Missouri SB 1301: Modifies the Missouri Works program

Bill Text

EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1301
102ND GENERAL ASSEMBLY
INTRODUCED BY SENATOR BEAN.
4951S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 620.2010 and 620.2020, RSMo, and to enact in lieu thereof two new sections
relating to financial incentives for economic development.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 620.2010 and 620.2020, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 620.2010 and 620.2020, to read as follows:3
620.2010. 1. In exchange for the consideration 1
provided by the new tax revenues and other economic stimuli 2
that will be generated by the new jobs created, a qualified 3
company may, for a period of five years from the date the 4
new jobs are created, or for a period of six years from the 5
date the new jobs are created if the qualified company is an 6
existing Missouri business, retain an amount equal to the 7
withholding tax as calculated under subdivision (38) of 8
section 620.2005 from the new jobs that would otherwise be 9
withheld and remitted by the qualified company under the 10
provisions of sections 143.191 to 143.265 if: 11
(1) The qualified company creates ten or more new 12
jobs, and the average wage of the new payroll equals or 13
exceeds ninety percent of the county average wage; 14
(2) The qualified company creates two or more new jobs 15
at a project facility located in a rural area, the average 16
wage of the new payroll equals or exceeds ninety percent of 17
the county average wage, and the qualified company commits 18
to making at least one hundred thousand dollars of new 19

SB 1301 2
capital investment at the project facility within two years; 20
or 21
(3) The qualified company creates two or more new jobs 22
at a project facility located within a zone designated under 23
sections 135.950 to 135.963, the average wage of the new 24
payroll equals or exceeds eighty percent of the county 25
average wage, and the qualified company commits to making at 26
least one hundred thousand dollars in new capital investment 27
at the project facility within two years of approval. 28
2. In addition to any benefits available under 29
subsection 1 of this section, the department may award a 30
qualified company that satisfies subdivision (1) of 31
subsection 1 of this section additional tax credits, issued 32
each year for a period of five years from the date the new 33
jobs are created, or for a period of six years from the date 34
the new jobs are created if the qualified company is an 35
existing Missouri business, in an amount equal to or less 36
than six percent of new payroll; provided that in no event 37
may the total amount of benefits awarded to a qualified 38
company under this section exceed nine percent of new 39
payroll in any calendar year. The amount of tax credits 40
awarded to a qualified company under this subsection shall 41
not exceed the projected net fiscal benefit to the state, as 42
determined by the department, and shall not exceed the least 43
amount necessary to obtain the qualified company's 44
commitment to initiate the project. In determining the 45
amount of tax credits to award to a qualified company under 46
this subsection or a qualified manufacturing company under 47
subsection 3 of this section, the department shall consider 48
the following factors: 49
(1) The significance of the qualified company's need 50
for program benefits; 51

SB 1301 3
(2) The amount of projected net fiscal benefit to the 52
state of the project and the period in which the state would 53
realize such net fiscal benefit; 54
(3) The overall size and quality of the proposed 55
project, including the number of new jobs, new capital 56
investment, manufacturing capital investment, proposed 57
wages, growth potential of the qualified company, the 58
potential multiplier effect of the project, and similar 59
factors; 60
(4) The financial stability and creditworthiness of 61
the qualified company; 62
(5) The level of economic distress in the area; 63
(6) An evaluation of the competitiveness of 64
alternative locations for the project facility, as 65
applicable; and 66
(7) The percent of local incentives committed. 67
3. (1) The department may award tax credits to a 68
qualified manufacturing company that makes a manufacturing 69
capital investment of at least five hundred million dollars 70
not more than three years following the department's 71
approval of a notice of intent and the execution of an 72
agreement that meets the requirements of subsection 4 of 73
this section. Such tax credits shall be issued no earlier 74
than January 1, 2023, and may be issued each year for a 75
period of five years. A qualified manufacturing company may 76
qualify for an additional five-year period under this 77
subsection if it makes an additional