In addition to receiving the benefits of our business-friendly tax climate, investing in the STL West region may qualify your business for a number of federal, state and/or local incentives. Contact the Access STL West team to learn more about available incentive programs or to request a customized incentive proposal.
PROPERTY TAX ABATEMENT:
CHAPTER 100
Type of Incentive: Real and/or personal property tax abatement
Description of Benefits: Chapter 100 industrial development bonds may be issued by local municipalities or counties to finance development projects. Upon the issuance of Chapter 100 bonds, the municipality or county may provide tax abatement on the bond-financed property over the term of the bonds or up to 20 years. Under this arrangement, the municipality or county retains ownership of the real and/or personal property and leases it back to the company under a lease purchase agreement. Terms vary by project. Payment-in-lieu-of-taxes (PILOTS) may be imposed.
Eligibility Requirements: Eligible industries include manufacturing, warehousing, distribution, office, research and development, agriculture processing and services in interstate commerce.
CHAPTER 353
Type of Incentive: Real property tax abatement
Description of Benefits: Chapter 353 is an incentive designed to encourage the redevelopment of blighted areas by providing a real property tax abatement for up to 25 years. Terms vary by project. Payments-in-lieu-of-taxes (PILOTS) may be imposed.
Eligibility Requirements: Chapter 353 tax abatement may only be extended to real property that has been found to be in a blighted area.
ENHANCED ENTERPRISE ZONE
Type of Incentive: Real property tax abatement
Description of Benefits: A project located in an Enhanced Enterprise Zone may be eligible for real property tax abatement of at least 50 percent for up to 10 years on improvements made to real property.
Eligibility Requirements: The business must be located in a Missouri Enhanced Enterprise Zone (EEZ). Individual business eligibility is determined by the zone and is based on creation of sustainable jobs in a targeted industry or demonstrated impact on the local industry cluster development.
TAX CREDITS, EXEMPTIONS & INCENTIVES
OPPORTUNITY ZONES
Type of Incentive: Tax deferral, step-up in basis and permanent exclusion of taxable income on new gains
Description of Benefits: Opportunity Zones were created to encourage investment and job creation in low-income areas by allowing investors to re-invest unrealized capital gains. The program provides three tax benefits including temporary deferral of taxes on previously earned capital gains, a step-up in basis of previously earned capital gains invested and permanent exclusion of taxable income on new gains.
Eligibility Requirements: Property must be located in an established Qualified Opportunity Zone to be considered.
MISSOURI WORKS
Type of Incentive: State withholding tax retention & tax credits
Description of Benefits: The Missouri Works program is designed to support companies considering Missouri as a place to locate and/or grow their business. Program benefits include the retention of the state withholding tax for new jobs and/or state tax credits, which are refundable, transferable and saleable. The program benefits are based on a percentage of the payroll of the new jobs. Benefits are not provided until the minimum new job threshold is met and the company meets the average wage and health insurance requirements.
Eligibility Requirements: Companies can be a for-profit or non-profit business. Gambling, retail trade, food and drinking places, companies regulated by the Public Service Commission, companies 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 are not eligible.
CHAPTER 100 SALES TAX EXEMPTION ON CONSTRUCTION MATERIALS
Type of Incentive: Sales tax exemption
Description of Benefits: In addition to real and/or personal property tax abatement, Chapter 100 also offers a sales tax exemption on construction materials.
Eligibility Requirements: Eligible industries include manufacturing, warehousing, distribution, office, research and development, agriculture processing and services in interstate commerce.
SALES TAX EXEMPTION FOR MANUFACTURERS
Type of Incentive: Sales tax exemption
Description of Benefits: The Missouri Department of Revenue will issue a state sales tax exemption to a manufacturing company for electrical energy, gas (whether natural, artificial or propane), water, coal, energy sources, chemicals, machinery equipment and materials. The items listed above may be exempt if they are used or consumed in the manufacturing, processing, compounding, mining or producing of any product; used or consumed in the processing of recovered materials; or used or consumed in research and development related to manufacturing, processing, compounding, mining, or producing any product
Eligibility Requirements: Program is exclusive to manufacturing companies.
TRAINING ASSISTANCE:
MISSOURI ONE START
Type of Incentive: Workforce training
Description of Benefits: Missouri One Start provides customized training programs tailored to meet each business’s unique needs. Training may include one-on-one recruitment services and pre- and post-employment training. Training can take place in a classroom setting, on-the-job, at the company facility or in a training center within the Missouri One Start network.
Eligibility Requirements: A company must be an eligible industry and meet certain capital investment and wage thresholds to qualify.
INFRASTRUCTURE FINANCING & DEVELOPMENT PROGRAMS
Community Development Block Grant (CBDG) Industrial Infrastructure Program
Type of Incentive: Grants/financing
Description of Benefits: The CBDG Industrial Infrastructure program helps communities develop public infrastructure allowing industries to locate new facilities, expand existing facilities, prevent the closing of a facility or the relocation of a facility outside of the state.
Eligibility Requirements: CBDG 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).
Economic Development Administration (EDA) Public Works Program
Type of Incentive: Grants/financing
Description of Benefits: The EDA’s Public Works program enables communities to attract new industry; encourage business expansion; diversify local economies; generate or retain long-term, private-sector jobs and investment through the acquisition or development of land and infrastructure improvements needed for the successful establishment or expansion of industrial or commercial enterprises.
Eligibility Requirements: A project must demonstrate alignment with one of the EDA’s current investment priorities and must increase the capacity of the community or region to promote job creation and private investment in the regional economy.
OTHER LOCAL DEVELOPMENT TOOLS
Tax Increment Financing – Tax Increment Financing (TIF) permits the use of a portion of the local property and sales taxes to assist funding the redevelopment of certain designated areas within a community. Areas eligible for local TIF must be classified as a “Blighted”, “Conservation” or an “Economic Development” area, or any combination thereof.
Community Improvement Districts – A Community Improvement District (CID) is special taxing district that collects revenue within its designated boundaries to pay for special public facilities, improvements and services. CIDs are created by ordinance of the local governing body of a municipality upon presentation of a petition signed by owners of real property within the proposed district’s boundaries.
Transportation Improvement Districts – A Transportation Development District (TDD) may be created by the Missouri Highways and Transportation Commission to fund or operate one or more projects that would assist in the promotion, design, construction, improvement or operations of any public bridge, street, highway, intersection, signing, signals, parking lot, bus stop, garage, terminal, aircraft hangar, rest area, dock, wharf, river port, airport, railroad, light rail or any similar or related transportation infrastructure.
Contact the Access STL West team for a customized incentive proposal.