A new bill filed in the Missouri House seeks to attract businesses to Missouri while avoiding the problems of the controversial HB 253 that was proposed last year and which was successfully vetoed by Governor Jay Nixon. Critics charged that HB 253 would have substantially gutted funding for schools; according to figures provided by the state, Worth County could have lost as much as $180,000. The Coalition for Missouri's Future, a group opposed to this bill, said that it would have gutted state funding by as much as $800 million per year.
The Bring Jobs Home Act (HB 1089) is much more narrowly tailored; specifically, it provides for tax breaks for businesses relocating to Missouri. There is a cap for tax breaks set at $10 million; businesses taking advantage of this break would be served on a first come first served basis. Businesses relocating to Missouri would be allowed to deduct any amount for which a deduction is allowed to the taxpayer under Section 162 of the Internal Revenue Code of 1986, permit and license fees, lease brokerage fees, equipment installation costs and similar expenses, and eligible expenses paid in connection with the elimination of business units outside of Missouri and establishment of business units within the state.
Under this bill, a business can deduct 20% of eligible insourcing expenses. No deduction would be allowed unless the number of full time employees for the taxable year for which the deduction is claimed is more than the number of full time employees in the year before eligible expenses were incurred. If a taxpayer is not allowed a deduction under the $10 million ceiling provision, they would be allowed one the next year. Should a taxpayer take a deduction under this section and then eliminate the business within 10 years, they would be required to repay the state.
The bill has a 6-year sunset clause; it would expire unless renewed by the legislature. If it is renewed by the legislature, it would then have a 12-year sunset clause.
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