Nixon signs tax deduction jobs bill in Joplin

Gov. Jay Nixon was on hand at the Joplin Area Chamber of Commerce June 27 to sign into law House Bill 1661, which provides a tax deduction for Missouri small business creating jobs.

"My message to Missouri business is clear - now is the time, and Missouri is the place, for you to create jobs and grow," Nixon said in a news release. Earlier in June, CNN-Money placed Missouri among the Top 10 most entrepreneurial states for 2011. Missouri placed sixth in the nation for new business startups, according to Nixon.

"Missouri is a national leader is supporting and nurturing startup businesses and this targeted tax deduction is another valuable tool to help your businesses reach new heights," he said.

The economic stimulus bill provides tax deductions of $10,000 to $20,000 for small Missouri businesses that create new jobs during the next two years.

To be eligible, the small business must have 50 or fewer employees, and the new jobs created must employ the workers for at least 52 weeks at an annual salary of at least the county average wage. Businesses may claim the deduction during tax years 2012, 2013 and 2014.

The average weekly wage in Greene County was $709 in the fourth quarter of 2011, according to U.S. Bureau of Labor Statistics data released yesterday.

Businesses can take a $10,000 tax deduction for each new job created that meets the wage requirement, or $20,000 if the business also offers health insurance and pays at least 50 percent of the insurance premiums, according to the bill.