HB 854 -- Missouri Quality Jobs Act

Sponsor:  Richard

This bill establishes the Missouri Quality Jobs Program to
provide incentives to businesses in return for the new tax
revenues and other economic stimulus that will be produced by the
new jobs created as a result of the program.

Any qualified company that receives benefits through the program
is prohibited from receiving the following tax credits or
exemptions for the same new jobs at the project facility:  New or
Expanded Business Facilities, Enterprise Zones, Relocating a
Business to a Distressed Community, and Rural Empowerment Zones.

Small and expanding business projects are those which create at
least 20 new jobs in two years if the project is located in a
rural area or 40 new jobs in two years if the project is located
elsewhere.  Qualified companies of this type may retain for three
years an amount equal to the withholding taxes from the new jobs
if the average wage of the new payroll equals or exceeds the
county's average wage.  If the average wage of the new payroll is
at least 120% of the county's average wage, the qualified company
may retain the amount for five years.

Technology business projects are those which create a least 10
new jobs within two years.  Seventy-five percent of the jobs must
be directly involved with the operations of the technology
company, as determined by the Department of Economic Development.
Qualified companies of this type may retain for five years an
amount equal to a maximum of 5% of the new payroll if the average
wage of the new payroll equals or exceeds the county's average
wage.  An additional 0.5% of new payroll may be retained if the
average wage of the new payroll exceeds 120% of the county's
average wage in any year.  If the average wage of the new payroll
exceeds 140% of the county's average wage in any year, an
additional 0.5% may be retained.

The department will issue a refundable tax credit for any
difference between the amount of benefit allowed and the amount
of withholding tax retained by the company, in the event the
withholding tax is not sufficient to provide the entire benefit
due to the qualified company.  The maximum amount of tax credits
that can be issued to any qualifying company in a calendar year
is $500,000.  This tax credit cannot be carried forward but can
be sold.  A refund will be issued to the qualified company if the
credits exceed the company's tax liability.

High-impact projects create at least 100 new jobs within two
years.  Qualified companies of this type may retain an amount
from the withholding tax of the new jobs equal to 3% of new
payroll for a period of five years if the average wage of the new
payroll equals or exceeds the county's average wage.  A qualified
company may retain 3.5% of new payroll if the average wage of the
new payroll in any year exceeds 120% of the county's average wage
or 4% of the new payroll if the average wage in any year exceeds
140% of the county's average wage.  An additional 1% of new
payroll may be added to these percentages if local incentives are
between 10% and 24% of the new direct local revenues.  An
additional 2% of new payroll may be added to these percentages if
the local incentives equal 50% or more of the new direct local
revenue.

The department will issue a refundable tax credit for any
difference between the benefit allowed and the withholding tax
retained by the company in the event the withholding tax is not
sufficient to provide the entire benefit due to the qualified
company.  The maximum amount of tax credits that can be issued to
any qualifying company in a calendar year is $750,000.  This
amount can be increased to $1 million if the action is proposed
by the department and approved by the Quality Jobs Advisory Task
Force.  This tax credit cannot be carried forward but can be
sold.  A refund will be issued to the qualified company if the
credits exceed the company's tax liability.

Qualified companies must provide an annual report to the
department documenting the basis for the benefits of this
program.

The maximum amount of tax credits that can be issued in a
calendar year for the entire program is $12 million.  The bill
reduces the annual amount of tax credits that can be authorized
for relocating a business to a distressed community from $10
million to $3 million and specifies that the remaining $7 million
must be transferred to the program.  The annual maximum amount of
other net new revenues approved for disbursement from the State
Supplemental Downtown Development Fund is reduced from $150
million to $145 million.  The remaining $5 million must be
transferred to the program.  There is no limit on the amount of
withholding taxes that may be retained by approved companies
under the program.

The bill establishes the Quality Jobs Advisory Task Force
consisting of the chairperson of the Senate's Economic
Development Committee, the chairperson of the House of
Representative's Economic Development Committee, the Director of
the Department of Economic Development, and two members appointed
by the Governor.

The department must provide the General Assembly with an annual
report before March 1 of each year.  The bill specifies the
requirements of the report.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:20 pm