Encouraging Rural Investment

Two measures to encourage economic growth in rural areas were combined into one bill this week and approved by the full Senate. Senate Bill 92, the “Missouri Rural Access to Capital Act,” would incentivize private investors to help fund new and expanding rural businesses. As this measure came up for perfection, I offered an amendment to clarify provisions of a biodiesel fuel production incentives program passed in a previous legislative session.

Senate Bill 92 is modeled after rural investment incentives proven to bring results in Georgia, Ohio and Utah. The legislation would allow private capital firms to claim a tax credit for money invested in rural businesses. The program would be administered by the Department of Economic Development, which would certify “rural funds” for the purpose of facilitating investments in businesses that might not otherwise be able to access lines of credit.

During committee testimony on SB 92, we learned barely 1% of private investment nationwide flows to rural areas. The Missouri Rural Access to Capital Act is intended to address that. Aimed at mid-size businesses with fewer than 250 employees, the rural funds created by the bill will fill financing gaps not addressed by existing incentives, such as the MO Bucks Linked Deposit Program, which provides financing for smaller businesses, and Missouri Works, which typically benefits larger employers. Increasing access to capital will help rural businesses expand, increase market share and bring new products to market. The program is phased-in, with tax credits delayed until the third year following investment so that recipients have to show their worth before receiving benefits.

The biodiesel provisions added to SB 92 mirror my Senate Bill 519, which separately passed out of the Agriculture, Food Production and Outdoor Resources Committee this week. The bill provides additional flexibility to match eligibility for tax credits with producers’ actual fiscal calendars.

Also this week, the Senate Economic Development and Tax Policy Committee heard testimony on Senate Bill 513. As originally written, this legislation would resolve confusion about taxation of boat docks. I sponsored this bill after hearing from marina owners who received unexpected notices of past due sales taxes on rental dock slips. Senate Bill 513 will clarify the tax status of rental boat docks and provide predictability and consistency for business owners. As the bill moved through the committee process, we added provisions of Senate Bill 588, legislation I sponsored to provide income tax deductions to beginning farmers who sell, lease or participate in crop-share arrangements.

Senate Joint Resolution 42, a measure I was proud to co-sponsor, received a hearing in the Senate General Laws Committee. This legislation would ask voters to approve a constitutional amendment related to county sheriffs. Currently, the office of sheriff is not enshrined in our state constitution. The measure would establish county sheriffs as the chief law enforcement officer in any county that elects a sheriff. As such, sheriffs would have the constitutional authority to oversee all federal and state investigations in his or her county. Elevating the office of sheriff would provide assurance there is always a local authority to intervene in instances of potential overreach on the part of state of federal powers. I was happy to join with county sheriffs from across the state, as well as co-signing legislative colleagues as the sponsor explained the measure to the media this week.

In the other chamber of Missouri’s Legislature, two of my bills are closer to final passage after receiving hearings in the House Economic Development Committee. Both Senate Bill 3, the “Regulatory Sandbox Act,” and Senate Bill 94, which includes incentives for film production and entertainment job opportunities in Missouri, came before the committee this week. As I’ve mentioned in previous legislative updates, SB 3 would restart a tax credit for motion picture production project expenses. Missouri has not hosted any significant movie projects since the state’s previous film production tax credit expired in 2013. It’s my hope that renewal of this program would spur economic activity as film companies set up camp in our state. Senate Bill 94 seeks to attract national-class music artists to a stage production rehearsal facility in Missouri. To receive the incentives provided by SB 94, artists would have to hire local crew members and perform two concerts in our state.

Finally, I’d like to alert community leaders in the district about an exciting new opportunity through the Missouri Humanities organization. The group wants to feature towns with populations under 10,000 in its Small Town Showcase program. Communities interested in participating have until May 1 to apply. Missouri Humanities will select five communities to be featured in short-videos, podcasts and the organization’s magazine and e-newsletter. The cost for these productions will be paid by Missouri Humanities. More information about the program can be found at the Missouri Humanities website or by calling 314-781-9660.

As always, I appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-4302. You may also email me at Denny.Hoskins@senate.mo.gov.