General Assembly Sends Aerospace Industry Incentive Bill to Governor, Ending December Special Session

JEFFERSON CITY—With a final vote of 127-20 by the House today, the General Assembly sent to the governor Senate Bill 1, ending the week-long special session that began on Monday.

The legislation, sponsored by Sen. Eric Schmitt, R-Glendale, is designed to encourage growth and expansion of the aerospace industry in Missouri, specifically Boeing, which recently announced it would accept incentive proposals from 12 to 15 different states to determine where it would build its new commercial 777X airplane.

Under the bill, the cap on four different tax incentive programs—Missouri Works, Missouri Works Training, Missouri BUILD, and the Real Property Tax Increment Allocation Redevelopment Act—would be raised by a total $150 million annually.

The Senate gave final approval to the bill on Wednesday (12-4) by a vote of 23-8. During debate in the upper chamber, senators amended the bill to require any company that receives state benefits for an aerospace project to supply an annual progress report that details information regarding the benefits it receives and is projected to receive throughout the project.

Lawmakers also amended the bill to require an annual report on the number of minorities trained under the Missouri Works Training program and the outreach efforts made to include women and minorities as a result of the bill.

Additionally, the Senate added a provision to the legislation which tasks the Missouri Department of Economic Development with determining the net fiscal benefit to the state 10 years after a company gives its notice of intent for an aerospace project. The department is also required to take necessary actions to ensure Missouri sees a net fiscal benefit by the last year the project receives state benefits.

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

Boeing is expected to announce its decision on where it will locate production of its new commercial airplane sometime early next year.

For more information on Senate Bill 1, visit www.senate.mo.gov and click on the 2013 Extraordinary Session Information link under the Legislation tab.