HCS HB 1245 -- MISSOURI QUALITY JOBS ACT

SPONSOR:  Zerr (Lauer)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Economic
Development by a vote of 25 to 0.

This substitute authorizes economic incentives for job retention
projects under the Missouri Quality Jobs Act for a qualified
company that meets certain requirements if the Department of
Economic Development determines that there is a significant
probability that the qualified company would relocate to another
state in the absence of the benefits.  The economic incentives
can be in the form of retaining taxes otherwise withheld from
full-time jobs or a tax credit.  Prior to the award of any
benefits, the department director must notify the President Pro
Tem of the Senate and the Speaker of the House of Representatives
of the amount of the award and other specified information unless
the disclosure is otherwise protected by law.

In order to receive withholding tax retention benefits, the
qualified company must retain at least 125 full-time employees
for a period of 10 years from approval of the notice of intent,
make a new capital investment at the project facility within
three years from approval of the notice of intent in an amount
equal to 50% of the total withholding tax retention benefits, and
enter into a written agreement with the department containing
detailed performance requirements and repayment penalties in the
event of nonperformance.  If a qualified company meets these
requirements, it may be authorized to retain up to 100% of the
withholding taxes from full-time jobs for a period of 10 years if
the average wage of the retained jobs equals or exceeds 90% of
the county average wage.  The aggregate amount of retained
withholding taxes authorized is limited to $6 million for each
fiscal year beginning on or after July 1, 2012.  The substitute
specifies the factors that the department must consider in
awarding withholding tax retention benefits.

Beginning January 1, 2013, but ending on or before December 31,
2014, in lieu of the withholding tax retention benefits, the
department may authorize a qualified company a one-time tax
credit in an amount up to 7% of new payroll from the new jobs
created over a five-year period or up to 9% if the qualified
company is in a targeted industry as identified by the department
by rule following a specified process.  The qualified company
must also enter into a written agreement with the department
covering the applicable project period which contains detailed
performance requirements; the time period during which the tax
credits will be issued; repayment penalties, including recapture
of the tax credits, in the event of nonperformance; and other
specified information.  The total credits authorized cannot
exceed $10 million annually.

FISCAL NOTE:  No impact on state funds in FY 2013, FY 2014, and
FY 2015.

PROPONENTS:  Supporters say that the bill will create jobs and
make Missouri more able to compete with other states.

Testifying for the bill were Representative Lauer; Gary Sage,
Economic Development Corporation of Kansas City, Missouri;
Missouri Chamber of Commerce; Greater Kansas City Chamber of
Commerce; Missouri Municipal League, and Associated Industries of
Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
Last Updated April 16, 2012 at 10:36 am