SB 1234 - This act implements the jobs now infrastructure program. This is a plan to redirect existing revenues currently used by several tax credit programs. This redirected revenue, would then be used as bond payments to produce revenue for the jobs now fund. The bonds will be issued by the Missouri Development Finance Board to assist cities, counties and other public entities with infrastructure development.

Sixty percent of the jobs now fund will be allocated for direct grants and low interest/no interest loans for public infrastructures projects; twenty percent of the funds will be allocated for grants and loans to public entities that can be used to leverage federal or non-state dollars; and twenty percent of the funds will be allocated for public college and university facilities that show an investment in industries with probability of creating jobs in the future.

The jobs now infrastructure program would include certain road and bridge projects; rail spurs; levies; drainage-to include curb gutters; sidewalks and lighting; public buildings; demolition and remediation; ADA compliance for public facilities; water and sewer facilities; broadband infrastructure; airports and others. Eligible infrastructure activities may include cost associated with design and planning and/or payment of bond insurance for local bond issuances.

The jobs now infrastructure program also includes an enhanced Enterprise Zone Program. The current Enterprise Zones will be allowed to run the life of their term plus the 7-year extension. The Enhanced Enterprise Zone Program (EEZ) would be officially designated by the Department of Economic Development (DED) and approved by the Joint Committee on Economic Development Policy and Planning. All zones would be required to demonstrate a specific degree of economic distress; in addition to economic distress, new zones could be named based on applications that would demonstrate the potential for creation of sustainable jobs in targeted industry cluster development.

Under the act, local governments may abate real property tax at a minimum of 50% and may expand the local abatement up to 100% for EEZ for up to 25 years. Any abatement requires a public notice and a public hearing with notification of the Department of Economic Development. After local abatement has occurred, a project within an EEZ would be eligible to be considered for state tax credits.

Credits granted to a company may be sellable or the company may seek a refund for any portion of the credits that would exceed their tax liability. The EEZ program will limit the state tax credits that may be issued to $7 million yearly.
JEFF CRAVER