HB 1503 -- Business Use Incentives

Sponsor:  Ervin

This bill establishes the Missouri Business Use Incentives for
Small Business Development (BUILD) Act.

The bill allows the Missouri Development Finance Board to issue
bonds for certain economic development projects undertaken by an
eligible industry.  The industry is required to remit to the
board an assessment of up to 5% of the gross wages paid in one
year to all eligible employees.  The assessment is used to pay
off the bonds issued by the board, and the industry receives a
tax credit equal to the assessment.  If 80% of an eligible
industry's program costs are paid to other Missouri companies,
the board can issue additional bonds in an amount equal to 25% of
the program costs owed to the Missouri companies.  The total
amount of tax credits authorized cannot exceed $11 million
annually.

An eligible industry must invest a minimum amount of money in an
economic development project and create a minimum number of new
jobs, depending on the size of the municipality where the project
is located.  A business which closes one location and moves to
another location in the state is not considered an eligible
industry.  An eligible industry cannot utilize this program and
the original BUILD program simultaneously.  The eligible industry
must agree to maintain operations at the project location for as
long as credits are authorized in the financing agreement.

The bill contains:

(1)  Provisions of the financing agreement between the board and
the eligible industry;

(2)  Conditions that must exist before the board can enter into
an agreement with an eligible industry for a tax credit;

(3)  Factors the board must consider before awarding tax credits
to an eligible industry; and

(4)  Provisions of an agreement between the board and an eligible
industry.

The provisions of the bill will expire six years after the
effective date.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am