SB 349 - This act modifies several provisions relating to financial incentives for job creation.
This act modifies several provisions of the Missouri Works program.
The definition of "full-time employee" is changed to provide that qualified companies shall pay at least fifty percent of an employee's health insurance premiums unless the employee opts out in writing and obtains health insurance from another source.
The definition of "new job" is changed to prohibit a job from being considered a new job because of a change of ownership in the company unless the company ceases to do business, there is a break in employment, and the company is subsequently restarted by new ownership, as described in the act.
A new definition of "owner" is included, which is defined as a person with an ownership interest in a company. The term shall not include persons with less than a ten percent ownership interest or persons whose interest is solely through an employee stock ownership plan, as described in the act.
The definition of "project facility base payroll" is changed to provide that the amount of base payroll shall be equal to or greater than the previous year's base payroll while keeping the number of employees in the base constant. The company may choose the method of reporting the number of employees in the base, but the method shall remain in effect throughout the benefit period.
The definition of "projected net fiscal benefit" is changed to include all other Department of Economic Development business development programs in the calculation of the projected net fiscal benefit.
The definition of "qualified company" is changed to exclude professional service companies with less than fifty-one percent of their annual income generated from outside the state.
A new definition of "significant new capital investment" is included, which is defined as an investment in real and tangible personal property for the purpose of locating or expanding in the state, of which at least twenty percent shall be real property, which shall exceed one million dollars.
A new definition of "wages" is included, which is defined as the value shown in box sixteen of the employee W-2 tax form. (Section 620.2005)
This provision is similar to a provision contained in SCS/HB 680 (2017) and SS/SCS/SB 10 (2017).
This act eliminates the withholding tax retention benefit from the entitlement program and replaces it with a tax credit in an amount equal to 2.75% of new payroll, or an amount which creates a net positive fiscal impact, whichever is less. This act also increases the amount of the discretionary tax credits from 6% of new payroll to 6.25% of new payroll.
This act creates two new benefit categories. The first includes a tax credit for qualified companies that make a significant new capital investment in an amount up to 10% of the value of real and personal property purchases. The second includes a tax credit for a qualified company which creates more than two hundred fifty new jobs in a distressed area, in an enhanced enterprise zone, or in an area of high unemployment, as described in the act, in an amount up to 2.75% of new payroll.
This act eliminates the withholding tax retention benefit for the Mega Works 120 and 140 entitlement program and replaces it with a tax credit in an amount equal to the withholding benefit. (Section 620.2010)
This act changes the cap on the retained jobs withholding benefit from a fiscal year cap to a calendar year cap. (Section 620.2015)
This act provides that companies participating under the program prior to the effective date of this act shall continue under the same terms and conditions as were in place at such time.
This act also provides that the amount of benefits awarded under the program shall not be capped so long as no benefit provided exceeds a net positive fiscal impact and that all projects stipulate a clawback of amounts equal to any benefits found to be in excess of the net positive fiscal impact. (Section 620.2020)