SS/SCS/SB 282 - This act creates the distressed areas land assemblage tax credit program, administered by the department of economic development. Tax credits issued under the distressed area land assemblage tax credit act, are non-refundable, fully transferrable income, corporate franchise, and financial institutions, tax credits. Tax credits issued under the act will be equal to fifty percent of the acquisition costs for the land, and one hundred percent of the interest costs. The tax credit program is capped at one hundred million dollars and the total amount of tax credits issued annually is limited to twelve million dollars.
This act modifies provisions of the Enhanced Enterprise Zone Tax Benefit Program. The act modifies the definition of the term "employee". The act places new requirements on eligibility regarding the number of new employees and average employee wage. The act extends tax benefits under the enhanced enterprise zone tax benefit program to certain speculative industrial or warehouse buildings. The amount of money which may be issued for enhanced business enterprises by the department of economic development after December 31, 2006, is increased from seven million to twenty-five million dollars.
Prior to the issuance of tax credits for enhanced business enterprises, the Department of Economic Development must verify through the Department of Revenue that the enhanced business enterprise does not owe any delinquent income, sales, or use taxes, or interest or penalties on such taxes and through the Department of Insurance that the applicant does not owe any delinquent insurance taxes. If the enhanced business enterprise has a tax delinquency, the tax credits issued for enhanced business enterprises shall first be applied to such delinquency with the remainder, if any, to then be issued to the enhanced business enterprise.
The act extends the sunset for the Community College New Jobs Training Program and allows community college districts to continue to sell certificates until July 1, 2018.
The act modifies various provisions of the Missouri Quality Jobs Act. The act modifies the determination of county average wage where a qualified company relocates employees from one Missouri county to another. If a qualified company relocates employees from a related facility in a Missouri county with a higher county average wage, the county average wage for the county from which employees are being relocated will be the county average wage, unless such company obtains an endorsement from the governing body of the community from which it is relocating employees.
The act requires that businesses offer health insurance to all full-time employees in the state and pay at least fifty percent of such premiums in order to be a qualified company. The act excludes educational services, religious organizations, and public administration from the term "qualified company". The act allows companies which are excluded from the definition of qualified company to receive benefits under the program provided they meet certain additional requirements. The act allows for the use of tax credits issued under the Missouri Quality Jobs Act to be used to offset both Missouri income tax and the financial institutions tax liabilities.
The act allows for the increase of the calendar year annual maximum number of quality jobs training tax credits issued to a qualified company which also participates in the new job training program by an amount equal to the withholding tax retained by such company under the new job training program provided it does not exceed the projected state benefit of the project. The act allows for an increase in the calendar year annual maximum amount of tax credits issued for high impact projects if the number of new jobs will exceed five hundred and such action is proposed by the department and approved by the quality jobs advisory task force.
The act allows a qualified company to begin retaining withholding taxes upon reaching the minimum number of new jobs where the average wage exceeds the county average wage. A qualified company will not receive tax credits if in its annual report, the average wage is below the county average wage, the company has not maintained the required employee insurance, or if the number of new jobs is below the minimum.
The maximum calendar year annual amount of tax credits issued under the Missouri Quality Jobs Act is increased from twelve million dollars to fifty million dollars. Prior to the issuance of tax credits under the Missouri Quality Jobs Act, the department of economic development must verify through the department of revenue that the qualified company does not owe any delinquent income, sales, or use taxes, or interest or penalties on such taxes and through the department of insurance that the applicant does not owe any delinquent insurance taxes. If the qualified company has a tax delinquency, the tax credits issued under the Missouri Quality Jobs Act shall first be applied to such delinquency with the remainder, if any, to then be issued to the company.