HB 1111 -- Missouri Quality Jobs Act

Sponsor:  Flook

This bill changes the laws regarding the Missouri Quality Jobs
Act.

GREEN JOBS PROJECTS

The bill establishes a green jobs project as a new project type
under the Quality Jobs Program.  "Green jobs project" is defined
as a qualified company that creates at least 10 new jobs within a
specified two-year time period that is engaged in the development
of green technology or green manufacturing, such as clean or
sustainable energy development, energy efficiency or
conservation, green building techniques or components, green
transportation technology or manufacturing, or environmental
sustainability.

A qualified company with a green jobs project may retain 4% of
the withholding tax from its new payroll for five years if the
average wage of the new payroll equals or exceeds the county
average wage.  Five percent can be retained if local incentives
equal between 10% and 24% of the new direct local revenue; 6% if
local incentives equal between 25% and 49%; or 7% if local
incentives equal 50% or more of the new direct local revenue.  If
the qualified company creates at least 100 new jobs, it may
retain this amount for six years or for seven years if it creates
at least 500 new jobs.

If the withholding tax is not sufficient to provide the entire
benefit due the qualified company, the Department of Economic
Development will issue a refundable tax credit for the
difference.

If the qualified company demonstrates to the department that
another company expands or commences operations in Missouri or
moves to Missouri from another state as a result of its
relationship to the qualified company, the qualified company may
be eligible for a jobs benefit.  The other company must be a
direct supplier or a direct purchaser of the qualifying company
and must create at least 10 new jobs within a two-year period.
The jobs benefit is a tax credit issued to the qualified company
for three years and will be equal to 50% of the withholding for
the supplier/purchaser company's new jobs if the average wage for
these new jobs equals or exceeds the county average wage for the
county in which the supplier/purchaser company is located.

QUALIFYING COMPANY CRITERIA

Currently, any company which has filed for bankruptcy or has
publicly announced its intention to file for bankruptcy
protection is prohibited from being deemed a qualifying company
for the purposes of the Quality Jobs Program.  The bill allows a
company which has filed or announced its intention to file for
bankruptcy on or after January 1, 2009, to be a qualifying
company for the program if it:

(1)  Certifies to the Department of Economic Development that it
plans to reorganize and not to liquidate; and

(2)  Produces proof after its bankruptcy petition has been filed
that it is not delinquent in filing any tax returns or making any
payments due to the state including, but not limited to, all tax
payments due after the filing of the bankruptcy petition and
under the terms of the plan of reorganization.

MISCELLANEOUS PROVISIONS

The bill:

(1)  Specifies that if the Department of Economic Development
fails to respond within 30 days to a Quality Jobs Program
applicant's notice of intent, the notice is deemed a disapproval.
Currently, the notice is deemed an approval if the department
fails to respond within 30 days;

(2)  Specifies how the department must apply certain definitions
when a business that has already received an approved notice of
intent later files another notice of intent;

(3)  Eliminates the annual cap for each qualified company on
technology business projects.  Currently, the cap is $500,000 per
qualified company, per year;

(4)  Prohibits the per-company annual cap on high-impact projects
from being increased to $1 million.  Currently, the $750,000
per-company cap can be increased under certain circumstances if
approved by the Quality Jobs Advisory Task Force; and

(5)  Increases the annual cap on the amount of tax credits that
the program may issue from $60 million to $120 million.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am