CCS/HCS/SCS/SB 861 - This act modifies provisions relating to transportation facilities.
ADVANCED INDUSTRIAL MANUFACTURING ZONES (Section 68.075)
This act creates the Advanced Industrial Manufacturing Zones Act. Port authorities located in Missouri are authorized to establish an advanced industrial manufacturing ("AIM") zone, which is an area that is being developed or redeveloped for any purpose so long as any infrastructure and building built or improved is in the development area. A zone may include any portion of the area located in the authority's jurisdiction, and its boundaries must be determined by the authority. More than one zone may exist within the authority's jurisdiction.
The act creates the Port Authority AIM Zone Fund consisting of 50% of the state withholding tax from new jobs within the zone after development or redevelopment has begun. The money in the fund must be used for expenses to continue expanding, developing, and redeveloping zones identified by the port authority board of commissioners. No more than 10% of the total amount collected within the zones of a port authority may be appropriated by the legislature for the administration of a port authority. The authority must approve any projects, disperse money in the fund, and submit an annual budget for the collected funds to the Department of Economic Development explaining how and when the money will be spent.
No new AIM zones may be established after August 28, 2023. Existing AIM zones shall expire when any obligations being funded by the AIM zone are retired.
This provision is identical to SB 461 (2015) and similar to HB 2063 (2014).
BRING JOBS HOME ACT (Section 143.1100)
This act authorizes an income tax deduction equal to 50% of the expenses associated with eliminating a business unit located outside Missouri and reestablishing that unit within the state. The elimination must occur under a written insourcing plan, but the elimination and relocation need not take place in the same year.
For the tax deduction to apply, the number of full-time employees in the state during the year the deduction is claimed must exceed the number during the year before the insourcing costs were paid. Insourcing costs are taken into account during the tax year where the plan is completed and the expenses were incurred, or the year immediately following that year.
Tax deductions under this section are capped at $5 million and are allowed on a first come, first served basis. Deductions may be carried forward for five years. A taxpayer must repay the deduction if the taxpayer eliminates the business unit for which the deduction was provided. The provisions in this section shall expire six years after enacted unless reauthorized by the General Assembly.
This provision is similar to a provision in HCS/HB 1605 (2016), HCS/HB 1617 (2016), and SCS/HCS/HB 325 (2015).
TRANSPORTATION FACILITIES TAX INCENTIVE (Section 143.2100-143.2115)
This act creates three types of income tax deductions for entities transporting cargo through water port facilities and airports in Missouri. The deductions will be administered by the Department of Economic Development.
Beginning January 1, 2017, manufacturers or distributors shipping cargo by waterborne vessel through a water port facility or by airplane through an airport located in Missouri may be eligible for a deduction. The taxpayer must increase by 5% the volume of cargo they transport through a port facility over the prior year's total. The 5% increase requirement will be waived if the cargo is transported through a new port facility that is expected to transport at least 25,000 twenty-foot equivalent units (TEUs) in its first calendar year. Taxpayers must have transported at least 75 net tons of noncontainerized cargo or ten loaded TEUs in the prior year to be eligible for the deduction.
The deduction will be $50 per TEU over the prior year's cargo volume. For cargo transported through a new port facility in its first year, the deduction will be $50 per TEU. Taxpayers are limited to $250,000 in deductions per year. No more than $3.5 million deductions shall be allowed in a calendar year. The $250,000 taxpayer limit may be exceeded if the $3.5 million calendar year cap is not met by March fifteenth in a given year. No deductions may be claimed for tax years beginning after December 31, 2022.
Beginning January 1, 2017, taxpayers operating an international trade facility may qualify for a deduction based on the amount of cargo transported by airplane, rail, truck, or barge. The deduction will be equal to $25 per TEU or 16 tons of noncontainerized cargo. No more than $2 million in deductions may be claimed in a fiscal year. No deductions may be claimed for tax years beginning after December 31, 2022.
Beginning January 1, 2017, taxpayers operating an international trade facility and increasing the volume of cargo by 10% over the prior year may qualify for a deduction. The deduction shall be in an amount equal to $3,500 per new full-time employee or 2% of the capital investment made in the facility. The new employees or capital investments must be related to an increase in trade activities through international shipping to qualify for the deduction. No more than $500,000 in deductions may be claimed in any fiscal year. No deductions shall be claimed for tax years beginning after December 31, 2022. The tax deduction amount cannot exceed 50% of a taxpayer's Missouri adjusted gross income in a tax year. The deduction may be recaptured if the number of full-time employees falls below the average number of full-time employees during the tax year.
This provision is similar to HB 1091 (2014) and HB 621 (2013).
PUBLIC-PRIVATE PARTNERSHIP TRANSPORTATION ACT (Section 227.600)
This act adds any port facility, water facility, water way, fuel supply facility or pipeline, water supply facility or pipeline, wastewater or wastewater treatment facility, public building, vehicle parking building, vehicle parking facility, mass transit facility, or similar facility to the definition of "project" under the Missouri Public-Private Partnerships Transportation Act.
For purposes of this section, "project" will not include a highway, interstate or bridge construction, or any rest area, rest stop, or truck parking connected to a highway. The Missouri Highways and Transportation Commission or its private partner has no authority to collect user fees in connection with a project under this section.
REDEVELOPMENT OF FORMER AUTOMOBILE MANUFACTURING PLANTS (Section 447.708)
This act provides that all demolition costs in St. Louis County associated with a former automobile manufacturing plant are an allowable cost for tax credits so long as the redevelopment will create at least 250 new jobs or retain at least 300 jobs.
This provision is identical to a provision in HCS/SCS/SB 800 (2016) and HB 2225 (2016).