HCS HB 1000 -- CORPORATE INCOME TAX FOR NEW MANUFACTURERS

SPONSOR:  Sutherland (Storch)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 8 to 0.

Beginning January 1, 2008, this substitute eliminates the
corporate income tax for the first five taxable years of a new
manufacturer's existence in Missouri as certified by the
Department of Economic Development.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 in FY
2008, Unknown in FY 2009, and Unknown in FY 2010.  Unknown
expected to exceed $100,000.  No impact on Other State Funds in
FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that the bill provides a
business/family friendly environment to encourage growth in
Missouri.  It exempts new manufacturing companies from the
corporate income tax for the first five years to help with
start-up costs, buying new equipment, and hiring new employees as
well as to stimulate the economy and help the state remain
competitive.  The bill is an economic tool that will help
Missouri from losing more manufacturing jobs.  Between 2000 and
2006, Missouri lost 65,000 manufacturing jobs.  These are good
stable jobs when the company is strongly interested in this
state.  The bill will help with job creation and make Missouri
competitive when a new manufacturer considers starting a business
in this state.

Testifying for the bill were Representative Storch; Missouri
Chamber of Commerce and Industry; Associated Industries of
Missouri; Taxpayers Research Institute of Missouri; and
Jim Farrell, City of St. Louis.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:21 am