HB 2026 -- Enhanced Enterprise Zones

Sponsor:  Hobbs

This bill changes the laws regarding enhanced enterprise zones.
In its main provisions, the bill:

(1)  Authorizes a tax credit for up to 10 years if approved by
the Department of Economic Development to a taxpayer who
establishes a new business facility in a certified industrial
zone approved or designated as an enhanced enterprise zone.  A
taxpayer who receives this tax credit cannot also receive tax
credits from the new or expanded business facilities, enterprise
zones, relocating a business to a distressed community, or
Missouri Quality Jobs programs.  To receive the tax credit, a
taxpayer must employ at least seven new individuals at the new
business facility and invest at least $1 million during the
taxable year in which the credit is claimed.  The tax credit will
be equal to 10% of the gross wages of each new employee at the
facility and 5% of the investment made in the new business
facility within an enhanced enterprise zone;

(2)  Allows a taxpayer to receive the tax credit for an existing
facility which expands if they invest at least $100,000 and hire
at least two additional employees during the tax year in which
the credits are claimed.  The bill explains the manner in which
the taxpayer's investment in the original facility prior to
expansion must be determined;

(3)  Requires $10 million of the $24 million annually authorized
for enhanced business enterprises to be issued for certified
industrial zones.  The credits must be claimed for the taxable
year in which commencement of commercial operations occurs at the
new business facility and for each of the following nine years in
which the credit is issued.  The credits are refundable and
transferable but cannot be carried forward;

(4)  Requires the Department of Economic Development, prior to
the issuance of any tax credits, to verify that the applicant
does not owe any delinquent taxes, penalties, fees, assessments,
or insurance taxes.  Taxpayers who are delinquent between June 15
and July 1 will be given 30 days to satisfy the delinquency.
Available credits will be applied to delinquencies and any
remaining credits will be issued to the applicant;

(5)  Defines "certified industrial zone" as an area of real
property that encompasses at least 100 acres which has been
approved by the department as a certified site; has been found by
ordinance of the governing body to be blighted; and is located in
a census tract which has a poverty rate at least 20% or for which
the median income is less than 80% of the statewide median income
or is less than 80% of the metropolitan median income for the
metropolitan statistical area in which the zone is located,
whichever is greater;

(6)  Allows an industry located within a certified industrial
zone to include data processing, hosting, and related services
and Internet publishing, broadcasting, and web search portals to
be considered an enhanced business enterprise as it relates to
the tax credit; and

(7)  Removes the restriction requiring a megaproject to be a
manufacturing or assembling facility.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:12 pm