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SCS/HCS/HB 1675 - This act establishes the Manufacturing Jobs Act which allows qualified suppliers or manufacturing facilities that create or retain Missouri jobs to retain employee withholding taxes for a period of years. The total amount of withholding taxes retained by all qualified companies under the program is limited to no more than fifteen million dollars annually. The aggregate amount of retained withholding taxes authorized under the program cannot exceed fifteen million dollars per year. A "qualified manufacturing facility" is defined as a business which manufactures goods in Missouri, derives more than ten percent of its total sales from goods produced at the facility which are ultimately exported outside the United States or derives more than twenty percent of its total sales from goods produced at the facility which are exported outside of Missouri, makes an additional capital investment of at least $100,000 per full-time employee retained at the facility, manufactures a new product that has not been manufactured in Missouri by the company, and continues to manufacture such goods for a period of at least five years. The act defines a "qualified supplier" as a company which derives more than 10% of its total annual revenues from sales to a qualified manufacturing facility, adds five or more new jobs, pays wages for new jobs that are equal to or exceed the industry average wage for Missouri, and provides health insurance to employees and pays at least 50% of the insurance premiums. The Department of Economic Development must respond to a qualified manufacturing facility or qualified supplier who provides a notice of intent to receive benefits under the program with either an approval or rejection within 30 days of receiving such notice. Failure of the department to respond will result in the notice of intent being deemed an approval. Upon approval of a notice of intent by the department and the execution of an agreement with the department which memorializes the contents of the notice of intent including recapture and repayment provisions, a qualified manufacturing facility may retain 50% of the withholding taxes from retained jobs for 10 years and remain eligible to participate in the Missouri Quality Jobs Program. Qualified manufacturing facilities are prohibited from simultaneously receiving benefits under the new or expanded business facilities program (Sections 135.100 - 135.150, RSMo), the enterprise zones program (Sections 135.200 - 135.286), the relocation of a business to a distressed community program(Section 135.535), or the rural empowerment zones program (Sections 135.900 - 135.906). If a 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. Upon approval of a notice of intent by the department, a qualified supplier may retain 100% of the withholding taxes from new jobs for three years, if the supplier pays wages for such new jobs that are equal to the lesser of the county average wage or the industry average wage for Missouri provided such wage is not lower than sixty percent of the statewide average wage. If a qualified supplier pays wages for the new jobs that are equal to or greater than 120% of the industry average wage for Missouri, it can retain withholding taxes for five years. Taxpayers awarded benefits under the Manufacturing Jobs Act that knowingly hire, or engage the services of contractors or subcontractors which knowingly hire, individuals who are not allowed to work legally in the United States will immediately forfeit benefits received and repay the state an amount equal to any withholding taxes already retained. A qualified manufacturing facility or qualified supplier that fails to comply with the provisions of the program will be required to repay all benefits previously obtained from the state with five percent interest per year from the date the benefit was originally received. The department must submit an annual report on the manufacturing jobs program to the General Assembly by March first. The report must provide participating facilities and suppliers, the amount of benefits provided, the net state fiscal impact, and the number of new and retained jobs. The provisions of the act will expire six years from the effective date. JASON ZAMKUS
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