Description
Do I Qualify?
How Do I Apply?
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Description
Enhanced Enterprise Zones (EEZ) may be created by communities to encourage job creation in a blighted area. Communities with designated zones can offer expanding businesses within those zones local incentives as well as connect them with state incentives through the Missouri Works program (Zone Works category).
Enhanced Enterprise Zone Contact and Location Information
Applications accepted year-round.
Enterprise Zone Tax Benefit Information
No new authorizations may be made for this program. The Enterprise Zone program was replaced by the Enhanced Enterprise Zone (EEZ) program (view a full list of Missouri's EEZs). Enterprise Zone designations are expected to expire as the duration is not to exceed 25 years. Projects with previous authorizations may complete their projects and may still achieve the program benefits subject to the program rules and any terms and conditions of their original award.
Not currently accepting.
Information for Businesses
Businesses with an existing award of tax credits through the Enhanced Enterprise Zone program seeking to gain access to those benefits should submit the Annual Tax Credit Application to the department no later than the end of the tax year immediately following the tax year for which they are seeking benefits.
Eligibility Requirements
Exclusively for companies approved for benefits/proposal prior to August 23, 2013.
The EEZ is a discretionary program that offered state tax credits, accompanied by local real property tax abatement, to Enhanced Business Enterprises. Tax credits may be provided each year for up to five tax years after the project commences operations. To receive tax credits for any of the years, the facility must have created and maintained the minimum:
- New or expanded business facility - 2 new employees and $100,000 new investment;
- Replacement business facility - 2 new employees and $100,000 new investment
- Company must offer health insurance at all times, of which at least 50 percent is paid by the employer, to all full-time employees in Missouri.
Eligible investment expenditures include the original cost of machinery, equipment, furniture, fixtures, land and building, and/or eight times the annual rental rate paid for the same. Inventory is not eligible.
This tax credit can be applied to:
- Ch. 143 - Income tax, excluding withholding tax
Tax credits can only be applied to tax liability for the year in which they were earned. The tax credits are refundable; or may be transferred, sold or assigned. The sale price cannot be less than 75 percent of the par value of such tax credits.
Reporting Requirements
The facility must file the Annual Application for Tax Credits and supporting documents each year for calculation of the facility’s state tax benefits. See page 10 of the application for a list of requirements. The deadline for submitting the Annual Application for Tax Credits is during the tax period immediately after the tax period for which the credits are being requested.
SB 1099 Reporting
The “Tax Credit Accountability Act” reporting form must be returned for this program to the Department of Revenue by June 30 of each year. Email: taxcredit@dor.mo.gov or Phone: 573-751-3220
Special Program Requirements
Applicants must be eligible for and receive at least ten years’ local real property tax abatement at 50% pursuant to the local enhanced enterprise zone plan.
Projects relocating employees from one Missouri location to another Missouri location must obtain the endorsement of the governing body of the community from which the jobs are being relocated and include this endorsement with the Notice of Intent.
A business cannot earn tax credits under this program if earning Enterprise Zone, Business Facility, Quality Jobs, Rebuilding Communities, or Brownfield Jobs and Investment tax credits for the same project for the same tax period.
Information for Communities
Enhanced Enterprise Zones (EEZ) may be created by communities to encourage job creation in a blighted area. Communities with designated zones can offer expanding businesses within those zones local incentives as well as connect them with state incentives through the Missouri Works program (Zone Works category).
Do I Qualify?
ELIGIBLE USE OF TAX CREDITS
This tax credit can be applied to:
- Ch. 143 - Income tax, excluding withholding tax
- Ch. 148 - Insurance Premium Tax
- Sec. 375.916 - Insurance Co. Retaliatory Tax
This credit has no special attributes and can only be applied to tax liability for the year it was earned, unless it was issued for a new facility, for which there may be up to a $75,000 refund of state income taxes in the first two years of eligibility.
FUNDING LIMITS
A company can receive:
- Up to a 50% state income tax exemption
- A $400 credit for each new job
- A $400 credit for each employee who is an enterprise zone resident
- A $400 credit for each employee who was a “difficult to employ” person (receiving welfare or unemployed for a specified period of time)
- Up to $400 credit per employee trained who was a zone resident or “difficult to employ”
- A credit equal to $5,500 for the first $100,000 of new capital investment at the facility and 2% of new capital investment amounts above $100,000 at the facility
- 50% local property tax abatement on improvements
EEZs are specified geographic areas designated by local governments and certified by the department. Zone designation is based on certain demographic criteria, the portal to create sustainable jobs in a targeted industry and a demonstrated impact on local industry cluster development. The Zone designation demographic criteria currently utilizes populations and income data from the 2000 Census, US Census Bureau. Unemployment information is updated annually using data from the US Bureau of Labor Statistics.
How Do I Apply?
- Governing Authority requests run of desired census tracts from the department.
- Department determines if run meets statutory requirements for zone designation.
- Governing Authority completes "EEZ Program Statutory Requirements for Designation"
- Governing Authority sends copy of the documentation of zone completion to the department.
- Department adds zone to website.
Upload Program Application(s) and Documents
The FTP is a file system that allows you to send large documents that are too big to go through email. Sending documents through FTP can also help you save space in your inbox!
To upload a file, please click the following link and enter the username and password provided below:
Username: ded.finance
Password: BCSformupload2022
Need help? Click here.
A notification email confirming receipt will be sent to the email address listed in the application within 3 business days.
The original Application and attachments should be mailed to the address below:
Department of Economic Development
PO Box 118
Jefferson City, MO 65102
New Projects: Businesses interested in locating in one of Missouri's current Enhanced Enterprise Zones can learn more about incentives offered by local municipalities by reaching out directly to the zone authorities. In addition, Missouri's premier incentive program Missouri Works is also available to businesses embarking on new projects within the zones through the Zone Works category.
Need Help?
Email: dedfin@ded.mo.gov
Phone: 573-526-0308
Documents
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