Missouri Business Incentives

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Missouri offers several incentives to help your business grow.  

Enhanced Enterprise Zone
The Enhanced Enterprise Zone Program provides state tax credits, accompanied by local real property tax abatement, to Enhanced Business Enterprises.  Tax credits may be provided each year for up to five tax years after the project commences operations. more...

Wine and Grape Tax Credit
The Wine and Grape Tax Credit Program assists vineyards and wine producers with the purchase of new equipment and materials by granting a tax credit for a portion of the purchase price. more...

Rebuilding Communities
The program is designed to stimulate business activity in Missouri’s “distressed communities” by providing tax credits to eligible businesses that locate, relocate or expand their business within a distressed community. more...

Quality Jobs Program
Missouri’s Quality Jobs Program facilitates the creation of quality jobs by targeted business projects. For small and expanding businesses, the benefit of the program is the retention of the state withholding tax of the new jobs. more...

Community Development Block Grant Program
The Community Development Block Grant Program (CDBG) offers grants to small Missouri communities to improve local facilities, address critical health and safety concerns, and develop a greater capacity for growth. We offer funds for projects that can range from housing and street repairs to industrial loans and job training. more...

Industrial Infrastructure Grant
These grants assist local governments in the development of public infrastructure that allows industries to locate new facilities, expand existing facilities, prevent the closing of a facility or the relocation of a facility outside the state. more...



Enhanced Enterprise Zone

Contact
Missouri Department of Economic Development
Division of Business and Community Services
Finance Management Team
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO 65102
Phone: 573-751-4539           
E-mail: dedfin@ded.mo.gov

http://go.missouridevelopment.org/eez

Program Description

The Enhanced Enterprise Zone Program is a discretionary program offering state tax credits, accompanied by local real property tax abatement, to Enhanced Business Enterprises.  Tax credits may be provided each year for up to five tax years after the project commences operations.

To receive tax credits for any of the years, the facility must create and maintain the minimum:

• New or expanded business facility – 2 new employees and $100,000 new investment;
• Replacement business facility – 2 new employees and $1,000,000 new investment
• Health insurance at all times, of which at least 50% is paid by the employer.

Eligible investment expenditures include the original cost of machinery, equipment, furniture, fixtures, land and building, and/or eight times the annual rental rate paid for the same.  Inventory is not eligible.

Eligible Applicants

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.  Service industries can be eligible if a majority of their annual revenues will be derived from services provided out of the state.  Headquarters or administrative offices of an otherwise excluded business may qualify if the offices serve a multi-state territory.  The company cannot have been announced or construction started prior to the approval process.  See application for complete information.  Enhanced Enterprise Zones are specified geographic areas designated by local governments and certified by the Department of Economic Development (DED).  Zone designation is based on certain demographic criteria, the potential to create sustainable jobs in a targeted industry and a demonstrated impact on local industry cluster development.

Gambling establishments, retail trade, educational services, religious organizations, public administrators and food/drinking places are not eligible.

Application Procedure

DED must first offer program benefits to the business in the form of a formal proposal.  The company must return the accepted proposal within 90 days of the proposal date.

The company must submit the Notice of Intent (NOI), (Application & guidelines, pages 7-9), and receive the Approval Letter before the start of construction, and/or purchase of machinery and equipment. NOIs will be accepted by DED at any time of the year and will be approved on an individual, case-by-case basis, based on compliance with all program criteria

Funding Limits

Tax credits will be an amount authorized by DED, based on the state economic benefit, supported by the number of new jobs, wages and new capital investment that the project will create. 

Tax credits issued under this program are limited to $24,000,000 annually, effective 12/03/07.  

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Wine and Grape Tax Credit

Contact
Business and Community Services
Finance Management
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO  65102
Phone: 573-751-9048          
E-mail: dedfin@ded.mo.gov 

http://go.missouridevelopment.org/wine

Program Description
The Wine and Grape Tax Credit Program assists vineyards and wine producers with the purchase of new equipment and materials by granting a tax credit for a portion of the purchase price. The Missouri Department of Economic Development (DED) will issue a state tax credit to an individual, partnership or corporation in an amount equal to 25% of the purchase price of new equipment and materials used directly in the growing of grapes or the production of wine in Missouri. 

Eligible Applicants
An individual or business actively involved in the production of wine or the growing of grapes in the state of Missouri. 

Application Procedure 
An application must be filed with DED.  There are no deadlines.  DED will issue a tax credit certificate authorizing the applicant to claim the tax credits. 

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Rebuilding Communities

Contact
Missouri Department of Economic Development
Division of Business and Community Services
Finance Management Team
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO 65102
Phone: 573-751-4539           
E-mail: dedfin@ded.mo.gov 

http://go.missouridevelopment.org/rc

Program Description

The program is designed to stimulate business activity in Missouri’s “distressed communities” by providing tax credits to eligible businesses that locate, relocate or expand their business within a distressed community.

Eligible Applicants
Businesses that locate, relocate or expand their business within a distressed area or distressed Missouri community. For a list of cities and census block groups that are “distressed communities,” visit DED's web site or call 573-751-0717.

• Must have more than 75% of its employees at the facility in the distressed community.
• Must have fewer than 100 employees total at all facilities nationwide (before commencing operations or relocating).
• Primarily engaged in manufacturing, biomedical, medical devices, scientific research, animal research, computer software design or development, computer programming (including Internet, web hosting, and other information technology), telecommunications (wireless, wired or other), or a professional firm.

Application Procedure

• New or relocating businesses should submit a Pre-Application to DED prior to commencing operations in the distressed community.
• Businesses applying for the 25% Equipment Tax Credit should submit a Pre-Application for each year that they intend to request tax credits.
• Applications for tax credits must be submitted to DED prior to February 15th of the calendar year following the year in which the credits were earned. 
• Tax credits will be issued on a first-come, first served basis.

Funding Limit 
Program Limit:

• All credits: $8 million/year
• 25% Equipment Tax Credits: $750,000/year

Per Business Limit:

• 40% Income Tax Credit: $125,000/year 
• 25% and 40% Equipment Tax Credits: $75,000/year

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Quality Jobs Program

Contact

Missouri Department of Economic Development
Division of Business and Community Services
Finance Management Team
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO 65102
Phone: 573-751-4539           
E-mail:  dedfin@ded.mo.gov

http://go.missouridevelopment.org/qj

Program Description
Missouri’s Quality Jobs Program facilitates the creation of quality jobs by targeted business projects. For small and expanding businesses, the benefit of the program is the retention of the state withholding tax of the new jobs.  The program benefits are based on a percentage of the payroll of the new jobs.  The program benefits are not provided until the minimum new job threshold is met and the company meets the average wage and health insurance requirements. 

Small and expanding businesses in rural areas must create 20 or more new jobs within two years of the date of the DED approval. In non-rural areas, the number increases to 40.

Eligible Applicants 
For-profit and non-profit businesses [except for gambling, retail trade, food and drinking places, public utilities, educational services, religious organizations, ethanol distillation or production facilities, biodiesel production facilities, and public administration companies or businesses 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].  Headquarters or administrative offices of otherwise excluded businesses that serve a multi-state area may qualify in some cases. The average wage of the new jobs must equal or exceed the county average wage (as published by DED), and the company must offer health insurance and pay at least 50% of the premium for all full time employees in Missouri.

Application Procedure 
An application ("Notice of Intent") may be submitted at any time of the year by the business to DED. Applications may be obtained at www.missouridevelopment.org. DED's approval will:

• Confirm that the type of project/business is eligible.
• Establish the date “base employment” is calculated.
• Reserve the estimated tax credits for the project. 
• Establish the 2-year “deadline” date for the creation of the minimum new jobs to be eligible for the program.

Funding Limits 
There is no annual cap on the retained withholding taxes. Tax credits issued for the entire program shall not exceed $60,000,000 per calendar year, and are provided on a first-come basis.  

The following Missouri Department of Economic Development programs assist businesses, but application for the program must be made through a city or county.

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Community Development Block Grant Program

Contact

Missouri Department of Economic Development
Division of Business and Community Services
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO 65102
573-751-4539           
E-mail:  dedfin@ded.mo.gov

http://go.missouridevelopment.org/cdbg

Program Description

The Community Development Block Grant Program (CDBG) offers grants to small Missouri communities to improve local facilities, address critical health and safety concerns, and develop a greater capacity for growth. We offer funds for projects that can range from housing and street repairs to industrial loans and job training. 

Eligible Applicants:
State CDBG funds are only available to non-entitlement areas (incorporated municipalities under 50,000 and counties under 200,000 in population).

Application Procedure:
Depending on the funding category, applications are either accepted on a continuous cycle throughout the year or have a specific deadline. Please refer to the individual categories for more information.

Funding Limits:

The maximum amount available varies, depending on the type of project. Please refer to the individual categories for more information.

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Industrial Infrastructure Grant

Contact
Business and Community Services
Finance Management
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO 65102
Phone: 573-751-4539    
E-mail:  dedfin@ded.mo.gov 

http://go.missouridevelopment.org/infrastructure

Program Description
These grants assist local governments in the development of public infrastructure that allows industries to locate new facilities, expand existing facilities, prevent the closing of a facility or the relocation of a facility outside the state. Grant funds may be used for public streets, water or sewer lines, engineering and other public facilities necessary to support the project. A public entity must own the facilities to be funded.

Eligible Applicants
Cities or counties. Projects can only be in a “non-entitlement” area -- a city under 50,000 in population or a county under 200,000 in population. 

Application Procedure
Applications are reviewed on a case-by-case basis, subject to fund availability. 

Funding Limits
The grants shall be determined in accordance with the following schedule: