SCS SB 620 -- AUTO MANUFACTURING PLANT IN HAZELWOOD

This bill:

(1)  Exempts 50% of the Missouri taxable income attributed to the
Hazelwood Ford Plant from taxation;

(2)  Allows Ford to use the following tax credits for 10 years:

(a)  A $400 or $500 tax credit for each employee retained by Ford
at the Hazelwood 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 for trainees who are residents of
Hazelwood or who meet the definition of "persons 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 qualifying
investment, a 5% tax credit on the next $90,000 of qualifying
investment, and a 2% tax credit on all remaining qualifying
investments;

(3)  Allows Ford to receive a tax refund for the facility in
Hazelwood, but only if the certified tax credits exceed Ford'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.  The maximum amount of
the refund cannot exceed $2 million a year;

(4)  Prohibits Ford 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, and tax refund granted in the bill;

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

(6)  Requires any contract entered into between Ford 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 specified employment level.  The contract must also
include provisions for repayment of incentives upon breach of
contract.

For the purposes of tax credits for Business-Use Incentives for
Large-Scale Development (BUILD), the bill defines "essential
industry" to include the Ford Plant in Hazelwood.  Existing jobs
at the plant are allowed to be considered new jobs for the
purpose of receiving BUILD tax credits.

The bill also limits the amount of authorized BUILD tax credits
to $11 million annually and removes the $75 million limit on
revenue bonds the Missouri Development Finance Board can sell.

The bill establishes how economic activity taxes and new state
tax revenues will be calculated for a national headquarters that
has moved from another state to Missouri for the purposes of tax
increment financing.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:13 am