HB 680 -- Job Retention Programs

Co-Sponsors:  Hanaway, Spreng, Zweifel, Darrough, Corcoran,
Dempsey, Schneider, Bivins

Relating to a motor vehicle manufacturing facility in the City of
Hazelwood, this bill:

(1)  States that 50% of the Missouri taxable income attributed to
an approved retained business facility in Hazelwood is exempt
from taxation;

(2)  Allows the following tax credits for the facility for 10
years:

(a)  A $400 or $500 tax credit for each employee retained by the
facility;

(b)  A $400 tax credit for each year in which a retained employee
lives in Hazelwood.  This tax credit can be prorated for
employees who have not lived in Hazelwood for a full year;

(c)  An annual $400 tax credit for each retained employee that
fits the criteria for "a person difficult to employ."  This tax
credit can be prorated for employees who have not worked for the
facility for a full year;

(d)  A tax credit equal to 80% of the training expenses that are
in excess of $400 per trainee, as long as the trainee is a
resident of Hazelwood or is defined as "a person difficult to
employ."  This tax credit cannot exceed $400 per trainee; and

(e)  A tax credit equal to 10% of the first $10,000 of a
qualifying investment, a 5% tax credit on the next $90,000 of a
qualifying investment, and a 2% tax credit on all remaining
qualifying investments;

(3)  Allows a tax refund to be issued to the facility in
Hazelwood, but only if the certified tax credits exceed the
company's total Missouri tax liability by at least $1 million.
In this case, a portion of the tax credits earned will be
considered an overpayment of taxes and may be refunded to the
company.  The maximum amount of the refund cannot exceed $2
million a year;

(4)  Prohibits the facility from taking advantage of the tax
exemption for new businesses in enterprise zones, tax credits for
a new or expanded business facility in an enterprise zone, tax
credits for training employees, tax credits for new or expanded
business facilities, or the income tax refund for establishing a
new business facility in an enterprise zone if it uses the tax
exemption, tax credits, or tax refund explained in the bill;

(5)  Allows the facility to participate in the New Jobs Training
Program; and

(6)  Requires any contract entered into between the facility and
the Department of Economic Development to include a requirement
that the company maintain operations at the facility for at least
10 years at a particular employment level.  The contract must
also include provisions for repayment of incentives upon breach
of contract.

Relating to tax credits for business-use incentives for large-
scale development, the bill:

(1)  Limits the amount of these tax credits to $11 million
annually;

(2)  Removes the $75 million limit on revenue bonds the Missouri
Development Finance Board can sell;

(3)  Defines "essential industry" as a targeted industry located
in Hazelwood.  The industry must meet certain criteria including
having maintained at least 2,000 jobs in the four years prior to
applying for tax credits, retained a certain level of employment,
and invested a minimum of $500 million by the end of the third
year following the issuance of these tax credit certificates; and

(4)  Allows existing jobs in an essential industry to be
considered new jobs.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am