HB 1675 -- Manufacturing Jobs Act

Sponsor:  Nolte

This bill establishes the Manufacturing Jobs Act which
establishes incentives for qualified suppliers or manufacturing
facilities that create or retain Missouri jobs.  In its main
provisions, the bill:

(1)  Defines a "qualified manufacturing facility" as a business
which:

(a)  Manufactures goods in Missouri;

(b)  Derives more than 10% of its total sales revenues from goods
produced at the facility which are ultimately exported outside
the United States or that derives more than 20% of its total
sales revenues from goods produced at the facility which are
exported outside of Missouri;

(c)  Makes an additional capital investment of at least $50,000
per full-time employee equivalent retained at the facility;

(d)  Manufactures a new product that has not been manufactured in
Missouri by the company that owns the facility at any time prior
to the date of the notice of intent; and

(e)  Continues to manufacture these goods for a period of at
least five years from the date of the notice of intent;

(2)  Defines "qualified supplier" as a company which:

(a)  Derives more than 10% of its total annual revenues from
sales to a qualified manufacturing facility;

(b)  Adds five or more new jobs;

(c)  Pays wages for new jobs that are equal to or exceed the
county average wage; and

(d)  Provides health insurance to employees and pays at least 50%
of the insurance premiums; and

(3)  Allows a qualified manufacturing facility, upon approval of
a notice of intent by the Department of Economic Development, to
retain 50% of the withholding tax from retained jobs for 10 years
and also remain eligible to participate in the Missouri Quality
Jobs Program if it meets its requirements.  Qualified
manufacturing facilities cannot simultaneously receive benefits
from:

(a)  New or expanded business facilities (Sections 135.100 -
135.150, RSMo);

(b)  Enterprise zones (Sections 135.200 - 135.286);

(c)  Relocation of a business to a distressed community (Section
135.535); or

(d)  Rural empowerment zones (Sections 135.900 - 135.906);

(4)  Specifies that if the facility is utilizing withholding
taxes from the new jobs for any other state program, the taxes
will first be credited to the other state program before they
will begin to accrue to this program.  If the facility is
participating in the New Jobs Training Program, it cannot retain
any withholding taxes that are already allocated for use in that
program;

(5)  Allows a qualified supplier, upon approval of a notice of
intent by the department, to retain 100% of the withholding tax
from new jobs for three years.  If the qualified supplier pays
wages for the new jobs that are equal to or greater than 120% of
the county average wage, it can retain the withholding tax for
five years;

(6)  Requires the department to respond with an approval or
rejection within 30 days to a qualified manufacturing facility or
qualified supplier who provides a notice of intent to receive
benefits under this program.  Failure of the department to
respond will result in the notice of intent being deemed an
approval;

(7)  Specifies that any taxpayer who is awarded benefits under
this program and knowingly hires individuals who are not allowed
to work legally in the United States will immediately forfeit
these benefits and repay the state an amount equal to any
withholding taxes already retained;

(8)  Requires a qualified manufacturing facility or qualified
supplier that fails to comply with the provisions of the program
to repay all benefits previously obtained from the state with
interest of 5% per year from the date the benefit was originally
received; and

(9)  Requires the department to submit an annual report by
March 1 to the General Assembly with information on the
participating facilities and suppliers, the amount of benefits
provided, the net state fiscal impact, and the number of new and
retained jobs.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:11 pm