| SB 0712 | Incentives for Large Scale Economic Development |
| Sponsor: | MAXWELL | ||
| LR Number: | L2713.01I | Fiscal Note: | 2713-01 |
| Committee: | Commerce and Environment | ||
| Last Action: | 02/06/96 - Hearing Conducted S Commerce & Environment Committee | ||
| Title: | |||
| Effective Date: | August 28, 1996 | ||
SB 712 - This act shall be known as the "Missouri Business Use Incentives for Large-Scale Development Act". Sixteen new sections are created.
This act provides parameters and authorizes the Department of Economic Development ("Department") and the Missouri Development Finance Board ("Board") to attract eligible industries that must invest at least $200M in an economic development project and create at least 100 new jobs.
Section 2 defines 12 relevant terms including economic development project, eligible industry, incremental income tax withholding and program costs.
Section 3 gives the Board the power and authority to effectuate this legislation, including the ability to negotiate and sign financing agreements and otherwise support economic development within the state. The Board may issue bonds to finance the economic development projects, but said bonds shall not constitute an indebtedness or liability of the state and are not guaranteed by the state.
Section 4 requires the Department and the Board to establish application procedures and standards.
Section 5 allows the board to enter into a financing agreement with any eligible industry.
Section 6 delineates the substance of such financing agreement.
Section 7 enacts guidelines for the Board to follow when entering into an agreement for a credit.
Section 8 lists factors the Board must consider when determining if a credit should be awarded.
Section 9 specifies that the amount of the credit, set by the Board, may not exceed the incremental income tax withholding.
Section 10 provides for items which must be included in an agreement between the Board and an eligible industry.
Section 14 - the Board must establish a separate fund for each project.
Section 15 - the Board may borrow money and issue certificates marketed through financial institutions authorized to do business in Missouri to provide funds for the present payment of the costs of economic development projects.
The "Missouri Large-Scale Development Fund" is established in the State Treasury and shall be administered by the Department. All incremental tax withholdings remitted by employers shall be transferred to the fund by the Department of Revenue. General revenue funds shall not be transferred to the fund.
This act contains provisions similar to HCS/SS/SS/SCS/SB 317 (1995). RONALD J. LEONE/OTTO FAJEN