Enhanced Enterprise Zones

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.

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. 

Enhanced Enterprise Zone Contact and Location Information