EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 103
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BERNSKOETTER.
1352S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 620.2010, RSMo, and to enact in lieu thereof one new section relating to financial
incentives for business development.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 620.2010, RSMo, is repealed and one 1
new section enacted in lieu thereof, to be known as section 2
620.2010, to read as follows:3
620.2010. 1. In exchange for the consideration 1
provided by the new tax revenues and other economic stimuli 2
that will be generated by the new jobs created, a qualified 3
company may, for a period of five years from the date the 4
new jobs are created, or for a period of six years from the 5
date the new jobs are created if the qualified company is an 6
existing Missouri business, retain an amount equal to the 7
withholding tax as calculated under subdivision (38) of 8
section 620.2005 from the new jobs t hat would otherwise be 9
withheld and remitted by the qualified company under the 10
provisions of sections 143.191 to 143.265 if: 11
(1) The qualified company creates ten or more new 12
jobs, and the average wage of the new payroll equals or 13
exceeds ninety percent of the county average wage; 14
(2) The qualified company creates two or more new jobs 15
at a project facility located in a rural area, the average 16
wage of the new payroll equals or exceeds ninety percent of 17
the county average wage, and the qua lified company commits 18 SB 103 2
to making at least one hundred thousand dollars of new 19
capital investment at the project facility within two years; 20
or 21
(3) The qualified company creates two or more new jobs 22
at a project facility located within a zone desig nated under 23
sections 135.950 to 135.963, the average wage of the new 24
payroll equals or exceeds eighty percent of the county 25
average wage, and the qualified company commits to making at 26
least one hundred thousand dollars in new capital investment 27
at the project facility within two years of approval. 28
2. In addition to any benefits available under 29
subsection 1 of this section, the department may award a 30
qualified company that satisfies subdivision (1) of 31
subsection 1 of this section additional ta x credits, issued 32
each year for a period of five years from the date the new 33
jobs are created, or for a period of six years from the date 34
the new jobs are created if the qualified company is an 35
existing Missouri business, in an amount equal to or less 36
than six percent of new payroll; provided that in no event 37
may the total amount of benefits awarded to a qualified 38
company under this section exceed nine percent of new 39
payroll in any calendar year. The amount of tax credits 40
awarded to a qualified co mpany under this subsection shall 41
not exceed the projected net fiscal benefit to the state, as 42
determined by the department, and shall not exceed the least 43
amount necessary to obtain the qualified company's 44
commitment to initiate the project. In determining the 45
amount of tax credits to award to a qualified company under 46
this subsection or a qualified manufacturing company under 47
subsection 3 of this section, the department shall consider 48
the following factors: 49 SB 103 3
(1) The significance of the quali fied company's need 50
for program benefits; 51
(2) The amount of projected net fiscal benefit to the 52
state of the project and the period in which the state would 53
realize such net fiscal benefit; 54
(3) The overall size and quality of the proposed 55
project, including the number of new jobs, new capital 56
investment, manufacturing capital investment, proposed 57
wages, growth potential of the qualified company, the 58
potential multiplier effect of the project, and similar 59
factors; 60
(4) The financial stability and creditworthiness of 61
the qualified company; 62
(5) The level of economic distress in the area; 63
(6) An evaluation of the competitiveness of 64
alternative locations for the project facility, as 65
applicable; and 66
(7) The percent of local incentives committed. 67
3. (1) The department may award tax credits to a 68
qualified manufacturing company that makes a manufacturing 69
capital investment of at least five hundred million dollars 70
not more than three years following the department 's 71
approval of a notice of intent and the execution of an 72
agreement that meets the requirements of subsection 4 of 73
this section. Such tax credits shall be issued no earlier 74
than January 1, 2023, and may be issued each year for a 75
period of five years. A qualified manufacturing company may 76
qualify for an additional five -year period under this 77
subsection if it makes an additional manufacturing capital 78
investment of at least two hundred fifty million dollars 79
within five years of the department's appr oval of the 80
original notice of intent. 81 SB 103 4
(2) The maximum amount of tax credits that any one 82
qualified manufacturing company may receive under this 83
subsection shall not exceed five million dollars per 84
calendar year. The aggregate amount of tax cred its awarded 85
to all qualified manufacturing companies under this 86
subsection shall not exceed ten million dollars per calendar 87
year. 88
(3) If, at the project facility at any time during the 89
project period, the qualified manufacturing company 90
discontinues the manufacturing of the new product, or 91
discontinues the modification or expansion of an existing 92
product, and does not replace it with a subsequent or 93
additional new product or with a modification or expansion 94
of an existing product, the compan y shall immediately cease 95
receiving any benefit awarded under this subsection for the 96
remainder of the project period and shall forfeit all rights 97
to retain or receive any benefit awarded under this 98
subsection for the remainder of such period. 99
(4) Notwithstanding any other provision of law to the 100
contrary, any qualified manufacturing company that is 101
awarded benefits under this section shall not simultaneously 102
receive tax credits or exemptions under sections 100.700 to 103
100.850 for the jobs crea ted or retained or capital 104
improvement that qualified for benefits under this section. 105
The provisions of subsection 5 of section 285.530 shall not 106
apply to a qualified manufacturing company that is awarded 107
benefits under this section. 108
4. Upon approval of a notice of intent to receive tax 109
credits under subsection 2, 3, 6, or 7 of this section, the 110
department and the qualified company shall enter into a 111
written agreement covering the applicable project period. 112
The agreement shall specify, at a minimum: 113 SB 103 5
(1) The committed number of new jobs, new payroll, and 114
new capital investment, or the manufacturing capital 115
investment and committed percentage of retained jobs for 116
each year during the project period; 117
(2) The date or time period d uring which the tax 118
credits shall be issued, which may be immediately or over a 119
period not to exceed two years from the date of approval of 120
the notice of intent; 121
(3) Clawback provisions, as may be required by the 122
department; 123
(4) Financial guarantee provisions as may be required 124
by the department, provided that financial guarantee 125
provisions shall be required by the department for tax 126
credits awarded under subsection 7 of this section; and 127
(5) Any other provisions the department may require. 128
5. In lieu of the benefits available under subsections 129
1 and 2 of this section, and in exchange for the 130
consideration provided by the new tax revenues and other 131
economic stimuli that will be generated by the new jobs 132
created by the progr am, a qualified company may, for a 133
period of five years from the date the new jobs are created, 134
or for a period of six years from the date the new jobs are 135
created if the qualified company is an existing Missouri 136
business, retain an amount equal to the withholding tax as 137
calculated under subdivision (38) of section 620.2005 from 138
the new jobs that would otherwise be withheld and remitted 139
by the qualified company under the provisions of sections 140
143.191 to 143.265 equal to: 141
(1) Six percent of new payroll for a period of five 142
years from the date the required number of new jobs were 143
created if the qualified company creates one hundred or more 144
new jobs and the average wage of the new payroll equals or 145 SB 103 6
exceeds one hundred twenty percent of the co unty average 146
wage of the county in which the project facility is located; 147
or 148
(2) Seven percent of new payroll for a period of five 149
years from the date the required number of jobs were created 150
if the qualified company creates one hundred or more n ew 151
jobs and the average wage of the new payroll equals or 152
exceeds one hundred forty percent of the county average wage 153
of the county in which the project facility is located. 154
The department shall issue a refundable tax credit for any 155
difference between the amount of benefit allowed under this 156
subsection and the amount of withholding tax retained by the 157
company, in the event the withholding tax is not sufficient 158
to provide the entire amount of benefit due to the qualified 159
company under this subsectio n. 160
6. In addition to the benefits available under 161
subsection 5 of this section, the department may award a 162
qualified company that satisfies the provisions of 163
subsection 5 of this section additional tax credits, issued 164
each year for a period of fi ve years from the date the new 165
jobs are created, or for a period of six years from the date 166
the new jobs are created if the qualified company is an 167
existing Missouri business, in an amount equal to or less 168
than three percent of new payroll; provided th at in no event 169
may the total amount of benefits awarded to a qualified 170
company under this section exceed nine percent of new 171
payroll in any calendar year. The amount of tax credits 172
awarded to a qualified company under this subsection shall 173
not exceed the projected net fiscal benefit to the state, as 174
determined by the department, and shall not exceed the least 175
amount necessary to obtain the qualified company's 176 SB 103 7
commitment to initiate the project. In determining the 177
amount of tax credits to award to a qualified company under 178
this subsection, the department shall consider the factors 179
provided under subsection 2 of this section. 180
7. In lieu of the benefits available under subsections 181
1, 2, 5, and 6 of this section, and in exchange for the 182
consideration provided by the new tax revenues and other 183
economic stimuli that will be generated by the new jobs and 184
new capital investment created by the program, the 185
department may award a qualified company that satisfies the 186
provisions of subdivision (1 ) of subsection 1 of this 187
section tax credits, issued within one year following the 188
qualified company's acceptance of the department's proposal 189
for benefits, in an amount equal to or less than nine 190
percent of new payroll. The amount of tax credits awa rded 191
to a qualified company under this subsection shall not 192
exceed the projected net fiscal benefit to the state, as 193
determined by the department, and shall not exceed the least 194
amount necessary to obtain the qualified company's 195
commitment to initiate the project. In determining the 196
amount of tax credits to award to a qualified company under 197
this subsection, the department shall consider the factors 198
provided under subsection 2 of this section and the 199
qualified company's commitment to new capital i nvestment and 200
new job creation within the state for a period of not less 201
than ten years. For the purposes of this subsection, each 202
qualified company shall have an average wage of the new 203
payroll that equals or exceeds one hundred percent of the 204
county average wage. Notwithstanding the provisions of 205
section 620.2020 to the contrary, this subsection shall 206
expire on June 30, [2025] 2031. 207 SB 103 8
8. No benefits shall be available under this section 208
for any qualified company that has performed significan t, 209
project-specific site work at the project facility, 210
purchased machinery or equipment related to the project, or 211
has publicly announced its intention to make new capital 212
investment or manufacturing capital investment at the 213
project facility prior to receipt of a proposal for benefits 214
under this section or approval of its notice of intent, 215
whichever occurs first. 216
9. In lieu of any other benefits under this chapter, 217
the department of economic development may award a tax 218
credit to an industria l development authority for a 219
qualified military project in an amount equal to the 220
estimated withholding taxes associated with the part -time 221
and full-time civilian and military new jobs located at the 222
facility and directly impacted by the project. The amount 223
of the tax credit shall be calculated by multiplying: 224
(1) The average percentage of tax withheld, as 225
provided by the department of revenue to the department of 226
economic development; 227
(2) The average salaries of the jobs directly creat ed 228
by the qualified military project; and 229
(3) The number of jobs directly created by the 230
qualified military project. 231
If the amount of the tax credit represents the least amount 232
necessary to accomplish the qualified military project, the 233
tax credits may be issued, but no tax credits shall be 234
issued for a term longer than fifteen years. No qualified 235
military project shall be eligible for tax credits under 236
this subsection unless the department of economic 237 SB 103 9
development determines the qualified mil itary project shall 238
achieve a net positive fiscal impact to the state. 239