Business Incentive Programs

Missouri Works is an economic development program designed to support companies considering Missouri as a place to locate and/or grow their business. The program offers a mix of automatic and discretionary benefits in the form of 100% retention of state withholding tax, and/or refundable, transferable, sellable tax credits for qualified companies that choose Missouri as a place to invest and create jobs. To qualify for any of the Missouri Works categories, a company must offer health insurance and pay at least 50% of the premium for all full-time employees. Incentive awards are partially subject to available funding and customary due diligence procedures. Learn more

Major projects that meet certain investment and job creation requirements may receive assistance through the Missouri BUILD (Business Use Incentive for Large-scale Development) program. BUILD is a selective and competitive program reserved for use with large projects that bring significant investment and jobs that benefit the community and state economies. The program uses bond financing for public or private infrastructure or new capital improvements of the business at the project location. Learn more

The new automotive incentives grant up to $25 million in tax credits to automotive manufacturers that invest $500 million in plant upgrades, while agreeing to retain current workers, and then an additional $25 million in tax credits if they invest another $250 million.

The Data Center Sales Tax Exemption Program incentivizes the location and expansion of data centers in the state of Missouri by providing an exemption of the sales and utility taxes associated with a variety of activities necessary to build a new facility or expand an existing facility. Benefits of the program include state and local sales tax exemption on construction or rehab materials, machinery and equipment purchases, and utility costs. The benefit period and minimum qualification thresholds depend on if the facility is new to Missouri, or an existing facility expanding in the state. Learn more

Missouri manufacturing companies are exempt from state tax and local use tax, but not local sales tax. Section 144.054 RSMo, exempts purchase of machinery, equipment, materials and chemicals used or consumed in manufacturing, processing, compounding, mining, or producing any product or used in research and development related to manufacturing, processing, compounding, mining, or producing any product from state tax and local use tax, but not local sales tax. Learn more

Chapter 100 authorizes cities and counties to issue industrial development bonds to finance a wide variety of commercial facilities and equipment, and to offer real and/or personal property tax abatement, sales tax exemption on construction materials and sales tax exemption on tangible personal property. Learn more.

The Chapter 353 abatement is an incentive that can be utilized by cities to encourage the redevelopment of blighted areas by providing real property tax abatements. Learn more

Manufacturers’ inventories (raw materials, goods in process and finished goods) are exempt from inventory taxes. Learn more

An important tax advantage for Missouri businesses is the amount of income considered taxable as only income earned in Missouri is taxed. And, in 2020, Missouri’s corporate income tax rate dropped to 4 percent, giving us one of the lowest rates in the U.S.

In addition, it is important to note that Missouri has not adopted worldwide or nationwide unitary tax assessment in computing multinational corporate income tax liability.

Learn more.

The Tax Cuts and Jobs Act (TCJA) of 2017 created Opportunity Zones to spur investment in distressed communities throughout the country by granting investors preferential tax treatment. Such investments must be made through Opportunity Funds, which are specially created investment vehicles invested in Opportunity Zones.

The preferential tax treatment offered under the Opportunity Zone program is threefold: (1) Investors can defer tax on capital gains invested into Opportunity Zones until no later than December 31, 2026; (2) Investors that hold the Opportunity Fund investment for five or seven years can receive a 10% or 15% reduction on their deferred capital gains tax bill; and (3) Investors that hold the Opportunity Fund investment for at least 10 years can receive the added benefit of paying no tax on any realized appreciation in the Opportunity Fund investment.

The state of Missouri submitted 161 Opportunity Zones to the federal government for inclusion in the program.

Download a one-pager about Missouri’s Opportunity Zones.

Learn more.

What Next?

• Talk to our CEO, Subash Alias, about business expansion opportunities at 314.932.3973 or via our contact form.
• Check out our available certified sites & buildings for your site selection needs.
• See how Missouri’s business climate ranks in comparison to other states in the U.S.
• Learn more about why Missouri is a top state for business expansion.