Senate Gives Initial Approval to Quality Jobs and Enhanced Enterprise Zone Legislation

(April 13, 2007) On Wednesday evening, after considering 30 amendments, the Missouri Senate passed the Missouri Quality Jobs and Enhanced Enterprise Zone legislation. Nearly all of the 30 amendments were adopted and included such things as alternative fuels tax incentives, tax credits for home renovation to provide accessibility to disabled persons -- even a provision allowing hunting in flood plains. While many of the amendments will not survive the final conference negotiations, there is no shortage of good ideas in the bill. Ultimately, negotiators will determine the content of the final bill.



The bill includes a Land Assemblage Tax Credit for redevelopment of urban areas and increases the Quality Jobs tax credit limit to $30 million. The Enhanced Enterprise Zone tax credit limit would be increased to $25 million. The bill also contains a provision that would exempt all manufacturing inputs from sales and use taxes, making Missouri competitive with states like Kansas that already offer such an exemption. A report was just released on the impact of the manufacturing inputs sales tax exemption which you may view by visiting www.motaxpayers.com and selecting the "Reports" tab on the left side of the screen. You will also find a report showing the state receives $3.18 in taxes for each tax dollar invested in the Missouri Quality Jobs program at the same location.



The Senate Governmental Accountability and Fiscal Oversight Committee must review and approve the bill before it faces a final vote in the Senate. If approved, the bill will be returned to the House where it is expected the bill will be sent to "conference" for further negotiations. Rep. Ron Richard and Sen. John Griesheimer are leading the charge on this bill in each of their respective chambers and the Missouri Economic Development Council thanks them for their hard work in carrying this important legislation.