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Incentives

In addition to receiving the benefits of our business friendly tax climate, investing in STL West may qualify your business for a number of federal, state and local incentives. Our team is standing by to assist with your site selection project and we welcome you to contact our project management team with requests for customized incentive proposals.

Federal Incentive Programs

The federal government offers a variety of incentives for domestic and international investors. To learn more, contact our project management team or use the searchable guide of federal programs and services available to businesses operating in the United States created by SelectUSA. Business.USA.gov is the U.S. government's official web portal to support business start-ups, growth, financing and exporting. It is designed to provide access to online resources and services of federal, state, and local government as well as those of non-profit and educational organizations supporting businesses.

State & Local Incentive Programs

A number of state and local incentive programs are also available to help with your next project. To learn more, contact our project management team or search the Missouri Department of Economic Development’s Business Assistance page. The Missouri Business Portal is your single point of entry for business registration, filings, licenses, and permits for doing business in the State of Missouri.


Commonly Used Incentive Programs

Missouri Quality Jobs Program

STATUTORY CITATION: Section 620.1875-620.1900.RSMo

TYPES OF BENEFITS: State withholding tax retention and tax credits.

DESCRIPTION OF BENEFITS: For “Small/Expanding” business projects, the benefit of the program is the retention of the state withholding tax of the new jobs. For “Technology” and “High Impact” business projects, the benefits of the program are (a) the retention of the state withholding tax of the new jobs and (b) state tax credits, which are refundable and/or sellable. The program benefits are based on a percentage of the payroll of the new jobs.

ALLOWED USES OF BENEFITS: This tax credit can be applied to Chapter 143 (state income tax, excluding withholding tax) and Chapter 148 (financial institutions tax). Tax credits can only be applied to tax liability for the year in which they were earned. Any unused balance is refundable. The credits may also be transferred, sold or assigned.

ELIGIBLE BUSINESS TYPES: For-profit and nonprofit businesses except for gambling, retail trade, food and drinking places, companies regulated by the Public Service Commission, companies that are delinquent in non-protested taxes or other payments (state, federal or local), or any company that has filed for or has publicly announced its intention to file for bankruptcy. Tax credits must be claimed within one year of the taxable year for which they were issued. A company may treat facilities located within one mile of each other or within the same county as one project facility if engaged in the same business activity.

Enhanced Enterprise Zone

CLICK HERE TO VIEW A MAP OF THE APPROVED ENHANCED ENTERPRISE ZONE IN THE STL WEST REGION

STATUTORY CITATION: §§ 135.950-135.1150 RSMO

TYPE OF BENEFITS: Tax Credits.

DESCRIPTION OF BENEFITS: Tax credits and real property tax abatement of at least 50% for up to 10 years on improvements to the real property.

ALLOWED USES OF BENEFITS: Tax credits may be transferred, sold or assigned. The sale price cannot be less than 75% of the par value of such tax credits.

ELIGIBLE BUSINESS TYPES: An eligible business must be located in a Missouri Enhanced Enterprise Zone (EEZ). Individual business eligibility will be determined by the zone, based on creation of sustainable jobs in a targeted industry or demonstrated impact on local industry cluster development.

Community Development Block Grant (CDBG)

STATUTORY CITATION: The Housing and Community Development Act of 1974 (Public Law 93-383), as amended. CDBG is a “pass through” funding program from the U.S. Department of Housing and Urban Development. Authorization for the program is set forth in 42 U.S.C. §5301 et seq.; 24 CFR Part 570; and Missouri’s “Consolidated Plan” submitted to the U.S. Department of Housing and Urban Development.

TYPE OF BENEFITS: Grants and Financing Loans.

DESCRIPTION OF BENEFITS: Benefits may include grants awarded to communities to offset the cost of public infrastructure or loans for private companies for job creation. Refer to specific CDBG categories for specific benefits available.

ALLOWED USES OF BENEFITS:

  • Action Fund Loan – loans to private companies resulting in the creation of jobs.
  • Community Facilities – development of a public facility designed to provide services from a central location (senior center, community center, fire station, etc.)
  • Downtown Revitalization – public infrastructure and improvements that significantly contribute to the revitalization or redevelopment of downtown areas.
  • Emergency – projects meeting an urgent threat to health and safety.
  • Industrial Infrastructure Grant – public infrastructure development that results in the creation of jobs by a private company benefiting from the infrastructure.
  • Interim Financing Loan – short-term loans to a private company resulting in the creation of jobs.
  • Speculative Industrial Building Loan – loans to a nonprofit development organization to develop a shell building for industrial purposes.
  • Water and Wastewater – publicly owned water and wastewater improvements and new construction. Proposals must be reviewed by the Missouri Water and Wastewater Review Committee before application is made.
  • Other Public Needs – eligible activities that are not addressed with a specific Community Development Block Grant category as listed above. Examples include: bridges, streets, housing demolition, handicapped accessibility in public buildings or other activities deemed important for the economic growth of the community.
  • Rural Affordable Housing Request for Proposals – included as part of the other public needs category listed above. Proposals must address housing development for low — to moderate — income persons and must match low-income housing tax credit or other Missouri Housing Development Commission funding applications.

ELIGIBLE BUSINESS TYPES: Community Development Block Grant funds are only available to cities or counties in non-entitlement areas (incorporated municipalities with a population under 50,000 and counties with a population under 200,000).

Manufacturing Jobs Act

STATUTORY CITATION: §§ 620.1910 RSMO

TYPE OF BENEFITS: State withholding tax retention.

DESCRIPTION OF BENEFITS: Allows a qualified manufacturing company, beginning January 1, 2012, upon approval of a notice of intent by the department, to retain 100% of the withholding taxes from full-time jobs at the facility for 10 years if it manufactures a new product, or to retain 50% of withholding taxes from full-time jobs for seven years if it modifies or expands the manufacture of an existing product. Allows a qualified supplier, upon approval of a notice of intent by the department, to retain 100% of the withholding taxes from new jobs for three years. If the qualified supplier pays wages for the new jobs that are equal to or greater than 120% of the county average wage for Missouri as determined by the department using NAICS industry classifications, it can retain the withholding taxes for five years.

ELIGIBLE BUSINESS TYPES: Qualified manufacturing companies with a NAICS code of 33611 that:

  • (a) Manufacture goods at a facility in Missouri throughout the period in which the company receives benefits under the Act; and
  • (b) Makes a capital investment of at least $75,000 per retained job at the facility for the manufacture of a new product within two years of beginning to retain withholding taxes; or
  • (c) Commits to make a capital investment of at least $50,000 per retained job at the facility for the modification or expansion of the manufacture of an existing product within two years of beginning to retain withholding taxes.

Qualified suppliers that:

  • (a) Attest to the Department of Economic Development (DED) that it derives more than 10% of its total annual sales revenue from sales to a qualified manufacturing company;
  • (b) Adds five or more new jobs;
  • (c) Pays wages for the new jobs that are equal to or exceeds the county average wage for Missouri as determined by the department using the NAICS industry classifications but are not less than 60% of the statewide average wage; and
  • (d) Provides health insurance for all full-time jobs and pays at least 50% of the insurance premiums.

Missouri Community College New Jobs Training Program

STATUTORY CITATION: §§ 178.892-178.896 RSMo

TYPE OF BENEFITS: Provides training assistance to companies creating a substantial number of new jobs in Missouri.

DESCRIPTION OF BENEFITS: Funds for the training project are generated by diverting from the employer’s regular withholding taxes paid for the employees in the newly created jobs. The amount paid is based on a percentage of the gross wages that have been paid to the employees. The tax withholding is equal to 2.5% of gross wages for the first 100 jobs, and 1.5% for the remaining jobs in the project. The tax withholding credits for the project are claimed for an average of 4-5 years to pay for project costs.

ELIGIBLE BUSINESS TYPES: Businesses currently located in or locating to Missouri engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products are eligible. Companies that conduct research and development or provide services in interstate commerce are also eligible.

Missouri Customized Training Program

TYPE OF BENEFITS: The Missouri Customized Training Program assists Missouri employers with funding to help offset training costs for new and existing employees.

DESCRIPTION OF BENEFITS: The Missouri Customized Training Program is implemented through local educational agencies. Training assistance may be available for training costs such as curriculum development, instructional salaries and training materials.

ELIGIBLE BUSINESS TYPES: Businesses creating net new jobs in the state of Missouri or retraining existing jobs in Missouri as a result of substantial capital investment.

Brownfield Redevelopment Tax Credits

STATUTORY CITATION: §§ 447.700 to 447.718 RSMO

TYPE OF BENEFIT: Tax Credits

DESCRIPTION OF BENEFITS: Provides financial incentives for the redevelopment of commercial/industrial sites that are contaminated with hazardous substances and have been abandoned or underutilized for at least three years.

ELIGIBLE BUSINESS TYPES: The applicant cannot be a party who intentionally or negligently caused the release or potential release of hazardous substances at the project. If the property is not owned by a public entity, the city or county must endorse the project. The project must be accepted into the “Voluntary Cleanup Program” of the MO Department of Natural Resources. The project must be projected by DED to result in the creation of at least ten new jobs or the retention of 25 jobs by a private commercial operation.

Action Fund Loan

STATUTORY CITATION: 42 USC § 5301 et seq., 24 C.F.R. Part 570; and Missouri’s “Consolidated Plan” submitted to the U.S. Department of Housing and Urban Development.

DESCRIPTION OF BENEFITS: Provides a loan to certain types of for-profit companies that need funds for start-up or expansion and have exhausted other sources.

ELIGIBLE APPLICANTS: Cities and counties must apply on behalf of beneficiary companies. For-profit manufacturing, processing and assembly companies that will have wages above the county average and provide medical benefits are prioritized.

Missouri Life Sciences Research Trust Fund

The Missouri Life Sciences Research Trust Fund was established in 2007 to enhance research capacity and transform research into commercial life science technology. In conjunction with Missouri’s universities and industry, $10.5 million was awarded for research grants and $2.6 million for commercialization grants. The scope of research will focus on agriculture research, animal science, plant science, medical devices, biomaterials and composite research, nanotechnology related to drug development and delivery, diagnostics, clinical imaging, and information technology related to human health.

Grow Missouri Loan

DESCRIPTION OF BENEFITS: Principal and interest payments may be deferred for up to 3 years (4 years for minority business enterprises (MBE) and woman business enterprises (WBE) to aid in obtaining approval for the other project financing. After the initial deferral period, payments may be interest-only for up to 3 additional years. The maximum term of the loan is 8 years.

The collateral may be subordinated to the primary lender. An approved applicant will have 120 days after DED’s approval of the loan application to secure commitments of the other financing for the expansion project; therefore, there is no need to have the entire project financing secured when applying. Interest rates are 2% fixed rate per annum. (MBE/WBE is 0% rate.)

ELIGIBLE BUSINESS TYPES:
  • Generally, for-profit “primary” companies (that mostly sell/compete outside the local market area) are eligible.
  • Applicants must demonstrate a reasonable ability to create at least 1 new or retained job for every $75,000 of Grow Missouri Loan funding within 5 years of approval. Such new or retained jobs must have average wages that are at least 80% of the county average wage, or 70% within Enhanced Enterprise Zones or MBE/WBEs.
  • The applicant must offer to pay at least 50% health insurance for all Missouri employees.

Contact our project management team with requests for customized incentive proposals.

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