|SB 0910||Incentives For Large Scale Economic Development|
|LR Number:||S3450.03S||Fiscal Note:||3450-03|
|Committee:||Corrections and General Laws|
|Last Action:||05/28/96 - S Inf Calendar S Bills for Perfection w/SS (pending)|
|Effective Date:||August 28, 1996|
SB 910 - This act shall be known as the "Missouri Business Use Incentives for Large-Scale Development Act". Sixteen new sections are created.
This act provides parameters and authorizes the Department of Economic Development ("Department") and the Missouri Development Finance Board ("Board") to attract eligible industries that must invest at least $200M in an economic development project and create at least 100 new jobs.
State-owned post secondary technical colleges may receive appropriations from the Missouri Job Development Fund. Section 620.482, RSMo, currently authorizes the Department to provide such assistance only to community college business and technology centers.
Section 2 defines 14 relevant terms including economic development project, eligible industry, incremental income tax withholding and program costs. This act expands the definition of "eligible industry" as contained in SB 712 to include certain ethanol plants which are 81% or more owned by producers of agricultural products.
Section 3 gives the Board the power and authority to effectuate this legislation, including the ability to negotiate and sign financing agreements and otherwise support economic development within the state. The Board may issue bonds to finance the economic development projects, but said bonds shall not constitute an indebtedness or liability of the state and are not guaranteed by the state.
Section 4 requires the Department and the Board to establish application procedures and standards.
Section 5 allows the Board to enter into a financing agreement with any eligible industry.
Section 6 delineates the substance of such financing agreement.
Section 7 enacts guidelines for the Board to follow when entering into an agreement for a credit.
Section 8 lists factors the Board must consider when determining if a credit should be awarded.
Section 9 specifies that the amount of the credit, set by the Board, may not exceed the incremental income tax withholding.
Section 10 provides for items which must be included in an agreement between the Board and an eligible industry.
Section 11 - Noncompliance of industry with the credit agreement.
Section 12 - Annual evaluation of a program.
Section 13 - Agreement between board and eligible industry on program costs met by receipt of incremental increase tax withholding.
Section 14 - The Board must establish a separate fund for each project.
Section 15 - the Board may borrow money and issue certificates marketed through financial institutions authorized to do business in Missouri to provide funds for the present payment of the costs of economic development projects.
The "Missouri Large-Scale Development Fund" is established in the State Treasury and shall be administered by the Department. All incremental tax withholdings remitted by employers shall be transferred to the fund by the Department of Revenue. General revenue funds shall not be transferred to the fund.
This act contains provisions similar to HCS/SS/SS/SCS/SB 317 (1995).
This act is similar to SB 712 (1996).
SA 1 - BONDED INDEBTEDNESS OF LINN STATE TECHNICAL COLLEGE. SA 2 - TAX CREDIT FOR CONTRIBUTIONS TO SHELTERS FOR VICTIMS OF DOMESTIC VIOLENCE. SA 4 - MISSOURI CERTIFIED CAPITAL COMPANY LAW. SA 1 TO SA 4 - LOWERS PERCENTAGE OF TAX CREDIT AN INVESTOR MAY TAKE IN ONE YEAR FROM 10% TO 8 1/2 %. SA 5 - OFFICE PARK PROJECTS FOR THE PURPOSE OF RESEARCH AND DEVELOPMENT. SA 6 - TAX CREDITS (SECTIONS 32.100 THROUGH 32.127) MAY BE SOLD, ASSIGNED, EXCHANGED OR OTHERWISE TRANSFERRED. SA 7 - TAX EXEMPTIONS FOR MACHINERY AND EQUIPMENT PURCHASED AND USED FOR MANUFACTURING OR FABRICATING A PRODUCT AND FOR "MATERIAL RECOVERY PROCESSING PLANT". SA 8 - PROVIDES ANOTHER OPTION FOR WHICH CERTAIN FUNDS MAY BE USED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF A COUNTY. SA 9 - INCREASES STATE APPROPRIATION FOR THE JACKSON COUNTY CONVENTION & SPORTS COMPLEX. SA 10 - ADDS PROVISION PERTAINING TO LENDING THE STATE'S CREDIT FOR ANY PAYMENT.