Missouri Revised Statutes
Chapter 135
Tax Relief
←135.909
Section 135.950.1
135.953→
August 28, 2015
Definitions.
135.950. The following terms, whenever used in sections 135.950 to
135.970 mean:
(1) "Average wage", the new payroll divided by the number of new
jobs;
(2) "Blighted area", an area which, by reason of the predominance of
defective or inadequate street layout, unsanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property by
fire and other causes, or any combination of such factors, retards the
provision of housing accommodations or constitutes an economic or social
liability or a menace to the public health, safety, morals, or welfare in
its present condition and use. The term "blighted area" shall also include
any area which produces or generates or has the potential to produce or
generate electrical energy from a renewable energy resource, and which, by
reason of obsolescence, decadence, blight, dilapidation, deteriorating or
inadequate site improvements, substandard conditions, the predominance or
defective or inadequate street layout, unsanitary or unsafe conditions,
improper subdivision or obsolete platting, or the existence of conditions
which endanger the life or property by fire or other means, or any
combination of such factors, is underutilized, unutilized, or diminishes
the economic usefulness of the land, improvements, or lock and dam site
within such area for the production, generation, conversion, and conveyance
of electrical energy from a renewable energy resource;
(3) "Board", an enhanced enterprise zone board established pursuant
to section 135.957;
(4) "Commencement of commercial operations" shall be deemed to occur
during the first taxable year for which the new business facility is first
put into use by the taxpayer in the enhanced business enterprise in which
the taxpayer intends to use the new business facility;
(5) "County average wage", the average wages in each county as
determined by the department for the most recently completed full calendar
year. However, if the computed county average wage is above the statewide
average wage, the statewide average wage shall be deemed the county average
wage for such county for the purpose of determining eligibility. The
department shall publish the county average wage for each county at least
annually. Notwithstanding the provisions of this subdivision to the
contrary, for any taxpayer that in conjunction with their project is
relocating employees from a Missouri county with a higher county average
wage, such taxpayer shall obtain the endorsement of the governing body of
the community from which jobs are being relocated or the county average
wage for their project shall be the county average wage for the county from
which the employees are being relocated;
(6) "Department", the department of economic development;
(7) "Director", the director of the department of economic
development;
(8) "Employee", a person employed by the enhanced business enterprise
that is scheduled to work an average of at least one thousand hours per
year, and such person at all times has health insurance offered to him or
her, which is partially paid for by the employer;
(9) "Enhanced business enterprise", an industry or one of a cluster
of industries that is either:
(a) Identified by the department as critical to the state's economic
security and growth; or
(b) Will have an impact on industry cluster development, as
identified by the governing authority in its application for designation of
an enhanced enterprise zone and approved by the department; but excluding
gambling establishments (NAICS industry group 7132), retail trade (NAICS
sectors 44 and 45), educational services (NAICS sector 61), religious
organizations (NAICS industry group 8131), public administration (NAICS
sector 92), and food and drinking places (NAICS subsector 722), however,
notwithstanding provisions of this section to the contrary, headquarters or
administrative offices of an otherwise excluded business may qualify for
benefits if the offices serve a multistate territory. In the event a
national, state, or regional headquarters operation is not the predominant
activity of a project facility, the new jobs and investment of such
headquarters operation is considered eligible for benefits under this
section if the other requirements are satisfied. Service industries may be
eligible only if a majority of its annual revenues will be derived from out
of the state;
(10) "Existing business facility", any facility in this state which
was employed by the taxpayer claiming the credit in the operation of an
enhanced business enterprise immediately prior to an expansion,
acquisition, addition, or replacement;
(11) "Facility", any building used as an enhanced business enterprise
located within an enhanced enterprise zone, including the land on which the
facility is located and all machinery, equipment, and other real and
depreciable tangible personal property acquired for use at and located at
or within such facility and used in connection with the operation of such
facility;
(12) "Facility base employment", the greater of the number of
employees located at the facility on the date of the notice of intent, or
for the twelve-month period prior to the date of the notice of intent, the
average number of employees located at the facility, or in the event the
project facility has not been in operation for a full twelve-month period,
the average number of employees for the number of months the facility has
been in operation prior to the date of the notice of intent;
(13) "Facility base payroll", the total amount of taxable wages paid
by the enhanced business enterprise to employees of the enhanced business
enterprise located at the facility in the twelve months prior to the notice
of intent, not including the payroll of owners of the enhanced business
enterprise unless the enhanced business enterprise is participating in an
employee stock ownership plan. For the purposes of calculating the
benefits under this program, the amount of base payroll shall increase each
year based on the consumer price index or other comparable measure, as
determined by the department;
(14) "Governing authority", the body holding primary legislative
authority over a county or incorporated municipality;
(15) "Megaproject", any manufacturing or assembling facility,
approved by the department for construction and operation within an
enhanced enterprise zone, which satisfies the following:
(a) The new capital investment is projected to exceed three hundred
million dollars over a period of eight years from the date of approval by
the department;
(b) The number of new jobs is projected to exceed one thousand over a
period of eight years beginning on the date of approval by the department;
(c) The average wage of new jobs to be created shall exceed the
county average wage;
(d) The taxpayer shall offer health insurance to all new jobs and pay
at least eighty percent of such insurance premiums; and
(e) An acceptable plan of repayment, to the state, of the tax credits
provided for the megaproject has been provided by the taxpayer;
(16) "NAICS", the 1997 edition of the North American Industry
Classification System as prepared by the Executive Office of the President,
Office of Management and Budget. Any NAICS sector, subsector, industry
group or industry identified in this section shall include its
corresponding classification in subsequent federal industry classification
systems;
(17) "New business facility", a facility that does not produce or
generate electrical energy from a renewable energy resource and satisfies
the following requirements:
(a) Such facility is employed by the taxpayer in the operation of an
enhanced business enterprise. Such facility shall not be considered a new
business facility in the hands of the taxpayer if the taxpayer's only
activity with respect to such facility is to lease it to another person or
persons. If the taxpayer employs only a portion of such facility in the
operation of an enhanced business enterprise, and leases another portion of
such facility to another person or persons or does not otherwise use such
other portions in the operation of an enhanced business enterprise, the
portion employed by the taxpayer in the operation of an enhanced business
enterprise shall be considered a new business facility, if the requirements
of paragraphs (b), (c), and (d) of this subdivision are satisfied;
(b) Such facility is acquired by, or leased to, the taxpayer after
December 31, 2004. A facility shall be deemed to have been acquired by, or
leased to, the taxpayer after December 31, 2004, if the transfer of title
to the taxpayer, the transfer of possession pursuant to a binding contract
to transfer title to the taxpayer, or the commencement of the term of the
lease to the taxpayer occurs after December 31, 2004;
(c) If such facility was acquired by the taxpayer from another
taxpayer and such facility was employed immediately prior to the
acquisition by another taxpayer in the operation of an enhanced business
enterprise, the operation of the same or a substantially similar enhanced
business enterprise is not continued by the taxpayer at such facility; and
(d) Such facility is not a replacement business facility, as defined
in subdivision (27) of this section;
(18) "New business facility employee", an employee of the taxpayer in
the operation of a new business facility during the taxable year for which
the credit allowed by section 135.967 is claimed, except that truck drivers
and rail and barge vehicle operators and other operators of rolling stock
for hire shall not constitute new business facility employees;
(19) "New business facility investment", the value of real and
depreciable tangible personal property, acquired by the taxpayer as part of
the new business facility, which is used by the taxpayer in the operation
of the new business facility, during the taxable year for which the credit
allowed by 135.967 is claimed, except that trucks, truck-trailers, truck
semitrailers, rail vehicles, barge vehicles, aircraft and other rolling
stock for hire, track, switches, barges, bridges, tunnels, and rail yards
and spurs shall not constitute new business facility investments. The
total value of such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by the
taxpayer. The net annual rental rate shall be the annual rental rate paid
by the taxpayer less any annual rental rate received by the taxpayer from
subrentals. The new business facility investment shall be determined by
dividing by twelve the sum of the total value of such property on the last
business day of each calendar month of the taxable year. If the new
business facility is in operation for less than an entire taxable year, the
new business facility investment shall be determined by dividing the sum of
the total value of such property on the last business day of each full
calendar month during the portion of such taxable year during which the new
business facility was in operation by the number of full calendar months
during such period;
(20) "New job", the number of employees located at the facility that
exceeds the facility base employment less any decrease in the number of the
employees at related facilities below the related facility base employment.
No job that was created prior to the date of the notice of intent shall be
deemed a new job;
(21) "Notice of intent", a form developed by the department which is
completed by the enhanced business enterprise and submitted to the
department which states the enhanced business enterprise's intent to hire
new jobs and request benefits under such program;
(22) "Related facility", a facility operated by the enhanced business
enterprise or a related company in this state that is directly related to
the operation of the project facility;
(23) "Related facility base employment", the greater of:
(a) The number of employees located at all related facilities on the
date of the notice of intent; or
(b) For the twelve-month period prior to the date of the notice of
intent, the average number of employees located at all related facilities
of the enhanced business enterprise or a related company located in this
state;
(24) "Related taxpayer":
(a) A corporation, partnership, trust, or association controlled by
the taxpayer;
(b) An individual, corporation, partnership, trust, or association in
control of the taxpayer; or
(c) A corporation, partnership, trust or association controlled by an
individual, corporation, partnership, trust or association in control of
the taxpayer. "Control of a corporation" shall mean ownership, directly or
indirectly, of stock possessing at least fifty percent of the total
combined voting power of all classes of stock entitled to vote, "control of
a partnership or association" shall mean ownership of at least fifty
percent of the capital or profits interest in such partnership or
association, and "control of a trust" shall mean ownership, directly or
indirectly, of at least fifty percent of the beneficial interest in the
principal or income of such trust; ownership shall be determined as
provided in Section 318 of the Internal Revenue Code of 1986, as amended;
(25) "Renewable energy generation zone", an area which has been
found, by a resolution or ordinance adopted by the governing authority
having jurisdiction of such area, to be a blighted area and which contains
land, improvements, or a lock and dam site which is unutilized or
underutilized for the production, generation, conversion, and conveyance of
electrical energy from a renewable energy resource;
(26) "Renewable energy resource", shall include:
(a) Wind;
(b) Solar thermal sources or photovoltaic cells and panels;
(c) Dedicated crops grown for energy production;
(d) Cellulosic agricultural residues;
(e) Plant residues;
(f) Methane from landfills, agricultural operations, or wastewater
treatment;
(g) Thermal depolymerization or pyrolysis for converting waste
material to energy;
(h) Clean and untreated wood such as pallets;
(i) Hydroelectric power, which shall include electrical energy
produced or generated by hydroelectric power generating equipment, as such
term is defined in section 137.010;
(j) Fuel cells using hydrogen produced by one or more of the
renewable resources provided in paragraphs (a) to (i) of this subdivision;
or
(k) Any other sources of energy, not including nuclear energy, that
are certified as renewable by rule by the department of natural resources;
(27) "Replacement business facility", a facility otherwise described
in subdivision (17) of this section, hereafter referred to in this
subdivision as "new facility", which replaces another facility, hereafter
referred to in this subdivision as "old facility", located within the
state, which the taxpayer or a related taxpayer previously operated but
discontinued operating on or before the close of the first taxable year for
which the credit allowed by this section is claimed. A new facility shall
be deemed to replace an old facility if the following conditions are met:
(a) The old facility was operated by the taxpayer or a related
taxpayer during the taxpayer's or related taxpayer's taxable period
immediately preceding the taxable year in which commencement of commercial
operations occurs at the new facility; and
(b) The old facility was employed by the taxpayer or a related
taxpayer in the operation of an enhanced business enterprise and the
taxpayer continues the operation of the same or substantially similar
enhanced business enterprise at the new facility. Notwithstanding the
preceding provisions of this subdivision, a facility shall not be
considered a replacement business facility if the taxpayer's new business
facility investment, as computed in subdivision (19) of this section, in
the new facility during the tax period for which the credits allowed in
section 135.967 are claimed exceed one million dollars and if the total
number of employees at the new facility exceeds the total number of
employees at the old facility by at least two;
(28) "Same or substantially similar enhanced business enterprise", an
enhanced business enterprise in which the nature of the products produced
or sold, or activities conducted, are similar in character and use or are
produced, sold, performed, or conducted in the same or similar manner as in
another enhanced business enterprise.
(L. 2004 S.B. 1155 § 135.1050, A.L. 2007 1st Ex. Sess. H.B. 1, A.L.
2008 H.B. 2393, A.L. 2011 H.B. 737)
2008
2007
2004
2008
135.950. The following terms, whenever used in sections 135.950 to
135.970 mean:
(1) "Average wage", the new payroll divided by the number of new jobs;
(2) "Blighted area", an area which, by reason of the predominance of
defective or inadequate street layout, unsanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property by
fire and other causes, or any combination of such factors, retards the
provision of housing accommodations or constitutes an economic or social
liability or a menace to the public health, safety, morals, or welfare in its
present condition and use;
(3) "Board", an enhanced enterprise zone board established pursuant to
section 135.957;
(4) "Commencement of commercial operations" shall be deemed to occur
during the first taxable year for which the new business facility is first
put into use by the taxpayer in the enhanced business enterprise in which the
taxpayer intends to use the new business facility;
(5) "County average wage", the average wages in each county as
determined by the department for the most recently completed full calendar
year. However, if the computed county average wage is above the statewide
average wage, the statewide average wage shall be deemed the county average
wage for such county for the purpose of determining eligibility. The
department shall publish the county average wage for each county at least
annually. Notwithstanding the provisions of this subdivision to the
contrary, for any taxpayer that in conjunction with their project is
relocating employees from a Missouri county with a higher county average wage,
such taxpayer shall obtain the endorsement of the governing body of the
community from which jobs are being relocated or the county average wage for
their project shall be the county average wage for the county from which the
employees are being relocated;
(6) "Department", the department of economic development;
(7) "Director", the director of the department of economic development;
(8) "Employee", a person employed by the enhanced business enterprise
that is scheduled to work an average of at least one thousand hours per year,
and such person at all times has health insurance offered to him or her, which
is partially paid for by the employer;
(9) "Enhanced business enterprise", an industry or one of a cluster of
industries that is either:
(a) Identified by the department as critical to the state's economic
security and growth; or
(b) Will have an impact on industry cluster development, as identified
by the governing authority in its application for designation of an enhanced
enterprise zone and approved by the department; but excluding gambling
establishments (NAICS industry group 7132), retail trade (NAICS sectors 44 and
45), educational services (NAICS sector 61), religious organizations (NAICS
industry group 8131), public administration (NAICS sector 92), and food and
drinking places (NAICS subsector 722), however, notwithstanding provisions of
this section to the contrary, headquarters or administrative offices of an
otherwise excluded business may qualify for benefits if the offices serve a
multistate territory. In the event a national, state, or regional
headquarters operation is not the predominant activity of a project facility,
the new jobs and investment of such headquarters operation is considered
eligible for benefits under this section if the other requirements are
satisfied. Service industries may be eligible only if a majority of its
annual revenues will be derived from out of the state;
(10) "Existing business facility", any facility in this state which was
employed by the taxpayer claiming the credit in the operation of an enhanced
business enterprise immediately prior to an expansion, acquisition, addition,
or replacement;
(11) "Facility", any building used as an enhanced business enterprise
located within an enhanced enterprise zone, including the land on which the
facility is located and all machinery, equipment, and other real and
depreciable tangible personal property acquired for use at and located at or
within such facility and used in connection with the operation of such
facility;
(12) "Facility base employment", the greater of the number of employees
located at the facility on the date of the notice of intent, or for the
twelve-month period prior to the date of the notice of intent, the average
number of employees located at the facility, or in the event the project
facility has not been in operation for a full twelve-month period, the
average number of employees for the number of months the facility has been in
operation prior to the date of the notice of intent;
(13) "Facility base payroll", the total amount of taxable wages paid by
the enhanced business enterprise to employees of the enhanced business
enterprise located at the facility in the twelve months prior to the notice
of intent, not including the payroll of owners of the enhanced business
enterprise unless the enhanced business enterprise is participating in an
employee stock ownership plan. For the purposes of calculating the benefits
under this program, the amount of base payroll shall increase each year based
on the consumer price index or other comparable measure, as determined by the
department;
(14) "Governing authority", the body holding primary legislative
authority over a county or incorporated municipality;
(15) "Megaproject", any manufacturing or assembling facility, approved by
the department for construction and operation within an enhanced enterprise
zone, which satisfies the following:
(a) The new capital investment is projected to exceed three hundred
million dollars over a period of eight years from the date of approval by the
department;
(b) The number of new jobs is projected to exceed one thousand over a
period of eight years beginning on the date of approval by the department;
(c) The average wage of new jobs to be created shall exceed the county
average wage;
(d) The taxpayer shall offer health insurance to all new jobs and pay at
least eighty percent of such insurance premiums; and
(e) An acceptable plan of repayment, to the state, of the tax credits
provided for the megaproject has been provided by the taxpayer;
(16) "NAICS", the 1997 edition of the North American Industry
Classification System as prepared by the Executive Office of the President,
Office of Management and Budget. Any NAICS sector, subsector, industry group
or industry identified in this section shall include its corresponding
classification in subsequent federal industry classification systems;
(17) "New business facility", a facility that satisfies the following
requirements:
(a) Such facility is employed by the taxpayer in the operation of an
enhanced business enterprise. Such facility shall not be considered a new
business facility in the hands of the taxpayer if the taxpayer's only
activity with respect to such facility is to lease it to another person or
persons. If the taxpayer employs only a portion of such facility in the
operation of an enhanced business enterprise, and leases another portion of
such facility to another person or persons or does not otherwise use such
other portions in the operation of an enhanced business enterprise, the
portion employed by the taxpayer in the operation of an enhanced business
enterprise shall be considered a new business facility, if the requirements
of paragraphs (b), (c), and (d) of this subdivision are satisfied;
(b) Such facility is acquired by, or leased to, the taxpayer after
December 31, 2004. A facility shall be deemed to have been acquired by, or
leased to, the taxpayer after December 31, 2004, if the transfer of title to
the taxpayer, the transfer of possession pursuant to a binding contract to
transfer title to the taxpayer, or the commencement of the term of the lease
to the taxpayer occurs after December 31, 2004;
(c) If such facility was acquired by the taxpayer from another taxpayer
and such facility was employed immediately prior to the acquisition by
another taxpayer in the operation of an enhanced business enterprise, the
operation of the same or a substantially similar enhanced business enterprise
is not continued by the taxpayer at such facility; and
(d) Such facility is not a replacement business facility, as defined in
subdivision (25) of this section;
(18) "New business facility employee", an employee of the taxpayer in the
operation of a new business facility during the taxable year for which the
credit allowed by section 135.967 is claimed, except that truck drivers and
rail and barge vehicle operators and other operators of rolling stock for
hire shall not constitute new business facility employees;
(19) "New business facility investment", the value of real and
depreciable tangible personal property, acquired by the taxpayer as part of
the new business facility, which is used by the taxpayer in the operation of
the new business facility, during the taxable year for which the credit
allowed by 135.967 is claimed, except that trucks, truck-trailers, truck
semitrailers, rail vehicles, barge vehicles, aircraft and other rolling stock
for hire, track, switches, barges, bridges, tunnels, and rail yards and spurs
shall not constitute new business facility investments. The total value of
such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by the taxpayer.
The net annual rental rate shall be the annual rental rate paid by the
taxpayer less any annual rental rate received by the taxpayer from
subrentals. The new business facility investment shall be determined by
dividing by twelve the sum of the total value of such property on the last
business day of each calendar month of the taxable year. If the new business
facility is in operation for less than an entire taxable year, the new
business facility investment shall be determined by dividing the sum of the
total value of such property on the last business day of each full calendar
month during the portion of such taxable year during which the new business
facility was in operation by the number of full calendar months during such
period;
(20) "New job", the number of employees located at the facility that
exceeds the facility base employment less any decrease in the number of the
employees at related facilities below the related facility base employment.
No job that was created prior to the date of the notice of intent shall be
deemed a new job;
(21) "Notice of intent", a form developed by the department which is
completed by the enhanced business enterprise and submitted to the department
which states the enhanced business enterprise's intent to hire new jobs and
request benefits under such program;
(22) "Related facility", a facility operated by the enhanced business
enterprise or a related company in this state that is directly related to the
operation of the project facility;
(23) "Related facility base employment", the greater of:
(a) The number of employees located at all related facilities on the
date of the notice of intent; or
(b) For the twelve-month period prior to the date of the notice of
intent, the average number of employees located at all related facilities of
the enhanced business enterprise or a related company located in this state;
(24) "Related taxpayer":
(a) A corporation, partnership, trust, or association controlled by the
taxpayer;
(b) An individual, corporation, partnership, trust, or association in
control of the taxpayer; or
(c) A corporation, partnership, trust or association controlled by an
individual, corporation, partnership, trust or association in control of the
taxpayer. "Control of a corporation" shall mean ownership, directly or
indirectly, of stock possessing at least fifty percent of the total combined
voting power of all classes of stock entitled to vote, "control of a
partnership or association" shall mean ownership of at least fifty percent of
the capital or profits interest in such partnership or association, and
"control of a trust" shall mean ownership, directly or indirectly, of at
least fifty percent of the beneficial interest in the principal or income of
such trust; ownership shall be determined as provided in Section 318 of the
Internal Revenue Code of 1986, as amended;
(25) "Replacement business facility", a facility otherwise described in
subdivision (17) of this section, hereafter referred to in this subdivision
as "new facility", which replaces another facility, hereafter referred to in
this subdivision as "old facility", located within the state, which the
taxpayer or a related taxpayer previously operated but discontinued operating
on or before the close of the first taxable year for which the credit allowed
by this section is claimed. A new facility shall be deemed to replace an old
facility if the following conditions are met:
(a) The old facility was operated by the taxpayer or a related taxpayer
during the taxpayer's or related taxpayer's taxable period immediately
preceding the taxable year in which commencement of commercial operations
occurs at the new facility; and
(b) The old facility was employed by the taxpayer or a related taxpayer
in the operation of an enhanced business enterprise and the taxpayer
continues the operation of the same or substantially similar enhanced
business enterprise at the new facility.
Notwithstanding the preceding provisions of this subdivision, a facility shall
not be considered a replacement business facility if the taxpayer's new
business facility investment, as computed in subdivision (19) of this
section, in the new facility during the tax period for which the credits
allowed in section 135.967 are claimed exceed one million dollars and if the
total number of employees at the new facility exceeds the total number of
employees at the old facility by at least two;
(26) "Same or substantially similar enhanced business enterprise", an
enhanced business enterprise in which the nature of the products produced or
sold, or activities conducted, are similar in character and use or are
produced, sold, performed, or conducted in the same or similar manner as in
another enhanced business enterprise.
2007
135.950. The following terms, whenever used in sections 135.950 to
135.970 mean:
(1) "Blighted area", an area which, by reason of the predominance of
defective or inadequate street layout, unsanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property by
fire and other causes, or any combination of such factors, retards the
provision of housing accommodations or constitutes an economic or social
liability or a menace to the public health, safety, morals, or welfare in
its present condition and use;
(2) "Board", an enhanced enterprise zone board established pursuant
to section 135.957;
(3) "Commencement of commercial operations" shall be deemed to occur
during the first taxable year for which the new business facility is first
put into use by the taxpayer in the enhanced business enterprise in which
the taxpayer intends to use the new business facility;
(4) "Department", the department of economic development;
(5) "Director", the director of the department of economic
development;
(6) "Employee", a person employed by the enhanced business enterprise
that is scheduled to work an average of at least one thousand hours per
year, and such person at all times has health insurance offered to him or
her, which is partially paid for by the employer;
(7) "Enhanced business enterprise", an industry or one of a cluster
of industries that is either:
(a) Identified by the department as critical to the state's economic
security and growth; or
(b) Will have an impact on industry cluster development, as
identified by the governing authority in its application for designation of
an enhanced enterprise zone and approved by the department; but excluding
gambling establishments (NAICS industry group 7132), retail trade (NAICS
sectors 44 and 45), educational services (NAICS sector 61), religious
organizations (NAICS industry group 8131), public administration (NAICS
sector 92), and food and drinking places (NAICS subsector 722), however,
notwithstanding provisions of this section to the contrary, headquarters or
administrative offices of an otherwise excluded business may qualify for
benefits if the offices serve a multistate territory. In the event a
national, state, or regional headquarters operation is not the predominant
activity of a project facility, the new jobs and investment of such
headquarters operation is considered eligible for benefits under this
section if the other requirements are satisfied. Service industries may be
eligible only if a majority of its annual revenues will be derived from out
of the state;
(8) "Existing business facility", any facility in this state which
was employed by the taxpayer claiming the credit in the operation of an
enhanced business enterprise immediately prior to an expansion,
acquisition, addition, or replacement;
(9) "Facility", any building used as an enhanced business enterprise
located within an enhanced enterprise zone, including the land on which the
facility is located and all machinery, equipment, and other real and
depreciable tangible personal property acquired for use at and located at
or within such facility and used in connection with the operation of such
facility;
(10) "Facility base employment", the greater of the number of
employees located at the facility on the date of the notice of intent, or
for the twelve-month period prior to the date of the notice of intent, the
average number of employees located at the facility, or in the event the
project facility has not been in operation for a full twelve-month period,
the average number of employees for the number of months the facility has
been in operation prior to the date of the notice of intent;
(11) "Facility base payroll", the total amount of taxable wages paid
by the enhanced business enterprise to employees of the enhanced business
enterprise located at the facility in the twelve months prior to the notice
of intent, not including the payroll of owners of the enhanced business
enterprise unless the enhanced business enterprise is participating in an
employee stock ownership plan. For the purposes of calculating the
benefits under this program, the amount of base payroll shall increase each
year based on the consumer price index or other comparable measure, as
determined by the department;
(12) "Governing authority", the body holding primary legislative
authority over a county or incorporated municipality;
(13) "NAICS", the 1997 edition of the North American Industry
Classification System as prepared by the Executive Office of the President,
Office of Management and Budget. Any NAICS sector, subsector, industry
group or industry identified in this section shall include its
corresponding classification in subsequent federal industry classification
systems;
(14) "New business facility", a facility that satisfies the following
requirements:
(a) Such facility is employed by the taxpayer in the operation of an
enhanced business enterprise. Such facility shall not be considered a new
business facility in the hands of the taxpayer if the taxpayer's only
activity with respect to such facility is to lease it to another person or
persons. If the taxpayer employs only a portion of such facility in the
operation of an enhanced business enterprise, and leases another portion of
such facility to another person or persons or does not otherwise use such
other portions in the operation of an enhanced business enterprise, the
portion employed by the taxpayer in the operation of an enhanced business
enterprise shall be considered a new business facility, if the requirements
of paragraphs (b), (c), and (d) of this subdivision are satisfied;
(b) Such facility is acquired by, or leased to, the taxpayer after
December 31, 2004. A facility shall be deemed to have been acquired by, or
leased to, the taxpayer after December 31, 2004, if the transfer of title
to the taxpayer, the transfer of possession pursuant to a binding contract
to transfer title to the taxpayer, or the commencement of the term of the
lease to the taxpayer occurs after December 31, 2004;
(c) If such facility was acquired by the taxpayer from another
taxpayer and such facility was employed immediately prior to the
acquisition by another taxpayer in the operation of an enhanced business
enterprise, the operation of the same or a substantially similar enhanced
business enterprise is not continued by the taxpayer at such facility; and
(d) Such facility is not a replacement business facility, as defined
in subdivision (22) of this section;
(15) "New business facility employee", an employee of the taxpayer in
the operation of a new business facility during the taxable year for which
the credit allowed by section 135.967 is claimed, except that truck drivers
and rail and barge vehicle operators and other operators of rolling stock
for hire shall not constitute new business facility employees;
(16) "New business facility investment", the value of real and
depreciable tangible personal property, acquired by the taxpayer as part of
the new business facility, which is used by the taxpayer in the operation
of the new business facility, during the taxable year for which the credit
allowed by 135.967 is claimed, except that trucks, truck-trailers, truck
semitrailers, rail vehicles, barge vehicles, aircraft and other rolling
stock for hire, track, switches, barges, bridges, tunnels, and rail yards
and spurs shall not constitute new business facility investments. The
total value of such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by the
taxpayer. The net annual rental rate shall be the annual rental rate paid
by the taxpayer less any annual rental rate received by the taxpayer from
subrentals. The new business facility investment shall be determined by
dividing by twelve the sum of the total value of such property on the last
business day of each calendar month of the taxable year. If the new
business facility is in operation for less than an entire taxable year, the
new business facility investment shall be determined by dividing the sum of
the total value of such property on the last business day of each full
calendar month during the portion of such taxable year during which the new
business facility was in operation by the number of full calendar months
during such period;
(17) "New job", the number of employees located at the facility that
exceeds the facility base employment less any decrease in the number of the
employees at related facilities below the related facility base employment.
No job that was created prior to the date of the notice of intent shall be
deemed a new job;
(18) "Notice of intent", a form developed by the department which is
completed by the enhanced business enterprise and submitted to the
department which states the enhanced business enterprise's intent to hire
new jobs and request benefits under such program;
(19) "Related facility", a facility operated by the enhanced business
enterprise or a related company in this state that is directly related to
the operation of the project facility;
(20) "Related facility base employment", the greater of:
(a) The number of employees located at all related facilities on the
date of the notice of intent; or
(b) For the twelve-month period prior to the date of the notice of
intent, the average number of employees located at all related facilities
of the enhanced business enterprise or a related company located in this
state;
(21) "Related taxpayer":
(a) A corporation, partnership, trust, or association controlled by
the taxpayer;
(b) An individual, corporation, partnership, trust, or association in
control of the taxpayer; or
(c) A corporation, partnership, trust or association controlled by an
individual, corporation, partnership, trust or association in control of
the taxpayer. "Control of a corporation" shall mean ownership, directly or
indirectly, of stock possessing at least fifty percent of the total
combined voting power of all classes of stock entitled to vote, "control of
a partnership or association" shall mean ownership of at least fifty
percent of the capital or profits interest in such partnership or
association, and "control of a trust" shall mean ownership, directly or
indirectly, of at least fifty percent of the beneficial interest in the
principal or income of such trust; ownership shall be determined as
provided in Section 318 of the Internal Revenue Code of 1986, as amended;
(22) "Replacement business facility", a facility otherwise described
in subdivision (14) of this section, hereafter referred to in this
subdivision as "new facility", which replaces another facility, hereafter
referred to in this subdivision as "old facility", located within the
state, which the taxpayer or a related taxpayer previously operated but
discontinued operating on or before the close of the first taxable year for
which the credit allowed by this section is claimed. A new facility shall
be deemed to replace an old facility if the following conditions are met:
(a) The old facility was operated by the taxpayer or a related
taxpayer during the taxpayer's or related taxpayer's taxable period
immediately preceding the taxable year in which commencement of commercial
operations occurs at the new facility; and
(b) The old facility was employed by the taxpayer or a related
taxpayer in the operation of an enhanced business enterprise and the
taxpayer continues the operation of the same or substantially similar
enhanced business enterprise at the new facility.
Notwithstanding the preceding provisions of this subdivision, a facility
shall not be considered a replacement business facility if the taxpayer's
new business facility investment, as computed in subdivision (16) of this
section, in the new facility during the tax period for which the credits
allowed in section 135.967 are claimed exceed one million dollars and if
the total number of employees at the new facility exceeds the total number
of employees at the old facility by at least two;
(23) "Same or substantially similar enhanced business enterprise", an
enhanced business enterprise in which the nature of the products produced
or sold, or activities conducted, are similar in character and use or are
produced, sold, performed, or conducted in the same or similar manner as in
another enhanced business enterprise.
2004
135.950. The following terms, whenever used in sections 135.950 to
135.970 mean:
(1) "Blighted area", an area which, by reason of the predominance of
defective or inadequate street layout, unsanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property by
fire and other causes, or any combination of such factors, retards the
provision of housing accommodations or constitutes an economic or social
liability or a menace to the public health, safety, morals, or welfare in
its present condition and use;
(2) "Board", an enhanced enterprise zone board established pursuant
to section 135.957;
(3) "Commencement of commercial operations" shall be deemed to occur
during the first taxable year for which the new business facility is first
put into use by the taxpayer in the enhanced business enterprise in which
the taxpayer intends to use the new business facility;
(4) "Department", the department of economic development;
(5) "Director", the director of the department of economic
development;
(6) "Employee", a person employed by the enhanced business enterprise
on:
(a) A regular, full-time basis;
(b) A part-time basis, provided such person is customarily performing
such duties an average of at least twenty hours per week; or
(c) A seasonal basis, provided such person performs such duties for
at least eighty percent of the season customary for the position in which
such person is employed;
(7) "Enhanced business enterprise", an industry or one of a cluster
of industries that is either:
(a) Identified by the department as critical to the state's economic
security and growth; or
(b) Will have an impact on industry cluster development, as
identified by the governing authority in its application for designation of
an enhanced enterprise zone and approved by the department; but excluding
gambling establishments (NAICS industry group 7132), retail trade (NAICS
sectors 44 and 45) and food and drinking places (NAICS subsector 722).
Service industries may be eligible only if a majority of its annual
revenues will be derived from services provided out of the state;
(8) "Existing business facility", any facility in this state which
was employed by the taxpayer claiming the credit in the operation of an
enhanced business enterprise immediately prior to an expansion,
acquisition, addition, or replacement;
(9) "Facility", any building used as an enhanced business enterprise
located within an enhanced enterprise zone, including the land on which the
facility is located and all machinery, equipment, and other real and
depreciable tangible personal property acquired for use at and located at
or within such facility and used in connection with the operation of such
facility;
(10) "Governing authority", the body holding primary legislative
authority over a county or incorporated municipality;
(11) "NAICS", the 1997 edition of the North American Industry
Classification System as prepared by the Executive Office of the President,
Office of Management and Budget. Any NAICS sector, subsector, industry
group or industry identified in this section shall include its
corresponding classification in subsequent federal industry classification
systems;
(12) "New business facility", a facility that satisfies the following
requirements:
(a) Such facility is employed by the taxpayer in the operation of an
enhanced business enterprise. Such facility shall not be considered a new
business facility in the hands of the taxpayer if the taxpayer's only
activity with respect to such facility is to lease it to another person or
persons. If the taxpayer employs only a portion of such facility in the
operation of an enhanced business enterprise, and leases another portion of
such facility to another person or persons or does not otherwise use such
other portions in the operation of an enhanced business enterprise, the
portion employed by the taxpayer in the operation of an enhanced business
enterprise shall be considered a new business facility, if the requirements
of paragraphs (b), (c), and (d) of this subdivision are satisfied;
(b) Such facility is acquired by, or leased to, the taxpayer after
December 31, 2004. A facility shall be deemed to have been acquired by, or
leased to, the taxpayer after December 31, 2004, if the transfer of title
to the taxpayer, the transfer of possession pursuant to a binding contract
to transfer title to the taxpayer, or the commencement of the term of the
lease to the taxpayer occurs after December 31, 2004;
(c) If such facility was acquired by the taxpayer from another
taxpayer and such facility was employed immediately prior to the
acquisition by another taxpayer in the operation of an enhanced business
enterprise, the operation of the same or a substantially similar enhanced
business enterprise is not continued by the taxpayer at such facility; and
(d) Such facility is not a replacement business facility, as defined
in subdivision (16) of this section;
(13) "New business facility employee", an employee of the taxpayer in
the operation of a new business facility during the taxable year for which
the credit allowed by section 135.967 is claimed, except that truck drivers
and rail and barge vehicle operators and other operators of rolling stock
for hire shall not constitute new business facility employees;
(14) "New business facility investment", the value of real and
depreciable tangible personal property, acquired by the taxpayer as part of
the new business facility, which is used by the taxpayer in the operation
of the new business facility, during the taxable year for which the credit
allowed by 135.967 is claimed, except that trucks, truck-trailers, truck
semitrailers, rail vehicles, barge vehicles, aircraft and other rolling
stock for hire, track, switches, barges, bridges, tunnels, and rail yards
and spurs shall not constitute new business facility investments. The
total value of such property during such taxable year shall be:
(a) Its original cost if owned by the taxpayer; or
(b) Eight times the net annual rental rate, if leased by the
taxpayer. The net annual rental rate shall be the annual rental rate paid
by the taxpayer less any annual rental rate received by the taxpayer from
subrentals. The new business facility investment shall be determined by
dividing by twelve the sum of the total value of such property on the last
business day of each calendar month of the taxable year. If the new
business facility is in operation for less than an entire taxable year, the
new business facility investment shall be determined by dividing the sum of
the total value of such property on the last business day of each full
calendar month during the portion of such taxable year during which the new
business facility was in operation by the number of full calendar months
during such period;
(15) "Related taxpayer":
(a) A corporation, partnership, trust, or association controlled by
the taxpayer;
(b) An individual, corporation, partnership, trust, or association in
control of the taxpayer; or
(c) A corporation, partnership, trust or association controlled by an
individual, corporation, partnership, trust or association in control of
the taxpayer. "Control of a corporation" shall mean ownership, directly or
indirectly, of stock possessing at least fifty percent of the total
combined voting power of all classes of stock entitled to vote, "control of
a partnership or association" shall mean ownership of at least fifty
percent of the capital or profits interest in such partnership or
association, and "control of a trust" shall mean ownership, directly or
indirectly, of at least fifty percent of the beneficial interest in the
principal or income of such trust; ownership shall be determined as
provided in Section 318 of the Internal Revenue Code of 1986, as amended;
(16) "Replacement business facility", a facility otherwise described
in subdivision (12) of this section, hereafter referred to in this
subdivision as "new facility", which replaces another facility, hereafter
referred to in this subdivision as "old facility", located within the
state, which the taxpayer or a related taxpayer previously operated but
discontinued operating on or before the close of the first taxable year for
which the credit allowed by this section is claimed. A new facility shall
be deemed to replace an old facility if the following conditions are met:
(a) The old facility was operated by the taxpayer or a related
taxpayer during the taxpayer's or related taxpayer's taxable period
immediately preceding the taxable year in which commencement of commercial
operations occurs at the new facility; and
(b) The old facility was employed by the taxpayer or a related
taxpayer in the operation of an enhanced business enterprise and the
taxpayer continues the operation of the same or substantially similar
enhanced business enterprise at the new facility.
Notwithstanding the preceding provisions of this subdivision, a facility
shall not be considered a replacement business facility if the taxpayer's
new business facility investment, as computed in subdivision (14) of this
section, in the new facility during the tax period for which the credits
allowed in section* 135.967 are claimed exceed one million dollars and if
the total number of employees at the new facility exceeds the total number
of employees at the old facility by at least two;
(17) "Same or substantially similar enhanced business enterprise", an
enhanced business enterprise in which the nature of the products produced
or sold, or activities conducted, are similar in character and use or are
produced, sold, performed, or conducted in the same or similar manner as in
another enhanced business enterprise.
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