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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. 1036
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BECK.
4320S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 620.2005 and 620.2010, RSMo, and to enact in lieu thereof two new sections
relating to financial incentives for business development.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 620.2005 and 620.2010, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 620.2005 and 620.2010, to read as follows:3
620.2005. 1. As used in sections 620.2000 to 1
620.2020, the following terms mean: 2
(1) "Average wage", the aggregate gross new payroll 3
divided by the [number of new jobs] aggregate actual hours 4
worked for new jobs multiplied by two thousand eighty, or 5
the aggregate gross payroll of the retained jobs divided by 6
the [number of retained jobs] aggregate actual hours worked 7
for retained jobs multiplied by two thousand eighty; 8
(2) "Commencement of operations", the starting date 9
for the qualified company's first new employee, which shall 10
be no later than twelve months from the date of the approval; 11
(3) "Contractor", a person, employer, or business 12
entity that enters into an agreement to perform any service 13
or work or to provide a certain product in exchange for 14
valuable consideration. This definition shall include but 15
not be limited to a general contractor, subcontractor, 16
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independent contractor, contract employee, project manager, 17
or a recruiting or staffing entity; 18
(4) "County average wage", the average wages in each 19
county as determined by the department for the most recently 20
completed full calendar year. However, if the computed 21
county average wage is above the statewide average wage, the 22
statewide average wage shall be deemed the county average 23
wage for such county for the purpose of determining 24
eligibility. The department shall publish the county 25
average wage for each county at least annually. 26
Notwithstanding the provisions of this subdivision to the 27
contrary, for any qualified company that in conjunction with 28
their project is relocating employees from a Missouri county 29
with a higher county average wage, the company shall obtain 30
the endorsement of the governing body of the community from 31
which jobs are being relocated or the county average wage 32
for their project shall be the county average wage for the 33
county from which the employees are being relocated; 34
(5) "Department", the Missouri department of economic 35
development; 36
(6) "Director", the director of the department of 37
economic development; 38
(7) "Employee", a person employed by a qualified 39
company, excluding: 40
(a) Owners of the qualified company unless the 41
qualified company is participating in an employee stock 42
ownership plan; or 43
(b) Owners of a noncontrolling interest in stock of a 44
qualified company that is publicly traded; 45
(8) "Existing Missouri business", a qualified company 46
that, for the ten-year period preceding submission of a 47
notice of intent to the department, had a physical location 48
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in Missouri and full-time employees who routinely performed 49
job duties within Missouri; 50
(9) "Full-time employee", an employee of the qualified 51
company that is scheduled to work an average of at least 52
thirty-five hours per week for a twelve-month period, and 53
one for which the qualified company offers health insurance 54
and pays at least fifty percent of such insurance premiums. 55
An employee that spends less than fifty percent of the 56
employee's work time at the facility shall be considered to 57
be located at a facility if the employee receives his or her 58
directions and control from that facility, is on the 59
facility's payroll, one hundred percent of the employee's 60
income from such employment is Missouri income, and the 61
employee is paid at or above the applicable percentage of 62
the county average wage; 63
(10) "Gross wages", the total compensation paid by an 64
employer to an employee as reported in box 5 of the 65
employee's W-2; 66
(11) "Industrial development authority", an industrial 67
development authority organized under chapter 349 that has 68
entered into a formal written memorandum of understanding 69
with an entity of the United States Department of Defense 70
regarding a qualified military project; 71
[(11)] (12) "Infrastructure projects", highways, 72
roads, streets, bridges, sewers, traffic control systems and 73
devices, water distribution and supply systems, curbing, 74
sidewalks, storm water and drainage systems, broadband 75
internet infrastructure, and any other similar public 76
improvements, but in no case shall infrastructure projects 77
include private structures; 78
[(12)] (13) "Local incentives", the present value of 79
the dollar amount of direct benefit received by a qualified 80
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company for a project facility from one or more local 81
political subdivisions, but this term shall not include 82
loans or other funds provided to the qualified company that 83
shall be repaid by the qualified company to the political 84
subdivision; 85
[(13)] (14) "Manufacturing capital investment", 86
expenditures made by a qualified manufacturing company to 87
retool or reconfigure a manufacturing project facility 88
directly related to the manufacturing of a new product or 89
the expansion or modification of the manufacture of an 90
existing product; 91
[(14)] (15) "Memorandum of understanding", an 92
agreement executed by an industrial development authority 93
and an entity of the United States Department of Defense, a 94
copy of which is provided to the department of economic 95
development, that states, but is not limited to: 96
(a) A requirement for the military to provide the 97
total number of existing jobs, jobs directly created by a 98
qualified military project, and average salaries of such 99
jobs to the industrial development authority and the 100
department of economic development annually for the term of 101
the benefit; 102
(b) A requirement for the military to provide an 103
accounting of the expenditures of capital investment made by 104
the military directly related to the qualified military 105
project to the industrial development authority and the 106
department of economic development annually for the term of 107
the benefit; 108
(c) The process by which the industrial development 109
authority shall monetize the tax credits annually and any 110
transaction cost or administrative fee charged by the 111
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industrial development authority to the military on an 112
annual basis; 113
(d) A requirement for the industrial development 114
authority to provide proof to the department of economic 115
development of the payment made to the qualified military 116
project annually, including the amount of such payment; 117
(e) The schedule of the maximum amount of tax credits 118
which may be authorized in each year for the project and the 119
specified term of the benefit, as provided by the department 120
of economic development; and 121
(f) A requirement that the annual benefit paid shall 122
be the lesser of: 123
a. The maximum amount of tax credits authorized; or 124
b. The actual calculated benefit derived from the 125
number of new jobs and average salaries; 126
[(15)] (16) "NAICS" or "NAICS industry 127
classification", the classification provided by the most 128
recent edition of the North American Industry Classification 129
System as prepared by the Executive Office of the President, 130
Office of Management and Budget; 131
[(16)] (17) "New capital investment", shall include 132
costs incurred by the qualified company at the project 133
facility after acceptance by the qualified company of the 134
proposal for benefits from the department or the approval 135
notice of intent, whichever occurs first, for real or 136
personal property, and may include the value of finance or 137
capital leases for real or personal property for the term of 138
such lease at the project facility executed after acceptance 139
by the qualified company of the proposal for benefits from 140
the department or the approval of the notice of intent; 141
[(17)] (18) "New direct local revenue", the present 142
value of the dollar amount of direct net new tax revenues of 143
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the local political subdivisions likely to be produced by 144
the project over a ten-year period as calculated by the 145
department, excluding local earnings tax, and net new 146
utility revenues, provided the local incentives include a 147
discount or other direct incentives from utilities owned or 148
operated by the political subdivision; 149
[(18)] (19) "New job", the number of full-time 150
employees located at the project facility that exceeds the 151
project facility base employment less any decrease in the 152
number of full-time employees at related facilities below 153
the related facility base employment. No job that was 154
created prior to the date of the notice of intent shall be 155
deemed a new job; 156
[(19)] (20) "New payroll", the amount of gross wages 157
paid for all new jobs, located at the project facility 158
during the qualified company's tax year that exceeds the 159
project facility base payroll. For a qualified company that 160
offers health insurance to all full-time employees of all 161
facilities located in this state, and certifies that it pays 162
one hundred percent of such insurance premiums, "new 163
payroll" shall include all amounts paid by the qualified 164
company for such insurance premiums; 165
[(20)] (21) "New product", a new model or line of a 166
manufactured good that has not been manufactured in Missouri 167
by a qualified manufacturing company at any time prior to 168
the date of the notice of intent, or an existing brand, 169
model, or line of a manufactured good that is redesigned; 170
[(21)] (22) "Notice of intent", a form developed by 171
the department and available online, completed by the 172
qualified company, and submitted to the department stating 173
the qualified company's intent to request benefits under 174
this program. The notice of intent shall be accompanied 175
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with a detailed plan by the qualifying company to make good 176
faith efforts to employ, at a minimum, commensurate with the 177
percentage of minority populations in the state of Missouri, 178
as reported in the previous decennial census, the following: 179
racial minorities, contractors who are racial minorities, 180
and contractors that, in turn, employ at a minimum racial 181
minorities commensurate with the percentage of minority 182
populations in the state of Missouri, as reported in the 183
previous decennial census. At a minimum, such plan shall 184
include monitoring the effectiveness of outreach and 185
recruitment strategies in attracting diverse applicants and 186
linking with different or additional referral sources in the 187
event that recruitment efforts fail to produce a diverse 188
pipeline of applicants. The notice of intent shall be 189
accompanied by an affidavit signed by the qualified 190
company's human resources lead or chief financial officer 191
attesting to the estimated number of new jobs, position 192
types, and new payroll; 193
[(22)] (23) "Percent of local incentives", the amount 194
of local incentives divided by the amount of new direct 195
local revenue; 196
[(23)] (24) "Program", the Missouri works program 197
established in sections 620.2000 to 620.2020; 198
[(24)] (25) "Project facility", the building or 199
buildings used by a qualified company at which new or 200
retained jobs and any new capital investment are or will be 201
located or by a qualified manufacturing company at which a 202
manufacturing capital investment is or will be located. A 203
project facility may include separate buildings located 204
within sixty miles of each other such that their purpose and 205
operations are interrelated; provided that where the 206
buildings making up the project facility are not located 207
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within the same county, the average wage of the new gross 208
payroll shall exceed the applicable percentage of the 209
highest county average wage among the counties in which the 210
buildings are located. Upon approval by the department, a 211
subsequent project facility may be designated if the 212
qualified company demonstrates a need to relocate to the 213
subsequent project facility at any time during the project 214
period. For qualified military projects, the term "project 215
facility" means the military base or installation at which 216
such qualified military project is or shall be located; 217
[(25)] (26) "Project facility base employment", the 218
greater of the number of full-time employees located at the 219
project facility on the date of the notice of intent or, for 220
the twelve-month period prior to the date of the notice of 221
intent, the average number of full-time employees located at 222
the project facility. In the event the project facility has 223
not been in operation for a full twelve-month period, the 224
average number of full-time employees for the number of 225
months the project facility has been in operation prior to 226
the date of the notice of intent; 227
[(26)] (27) "Project facility base payroll", the 228
annualized gross payroll for the project facility base 229
employment or the total amount of [taxable] gross wages paid 230
by the qualified company to full-time employees of the 231
qualified company located at the project facility in the 232
twelve months prior to the notice of intent. For purposes 233
of calculating the benefits under this program, the amount 234
of base payroll shall increase each year based on an 235
appropriate measure, as determined by the department; 236
[(27)] (28) "Project period", the time period within 237
which benefits are awarded to a qualified company or within 238
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which the qualified company is obligated to perform under an 239
agreement with the department, whichever is greater; 240
[(28)] (29) "Projected net fiscal benefit", the total 241
fiscal benefit to the state less any state benefits offered 242
to the qualified company, as determined by the department; 243
[(29)] (30) "Qualified company", a firm, partnership, 244
joint venture, association, private or public corporation 245
whether organized for profit or not, or headquarters of such 246
entity registered to do business in Missouri that is the 247
owner or operator of a project facility, certifies that it 248
offers health insurance to all full-time employees of all 249
facilities located in this state, and certifies that it pays 250
at least fifty percent of such insurance premiums. For the 251
purposes of sections 620.2000 to 620.2020, the term 252
"qualified company" shall not include: 253
(a) Gambling establishments (NAICS industry group 254
7132); 255
(b) Store front consumer-based retail trade 256
establishments (under NAICS sectors 44 and 45), except with 257
respect to any company headquartered in this state with a 258
majority of its full-time employees engaged in operations 259
not within the NAICS codes specified in this subdivision and 260
except for any such establishments located in a county of 261
the third or fourth classification; 262
(c) Food and drinking places (NAICS subsector 722); 263
(d) Public utilities (NAICS 221 including water and 264
sewer services); 265
(e) Any company that is delinquent in the payment of 266
any nonprotested taxes or any other amounts due the state or 267
federal government or any other political subdivision of 268
this state; 269
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(f) Any company requesting benefits for retained jobs 270
that has filed for or has publicly announced its intention 271
to file for bankruptcy protection. However, a company that 272
has filed for or has publicly announced its intention to 273
file for bankruptcy may be a qualified company provided that 274
such company: 275
a. Certifies to the department that it plans to 276
reorganize and not to liquidate; and 277
b. After its bankruptcy petition has been filed, it 278
produces proof, in a form and at times satisfactory to the 279
department, that it is not delinquent in filing any tax 280
returns or making any payment due to the state of Missouri, 281
including but not limited to all tax payments due after the 282
filing of the bankruptcy petition and under the terms of the 283
plan of reorganization. Any taxpayer who is awarded 284
benefits under this subsection and who files for bankruptcy 285
under Chapter 7 of the United States Bankruptcy Code, Title 286
11 U.S.C., shall immediately notify the department and shall 287
forfeit such benefits and shall repay the state an amount 288
equal to any state tax credits already redeemed and any 289
withholding taxes already retained; 290
(g) Educational services (NAICS sector 61); 291
(h) Religious organizations (NAICS industry group 292
8131); 293
(i) Public administration (NAICS sector 92); 294
(j) Ethanol distillation or production; 295
(k) Biodiesel production; or 296
(l) Health care and social services (NAICS sector 62). 297
Notwithstanding any provision of this section to the 298
contrary, the headquarters, administrative offices, or 299
research and development facilities of an otherwise excluded 300
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business may qualify for benefits if the offices or 301
facilities serve a multistate territory. In the event a 302
national, state, or regional headquarters operation is not 303
the predominant activity of a project facility, the jobs and 304
investment of such operation shall be considered eligible 305
for benefits under this section if the other requirements 306
are satisfied; 307
[(30)] (31) "Qualified manufacturing company", a 308
company that: 309
(a) Is a qualified company that manufactures motor 310
vehicles (NAICS group 3361); 311
(b) Manufactures goods at a facility in Missouri; 312
(c) Manufactures a new product or has commenced making 313
a manufacturing capital investment to the project facility 314
necessary for the manufacturing of such new product, or 315
modifies or expands the manufacture of an existing product 316
or has commenced making a manufacturing capital investment 317
for the project facility necessary for the modification or 318
expansion of the manufacture of such existing product; and 319
(d) Continues to meet the requirements of paragraphs 320
(a) to (c) of this subdivision for the project period; 321
[(31)] (32) "Qualified military project", the 322
expansion or improvement of a military base or installation 323
within this state that causes: 324
(a) An increase of ten or more part-time or full-time 325
military or civilian support personnel: 326
a. Whose average salaries equal or exceed ninety 327
percent of the county average wage; and 328
b. Who are offered health insurance, with an entity of 329
the United States Department of Defense paying at least 330
fifty percent of such insurance premiums; and 331
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(b) Investment in real or personal property at the 332
base or installation expressly for the purposes of serving a 333
new or expanded military activity or unit. 334
For the purposes of this subdivision, part-time military or 335
civilian support personnel shall be converted to full-time 336
new jobs by, in hire date order, counting one full-time new 337
job for every thirty-five averaged hours worked per week by 338
part-time military or civilian support personnel in jobs 339
directly created by the qualified military project. For each 340
such full-time new job, the sum of the gross wages of the 341
part-time military or civilian support personnel combined 342
and converted to form the new job shall be the wage for the 343
one full-time new job. Each part-time military or civilian 344
support personnel whose job is combined and converted for 345
such a full-time new job shall be offered health insurance 346
as described in subparagraph b of paragraph (a) of this 347
subdivision; 348
[(32)] (33) "Related company", shall mean: 349
(a) A corporation, partnership, trust, or association 350
controlled by the qualified company; 351
(b) An individual, corporation, partnership, trust, or 352
association in control of the qualified company; or 353
(c) Corporations, partnerships, trusts or associations 354
controlled by an individual, corporation, partnership, 355
trust, or association in control of the qualified company. 356
As used in this paragraph, "control of a qualified company" 357
shall mean: 358
a. Ownership, directly or indirectly, of stock 359
possessing at least fifty percent of the total combined 360
voting power of all classes of stock entitled to vote in the 361
case of a qualified company that is a corporation; 362
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b. Ownership of at least fifty percent of the capital 363
or profit interest in such qualified company if it is a 364
partnership or association; 365
c. Ownership, directly or indirectly, of at least 366
fifty percent of the beneficial interest in the principal or 367
income of such qualified company if it is a trust, and 368
ownership shall be determined as provided in Section 318 of 369
the Internal Revenue Code of 1986, as amended; 370
[(33)] (34) "Related facility", a facility operated by 371
the qualified company or a related company located in this 372
state that is directly related to the operations of the 373
project facility or in which operations substantially 374
similar to the operations of the project facility are 375
performed; 376
[(34)] (35) "Related facility base employment", the 377
greater of the number of full-time employees located at all 378
related facilities on the date of the notice of intent or, 379
for the twelve-month period prior to the date of the notice 380
of intent, the average number of full-time employees located 381
at all related facilities of the qualified company or a 382
related company located in this state; 383
[(35)] (36) "Related facility base payroll", the 384
annualized gross payroll of the related facility base 385
payroll or the total amount of [taxable] gross wages paid by 386
the qualified company to full-time employees of the 387
qualified company located at a related facility in the 388
twelve months prior to the filing of the notice of intent. 389
For purposes of calculating the benefits under this program, 390
the amount of related facility base payroll shall increase 391
each year based on an appropriate measure, as determined by 392
the department; 393
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[(36)] (37) "Rural area", a county in Missouri with a 394
population less than seventy-five thousand or that does not 395
contain an individual city with a population greater than 396
fifty thousand according to the most recent federal 397
decennial census; 398
[(37)] (38) "Tax credits", tax credits issued by the 399
department to offset the state taxes imposed by chapters 143 400
and 148, or which may be sold or refunded as provided for in 401
this program; 402
(39) "Taxable wages", the employee's total 403
compensation subject to tax as reported in box 16 of the 404
employee's W-2; 405
[(38)] (40) "Withholding tax", the state tax imposed 406
by sections 143.191 to 143.265. For purposes of this 407
program, the withholding tax shall be computed using a 408
schedule as determined by the department based on average 409
wages. 410
2. This section is subject to the provisions of 411
section 196.1127. 412
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
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(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
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
(4) In the event that the average wage for all new 29
jobs fails to meet the average wage requirement pursuant to 30
subdivisions (1), (2), or (3) of this subsection, the 31
qualified company may retain withholding tax for the minimum 32
number of required jobs. The department may choose which 33
new jobs to include in the minimum number to be averaged 34
that will meet or exceed the average wage requirement. 35
2. In addition to any benefits available under 36
subsection 1 of this section, the department may award a 37
qualified company that satisfies subdivision (1) of 38
subsection 1 of this section additional tax credits, issued 39
each year for a period of five years from the date the new 40
jobs are created, or for a period of six years from the date 41
the new jobs are created if the qualified company is an 42
existing Missouri business, in an amount equal to or less 43
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than six percent of new [payroll] taxable wages; provided 44
that in no event may the total amount of benefits awarded to 45
a qualified company under this section exceed nine percent 46
of new [payroll] taxable wages in any calendar year. The 47
amount of tax credits awarded to a qualified company under 48
this subsection shall not exceed the projected net fiscal 49
benefit to the state, as determined by the department, and 50
shall not exceed the least amount necessary to obtain the 51
qualified company's commitment to initiate the project. In 52
determining the amount of tax credits to award to a 53
qualified company under this subsection or a qualified 54
manufacturing company under subsection 3 of this section, 55
the department shall consider the following factors: 56
(1) The significance of the qualified company's need 57
for program benefits; 58
(2) The amount of projected net fiscal benefit to the 59
state of the project and the period in which the state would 60
realize such net fiscal benefit; 61
(3) The overall size and quality of the proposed 62
project, including the number of new jobs, new capital 63
investment, manufacturing capital investment, proposed 64
wages, growth potential of the qualified company, the 65
potential multiplier effect of the project, and similar 66
factors; 67
(4) The financial stability and creditworthiness of 68
the qualified company; 69
(5) The level of economic distress in the area; 70
(6) An evaluation of the competitiveness of 71
alternative locations for the project facility, as 72
applicable; [and] 73
(7) The percent of local incentives committed; 74
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(8) Whether the qualified company participates in a 75
pre-apprenticeship program approved by the Missouri 76
department of higher education and workforce development; and 77
(9) The location of the headquarters of any contractor 78
used by the qualified company, with preference given to 79
contractors selected through an open bidding process that 80
are headquartered in Missouri and for whom at least eighty- 81
five percent of the workforce used for any work performed by 82
the contractor for a qualified company reside within fifty 83
miles of the site of such work. 84
3. (1) The department may award tax credits to a 85
qualified manufacturing company that makes a manufacturing 86
capital investment of at least five hundred million dollars 87
not more than three years following the department's 88
approval of a notice of intent and the execution of an 89
agreement that meets the requirements of subsection 4 of 90
this section. Such tax credits shall be issued no earlier 91
than January 1, 2023, and may be issued each year for a 92
period of five years. A qualified manufacturing company may 93
qualify for an additional five-year period under this 94
subsection if it makes an additional manufacturing capital 95
investment of at least two hundred fifty million dollars 96
within five years of the department's approval of the 97
original notice of intent. 98
(2) The maximum amount of tax credits that any one 99
qualified manufacturing company may receive under this 100
subsection shall not exceed five million dollars per 101
calendar year. The aggregate amount of tax credits awarded 102
to all qualified manufacturing companies under this 103
subsection shall not exceed ten million dollars per calendar 104
year. 105
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(3) If, at the project facility at any time during the 106
project period, the qualified manufacturing company 107
discontinues the manufacturing of the new product, or 108
discontinues the modification or expansion of an existing 109
product, and does not replace it with a subsequent or 110
additional new product or with a modification or expansion 111
of an existing product, the company shall immediately cease 112
receiving any benefit awarded under this subsection for the 113
remainder of the project period and shall forfeit all rights 114
to retain or receive any benefit awarded under this 115
subsection for the remainder of such period. 116
(4) Notwithstanding any other provision of law to the 117
contrary, any qualified manufacturing company that is 118
awarded benefits under this section shall not simultaneously 119
receive tax credits or exemptions under sections 100.700 to 120
100.850 for the jobs created or retained or capital 121
improvement that qualified for benefits under this section. 122
The provisions of subsection 5 of section 285.530 shall not 123
apply to a qualified manufacturing company that is awarded 124
benefits under this section. 125
4. Upon approval of a notice of intent to receive tax 126
credits under subsection 2, 3, 6, or 7 of this section, the 127
department and the qualified company shall enter into a 128
written agreement covering the applicable project period. 129
The agreement shall specify, at a minimum: 130
(1) The committed number of new jobs, new payroll, and 131
new capital investment, or the manufacturing capital 132
investment and committed percentage of retained jobs for 133
each year during the project period; 134
(2) The date or time period during which the tax 135
credits shall be issued, which may be immediately or over a 136
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period not to exceed two years from the date of approval of 137
the notice of intent; 138
(3) Clawback provisions, as may be required by the 139
department; 140
(4) Financial guarantee provisions as may be required 141
by the department, provided that financial guarantee 142
provisions shall be required by the department for tax 143
credits awarded under subsection 7 of this section; and 144
(5) Any other provisions the department may require. 145
5. In lieu of the benefits available under subsections 146
1 and 2 of this section, and in exchange for the 147
consideration provided by the new tax revenues and other 148
economic stimuli that will be generated by the new jobs 149
created by the program, a qualified company may, for a 150
period of five years from the date the new jobs are created, 151
or for a period of six years from the date the new jobs are 152
created if the qualified company is an existing Missouri 153
business, retain an amount equal to the withholding tax as 154
calculated under subdivision (38) of section 620.2005 from 155
the new jobs that would otherwise be withheld and remitted 156
by the qualified company under the provisions of sections 157
143.191 to 143.265 equal to: 158
(1) Six percent of new [payroll] taxable wages for a 159
period of five years from the date the required number of 160
new jobs were created if the qualified company creates one 161
hundred or more new jobs and the average wage of the new 162
payroll equals or exceeds one hundred twenty percent of the 163
county average wage of the county in which the project 164
facility is located; or 165
(2) Seven percent of new [payroll] taxable wages for a 166
period of five years from the date the required number of 167
jobs were created if the qualified company creates one 168
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hundred or more new jobs and the average wage of the new 169
payroll equals or exceeds one hundred forty percent of the 170
county average wage of the county in which the project 171
facility is located. 172
The department shall issue a refundable tax credit for any 173
difference between the amount of benefit allowed under this 174
subsection and the amount of withholding tax retained by the 175
company, in the event the withholding tax is not sufficient 176
to provide the entire amount of benefit due to the qualified 177
company under this subsection. 178
6. In addition to the benefits available under 179
subsection 5 of this section, the department may award a 180
qualified company that satisfies the provisions of 181
subsection 5 of this section additional tax credits, issued 182
each year for a period of five years from the date the new 183
jobs are created, or for a period of six years from the date 184
the new jobs are created if the qualified company is an 185
existing Missouri business, in an amount equal to or less 186
than three percent of new [payroll] taxable wages; provided 187
that in no event may the total amount of benefits awarded to 188
a qualified company under this section exceed nine percent 189
of new [payroll] taxable wages in any calendar year. The 190
amount of tax credits awarded to a qualified company under 191
this subsection shall not exceed the projected net fiscal 192
benefit to the state, as determined by the department, and 193
shall not exceed the least amount necessary to obtain the 194
qualified company's commitment to initiate the project. In 195
determining the amount of tax credits to award to a 196
qualified company under this subsection, the department 197
shall consider the factors provided under subsection 2 of 198
this section. 199
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7. In lieu of the benefits available under subsections 200
1, 2, 5, and 6 of this section, and in exchange for the 201
consideration provided by the new tax revenues and other 202
economic stimuli that will be generated by the new jobs and 203
new capital investment created by the program, the 204
department may award a qualified company that satisfies the 205
provisions of subdivision (1) of subsection 1 of this 206
section tax credits, issued within one year following the 207
qualified company's acceptance of the department's proposal 208
for benefits, in an amount equal to or less than nine 209
percent of new [payroll] taxable wages. The amount of tax 210
credits awarded to a qualified company under this subsection 211
shall not exceed the projected net fiscal benefit to the 212
state, as determined by the department, and shall not exceed 213
the least amount necessary to obtain the qualified company's 214
commitment to initiate the project. In determining the 215
amount of tax credits to award to a qualified company under 216
this subsection, the department shall consider the factors 217
provided under subsection 2 of this section and the 218
qualified company's commitment to new capital investment and 219
new job creation within the state for a period of not less 220
than ten years. For the purposes of this subsection, each 221
qualified company shall have an average wage of the new 222
payroll that equals or exceeds one hundred percent of the 223
county average wage. Notwithstanding the provisions of 224
section 620.2020 to the contrary, this subsection shall 225
expire on June 30, 2025. 226
8. No benefits shall be available under this section 227
for any qualified company that has performed significant, 228
project-specific site work at the project facility, 229
purchased machinery or equipment related to the project, or 230
has publicly announced its intention to make new capital 231
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investment or manufacturing capital investment at the 232
project facility prior to receipt of a proposal for benefits 233
under this section or approval of its notice of intent, 234
whichever occurs first. 235
9. In lieu of any other benefits under this chapter, 236
the department of economic development may award a tax 237
credit to an industrial development authority for a 238
qualified military project in an amount equal to the 239
estimated withholding taxes associated with the part-time 240
and full-time civilian and military new jobs located at the 241
facility and directly impacted by the project. The amount 242
of the tax credit shall be calculated by multiplying: 243
(1) The average percentage of tax withheld, as 244
provided by the department of revenue to the department of 245
economic development; 246
(2) The average [salaries] taxable wages of the jobs 247
directly created by the qualified military project; and 248
(3) The number of jobs directly created by the 249
qualified military project. 250
If the amount of the tax credit represents the least amount 251
necessary to accomplish the qualified military project, the 252
tax credits may be issued, but no tax credits shall be 253
issued for a term longer than fifteen years. No qualified 254
military project shall be eligible for tax credits under 255
this subsection unless the department of economic 256
development determines the qualified military project shall 257
achieve a net positive fiscal impact to the state. 258
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