Senate Advances Special Session Legislation to House

JEFFERSON CITY – Just two days after senators convened for a special legislative session called by the governor, the upper chamber delivered to the House a measure by a vote of 23-8 that would authorize incentives for aerospace industry job creation — particularly geared toward the Boeing Company — under various tax credit programs currently offered by Missouri.  Senate Bill 1, sponsored by Sen. Eric Schmitt, R-Glendale, would create a separate cap of $150 million per year of incentives offered collectively under the Missouri Works Program, the BUILD Program, the Missouri Works Training Program and the TIF Act. 

The Missouri Works Program, a result of the 2013 regular legislative session, consolidates four of Missouri’s existing business development incentives in a single program designed to facilitate the creation of quality jobs by targeted business projects.  It is eligible for for-profit and non-profit businesses that are headquarters, administrative, or research and development offices of otherwise excluded businesses that serve a multi-state area. 

Coupled with the Missouri Works Program, the Missouri Works Training Program targets workforce development resources in order to more efficiently provide job placement and training for those in search of work.

The Business Use Incentives for Large Scale Development, or BUILD Program, provides a financial incentive for the location or expansion of large business projects.  These incentives are designed to reduce necessary infrastructure and equipment expenses if a project demonstrates a need for funding.

The TIF Act, known as the Real Property Tax Increment Allocation Redevelopment Act, allows cities to finance certain redevelopment costs with the revenue generated from payments in lieu of real estate taxes, calculated by the new increase in assessed valuation resulting from redevelopment and a portion of the increase in other local tax revenue associated with new economic activity, such as that created by the new Boeing aerospace project that could be brought to Missouri.  TIFs are used as redevelopment tools by local governments to assist with project costs that would otherwise make a project unlikely to happen.

During debate, lawmakers amended the legislation requiring any company that receives state benefits for an aerospace project would have to supply an annual progress report that details information regarding state benefits it receives and is projected to receive through the project.  Lawmakers further amended the bill to require the annual report to include the number of minorities who have been trained under the Missouri Works Training Program as well as employment outreach efforts made to women and minorities as a result of the bill. 

Changes made in the Senate today also require the Department of Economic Development to determine the net fiscal benefit to Missouri 10 years after a company gives its notice of intent for an aerospace project and take necessary action to ensure Missouri sees a net fiscal benefit by the last year the aerospace project receives state benefits under Senate Bill 1.

The legislation contains an emergency act meaning it would take effect immediately upon receiving the governor’s signature.

To follow this bill through the legislative process, visit www.senate.mo.gov and click on the 2013 Extraordinary Session Information link under the Legislation tab.