SB 691 - This act modifies the Manufacturing Jobs program to expand the eligibility for this program to additional suppliers of automotive manufacturers and increase the benefits available to these suppliers under the program. The act also requires the Department of Economic Development to make efforts to prioritize the use of funding under the Missouri Job Development Fund to these suppliers.
Currently, companies that supply automotive manufacturers are eligible to retain withholding taxes under the Manufacturing Jobs program, if the company is a manufacturer that: 1) receives more than 10% of company annual sales from sales to automotive manufacturers with facilities in Missouri; 2) adds at least five new jobs with an average wage greater than the county average wage; and 3) provides health insurance for all full-time jobs. This act expands the requirements, so that companies that supply automotive manufacturers will also be eligible for the program, if the company: 1) receives more than 10% of company annual sales from sales of a product that is sold to someone other than a in-state automotive manufacturer, but the product is used by a manufacturer in an automobile; or 2) receives more than 50% of company annual sales from modifying vehicles for commercial or public use.
Under current law, the Manufacturing Jobs program allows eligible automotive manufacturer suppliers to retain withholding tax from the new jobs for three years, or for five years, if the wages for the new jobs are at least 120% of the county average wage. This act allows these suppliers to retain withholding taxes from the new jobs for five years, in an amount equal at the least to 5 1/2 % of new payroll and at the most to 6 1/2% of new payroll, depending on the average wages of the new jobs. If the amount of withholding taxes the supplier is allowed to retain is less than the amount of the benefit under the program, the Department of Economic Development shall issue the supplier a refundable tax credit. If the supplier is also participating in the New Jobs Training Program the supplier is prohibited from retaining withholding tax, but the department is required to issue a refundable tax credit for the amount of the benefit allowed under this program. The amount of withholding tax the supplier retains under the New Jobs Training program will be in addition to the maximum amount of tax credits that the supplier could otherwise be issued each year, unless the total amount of tax benefits under both programs exceeds the projected benefit to the state from the project.