Summary of the Introduced Version of the Bill

HB 1455 -- Manufacturing Jobs Act

Sponsor: Gatschenberger

This bill changes the laws regarding the Manufacturing Jobs Act

and the use of funds in the Missouri Job Development Fund.

The bill requires the Department of Economic Development to make

efforts to prioritize the use of funding under the Missouri Job

Development Fund to assist qualified suppliers as defined in the

bill.

A qualified supplier is allowed, with approval of a notice of

intent by the department, to retain an amount equal to a maximum

of 5.5% of new payroll for a period of five years from the date

the required number of jobs were created in this state from the

withholding tax of the new jobs that would otherwise be withheld

and remitted by the qualified supplier if the average wage of the

new jobs equals or exceeds the county average wage. An

additional .5% of new payroll may be added to the 5.5% maximum if

the average wage of the new jobs in any year exceeds 120% of the

county average wage in the county in which the project facility

is located, plus an additional .5% of new payroll may be added if

the average wage of the new jobs in any year exceeds 140% of the

average wage in the county in which the project facility is

located. The department must issue a refundable tax credit for

any difference between the amount of benefit allowed and the

amount of withholding tax retained by the qualified supplier in

the event the withholding tax is not sufficient to provide the

entire amount of benefit due to the qualified supplier. Any tax

credits issued under these provisions must be subject to

specified provisions of the Missouri Quality Jobs Act in Section

620.1881, RSMo.

If a qualified supplier also participates in the New Jobs

Training Program in Sections 178.892 to 178.896, the company must

retain no withholding tax, but the department must issue a

refundable tax credit for the full amount of benefit allowed

under these provisions. The calendar year annual maximum amount

of tax credits which may be issued to a qualified supplier that

also participates in the New Jobs Training Program must be

increased by an amount equivalent to the withholding tax retained

by that company under the New Jobs Training Program. If combined

benefits of this program and the New Jobs Training Program exceed

the projected state benefit of the project as determined by the

department through a cost-benefit analysis, the increase in the

maximum tax credits must be limited to the amount that would not

cause the combined benefits to exceed the projected state

benefit.

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