SS/SCS/SB 56 - This act modifies several provisions relating to financial incentives for job creation.MISSOURI WORKS TRAINING PROGRAM
This act modifies several provisions relating to the Missouri Works Training Program.
This act renames the program the Missouri One Start Program. Current law allows administrative expenses equal to fifteen percent of total training costs. This act limits such expenses to a reasonable amount determined by the Department of Economic Development. (Section 620.800)
In promulgating rules and regulations governing the Missouri One Start Training Program, this act requires the Department to consider such factors as the potential number of new jobs to be created, the amount of new capital investment in new facilities and equipment, the significance of state benefits to the qualified company's decision to locate or expand in Missouri, the economic need of the affected community, and the importance of the qualified company to the economic development of the state.
This act allows the Department to require a qualified business to repay all benefits if such business fails to maintain the new or retained jobs within five years of approval of benefits or if such business leaves the state within five years of approval of benefits.
This act allows the Department to contract with other entities, including businesses, industries, other state agencies, and political subdivisions of the state for the purpose of implementing a training project under the program. (Section 620.803)
Upon appropriation of funds to the Missouri One Start Job Development Fund, this act allows a local education agency to petition the Department to utilize the Fund to create or improve training facilities, equipment, staff, expertise, programming, and administration. The Department may award moneys from the Fund for reimbursement of training project costs and services as it deems necessary. (Section 620.806)
This act gives the Department the discretion to determine the appropriate amount of funds to allocate to a training project from the Missouri One Start Community College New Jobs and Retained Jobs Training funds.
Any agreement or obligation entered into by the Department that was made under the provisions of the Missouri Works Training Program prior to the effective date of this act shall remain in effect according to the provisions of such agreement or obligation. (Section 620.809)
These provisions are identical to provisions contained in HCS/SB 68 (2019), SCS/SB 184 (2019), and SS/HCS/HB 255 (2019), and are substantially similar to HCS/HB 469 (2019).
MISSOURI WORKS BUSINESS INCENTIVES
The Missouri Works program offers companies tax credits and the ability to retain withholding taxes for meeting certain job creation thresholds. This act allows the Department of Economic Development to offer certain companies tax credits in an amount equal to or less than nine percent of new payroll if such company creates ten or more new jobs and the average wage of new payroll equals or exceeds one hundred percent of the county average wage.
The Department of Economic Development shall require financial guarantee provisions in an agreement with a qualified company for tax credits authorized under this act. (Section 620.2010)
Current law provides that the Department shall issue tax credits to a qualified company after such company has met the job creation and county average wage requirements. This act allows the tax credits authorized under this act to be issued following the qualified company's acceptance of the Department's proposal and the agreement required under current law.
The Missouri Works program currently has a limit of $116 million on the amount of tax credits that may be issued during a fiscal year. For all fiscal years beginning on or after July 1, 2020, this act reduces such limit to $106 million. This act allows for the authorization of an additional $10 million in tax credits provided that such tax credits are authorized for the purpose of the completion of infrastructure projects, as defined in the act, directly connected with the creation or retention of jobs under the Missouri Works program. This act also allows the Department reserve up to 21.5% of such limit for tax credits authorized under this act.
For all fiscal years beginning on or after July 1, 2020, this act establishes a limit of $75 million on the total amount of withholding taxes that may be authorized for retention by qualified companies with more than fifty employees. Withholding retention authorized for qualified companies with less than fifty employees shall not be subject to such limitation. (Section 620.2020)
These provisions are identical to provisions contained in SS/HCS/HB 255 (2019) and are substantially similar to provisions contained in HCS/SB 68 (2019).
JOSHUA NORBERG