While the Missouri income tax reduction proposal might be garnering significant debate ahead of the Sept. 11 veto session, there are other bills the governor signed or vetoed ahead of his July 14 deadline impacting business across the state.
Among them is House Bill 184. Sen. Bob Dixon, R-Springfield, wrote an amendment to the bill that establishes the Missouri Works Program.
The bill signed by Gov. Jay Nixon combines tax credits through the Neighborhood Assistance, Rebuilding Communities and Enhanced Enterprise Zone programs, as well as Missouri Quality Jobs, into one incentives package with an initial cap of $106 million.
Similar to Quality Jobs, Missouri Works offers tax credits to companies adding a certain number of jobs that meet wage requirements and include health benefits, but the number of jobs added to secure the credits has been lowered to a minimum of two jobs in rural areas and 10 jobs in urban markets. Also, the bill gives the Missouri Department of Economic Development more freedom to determine how much money businesses should receive.
“It provides greater flexibility, greater availability and greater accountability because there is one program to look at as opposed to (four). And it offers greater accessibility,” Dixon said.
House Bill 611, which focuses on unemployment insurance reforms, is another issue Missouri Chamber of Commerce and Industry CEO Dan Mehan said the chamber is asking legislators to address in the veto session.
“With the veto of 611, we are in jeopardy of losing those, which would be about an $859 million hit,” Mehan said. “That is a huge issue for Missouri employers.”
He said the bill is designed to help the state secure the maximum tax credits under the Federal Unemployment Tax Act.
In December, Missouri had its 2012 FUTA tax credit reduced because it did not meet a Nov. 10 deadline to pay off its loan from the federal government to keep its unemployment insurance trust fund solvent. Since 2010, Missouri employers under the Unemployment Insurance Program have had their available tax credit reduced by 0.6 percent to 4.8 percent. The bill also revises the definition of “misconduct,” as it relates to employee disqualification from unemployment benefits, and the repayment of fraudulently obtained benefits.
Another key business initiative signed into law this year was a bill designed to shore up the insolvent Second Injury Fund. On July 10, the governor signed Senate Bill 1, which increased the surcharge on workers’ compensation premiums to 6 percent from 3 percent through 2021 and brought occupational diseases under the workers’ compensation system.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
