Financial Incentives

Tax Incentives
Below are brief summaries of Tax Incentive programs offered by the state of Missouri through the Missouri Department of Economic Development (DED) and local communities.

Loan Guarantee Fee Tax Credit Program -Provides state tax credits to an "eligible small business" for the amount of a guarantee fee paid to either the U.S. Small Business Administration or the U.S. Department of Agriculture for a small business loan.

Quality Jobs Program- Facilitates new quality jobs by targeted business projects.

Sales Tax Exemption - Machinery and equipment used to establish a new manufacturing facility or expand an existing manufacturing facility is exempt from local and state sales/use tax, provided such machinery/equipment is used directly to manufacture a product ultimately intended for sale.

Public Infrastructure Financing
Below are brief summaries of Public Infrastructure programs offered by the state of Missouri.

Industrial Development Bond - Facilitate the financing of business projects. Cities or counties may purchase or construct certain types of projects with bond proceeds and lease or sell the project to a company. Costs that may be eligible costs are the purchase, construction, extension and improvement of warehouses, distribution facilities, and industrial plants.

Industrial Infrastructure Grant - Assists local governments in the development of public infrastructure that allows industries to locate new facilities, expand existing facilities, or prevent the relocation or closing of a facility. Grants must be made in cooperation with a city or county sponsor in a "non-entitlement" area where the project will be located. (Cities with populations less than 50,000 and/or counties with populations under 200,000). For-profit manufacturing, processing and assembly companies are prioritized.

Venture Capital
The Missouri Department of Economic Development, other state agencies, and federal agencies have a broad array of resources to facilitate capital formation for new and expanding high growth businesses.

Seed Venture Capital
Venture Capital is equity financing. Equity financing involves no direct obligation of the business to repay any fund; however, it does involve selling a partial interest of the business to the investor. Because the investor owns a share of the business, they are interested in the long-term success and future profitability of the business. Equity financing tends to be very complicated and will require the business to seek the advice and representation of an attorney and accountant.

New Enterprise Creation Act
The New Enterprise Creation Act is intended to generate investment for new, startup Missouri businesses that have not developed to the point where they can successfully attract conventional financing or significant venture capital from later-stage funds.

Workforce Incentives
It takes a quality team to get the job done. The Midwestern work ethic is one of our valued assets. Combined with several local and state training and development incentives and our business-friendly environment, the State of Missouri is an ideal place to locate your business.

Training Financial Assistance
Customized Training Program
The Customized Training Program provides training assistance for employers who are hiring and training workers for newly created jobs or retraining workers as a result of new capital investment. The Customized Training Program can assist with your specific training needs.

New Jobs Training Program
The New Jobs Training Program provides training assistance for employers with a sound credit rating who are e creating a substantial number of new jobs. Local community colleges initially finance training through the sale of certificates. The certificates are repaid by using tax credits from the employer's regular withholding that is based on a percentage of the gross wages paid to employees in the new jobs.

Finance Programs
Action Fund Loan - For-profit manufacturing, processing and assembly companies located in a non-entitlement area that has wages above the county average and provide medical benefits may be eligible for a loan which may be used for the purchase of new machinery and equipment or working capital. The loan must be made in cooperation with a city or county sponsor.

Industrial Development Bonds - Industrial development bonds facilitate the financing of business projects. Cities or counties purchase or construct certain types of projects with bond proceeds and lease or sell the project to a company. Costs that may be eligible are the purchase, construction, extension and improvement of warehouses, distribution facilities and industrial plants.

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