Senate Passes Scaled-Back Economic Development Bill
September 14, 2011: The Missouri Senate today passed a version of Senate Bill 8, the economic development and tax credit reform legislation. The bill includes:
Dramatically scaled-back China Hub legislation that provides air export tax credits for freight forwarders in the amount of $60 million. The $300 million that was to have been targeted for new warehouse construction has been removed from the bill;
New sales tax exemptions for data centers and authorization for municipalities to enter into leaseback agreements with data centers (which may include property tax exemptions);
COMPETE Missouri: a program that combines several existing tax credit programs into one program, establishes retention tax credits, and revises job training credits;
New tax credits for groups that are attracting sporting events;
New tax credits for donations to providers of care for the developmentally disabled; and,
A number of changes and restrictions on various tax credit programs, including subjecting some to appropriations, adding expiration dates, and extending some tax credit programs.
We are pleased to announce that the provision that would have dramatically limited the manufacturing sales tax exemption was removed from the bill at AIM’s request. You may click here for more information regarding the omnibus economic development bill, Senate Bill 8.
Today, the Senate also gave second-round approval to a bill authorizing the Missouri Science and Innovation Reinvestment Act (MOSIRA). Under the bill, the Missouri Technology Corporation would receive additional funding from existing employment taxes received by the state from workers in certain types of jobs. The additional funding would be used to promote innovation in manufacturing and other business pursuits and advancements in life sciences. You may click here for more details on the MOSIRA bill.
We will continue to update you as we more thoroughly review the bill.