On Wednesday, February 7, 2007, the House Special Committee on Job Creation and Economic Development heard testimony on and approved two bills that are high priority bills for the MEDC: increases in the tax credit limits for the Missouri Qualify Jobs and Enhanced Enterprise Zone programs. In fact, in a show of bipartisan unity, the House committee unanimously passed the reauthorizing bills without a limit on the amount of tax credits that may be issued.HB 327, sponsored by the chairman of the committee, Rep. Ron Richard (R-129 Joplin, pictured at right) originally would have increased the tax credit limits in the Missouri Quality Jobs Act by $12 million to $24 million. The Department of Economic Development supported this increase in tax credit limit. However, the chairman and many witnesses testifying for the program (including the MEDC) recommended elimination of the tax credit limits. Witnesses testified that the tax credit caps create uncertainty regarding the availability of the program when local economic developers are putting together deals to attract new employers into the state. Following the leadership of Chairman Richard, the committee passed the legislation and removed the tax credit limits. Rep. Richard said the committee's goal is to make this program as frictionless as possible for our economic developers so they may continue to use the program to create quality jobs in Missouri.
Originally passed as a direct result of the efforts of the MEDC and the Department of Economic Development in 2005, the Missouri Quality Jobs Act has created more than 12,000 jobs paying at least county average wage with health insurance benefits since its inception, exhausting the current tax credit cap of $12 million.
The Enhanced Enterprise Zone bill, HB 328, was combined into HB 327, meaning the bill will now include both the Missouri Quality Jobs provisions and the Enhanced Enterprise Zone (EEZ) provisions. The EEZ tax credit limit was also eliminated by the House committee. Click here to view the new bill, including these two provisions and an extension of the new jobs training program.
More than 20 witnesses from companies, agencies and associations testified in support of the two bills at the hearing, furnishing the committee examples of projects that had been attracted using the program. Many also discussed the negative impact the current tax credit limit had on their ability to attract deals because of the uncertainty that exists regarding the availability of tax credits under the program. Thanks to all who made the special effort to attend the hearing in support!
Testifying in support of the bill at the House committee hearing were representatives of the following (listed in order of appearance at the hearing): Missouri Department of Economic Development, Missouri Economic Development Council, Taxpayers Research Institute of Missouri, Associated Industries of Missouri, St. Louis Regional Chamber and Growth Association, Kansas City Economic Development Council, Cape Girardeau Area Chamber of Commerce, America's Heartland Economic Partnership (Lebanon), Joplin Area Chamber of Commerce, St. Louis Development Corporation, Missouri Chamber of Commerce and Industry, Duck Creek Technologies (Bolivar), Marshall-Saline Development Corporation, Jefferson City Area Chamber of Commerce, Economic Development Sedalia-Pettis County, Montgomery City Growth, City of Joplin, EaglePicher Technologies, St. Louis Community College, Missouri Community College Association, Johnson County Economic Development Corporation, Missouri Association for Community Action, Monsanto, Greater Kansas City Chamber of Commerce, Metropolitan Community College (Kansas City), Springfield Area Chamber of Commerce, Northeast Missouri Economic Development.
The Senate Commitee on Economic Development, Tourism and Local Government also held a hearing the same day on similar bills sponsored by Sen. John Griesheimer (R-26, Washington). A committee substitute was presented to the committee that included a land assemblage tax credit, supported by Lt. Governor Peter Kinder and others. Because the bills were heard as part of a docket of many bills at the hearing, those testifying were asked to keep comments brief. The land assemblage tax credit would authorize a tax credit to help offset the costs of assembling large tracts of land for development exceeding 75 acres. The Senate committee took no action on the bills at the hearing.
