Friday, April 8, 2011

Missouri House Gives Approval to Powerful Economic Development Package Sponsored by Rep. John J. Diehl, Jr.

The Missouri House has approved a wide-ranging economic development package focused on creating and retaining jobs in the fields of science and technology. Sponsored by state Rep. John J. Diehl, Jr., R-Town and Country, the legislation (HB 468) received overwhelming bipartisan support; passing by a vote of 144-7. Diehl said the legislation would give Missouri a powerful tool to move the state toward becoming a national leader in the science, technology and research industries.

“This legislation will help us identify some of the key components of our economy that we can help grow for the future,” said Diehl. “We know entrepreneurial growth is a vital part of any long-term economic success we hope to achieve for the state. This legislation will allow us to support entrepreneurial activity and allow Missouri to catch up with the many states that have already embraced entrepreneurship and innovation as economic growth strategies.”

One portion of the bill would create the Missouri Science and Innovation Reinvestment Act. MOSIRA, which received approval in the House for the first time in the state’s history, would create a funding source to spark growth in research and technology enterprises by capturing a small percentage of the new growth in gross wages generated by employees working in Missouri within designated science and innovation fields. The funds would then be reinvested strategically by the Missouri Technology Corporation into projects that are innovation-based and have the greatest potential return to the citizens of Missouri. Diehl stressed that funding for MOSIRA would not be generated from additional taxes or involve the use of existing general revenue funds.

Diehl said funding would be reinvested in a wide range of programs designed to: attract top science talent to Missouri; commercialize scientific research to create new Missouri-based technology companies; recruit and build strategic science infrastructure; create a continuum of capital programs to increase access to risk capital for early-stage technology companies created in or recruited to Missouri; increase technology-focused entrepreneurial activity in Missouri; and establish highly-focused workplace development initiatives.

“Our science and innovation industries represent an enormous untapped potential that our state needs to capitalize on if we are going to prepare our economy for success in the future,” said Diehl. “MOSIRA gives us a predictable, stable source of funding that will help us build our entrepreneurial infrastructure. Best of all it does it without cost to Missouri taxpayers.”

Diehl’s bill has received strong bipartisan support and has been backed by businesses, academic institutions, workforce development and community groups from across the state.

The legislation also includes incentives for the building of data storage facilities and computer server farm facilities. The bill would authorize a state and local sales and use tax exemption on items related to these facilities. The data storage legislation was also filed as House Bill 366 by House Budget Chairman Ryan Silvey, R-Kansas City.

In addition, the legislative package would modify the Enhanced Enterprise Zone Program to allow for tax credits to be issued to developers who establish a new business facility in a dormant manufacturing plant zone. The plan is meant to help make use of the closed Chrysler Plant near Fenton and has also been proposed as House Bill 357 by Representative Mike Leara, R-St. Louis County.

“This is a big picture piece of legislation that gives our state some effective tools to move our economy in a positive direction,” said Diehl. “We have an abundance of untapped potential that we must make use of if we are going to make Missouri a national leader in the emerging science and technology industries. This puts us in the game and allows us to compete with the many states that have already made that investment.”

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