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Missouri Division of Business Services

Missouri Division of Business Services. Responsibilities. Organize around three primary focus areas and regions Focus on promoting Missouri as a great place to do business Help existing businesses expand and increase sales

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Missouri Division of Business Services

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  1. Missouri Division of Business Services

  2. Responsibilities • Organize around three primary focus areas and regions • Focus on promoting Missouri as a great place to do business • Help existing businesses expand and increase sales • Provide useful and creative financing assistance to existing businesses and businesses desiring to locate in Missouri

  3. Division of Business ServicesRecruitment and Marketing Team • National / International Recruitment • Enhance PR/marketing efforts • Promote MO sites/buildings/communities • Missouri Location One

  4. Division of Business ServicesBusiness Development and Trade • Expand/Retain Existing MO Business • Facilitate export sales of MO companies • Facilitate knowledge economy: • Innovation Centers • Missouri Enterprise Program • Technology promotion • Cluster development

  5. Division of Business ServicesFinancial Services Team • Administer business incentive programs • Prepare custom incentive proposals • In coordination with local ED agencies

  6. Division of Business ServicesFilm Commission • Recruit film and commercial projects • Coordinate film projects with producers

  7. Missouri Business Incentives

  8. Funded: Rebuilding Comm. New Jobs Training Enterprise Zones Bus. Facility Credits Brownfield Credits MODESA CDBG Infrastructure CDBG Action Loan Historic Credit Limited: Customized Training Exhausted: BUILD bonds Development Credits State TIF Business Incentive ProgramsDED Programs

  9. Summary - MO Tax Credits • 53 tax credit programs – all agencies • DED - 34 programs • $175 million (FY03) • Summary and applications: • www.ded.state.mo.us/sitesearch.shtml

  10. Affordable Housing Assistance (MHDC) Bond Guarantee (MDFB) Brownfield Remediation Brownfield Jobs & Investment Brownfield Demolition BUILD (MDFB) Community College New Jobs Training Development Family Dev Account Film Production Incubator Contribution (MDFB) Low Income Housing Mutual Fund Income Apportionment Neighborhood Assistance New Enterprise Creation Research Expense Youth Opportunity Discretionary Approvals or CapsDED Tax Credit Programs

  11. New/Expanding Business Facility CAPCO Community Bank Dry Fire Hydrant Enterprise Zone Historic Preservation Mature Worker Neighborhood Preservation Rebuilding Communities Skills Development Transportation Development Wine/Grape Production Non-Discretionary Approvals or CapsDED Tax Credit Programs

  12. Purpose: Incentive for redeveloping contaminated properties. Method: Tax Credits of up to 100% of remediation of hazardous substances. Approval Method: Discretionary (based on ROI) Pre-approval required Features: Sellable --- Yes Refund --- No Eligibility: Enrolled in VCP Commercial property only Brownfield Remediation Credit

  13. Purpose: Incentive for redeveloping contaminated properties. Method: Tax Credits based on a formula of new jobs ($1,200/yr.) and investment (2.2%/yr.). Eligibility: Enrolled in VCP Commercial property only Approval Method: Discretionary Pre-approval required Features: Sellable – No Carry forward - No Brownfield Jobs/Investment

  14. Purpose: Incentive for redeveloping historic properties. Method: Tax Credits of 25% of eligible rehabilitation costs. Federal credit is 20%. Approval Method: Formula Pre-approval recommended but not required Features: Sellable --- Yes Carry Forward --- 10 yrs Carry Back --- 3 years Eligibility: Designated historic property Commercial or residential Historic Preservation

  15. Purpose: Incentive for companies to add new jobs and investment. Method: Tax Credits based on a formula of new jobs ($75-$100/yr.) and new investment (.075%-.1%/yr). Distribution of credits: Each year for 10 years. Features: Sellable --- No Carry Forward --- No Cap: None Eligibility: Certain types of businesses Business Facility Credit

  16. Purpose: Incentive for companies to add new jobs and investment. Method: Tax Credits based on a formula of new jobs (up to $1,200/yr.) and investment (2%/yr). Approval Method: Formula Pre-approval required Distribution of credits: Each year for up to 10 years. Limited to remaining life of the zone. Eligible Areas: Designated EZs (67) Features: Sellable --- No Carry Forward --- No Refund --- Up to $75,000 Cap: None Eligibility: Certain types of businesses Local real property abatement Enterprise Zone Credits

  17. New Job Credit: $400/year/up to 10 years Special Employee Credit: $400/year/up to 10 years Zone Resident Credit: $400/year /up to 10 years Training Credit: $400/eligible employee Local real property tax abatement Minimum 50%, 10 yrs. Maximum 100%, 25 yrs. If 30% of new employees at facility are special employees or zone residents: Investment Credit: 2%/year of new investment at facility 50% income exemption Up to 10 years. Enterprise Zone Benefits

  18. Purpose: Incentive for eligible businesses to locate/expand in distressed areas. Method: Tax Credits of either: 40% of new specialized equip. 40% of state income tax 1.5% of salary to employees Approval Method: Formula/First Come Pre-approval required Eligible Areas: Distressed Areas Recipient of Credit: Businesses (40% credit) Employees (1.5% credit) Features: Sellable --- Yes Carry Forward --- 5 Carry Back --- 3 Cap: $10 million/year (statewide) $300,000 to $375,000/business Eligibility: Certain types/sizes of businesses New, relocating, or expanding* Rebuilding Communities Credit“New, Relocating, or Expanding Existing Businesses”

  19. Method: Tax Credits of 25% of the increase in new specialized equip. (from the average of the prior two years) NO 1.5% employee credit Approval Method: Formula/First Come) Pre-approval required Distribution of credits: 1 year May re-apply each year if eligible Eligible Areas: Distressed Areas Recipient of Credit: Businesses Cap: $10 million/year (statewide) $75,000 per business Eligibility: Certain types/sizes of businesses <100 employees Existing businesses Rebuilding Communities Credit“Existing Businesses”

  20. Purpose: Incentive to attract new or expanding businesses Method: Tax Credits of 50% of contribution to non-profit org. Non-profit purchases assets and leases to company. Approval Method: Discretionary by DED Recipient of Credit: Contributor Features: Sellable --- Yes Carry Forward --- 5 Cap: $4 million/year (statewide) $500,000/project Eligibility: Higher impact projects with competition. Development Credit

  21. Purpose: Incentive to attract new or expanding businesses Method: MDFB issues IRB. Tax Credits in the amount of debt service on IRBs. Approval Method: Discretionary by DED/MDFB Distribution of credits: Annually upon payment of debt service. Features: Sellable --- No Carry Forward --- No Carry Back --- No Refund --- Yes Cap: $11 mil./year credits Project: State net fiscal impact Eligibility: Mfg, Services*: 100 new jobs, $15 mil invstmt. Office: 500 new jobs (200 in DA), $10 mil invstmt. BUILD Bonds/Credits

  22. Purpose: Incentive for businesses to train new workers. Method: Revenue bond issued by Community College. Proceeds used for training of company’s new workers. Portion of state WH tax of company diverted to pay debt service on bonds. Approval Method: Discretionary by DED. Apply any time. Cap: $35 million outstanding bonds Project: Based on formula and DED approval. Funding: FY-03 Bonds: $3.0 mil. FY-04 est.: $7.0 mil. Eligibility: Certain types of businesses Wages > area average. OJT < 50% of bonds New Jobs Training Bonds

  23. Purpose: Incentive for businesses to train new/ext. workers. Method: Reimbursement of approved costs – classroom training. Approval Method: Discretionary by DED. Apply any time. Funding: FY-03: $6.4 mil. FY-04: $6.4 mil. $4.2 mil. Funded $2.2 mil. remains Eligibility: Certain types of businesses Wages > area average. $10/hr. metro $8.50/hr. non-metro Customized Training Grant

  24. Purpose: Provide public infrastructure to facilitate a project. Method: Grant to city/county. Approval Method: Discretionary by DED. Apply any time. Eligibility: Non-metro areas Wages > area average. $10/hr. metro $8.50/hr. non-metro Certain types of businesses Cap: (lesser of) $1.5 mil./project $2-$10,000 / new job 35%* of private invstmt. CDBG Infrastructure Grant

  25. Purpose: Provide subordinated loan for “gap” of funding to complete a project. Method: Loan to company. Approval Method: Discretionary by DED. Apply any time. Eligibility: Non-metro areas Wages > area average. $10/hr. metro $8.50/hr. non-metro Certain types of businesses Cap: (lesser of) $750,000./project $25,000 / new job 35% of private invstmt. Action Fund Loan

  26. Local Incentives • Chapter 100 Revenue Bonds • Tax abatement, real and personal property • Transportation Development Districts • Neighborhood Improvement Districts • Tax Increment Financing • Community Improvement Districts

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