STATUTORY CITATION: §§ 135.950-135.973 RSMO

TYPE OF BENEFITS:Tax Credits.

DESCRIPTION OF BENEFITS: Tax credits and real property tax abatement of at least 50% for 10 years on improvements to the real property.

ALLOWED USES OF BENEFITS: Tax credits may be transferred, sold or assigned. The sale price cannot be less than 75% of the par value of such tax credits.

ELIGIBLE BUSINESS TYPES: An eligible business must be located in a Missouri Enhanced Enterprise Zone (EEZ). Individual business eligibility will be determined by the zone, based on creation of sustainable jobs in a targeted industry or demonstrated impact on local industry cluster development.

For more information, visit:

Statutes

Missouri Department of Economic Development

Map of Missouri's Enhanced Enterprise Zones

Download Enhanced Enterprise Zone PDF Document

STATUTORY CITATION: Section 620.1875-620.1900.RSMo

TYPES OF BENEFITS: State withholding tax retention and tax credits.

DESCRIPTION OF BENEFITS:For “Small/Expanding” business projects, the benefit of the program is the retention of the state withholding tax of the new jobs. For “Technology” and “High Impact” business projects, the benefits of the program are (a) the retention of the state withholding tax of the new jobs and (b) state tax credits, which are refundable and/or sellable. The program benefits are based on a percentage of the payroll of the new jobs.

ALLOWED USES OF BENEFITS: This tax credit can be applied to Chapter 143 (state income tax, excluding withholding tax) and Chapter 148 (financial institutions tax). Tax credits can only be applied to tax liability for the year in which they were earned. Any unused balance is refundable. The credits may also be transferred, sold or assigned.

ELIGIBLE BUSINESS TYPES: For-profit and nonprofit businesses except for gambling, retail trade, food and drinking places, companies regulated by the Public Service Commission, companies that are delinquent in non-protested taxes or other payments (state, federal or local), or any company that has filed for or has publicly announced its intention to file for bankruptcy. Tax credits must be claimed within one year of the taxable year for which they were issued. A company may treat facilities located within one mile of each other or within the same county as one project facility if engaged in the same business activity.

For more information, visit:

Statutes

Missouri Department of Economic Development

Download Missouri Quality Jobs Program PDF Document

STATUTORY CITATION: §§ 353 RSMO

TYPE OF BENEFITS: Reduction of real property tax.

DESCRIPTION OF BENEFITS: An incentive that can be utilized by cities to encourage the redevelopment of blighted areas by providing real property tax abatements.

ALLOWED USES OF BENEFITS: Tax abatement is available for a period of 25 years, which begins to run when the Urban Redevelopment Corporation takes title to the property.

ELIGIBLE BUSINESS TYPES: For-Profit “Urban Redevelopment Corporations.”

For more information, visit:

Statutes

Missouri Department of Economic Development

Download Chapter 353 Abatement PDF Document

STATUTORY CITATION: The Housing and Community Development Act of 1974 (Public Law 93-383), as amended. CDBG is a “pass through” funding program from the U.S. Department of Housing and Urban Development. Authorization for the program is set forth in 42 U.S.C. §5301 et seq.; 24 CFR Part 570; and Missouri’s “Consolidated Plan” submitted to the U.S. Department of Housing and Urban Development.

TYPE OF BENEFITS: Grants and Financing Loans.

DESCRIPTION OF BENEFITS: Benefits may include grants awarded to communities to offset the cost of public infrastructure or loans for private companies for job creation. Refer to specific CDBG categories for specific benefits available.

ALLOWED USES OF BENEFITS:

• Action Fund Loan – loans to private companies resulting in the creation of jobs.
• Community Facilities – development of a public facility designed to provide services from a central location (senior center, community center, fire station, etc.)
• Downtown Revitalization – public infrastructure and improvements that significantly contribute to the revitalization or redevelopment of downtown areas.
• Emergency – projects meeting an urgent threat to health and safety.
• Industrial Infrastructure Grant – public infrastructure development that results in the creation of jobs by a private company benefiting from the infrastructure.
• Interim Financing Loan – short-term loans to a private company resulting in the creation of jobs.
• Speculative Industrial Building Loan – loans to a nonprofit development organization to develop a shell building for industrial purposes.
• Water and Wastewater – publicly owned water and wastewater improvements and new construction. Proposals must be reviewed by the Missouri Water and Wastewater Review Committee before application is made.
• Other Public Needs – eligible activities that are not addressed with a specific Community Development Block Grant category as listed above. Examples include: bridges, streets, housing demolition, handicapped accessibility in public buildings or other activities deemed important for the economic growth of the community.
• Rural Affordable Housing Request for Proposals – included as part of the other public needs category listed above. Proposals must address housing development for low — to moderate — income persons and must match low-income housing tax credit or other Missouri Housing Development Commission funding applications.

 ELIGIBLE BUSINESS TYPES: Community Development Block Grant funds are only available to cities or counties in non-entitlement areas (incorporated municipalities with a population under 50,000 and counties with a population under 200,000).

For more information, visit:

Statutes

Missouri Department of Economic Development

Download Community Development Block Grant PDF Document

STATUTORY CITATION: 42 USC § 5301 et seq., 24 C.F.R. Part 570; and Missouri’s “Consolidated Plan” submitted to the U.S. Department of Housing and Urban Development.

DESCRIPTION OF BENEFITS: Provides a loan to certain types of for-profit companies that need funds for start-up or expansion and have exhausted other sources.

ELIGIBLE APPLICANTS: Cities and counties must apply on behalf of beneficiary companies. For-profit manufacturing, processing and assembly companies that will have wages above the county average and provide medical benefits are prioritized.

For more information, visit:

Statutes

Missouri Department of Economic Development

Download Action Fund Loan PDF Document

Statutory Citation: 42 USC § 5301 et seq., 24 C.F.R. Part 570; and Missouri’s “Consolidated Plan” submitted to the U.S. Department of Housing and Urban Development.

Description of Benefits: Assists local governments in the development of public infrastructure that allows industries to locate new facilities, expand existing facilities, prevent the closing of a facility or the relocation of a facility outside the state.

Eligible Applicants: Cities or counties

Eligible Beneficiary Businesses: More than one business must potentially benefit from the facilities to be funded. For-profit manufacturing, processing and assembly companies that will have wages above the county average and provide medical benefits are prioritized.

For More Information Visit:

Statutes

Missouri Department of Economic Development

Download Industrial Infrastructure Grant PDF Document

STATUTORY CITATION: §§ 135.535 RSMO

TYPE OF BENEFITS: Tax Credits.

DESCRIPTION OF BENEFITS: There are several tax credits available under the program. They include the 40% income tax credit, 40% equipment tax credit, 1.5% employee tax credit and 25% equipment tax credit. Details regarding the credits are available in the detail write up or the statute.

ELIGIBLE BUSINESS TYPES: New or Relocating Business: Eligible new or relocating business may choose one of the 40% Tax Credits and the employees may receive the 1.5% Employee Tax Credit.

Existing Businesses: Eligible businesses already located in a distressed community may be eligible for the 25% equipment tax credit. Existing businesses that double the number of full-time employees in the distressed community from the previous year may choose one of the 40% tax credits.

For more information, visit:

Statutes

Missouri Department of Economic Development

Download Rebuilding Communities Tax Credit Program PDF Document

The Missouri Life Sciences Research Trust Fund was established in 2007 to enhance research capacity and transform research into commercial life science technology. In conjunction with Missouri’s universities and industry, $10.5 million was awarded for research grants and $2.6 million for commercialization grants. The scope of research will focus on agriculture research, animal science, plant science, medical devices, biomaterials and composite research, nanotechnology related to drug development and delivery, diagnostics, clinical imaging, and information technology related to human health.

For more information, visit:

The Missouri Life Sciences Project

State sales tax exemptions include:

• Machinery and equipment used to establish a new facility or expand an existing manufacturing facility, provided such machinery/equipment is used directly to manufacture a product ultimately intended for sale.
• Replacement machinery and equipment used directly in manufacturing a product ultimately intended for sale, provided their acquisition has been necessitated by reason of change in design or product, as opposed to obsolescence.
• Machinery, equipment and devices that abate air pollution. To qualify for this exemption, a company need only have the appropriate state governmental agency certify the equipment is pollution-control equipment.
• All materials and supplies used to install this tax-exempt machinery and equipment.
• Electricity consumed in the manufacturing process, provided the cost of the electricity exceeds 10% of total production costs. The cost of electrical energy consumed in the manufacturing process cannot be included in total production costs to qualify for the exemption. Electricity used for non-manufacturing purposes, such as heating and lighting, is taxable.
• Electricity or gas, whether natural, artificial or propane, when used in connection with basic steel making.
• Energy, including electricity or natural gas, used in manufacturing, mining, compounding, processing or producing a product or used in research and development related to the items above may qualify for a state sales tax exemption.
• Anodes used in manufacturing or other types of production, with a useful life of less than one year.
• Certain property purchased by specific biotech, medical and veterinary labs for use in research and experimentation activity.

For more information, visit:

Missouri Department of Economic Development

STATUTORY CITATION: §§ 100.010-100.200 RSMO

TYPE OF BENEFITS: Property tax abatement and sales tax exemption on construction materials.

DESCRIPTION OF BENEFITS: There are two primary reasons to issue industrial development bonds ("IDBs") under the Act. First, if the bonds are tax-exempt, it may be possible to issue the bonds at lower interest rates than those obtained through conventional financing. Second, even if the bonds are not tax-exempt, ad valorem taxes on bond-financed property may be abated so long as the bonds are outstanding. Such tax abatement may result in a significant financial benefit to a company.

ALLOWED USES OF BENEFITS: IDBs may be issued by any city, county, town or village (referred to as a “municipality”) to finance the costs of warehouses, distribution facilities and industrial plants. In connection with such projects, the bond proceeds may be used to finance land, buildings, fixtures and machinery.

ELIGIBLE BUSINESS TYPES: IDBs may be used to finance various industrial projects, including:

• costs of industrial plants, warehouses and distribution facilities
• research and development facilities, office industries and services facilities providing interstate commerce
• agricultural processing industries
• land, buildings, fixtures and machinery in connection with the IDB-financed development project

For more information, visit:

Statutes

Missouri Department of Ecocnomic Development

Download Chapter 100 Bonds PDF Document

Statutory Citation: Section 144.054(3), RSMo, as enacted in Senate Bill 30 (2007).

Program Description: The Missouri Department of Economic Development (DED) will issue a state or local sales tax exemption to a company for which Chapter 100 bonds have been issued. The company must present the exemption to the vendor they are purchasing the equipment from.

Eligible Applicants: Any company for which Chapter 100 bonds are issued that purchases personal property

Eligibility Criteria: The project cannot have been announced; bonds already approved/issued; or personal property already purchased. The project must:

• Involve competition with another state; therefore, a comprehensive state/local incentive proposal will be involved in an attempt to win the project;
• Have above-average wages with benefits, or be in an economically distressed or blighted area;
• Include local incentives provided to the project commensurate with the state incentives, relative to the new state/local tax revenues created by the project;
• Have a positive state fiscal benefit, including all the state incentives proposed for the project; and
• Have an indication that the city and county have approved the local sales tax exemption. (The local sales tax exemption may also be provided independent of the state sales tax).

Application/Approval Procedure: DED will coordinate a state/local incentive proposal to qualifying projects, in which the exemption will be included.

For more information, visit:

Statutes

Missouri Department of Economic Development

Download Chapter 100 Sales Tax Exemption PDF Document