HB 2364 -- Quality Jobs Act

Sponsor:  Leara

This bill establishes a new project type within the Quality Jobs
Act called megaprojects and allows a qualified company that files
a notice of intent with the Department of Economic Development
for a megaproject to apply for enhanced tax credits.  The
enhanced tax credits may equal up to the total amount of the
projected new annual payroll that is attributable to the
employees of the qualified company and will be transferable and
refundable.

A megaproject is a qualified project located in or within two and
one-half miles of a dormant existing automobile manufacturing or
assembly facility that creates at least 100 new jobs within four
years of the date of approval and which:

(1)  Pays a wage equal to or above the mean annual wage for
occupation code 51-0000, production occupations, in the state of
Missouri as published by the United States Bureau of Labor
Statistics;

(2)  Offers health insurance to all new employees and pays at
least 50% of the premiums;

(3)  Files a notice of intent by December 31, 2015, or the date
when unemployment rates for the county in which the megaproject
is located or in the state are less than 5% for 12 consecutive
months; and

(4)  Is a manufacturing company, as determined by a regulation of
the department under the provisions of Section 620.1884, RSMo, or
classified under the North American Industry Classification
System (NAICS) codes 31-33.

A qualified project may retain up to 4% of new payroll taxes from
the withholding taxes of the new jobs for five years from the
date the required number of jobs are created.  An additional 1%
may be retained if local incentives equal between 10% and 24% of
the new direct local revenue; an additional 2% if local
incentives equal between 25% and 49%; or an additional 3% if the
local incentives are 50% or more of the new direct local revenue.
If the withholding taxes are not enough to provide the entire
benefit due to the qualified company, the department must issue a
refundable tax credit for the difference.

The department cannot approve megaprojects after December 31,
2011, and cannot approve credits for issuance before January 1,
2013.  The department can authorize up to $8 million for all
megaprojects annually and up to $50 million for the life of the
program.

The bill also:

(1)  Specifies the requirements of a megaproject application,
including a proposal by the qualified company that at least $50
million in new capital investment will be made and that 500 new
jobs will be created;

(2)  Specifies the factors the department must consider when
determining the amount of enhanced tax credits that it will
approve;

(3)  Requires that a binding contract be executed between the
qualified company and the department before final approval of an
application and designation of any enhanced tax credits;

(4)  Specifies the requirements of the contract which include
obligating the company to construct or renovate a facility within
five years from the date of approval, recapture and repayment
provisions, and the amount of enhanced tax credits;

(5)  Allows the department director to issue refundable enhanced
tax credits upon entering into a contract with a qualified
company.  The enhanced tax credits may equal up to the total
amount of projected withholding taxes of new jobs at the project
facility over a period of up to eight years from the date the
qualified company is projected to meet its proposed job, payroll,
and capital investment targets.  The department director must
award the minimum amount of enhanced tax credits necessary to
obtain the qualified company's commitment to initiate the
megaproject;

(6)  Allows the department director to issue enhanced tax credits
if the qualified company is unable to obtain sufficient financing
to complete the megaproject as long as the qualified company is
required to repay the state the amount of the credits, plus
interest, unless the department director determines that, without
receiving the enhanced tax credits, the qualified company would
locate the megaproject in another state;

(7)  Specifies the requirements of the annual report the
qualified company that receives enhanced tax credits must provide
to the department and the appropriations committees of the House
of Representatives and Senate; and

(8)  Requires the records and documents relating to a
supplemental application for a proposed megaproject to be
considered closed records until the application has been
approved.  Records containing business plan information which may
endanger the competitiveness of the qualified company will remain
closed.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:13 pm