HB755--ADVANCEDMANUFACTURINGRECRUITMENT
SPONSOR: Oehlerking
COMMITTEEACTION:Voted"DoPass"bytheStandingCommitteeon
EconomicDevelopmentbyavoteof10to1.
BeginningJanuary1,2026,aqualifiedmanufacturingcompanymaybe
allowedataxcreditofupto20%ofacapitalinvestmentin
propertywithintheStateofMissouriforaperiodof5years.The
capitalinvestmentmustequalatleast$1billionandcreate500or
morejobs,150ofwhichmustbereservedforfull-timeMissouri
residentsatthetimeofhiring.Qualifyingfull-timeemployees
mustworkanaverageofatleast35hoursperweekfora12month
periodandreceiveanannualwageequaltoorabovethecounty
average. Thetotalamountoftaxcreditsissuedannuallyunder
thissectionmustnotexceed$200milliondollarspertaxyear.
Aqualifiedmanufacturingcompanymustsubmitanapplicationtothe
MissouriDepartmentofEconomicDevelopmentinordertobeeligible
forconsideration. Aqualifiedcompanymustalsoenterintoa
writtenagreementwiththeDepartmentthatdetailsperformance
requirementsandrepaymentpenaltiesintheeventof
nonperformance. Theagreementwillspecify,ataminimum:
(1)Thecommittednumberofretainedjobs,payroll,andnew
qualifiedmanufacturingcapitalinvestmentforeachyearduringthe
projectperiod;
(2)Clawbackprovisions,asmayberequiredbytheDepartment;and
(3)AnyotherprovisionstheDepartmentmayrequire.
Indeterminingtheamountoftaxcreditstoawardtoaqualified
company,DEDmustconsiderthefollowingfactors:
(1)Thesignificanceofthequalifiedmanufacturingcompany'sneed
forprogrambenefits;
(2)TheamountofprojectedeconomicimpacttotheStatefromthe
projectandtheperiodinwhichtheStatewouldrealizethenet
fiscalbenefit;
(3)Theoverallsizeandqualityoftheproposedproject,
includingthenumberofnewjobs,newqualifiedmanufacturing
capitalinvestment,proposedwages,growthpotentialofthe
qualifiedmanufacturingcompany,thepotentialmultipliereffectof
theproject,andsimilarfactors; (4)Thefinancialstabilityandcreditworthiness ofthequalified
manufacturingcompany;
(5)Thelevelofeconomicdistressinthearea;and
(6)Anevaluationofthecompetitiveness ofalternativelocations
fortheprojectfacility,asapplicable.
TheDepartmentwillawardtaxcreditstoaqualifiedmanufacturing
companythatsatisfiesthequalifiedmanufacturingcapital
investmentrequirementinfourseparateinstallmentsofequal
value,equivalentto1/4ofthetotalagreeduponvalueofawarded
incentivewhenthevaluereaches:
(1)25%oftheagreed-uponqualifiedcapitalinvestment;
(2)50%oftheagreed-uponqualifiedcapitalinvestment;
(3)75%oftheagreed-uponqualifiedcapitalinvestment;and
(4)100%oftheagreed-uponqualifiedcapitalinvestment.
Qualifiedmanufacturingcompanieswillhavethreeyearsafterthe
Departmenthasapprovedataxcredittomeet25%ofitsqualified
manufacturingcapitalinvestment. Oncethe25%thresholdismet,a
qualifiedcompanyhasfiveyearstoreceivethefullagreed-upon
taxcredits. Ifaqualifiedcompanydoesnotmeetthe25%
thresholdbyyearthree,theagreementisdeemedvoid.
Aqualifiedcompanymustprovideanannualreportdetailingthe
numberofjobsandotherinformationasmayberequiredbythe
Departmentnolaterthan90dayspriortotheendofthequalified
company'staxyear.Taxcreditsmaybeclaimedwithinoneyearof
thecloseofthetaxyearforwhichtheywereissued.
Ifaqualifiedmanufacturingcompanyisownedbyentitiesdomiciled
intheUnitedStatesandsuchmanufacturingcompanyisrelocating
orreshoringfromChinaoranycountrydesignatedasaforeign
adversary,asdesignatedin15C.F.R.7.4,toaprojectfacilityin
Missouri,theDepartmentwillexpeditetheapprovalprocessby
givingprioritytotheapplication. TheDepartmentmustmakea
determinationonexpeditedapplicationswithin60daysofreceipt.
BeforeJanuary1,2027,andthefirstdayofeachquarter
thereafter,theDepartmentmustpresentaquarterlyreporttothe
GeneralAssemblythatdetailsthebenefitsoftheprogram.
TheseprovisionssunsetonDecember31,10yearsafterthe
effectivedate. ThisbillissimilartoHB1480(2024).
PROPONENTS: SupporterssaythatMissourilostmanufacturing
projectstootherstatesthathavejobsdesignedforthisscale.
Assuch,thebillallowsfortheprojectstogrow,bringintax
money,andbringinothersmallbusinessesfortheseprojects.
Supportersalsosaythatthebillwillhelpwithsupplychain
issues.
TestifyinginpersonforthebillwereRepresentative Oehlerking;
AssociatedIndustriesofMissouri;MissouriEconomicDevelopment
Council;MissouriChamberofCommerceandIndustry;MaggieKost,
GreaterStLouisInc.;GreaterStLouisInc;GreaterKCChamberof
Commerce;andCivicCouncilofGreaterKC.
OPPONENTS: Therewasnooppositionvoicedtothecommittee.
OTHERS:Therewasnotestimonyinpersongivenonthebill.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.