State auditor reviewing tax credit program for business expansion

Missouri Auditor Scott Fitzpatrick's office has launched an audit into a tax credit program that's been utilized for local expansion projects.

Fitzpatrick's office is working with the state Department of Economic Development to audit the Missouri Works program, according to a news release issued this week. The audit started Nov. 1 for the program that the DED oversees.

"While I know this program has been widely hailed as the most effective tool our state has in its economic development toolbox, it's important that we take a close look at exactly what our state is getting in exchange for the approximately $100 million in tax revenue we're foregoing each year," Fitzpatrick said in the release. "A performance audit of this nature can be extremely helpful not only to give taxpayers a better understanding of how effective the program is at creating and retaining jobs, but also to provide a roadmap the department can use to address any potential deficiencies and improve the efficiency of the program moving forward."

The Missouri Works program issued nearly $102 million in tax credits during fiscal 2024.

Through the program, businesses can access capital through withholdings or tax credits in exchange for facility expansions and the creation of jobs, according to the DED's website.

Springfield projects this year utilizing Missouri Works incentives include Paul Mueller Co.'s (OTC: MUEL) $22 million expansion of its Springfield headquarters that's expected to create 133 jobs, and the new $6.5 million, 50,100-square-foot headquarters of 27North Inc. that opened in the spring.