ANNOUNCEMENT 10 Jul 2019
The state of Missouri created a program allowing up to $10 million per year in tax credits for new automotive investments.
NUMBER OF INTERVENTIONS
On July 10, 2019 the governor of Missouri signed into law a bill (SB68) that modifies several provisions relating to workforce development.
One provision of the bill allows the Department of Economic Development to award tax credits to qualified manufacturing companies, defined as a qualified company that manufactures motor vehicles and that manufactures a new product or has commenced making a manufacturing capital investment to the project facility. To receive tax credits, the qualified manufacturing company shall make a manufacturing capital investment of at least $500 million not more than three years following the Department's approval of a notice of intent and the execution of an agreement made under the program. Such tax credits shall not be issued prior to January 1, 2023, and may be issued each year for a period of five years. A qualified manufacturing company may qualify for an additional five-year period (i.e., to 2033 if such company makes an additional manufacturing capital investment of at least $250 million within five years of the approval of the original notice of intent.
Although the bill is reported in the press to have been aimed solely at attracting new investment by General Motors, and would allow for a level of support to this company that is equal to just half of the threshold by which measures are reported in the GTA (i.e., $10 million per year), the bill made no specific mention of this company and allowed for similar incentives to be provided to others. It stated that the maximum amount of tax credits that any single qualified manufacturing company may receive shall not exceed $5 million per calendar year, but the total aggregate amount of tax credits received by all qualified manufacturing companies could reach as high as $10 million per calendar year.
The act took effect on August 28, 2019.