The Rebuilding Communities Tax Act provides State Tax Incentives for eligible businesses which relocate or invest in a designated "Rebuilding Community." The entire City of St. Louis is eligible for this program.
- Corporations, partnerships, and proprietors with fewer than 100 employees in all locations.
- 75% or more employees must be located in or relocating to the City of St. Louis.
Eligible business operations:
- Professional Firms
- Computer Programming
- Medical Devices
- Scientific Research
- Computer Software Design or Development
These tax credits must be approved by application to the Missouri Department of Economic Development prior to the relocation or expenditures:
An eligible relocating business may qualify for:
- 40% tax credit for each of the 3 years after relocation, based upon 40% of their income taxes due.
- The maximum amount of credits per taxpayer is $125,000 for each of the three years for which the credit is claimed OR 40% Specialized Equipment Credit for the amount expended for computer equipment, research laboratory equipment, manufacturing equipment, fiber optic equipment, high speed telecommunications, wiring or software development expense.
- The maximum credit is $75,000 per year for each of the three years after commencing operations or moving into the qualifying rebuilding community.
- Tax credit against State Income Tax equal to 1.5% of their gross salary paid to each eligible employee for each of the three years that the facility receives the tax credit.
An eligible existing business may qualify for:
- A 25% Specialized Equipment credit for those businesses which expended funds for computer equipment and its maintenance, medical laboratories and equipment, research laboratory equipment, manufacturing equipment, fiber optic equipment, high speed telecommunications, wiring or software development expense.
- Expenses exceeding its average expense for the 2 prior years shall be eligible to receive a 25% State Tax Credit to a maximum of $75,000 in credit per business.
NOTE: If a qualifying existing company anticipates doubling their existing employment within one year the State will allow the expansion to qualify for the same benefits afforded to a relocating company. Use of Credits: Business credits may be used for taxes owed in 3 previous years and in any of the 5 tax years thereafter. These credits may be transferred, sold or assigned.