SB 794 - This act establishes the Missouri Works Program which combines six existing business incentive programs and will provide tax incentives for job creation and capital investment. The Missouri Works Program is established to provide tax incentives in the form of retained withholding taxes and refundable income and financial institutions tax credits for qualified companies. The program provides both entitlement and discretionary benefits for qualified companies that offer health insurance to all employees and pay at least fifty percent of the premiums. Tax credits provided under the program are fully transferrable and must be used within one taxable year following the close of the taxable year in which they are issued.
Qualified companies that create twenty or more new jobs with an average wage equal to or in excess of ninety percent of the county average wage will be entitled to retain withholding taxes from new payroll for a period of five years. Such a company will also be entitled to tax credits equal to up to two percent of new payroll to be issued each year for five years, provided that the combined tax credit and retained withholding benefits cannot exceed five percent of new payroll. The act gives the Department of Economic Development the discretion to issue such company additional tax credits, equal to up to four percent of payroll, for five years, provided that the total amount of all benefits received does not exceed nine percent of new payroll annually. In addition, discretionary tax credits authorized by the department cannot exceed the projected net state benefit.
If a qualified company is in a targeted industry and it creates ten or more new jobs with an average wage equal to or in excess of ninety percent of the county average wage, it will be entitled to retain withholding taxes from new payroll for a period of five years. Such a company will also be entitled to tax credits equal to up to three percent of new payroll to be issued each year for five years, provided that the combined tax credit and retained withholding benefits cannot exceed six percent of new payroll. The act gives the Department of Economic Development the discretion to issue such company additional tax credits, equal to up to six percent of new payroll, for five years, provided that the total amount of all benefits received does not exceed twelve percent of new payroll annually. Discretionary tax credits authorized by the department cannot exceed the projected net state benefit.
Qualified companies, located within an enhanced enterprise zone, that create two or more new jobs with an average wage equal to or in excess of eighty percent of the county average wage and make a capital investment of at least one hundred thousand dollars will be entitled to retain withholding taxes for a period of five years.
A qualified company that is located within a dormant manufacturing zone and creates two or more new jobs with an average wage equal to or in excess of eighty percent of the county average wage will be entitled to retain withholding taxes for a period of five years.
Any qualified company that is an existing Missouri business and meets the conditions under the Missouri Works program will be entitled to retain withholding taxes for an additional year.
The Department of Economic Development is required to respond to a request for a proposed benefit award under the Missouri Works Program within five business days of the receipt of such request. The response must contain either a proposal of benefits or a written refusal stating the reasons no proposal will be provided. Failure by the department to approve or disapprove a notice of intent for benefits under the program will result in a deemed approval. Beginning January 1, 2013, the Department of Economic Development must provide quarterly reports on the program to the General Assembly, including a listing of all approved and disapproved applicants and the department's response time to requests for proposed benefit awards. Qualified companies that receive benefits under the program will be required to provide annual reports to the department, in order to document compliance with all applicable requirements.
The act prohibits the approval of new projects after the effective date of the act, under the Quality Jobs, Enhanced Enterprise Zone, BUILD, Development, Rebuilding Communities, and Business Facilities programs.
The total amount of all tax credits authorized for each fiscal year under the Missouri Works Program including any outstanding authorizations for tax credits under the six programs prohibited from approving new projects after the effective date of the act, cannot exceed:
1) $111 million for FY 2013;
2) $126 million for FY 2014; and
3) $141 million for FY 2015 and each subsequent fiscal year.
The provisions of the act creating the Missouri Works Program will automatically sunset six years after the effective date of the act unless reauthorized.
This act is similar to provisions of SS/SCS/SB 8 (1st Ext. Sess. 2012), SS/SCS/SB 280 (2011), and SB 279 (2011).
EMILY KALMER