TAX CREDITS FOR SPORTING EVENTS

(Sections 67.3000 and 67.3005)

The act creates a refundable income and financial institutions tax credit which may be available for sports commissions, convention and visitors bureaus, certain nonprofit organizations, counties, and municipalities to offset expenses incurred in attracting sporting events to the state. Applicants for the tax credit must submit game support contracts to the Department of Economic Development for approval. The tax credit will be equal to the lesser of five dollars for each per session admission ticket sold for the event and paid registered participants multiplied by the number of days of the event or one hundred percent of eligible expenses incurred. No more than ten million dollars in tax credits may be issued per fiscal year, of this, no more than eight million dollars can be available for events in St. Louis city or any county with more than three hundred thousand inhabitants. The tax credits are fully transferrable, provided a notarized endorsement is filed with the Department of Economic Development. The Department of Economic Development is prohibited from certifying game support contracts after August 28, 2018, but may certify game support contracts on or prior to such date which pertain to games to be held after August 28, 2018.

The act also creates an income, financial institutions, and corporate franchise tax credit equal to fifty percent of the amount of an eligible donation made, on or after January 1, 2012, to a certified sponsor or local organizing committee for the purposes of attracting sporting events to the state. The tax credit may not be applied against withholding taxes. The tax credit is non-refundable, but may be carried forward four years. The tax credit is transferable. Certified sponsors and local organizing committees may apply to the Department of Economic Development for the tax credits. Applications for tax credits must be accompanied by payment in an amount equal to the tax credits requested. The Department of Economic Development is prohibited from issuing more than ten million dollars in tax credits each fiscal year. The provisions of this act shall automatically sunset six years after August 28, 2012 unless reauthorized.

These provisions are identical to provisions of HCS/HB 1245 (2012) and similar to a provision of SCS/SBs 588 & 585 (2012), SB 8 (1st Ex. Session 2011), SS/SB 203 (2011), SB 840 (2010), and HB 1786 (2010).

START-UP COMPANIES

(Section 620.007)

Under this provision the Department of Economic Development is required to define what constitutes a "start up company." These companies will be required to provide verification of financial information when the company applies for economic development incentives, if the incentive is provided up-front.

This provision is identical to a provision of HCS/HB 1865 (2012).

ADVERSE INFORMATION ABOUT COMPANIES SEEKING ECONOMIC DEVELOPMENT INCENTIVES

(Section 620.009)

This provision requires the Department of Economic Development to share electronic copies of all adverse information it has about any company seeking state and local economic development incentives with all local governments, economic development organizations and officials that are competing for the company's business. Local governments, economic development organizations and officials are also required to share adverse information about a company with the department. All adverse information the department receives shall be a closed record.

This provision is identical to a provision of HCS/HB 1865 (2012).

THE DEPARTMENT OF ECONOMIC DEVELOPMENT'S OPINION ON ECONOMIC DEVELOPMENT INCENTIVES

(Section 620.019)

This provision requires the Department of Economic Development to develop a ratings system to share with local governments the department's opinion on proposals for discretionary economic development incentives that combine local and state resources.

This provision is identical to a provision of HCS/HB 1865 (2012).

MISSOURI WORKS JOB TRAINING PROGRAM

(Sections 100.293, 135.284, 135.800, 178.760, 178.761, 178.762, 178.763, 178.764, 178.892, 178.893, 178.894, 178.895, 178.896, 620.470, 620.472, 620.474, 620.475, 620.476, 620.478, 620.479, 620.480, 620.481, 620.482, 620.800, 620.803, 620.806, 620.809, 620.1881, 620.1910,

This act establishes the Missouri Works Job Training Program which combines several existing job training programs and modifies the eligibility requirements for the programs. The Missouri Works Job Training Program provides financial assistance for job training for new jobs created by qualified companies. Financial assistance will also be available to business and technology centers established by Missouri community colleges, or state-owned postsecondary technical colleges, to provide business and training services for growth industries as determined by labor market conditions, rather than for specified disciplines. The act also provides for the diversion of withholding taxes from new or retained jobs of qualified companies to pay costs incurred by new or retained jobs training projects administered by community and technical colleges.

The provisions of the act will automatically sunset July 1, 2018, unless reauthorized.

This act is similar to SB 734 (2012), provisions of HB 1246 (2012), and SB 296 (2011).

MISSOURI QUALITY JOBS ACT

(Section 620.1881)

Currently, under the Quality Jobs program a company must make either seventy million dollars in new investment in two years or thirty million dollars in new investment in two years while maintaining at least a seventy million dollar annual payroll to be eligible for the tax credits for job retention. This act lowers the minimum required investment from seventy million dollars to fifty million dollars and increases the amount of time the company has to make thirty million dollars in new investment from two years to five years.

Currently, no new tax credits for job retention projects may be issued for projects approved by the Department of Economic Development after August 30, 2013. This act extends this deadline until August 30, 2018.

MISSOURI JOBS FOR EDUCATION PROGRAM

(Section 620.2450)

This act creates a program where businesses receive credits redeemable toward tuition at any state college or university for each new full-time job the business creates. This credit toward tuition may be used by business employees, relatives, or any person the business owner chooses. This credit must be used within ten years, or the funds will be deposited into state general revenue. This program will be funded through the withholding of state employee taxes from employers that fill out an application created by the Department of Revenue. The Department of Economic Development is required to administer the program. This program will sunset on August 28, 2016.

This provision is similar to a provision of HCS/HB 1245 (2012) and HB 1728 (2012).

CONSULTING CONTRACTS FOR TRADE OFFICES

(Section 1)

This provision requires the Department of Economic Development to include a conflict of interest policy in all new consulting contracts for trade offices in foreign countries.

This provision is identical to a provision of HCS/HB 1865 (2012).

EMILY KALMER