HB 758 -- TAX CREDIT FOR EMPLOYERS OF HIGH SCHOOL STUDENTS

SPONSOR:  Brown (50)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Job Creation and Economic Development by a vote of 11 to 0.

This bill authorizes a tax credit for employers who hire
qualified high school students for summer jobs.  The tax credit
is equal to 35% of the wages paid to the student employee, but
can only be claimed if the employer pays the student at least a
total of $100.  An employer can claim up to $50,000 per year.
The program has a cumulative annual cap of $3 million.

To qualify, a student must be currently enrolled as a junior or
senior in high school, meet minimum attendance requirements, earn
a grade point average of 2.0 or better, and be eligible for the
free or reduced school lunch program.  Students who are home
schooled and meet these requirements are also eligible.  The
Department of Elementary and Secondary Education must establish a
procedure by which an employer can determine if he or she is
eligible to receive the tax credit based on if the student
employee qualifies.  The department must also track students for
whom employers receive this tax credit.

The provisions of the bill will expire on December 31 six years
from the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $159,502
in FY 2008, $102,818 to $3,102,818 in FY 2009, and $105,902 to
$3,105,902 in FY 2010.  No impact on Other State Funds in
FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that the bill will help Missouri's
economy because it encourages businesses to hire seasonal summer
help by providing an incentive to employ high school students.
The tax credit will be used to pay the salaries of these
employees.  These students need work experience, and the money
they earn will take some of the financial burden off their
families.

Testifying for the bill were Representatives Brown (50) and
McGhee.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am