The Senate Committee on Economic Development, Tourism and Local Government on Wednesday approved the Senate version of the Missouri Quality Jobs and Enhanced Enterprise Zone reauthorization bill. The Senate Committee Substitute for SB 282 , offered by chairman Sen. John Griesheimer (R-26, Washington), provides a $75 million tax credit cap for Quality Jobs, $25 million for Enhanced Enterprise Zones, $12 million annually for a land assemblage tax credit, and extends the expiration date for the New Jobs Training program. The bill was amended in committee to eliminate the exclusion of telephone and cable companies as eligible companies for the Missouri Quality Jobs program and to allow the land assemblage tax credit for smaller areas as well as urban areas. The bill received a unanimous vote from the Senate committee.
The Committee also passed SB 20, a bill that revises tax increment financing procedures. Committee members, including Sen. Jason Crowell, noted that TIF is a tool that can be used well and Chairman Griesheimer agreed. The bill was passed by the committee on a unanimous 10-0 vote.
The Senate committee also heard a bill that would extend the expiration date of the Division of Tourism Supplemental Revenue Fund for five additional years to 2015. That fund receives a portion of the state sales taxes collected from businesses in certain SIC codes that benefit from tourism advertising and uses the money to help fund the Division of Tourism and to help in the promotion of tourism in Missouri. MEDC supported the bill.
Also on Wednesday, the House Committee on Small Business, chaired by Rep. Doug Ervin (R-35,
Kearney, pictured at right), heard testimony on Rep. Ervin's HB 365, the Small Business and Entrepreneurial Growth Act, a MEDC priority bill that helps fill the gap for smaller businesses that are adding too few jobs to qualify for the Quality Jobs program. The bill helps small business owners overcome a portion of the additional governmental obligations that are incurred when the business adds employees by allowing the company to retain the withholding tax on new jobs, if they pay at least 85% of county average wage. The business may retain the withholding tax for two years if health insurance is provided for the new employees. The bill was combined with two other bills that were also heard at the hearing: HB 804 (small business investment tax credit) and HB 805 (tax credits for venture capital provided through the Missouri Technology Corporation). MEDC supported all three bills and the committee voted to pass the bills to the full House for debate.
On Tuesday, the House Rural Community Development Committee heard HB 74, sponsored by committee chairman Rep. Larry Wilson (R-119, Flemington, picutred at left) that would provide additional Rural Empowerment Zones in Missouri. The MEDC supported the bill which, if passed, would provide additional tax benefits to help stimulate economic development and job creation in poorer counties with high unemployment and low income. The bill was approved by the Committee and now will be considered by the full Missouri House of Representatives.
