- Businesses where the average wage of the new jobs equal or exceed the county average wage (as published by DED) : currently $25.75/hourly or $53,547/annual (St. Louis City; source: http://www.missourieconomy.org/indicators/countywage.stm)
- The business must offer health insurance and pay at least 50% of the premium for all full-time employees in Missouri.
- Retail trade
- Food and drinking places
- Public utilities
- Any company that has filed for or has publicly announced its intention to file for bankruptcy.
- Educational services
- Ethanol distillation or production facilities
- Biodiesel production facilities
- Religious organizations
- Public administration
- Retention of the state withholding tax on new jobs
- State tax credits, which are refundable and/or sellable.
Technology business projects (classified by NAICS code) must have 10 or more new jobs within 2 years of the date of the DED approval:
- 5% of the payroll of the new jobs; plus "Average Wage Bonus"; each year for the 5 years
Small/Expanding business projects must create 40 or more new jobs within 2 years of the date of the DED approval:
- Retention of the withholding tax on new jobs, each year for 3 years (if the average wage of new jobs is 100-119% of the county average wage) or 5 years (if the average wage of new jobs is 120%+ of county average wage)
High Impact business projects must have 100 or more new jobs within 2 years of the date of the hiring of the 1st new job, and the 1st new job must be within 1 year of the date of the DED approval:
- 3% of the payroll of the new jobs; plus "Average Wage Bonus"; and plus "Local Incentives Bonus"; each year for 5 years
Average Wage Bonus - new job average wage as a percentage of county average wage:
- Greater than 120%: ½% bonus of payroll of the new jobs
- Greater than 140%: ½% bonus of payroll of the new jobs
Local Incentives Bonus - amount of local incentives provided to the qualified company as a percentage of the amount of new local tax revenues derived from the project, over 10 yrs.
- 10-24%: 1% bonus of payroll of the new jobs
- 25-49%: 2% bonus of payroll of the new jobs
- 50% or more: 3% bonus of payroll of the new jobs
This tax credit can be applied to Chapter 143 taxes (state income tax, excluding withholding tax) and Chapter 148 (financial institutions tax) for the year in which they were earned. Any unused balance is refundable. The credits may also be transferred, sold or assigned. There is no annual cap on the retained withholding taxes. The annual cap of tax credits for all projects is $80,000,000, which is provided on first-come bases.
The Notice of Intent must be received by DED prior to job creation. The project facility base employment and project facility base payroll will be established using the date DED receives the Notice of Intent. DED will issue an approval (or denial) to the business. Links to the Notice of Intent, program guidelines and other documents are found on DED's web site.
A business cannot earn benefits under this program if earning benefits during the same time period of any of several State programs. Contact DED with any questions on these requirements.