HB 1319 -- TAX CREDIT FOR EMPLOYER 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.

Beginning January 1, 2009, 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.  The credit is nonrefundable, but can be carried
forward up to four years.

To qualify, a student must be currently enrolled as a junior or
senior in high school, meet minimum attendance requirements, earn
at least a 2.0 grade point average, 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 December 31 six years from
the effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $163,341
in FY 2009, $75,187 to $3,098,459 in FY 2010, and $77,442 to
$3,113,204 in FY 2011.  No impact on Other State Funds in
FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that the bill will provide an
incentive for employers to hire high school students for summer
jobs.  This will give the students much needed job experience
while allowing them to earn money to pay for school- and
transportation-related expenses.

Testifying for the bill were Representative Brown (50); and
Associated General Contractors of St. Louis.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm