50 (8)Whetherthequalifiedcompanyparticipatesinapre-apprenticeship
51programapprovedbytheMissouridepartmentofhighereducationandworkforce
52development;and
53 (9)Thelocationoftheheadquartersofanycontractorusedbythequalified
54company,withpreferencegiventocontractorsselectedthroughanopenbiddingprocess
55thatareheadquarteredinMissouriandforwhomatleasteighty-fivepercentofthe
56workforceusedforanyworkperformedbythecontractorforaqualifiedcompany
57residewithinfiftymilesofthesiteofsuchwork.
58 3.(1)Thedepartmentmayawardtaxcreditstoaqualifiedmanufacturingcompany
59thatmakesamanufacturingcapitalinvestmentofatleastfivehundredmilliondollarsnot
60morethanthreeyearsfollowingthedepartment'sapprovalofanoticeofintentandthe
61executionofanagreementthatmeetstherequirementsofsubsection4ofthissection.Such
62taxcreditsshallbeissuednoearlierthanJanuary1,2023,andmaybeissuedeachyearfora
63periodoffiveyears.Aqualifiedmanufacturingcompanymayqualifyforanadditionalfive-
64yearperiodunderthissubsectionifitmakesanadditionalmanufacturingcapitalinvestment
65ofatleasttwohundredfiftymilliondollarswithinfiveyearsofthedepartment'sapprovalof
66theoriginalnoticeofintent.
67 (2)Themaximumamountoftaxcreditsthatanyonequalifiedmanufacturing
68companymayreceiveunderthissubsectionshallnotexceedfivemilliondollarspercalendar
HB1319 10 69year.Theaggregateamountoftaxcreditsawardedtoallqualifiedmanufacturingcompanies
70underthissubsectionshallnotexceedtenmilliondollarspercalendaryear.
71 (3)If,attheprojectfacilityatanytimeduringtheprojectperiod,thequalified
72manufacturingcompanydiscontinuesthemanufacturingofthenewproduct,ordiscontinues
73themodificationorexpansionofanexistingproduct,anddoesnotreplaceitwitha
74subsequentoradditionalnewproductorwithamodificationorexpansionofanexisting
75product,thecompanyshallimmediatelyceasereceivinganybenefitawardedunderthis
76subsectionfortheremainderoftheprojectperiodandshallforfeitallrightstoretainor
77receiveanybenefitawardedunderthissubsectionfortheremainderofsuchperiod.
78 (4)Notwithstandinganyotherprovisionoflawtothecontrary,anyqualified
79manufacturingcompanythatisawardedbenefitsunderthissectionshallnotsimultaneously
80receivetaxcreditsorexemptionsundersections100.700to100.850forthejobscreatedor
81retainedorcapitalimprovementthatqualifiedforbenefitsunderthissection.Theprovisions
82ofsubsection5ofsection285.530shallnotapplytoaqualifiedmanufacturingcompanythat
83isawardedbenefitsunderthissection.
84 4.Uponapprovalofanoticeofintenttoreceivetaxcreditsundersubsection2,3,6,
85or7ofthissection,thedepartmentandthequalifiedcompanyshallenterintoawritten
86agreementcoveringtheapplicableprojectperiod.Theagreementshallspecify,ata
87minimum:
88 (1)Thecommittednumberofnewjobs,newpayroll,andnewcapitalinvestment,or
89themanufacturingcapitalinvestmentandcommittedpercentageofretainedjobsforeachyear
90duringtheprojectperiod;
91 (2)Thedateortimeperiodduringwhichthetaxcreditsshallbeissued,whichmaybe
92immediatelyoroveraperiodnottoexceedtwoyearsfromthedateofapprovalofthenotice
93ofintent;
94 (3)Clawbackprovisions,asmayberequiredbythedepartment;
95 (4)Financialguaranteeprovisionsasmayberequiredbythedepartment,provided
96thatfinancialguaranteeprovisionsshallberequiredbythedepartmentfortaxcreditsawarded
97undersubsection7ofthissection;and
98 (5)Anyotherprovisionsthedepartmentmayrequire.
99 5.Inlieuofthebenefitsavailableundersubsections1and2ofthissection,andin
100exchangefortheconsiderationprovidedbythenewtaxrevenuesandothereconomicstimuli
101thatwillbegeneratedbythenewjobscreatedbytheprogram,aqualifiedcompanymay,fora
102periodoffiveyearsfromthedatethenewjobsarecreated,orforaperiodofsixyearsfrom
103thedatethenewjobsarecreatedifthequalifiedcompanyisanexistingMissouribusiness,
104retainanamountequaltothewithholdingtaxascalculatedundersubdivision(38)ofsection
HB1319 11 105620.2005fromthenewjobsthatwouldotherwisebewithheldandremittedbythequalified
106companyundertheprovisionsofsections143.191to143.265equalto:
107 (1)Sixpercentofnew[payroll] taxablewagesforaperiodoffiveyearsfromthe
108datetherequirednumberofnewjobswerecreatedifthequalifiedcompanycreatesone
109hundredormorenewjobsandtheaveragewageofthenewpayrollequalsorexceedsone
110hundredtwentypercentofthecountyaveragewageofthecountyinwhichtheprojectfacility
111islocated;or
112 (2)Sevenpercentofnew[payroll] taxablewagesforaperiodoffiveyearsfromthe
113datetherequirednumberofjobswerecreatedifthequalifiedcompanycreatesonehundredor
114morenewjobsandtheaveragewageofthenewpayrollequalsorexceedsonehundredforty
115percentofthecountyaveragewageofthecountyinwhichtheprojectfacilityislocated.
116
117Thedepartmentshallissuearefundabletaxcreditforanydifferencebetweentheamountof
118benefitallowedunderthissubsectionandtheamountofwithholdingtaxretainedbythe
119company,intheeventthewithholdingtaxisnotsufficienttoprovidetheentireamountof
120benefitduetothequalifiedcompanyunderthissubsection.
121 6.Inadditiontothebenefitsavailableundersubsection5ofthissection,the
122departmentmayawardaqualifiedcompanythatsatisfiestheprovisionsofsubsection5of
123thissectionadditionaltaxcredits,issuedeachyearforaperiodoffiveyearsfromthedatethe
124newjobsarecreated,orforaperiodofsixyearsfromthedatethenewjobsarecreatedifthe
125qualifiedcompanyisanexistingMissouribusiness,inanamountequaltoorlessthanthree
126percentof[newpayroll] taxablewages; providedthatinnoeventmaythetotalamountof
127benefitsawardedtoaqualifiedcompanyunderthissectionexceedninepercentofnew
128[payroll] taxablewagesinanycalendaryear.Theamountoftaxcreditsawardedtoa
129qualifiedcompanyunderthissubsectionshallnotexceedtheprojectednetfiscalbenefittothe
130state,asdeterminedbythedepartment,andshallnotexceedtheleastamountnecessaryto
131obtainthequalifiedcompany'scommitmenttoinitiatetheproject.Indeterminingtheamount
132oftaxcreditstoawardtoaqualifiedcompanyunderthissubsection,thedepartmentshall
133considerthefactorsprovidedundersubsection2ofthissection.
134 7.Inlieuofthebenefitsavailableundersubsections1,2,5,and6ofthissection,and
135inexchangefortheconsiderationprovidedbythenewtaxrevenuesandothereconomic
136stimulithatwillbegeneratedbythenewjobsandnewcapitalinvestmentcreatedbythe
137program,thedepartmentmayawardaqualifiedcompanythatsatisfiestheprovisionsof
138subdivision(1)ofsubsection1ofthissectiontaxcredits,issuedwithinoneyearfollowingthe
139qualifiedcompany'sacceptanceofthedepartment'sproposalforbenefits,inanamountequal
140toorlessthanninepercentofnew[payroll] taxablewages. Theamountoftaxcredits
141awardedtoaqualifiedcompanyunderthissubsectionshallnotexceedtheprojectednetfiscal
HB1319 12 142benefittothestate,asdeterminedbythedepartment,andshallnotexceedtheleastamount
143necessarytoobtainthequalifiedcompany'scommitmenttoinitiatetheproject.In
144determiningtheamountoftaxcreditstoawardtoaqualifiedcompanyunderthissubsection,
145thedepartmentshallconsiderthefactorsprovidedundersubsection2ofthissectionandthe
146qualifiedcompany'scommitmenttonewcapitalinvestmentandnewjobcreationwithinthe
147stateforaperiodofnotlessthantenyears.Forthepurposesofthissubsection,eachqualified
148companyshallhaveanaveragewageofthenewpayrollthatequalsorexceedsonehundred
149percentofthecountyaveragewage.Notwithstandingtheprovisionsofsection620.2020to
150thecontrary,thissubsectionshallexpireonJune30,2025.
151 8.Nobenefitsshallbeavailableunderthissectionforanyqualifiedcompanythathas
152performedsignificant,project-specificsiteworkattheprojectfacility,purchasedmachinery
153orequipmentrelatedtotheproject,orhaspubliclyannounceditsintentiontomakenew
154capitalinvestmentormanufacturingcapitalinvestmentattheprojectfacilitypriortoreceipt
155ofaproposalforbenefitsunderthissectionorapprovalofitsnoticeofintent,whichever
156occursfirst.
157 9.Inlieuofanyotherbenefitsunderthischapter,thedepartmentofeconomic
158developmentmayawardataxcredittoanindustrialdevelopmentauthorityforaqualified
159militaryprojectinanamountequaltotheestimatedwithholdingtaxesassociatedwiththe
160part-timeandfull-timecivilianandmilitarynewjobslocatedatthefacilityanddirectly
161impactedbytheproject.Theamountofthetaxcreditshallbecalculatedbymultiplying:
162 (1)Theaveragepercentageoftaxwithheld,asprovidedbythedepartmentofrevenue
163tothedepartmentofeconomicdevelopment;
164 (2)Theaverage[salaries] taxablewagesofthejobsdirectlycreatedbythequalified
165militaryproject;and
166 (3)Thenumberofjobsdirectlycreatedbythequalifiedmilitaryproject.
167
168Iftheamountofthetaxcreditrepresentstheleastamountnecessarytoaccomplishthe
169qualifiedmilitaryproject,thetaxcreditsmaybeissued,butnotaxcreditsshallbeissuedfora
170termlongerthanfifteenyears.Noqualifiedmilitaryprojectshallbeeligiblefortaxcredits
171underthissubsectionunlessthedepartmentofeconomicdevelopmentdeterminesthe
172qualifiedmilitaryprojectshallachieveanetpositivefiscalimpacttothestate.
âś”
HB1319 13