The Enterprise Zone Act was developed to provide incentives for new business development including
tax credits for new jobs, investment and training plus local property tax abatements.
Firms meeting certain employee qualifications are eligible for:
- New investment tax credit of 10% of the first $10,000 invested; 5% of the next $90,000; 2% of any additional
- Up to $1,200 tax credit for each new employee hired;
- Up to $400 training credit for each new hire who resides in the zone or is considered unemployable;
- A 50% exemption on the portion of state taxable income attributed to a new or expanded facility in the zone;
- Improvements to real property would recieve a 50% abatement of City and County property taxes for 10 years.
Example
The following is an example of tax benefits derived from an investment of $1,000,000
and the creation of 25 jobs in the Enterprise Zone.
In addition to the credits below, this hypothetical business could also qualify for
a 50% exemption of its Missouri taxable Enteprise Zone income and a minimum 50% exemption from assessment and payment of property
tax for new improvement to real property.
JOB CREDITS
(Assuming maximum benefits of $1,600 per job)
25 X $1,600 = $40,000
INVESTMENT CREDIT
10% of first $10,000
$1,000
5% of next $90,000
+ 4,500
2% of remaining investment, or $900,000 is:
+ 18,000
$23,500
Total job/investment credit is:
$40,000
+23,500
$63,500
Job/invested credit is available each year for 10 years, not to exceed the 15th year
of the Enterprise Zone designation.
Note: Eligible business may recieve a refund of up to $75,000 when
credit exceeds liability.
