Advanced Search

Section: 620.1878 Definitions. Rsmo 620.1878


Published: 2015

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
Missouri Revised Statutes













Chapter 620

Department of Economic Development

←620.1875

Section 620.1878.1

620.1881→

August 28, 2015

Definitions.

620.1878. For the purposes of sections 620.1875 to 620.1890, the

following terms shall mean:



(1) "Approval", a document submitted by the department to the qualified

company that states the benefits that may be provided by this program;



(2) "Average wage", the new payroll divided by the number of new jobs;



(3) "Commencement of operations", the starting date for the qualified

company's first new employee, which must be no later than twelve months from

the date of the approval;



(4) "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 qualified company that in conjunction with their project is

relocating employees from a Missouri county with a higher county average

wage, the company 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;



(5) "Department", the Missouri department of economic development;



(6) "Director", the director of the department of economic development;



(7) "Employee", a person employed by a qualified company;



(8) "Full-time employee", an employee of the qualified company that is

scheduled to work an average of at least thirty-five hours per week for a

twelve-month period, and one for which the qualified company offers health

insurance and pays at least fifty percent of such insurance premiums;



(9) "High-impact project", a qualified company that, within two years

from commencement of operations, creates one hundred or more new jobs;



(10) "Local incentives", the present value of the dollar amount of direct

benefit received by a qualified company for a project facility from one or

more local political subdivisions, but shall not include loans or other funds

provided to the qualified company that must be repaid by the qualified

company to the political subdivision;



(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 direct local revenue", the present value of the dollar amount

of direct net new tax revenues of the local political subdivisions likely to

be produced by the project over a ten-year period as calculated by the

department, excluding local earnings tax, and net new utility revenues,

provided the local incentives include a discount or other direct incentives

from utilities owned or operated by the political subdivision;



(13) "New investment", the purchase or leasing of new tangible assets to

be placed in operation at the project facility, which will be directly

related to the new jobs;



(14) "New job", the number of full-time employees located at the project

facility that exceeds the project facility base employment less any decrease

in the number of full-time 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. An employee that spends less

than fifty percent of the employee's work time at the facility is still

considered to be located at a facility if the employee receives his or her

directions and control from that facility, is on the facility's payroll, one

hundred percent of the employee's income from such employment is Missouri

income, and the employee is paid at or above the state average wage;



(15) "New payroll", the amount of taxable wages of full-time employees,

excluding owners, located at the project facility that exceeds the project

facility base payroll. If full-time employment at related facilities is below

the related facility base employment, any decrease in payroll for full-time

employees at the related facilities below that related facility base payroll

shall also be subtracted to determine new payroll;



(16) "Notice of intent", a form developed by the department, completed by

the qualified company and submitted to the department which states the

qualified company's intent to hire new jobs and request benefits under this

program;



(17) "Percent of local incentives", the amount of local incentives

divided by the amount of new direct local revenue;



(18) "Program", the Missouri quality jobs program provided in sections

620.1875 to 620.1890;



(19) "Project facility", the building used by a qualified company at

which the new jobs and new investment will be located. A project facility

may include separate buildings that are located within fifteen miles of each

other or within the same county such that their purpose and operations are

interrelated;



(20) "Project facility base employment", the greater of the number of

full-time employees located at the project 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 full-time employees located at the project

facility. In the event the project facility has not been in operation for a

full twelve-month period, the average number of full-time employees for the

number of months the project facility has been in operation prior to the date

of the notice of intent;



(21) "Project facility base payroll", the total amount of taxable wages

paid by the qualified company to full-time employees of the qualified

company located at the project facility in the twelve months prior to the

notice of intent, not including the payroll of the owners of the qualified

company unless the qualified company is participating in an employee stock

ownership plan. For purposes of calculating the benefits under this program,

the amount of base payroll shall increase each year based on an appropriate

measure, as determined by the department;



(22) "Project period", the time period that the benefits are provided to

a qualified company;



(23) "Qualified company", a firm, partnership, joint venture,

association, private or public corporation whether organized for profit or

not, or headquarters of such entity registered to do business in Missouri

that is the owner or operator of a project facility, offers health insurance

to all full-time employees of all facilities located in this state, and pays

at least fifty percent of such insurance premiums. For the purposes of

sections 620.1875 to 620.1890, the term "qualified company" shall not include:



(a) Gambling establishments (NAICS industry group 7132);



(b) Retail trade establishments (NAICS sectors 44 and 45);



(c) Food and drinking places (NAICS subsector 722);



(d) Public utilities (NAICS 221 including water and sewer services);



(e) Any company that is delinquent in the payment of any nonprotested

taxes or any other amounts due the state or federal government or any other

political subdivision of this state;



(f) Any company that has filed for or has publicly announced its

intention to file for bankruptcy protection. However, a company that has

filed for or has publicly announced its intention to file for bankruptcy

between January 1, 2009, and December 31, 2009, may be a qualified company

provided that such company:



a. Certifies to the department that it plans to reorganize and not to

liquidate; and



b. After its bankruptcy petition has been filed, it produces proof, in a

form and at times satisfactory to the department, that it is not delinquent

in filing any tax returns or making any payment due to the state of Missouri,

including but not limited to all tax payments due after the filing of the

bankruptcy petition and under the terms of the plan of reorganization.

Any taxpayer who is awarded benefits under this subsection and who files for

bankruptcy under Chapter 7 of the United States Bankruptcy Code, Title 11

U.S.C., shall immediately notify the department and shall forfeit such

benefits and shall repay the state an amount equal to any state tax credits

already redeemed and any withholding taxes already retained;



(g) Educational services (NAICS sector 61);



(h) Religious organizations (NAICS industry group 8131);

(i) Public administration (NAICS sector 92);

(j) Ethanol distillation or production; or



(k) Biodiesel production.

Notwithstanding any provision of this section to the contrary, the

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;



(24) "Qualified renewable energy sources" shall not be construed to

include ethanol distillation or production or biodiesel production; however,

it shall include:



(a) Open-looped biomass;



(b) Close-looped biomass;



(c) Solar;



(d) Wind;



(e) Geothermal; and



(f) Hydropower;



(25) "Related company" means:



(a) A corporation, partnership, trust, or association controlled by the

qualified company;



(b) An individual, corporation, partnership, trust, or association in

control of the qualified company; or



(c) Corporations, partnerships, trusts or associations controlled by an

individual, corporation, partnership, trust or association in control of the

qualified company. As used in this subdivision, "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, "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, and ownership shall be determined

as provided in Section 318 of the Internal Revenue Code of 1986, as amended;



(26) "Related facility", a facility operated by the qualified company or

a related company located in this state that is directly related to the

operations of the project facility;



(27) "Related facility base employment", the greater of the number of

full-time employees located at all related facilities 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 full-time employees located at all

related facilities of the qualified company or a related company located in

this state;



(28) "Related facility base payroll", the total amount of taxable wages

paid by the qualified company to full-time employees of the qualified

company located at a related facility in the twelve months prior to the

filing of the notice of intent, not including the payroll of the owners of the

qualified company unless the qualified company is participating in an

employee stock ownership plan. For purposes of calculating the benefits

under this program, the amount of related facility base payroll shall

increase each year based on an appropriate measure, as determined by the

department;



(29) "Rural area", a county in Missouri with a population less than

seventy-five thousand or that does not contain an individual city with a

population greater than fifty thousand according to the most recent federal

decennial census;



(30) "Small and expanding business project", a qualified company that

within two years of the date of the approval creates a minimum of twenty new

jobs if the project facility is located in a rural area or a minimum of forty

new jobs if the project facility is not located in a rural area and creates

fewer than one hundred new jobs regardless of the location of the project

facility;



(31) "Tax credits", tax credits issued by the department to offset the

state income taxes imposed by chapters 143 and 148, or which may be sold or

refunded as provided for in this program;



(32) "Technology business project", a qualified company that within two

years of the date of the approval creates a minimum of ten new jobs involved

in the operations of a company:



(a) Which is a technology company, as determined by a regulation

promulgated by the department under the provisions of section 620.1884 or

classified by NAICS codes;



(b) Which owns or leases a facility which produces electricity derived

from qualified renewable energy sources, or produces fuel for the generation

of electricity from qualified renewable energy sources, but does not include

any company that has received the alcohol mixture credit, alcohol credit, or

small ethanol producer credit pursuant to 26 U.S.C. Section 40 of the tax

code in the previous tax year;



(c) Which researches, develops, or manufactures power system technology

for: aerospace; space; defense; hybrid vehicles; or implantable or wearable

medical devices; or



(d) Which is a clinical molecular diagnostic laboratory focused on

detecting and monitoring infections in immunocompromised patient populations;



(33) "Withholding tax", the state tax imposed by sections 143.191 to

143.265. For purposes of this program, the withholding tax shall be computed

using a schedule as determined by the department based on average wages.



(L. 2005 S.B. 343, A.L. 2007 1st Ex. Sess. H.B. 1, A.L. 2008 H.B. 2058

merged with S.B. 718, A.L. 2009 H.B. 191)



Effective 6-04-09





2008

2007

2005



2008



620.1878. For the purposes of sections 620.1875 to 620.1890, the

following terms shall mean:



(1) "Approval", a document submitted by the department to the

qualified company that states the benefits that may be provided by this

program;



(2) "Average wage", the new payroll divided by the number of new

jobs;



(3) "Commencement of operations", the starting date for the qualified

company's first new employee, which must be no later than twelve months

from the date of the approval;



(4) "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 qualified company that in conjunction with their project

is relocating employees from a Missouri county with a higher county average

wage, the company 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;



(5) "Department", the Missouri department of economic development;



(6) "Director", the director of the department of economic

development;



(7) "Employee", a person employed by a qualified company;



(8) "Full-time employee", an employee of the qualified company that

is scheduled to work an average of at least thirty-five hours per week for

a twelve-month period, and one for which the qualified company offers

health insurance and pays at least fifty percent of such insurance

premiums;



(9) "High-impact project", a qualified company that, within two years

from commencement of operations, creates one hundred or more new jobs;



(10) "Local incentives", the present value of the dollar amount of

direct benefit received by a qualified company for a project facility from

one or more local political subdivisions, but shall not include loans or

other funds provided to the qualified company that must be repaid by the

qualified company to the political subdivision;



(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 direct local revenue", the present value of the dollar

amount of direct net new tax revenues of the local political subdivisions

likely to be produced by the project over a ten-year period as calculated

by the department, excluding local earnings tax, and net new utility

revenues, provided the local incentives include a discount or other direct

incentives from utilities owned or operated by the political subdivision;



(13) "New investment", the purchase or leasing of new tangible assets

to be placed in operation at the project facility, which will be directly

related to the new jobs;



(14) "New job", the number of full-time employees located at the

project facility that exceeds the project facility base employment less any

decrease in the number of full-time 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. An employee that

spends less than fifty percent of the employee's work time at the facility

is still considered to be located at a facility if the employee receives

his or her directions and control from that facility, is on the facility's

payroll, one hundred percent of the employee's income from such employment

is Missouri income, and the employee is paid at or above the state average

wage;



(15) "New payroll", the amount of taxable wages of full-time

employees, excluding owners, located at the project facility that exceeds

the project facility base payroll. If full-time employment at related

facilities is below the related facility base employment, any decrease in

payroll for full-time employees at the related facilities below that

related facility base payroll shall also be subtracted to determine new

payroll;



(16) "Notice of intent", a form developed by the department,

completed by the qualified company and submitted to the department which

states the qualified company's intent to hire new jobs and request benefits

under this program;



(17) "Percent of local incentives", the amount of local incentives

divided by the amount of new direct local revenue;



(18) "Program", the Missouri quality jobs program provided in

sections 620.1875 to 620.1890;



(19) "Project facility", the building used by a qualified company at

which the new jobs and new investment will be located. A project facility

may include separate buildings that are located within one mile of each

other or within the same county such that their purpose and operations are

interrelated;



(20) "Project facility base employment", the greater of the number of

full-time employees located at the project 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 full-time employees located at the

project facility. In the event the project facility has not been in

operation for a full twelve-month period, the average number of full-time

employees for the number of months the project facility has been in

operation prior to the date of the notice of intent;



(21) "Project facility base payroll", the total amount of taxable

wages paid by the qualified company to full-time employees of the qualified

company located at the project facility in the twelve months prior to the

notice of intent, not including the payroll of the owners of the qualified

company unless the qualified company is participating in an employee stock

ownership plan. For purposes of calculating the benefits under this

program, the amount of base payroll shall increase each year based on an

appropriate measure, as determined by the department;



(22) "Project period", the time period that the benefits are provided

to a qualified company;



(23) "Qualified company", a firm, partnership, joint venture,

association, private or public corporation whether organized for profit or

not, or headquarters of such entity registered to do business in Missouri

that is the owner or operator of a project facility, offers health

insurance to all full-time employees of all facilities located in this

state, and pays at least fifty percent of such insurance premiums. For the

purposes of sections 620.1875 to 620.1890, the term "qualified company"

shall not include:



(a) Gambling establishments (NAICS industry group 7132);



(b) Retail trade establishments (NAICS sectors 44 and 45);



(c) Food and drinking places (NAICS subsector 722);



(d) Public utilities (NAICS 221 including water and sewer services);



(e) Any company that is delinquent in the payment of any nonprotested

taxes or any other amounts due the state or federal government or any other

political subdivision of this state;



(f) Any company that has filed for or has publicly announced its

intention to file for bankruptcy protection;



(g) Educational services (NAICS sector 61);



(h) Religious organizations (NAICS industry group 8131);



(i) Public administration (NAICS sector 92);



(j) Ethanol distillation or production; or



(k) Biodiesel production.





Notwithstanding any provision of this section to the contrary, the

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;



(24) "Qualified renewable energy sources" shall not be construed to

include ethanol distillation or production or biodiesel production;

however, it shall include:



(a) Open-looped biomass;



(b) Close-looped biomass;



(c) Solar;



(d) Wind;



(e) Geothermal; and



(f) Hydropower;



(25) "Related company" means:



(a) A corporation, partnership, trust, or association controlled by

the qualified company;



(b) An individual, corporation, partnership, trust, or association in

control of the qualified company; or



(c) Corporations, partnerships, trusts or associations controlled by

an individual, corporation, partnership, trust or association in control of

the qualified company. As used in this subdivision, "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, "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, and ownership shall be determined as provided in Section 318 of the

Internal Revenue Code of 1986, as amended;



(26) "Related facility", a facility operated by the qualified company

or a related company located in this state that is directly related to the

operations of the project facility;



(27) "Related facility base employment", the greater of the number of

full-time employees located at all related facilities 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 full-time employees located at all

related facilities of the qualified company or a related company located in

this state;



(28) "Related facility base payroll", the total amount of taxable

wages paid by the qualified company to full-time employees of the qualified

company located at a related facility in the twelve months prior to the

filing of the notice of intent, not including the payroll of the owners of

the qualified company unless the qualified company is participating in an

employee stock ownership plan. For purposes of calculating the benefits

under this program, the amount of related facility base payroll shall

increase each year based on an appropriate measure, as determined by the

department;



(29) "Rural area", a county in Missouri with a population less than

seventy-five thousand or that does not contain an individual city with a

population greater than fifty thousand according to the most recent federal

decennial census;



(30) "Small and expanding business project", a qualified company that

within two years of the date of the approval creates a minimum of twenty

new jobs if the project facility is located in a rural area or a minimum of

forty new jobs if the project facility is not located in a rural area and

creates fewer than one hundred new jobs regardless of the location of the

project facility;



(31) "Tax credits", tax credits issued by the department to offset

the state income taxes imposed by chapters 143 and 148, RSMo, or which may

be sold or refunded as provided for in this program;



(32) "Technology business project", a qualified company that within

two years of the date of the approval creates a minimum of ten new jobs

involved in the operations of a company:



(a) Which is a technology company, as determined by a regulation

promulgated by the department under the provisions of section 620.1884 or

classified by NAICS codes;



(b) Which owns or leases a facility which produces electricity

derived from qualified renewable energy sources, or produces fuel for the

generation of electricity from qualified renewable energy sources, but does

not include any company that has received the alcohol mixture credit,

alcohol credit, or small ethanol producer credit pursuant to 26 U.S.C.

Section 40 of the tax code in the previous tax year; or



(c) Which researches, develops, or manufactures power system

technology for: aerospace; space; defense; hybrid vehicles; or implantable

or wearable medical devices;



(33) "Withholding tax", the state tax imposed by sections 143.191 to

143.265, RSMo. For purposes of this program, the withholding tax shall be

computed using a schedule as determined by the department based on average

wages.



2007



620.1878. For the purposes of sections 620.1875 to 620.1890, the

following terms shall mean:



(1) "Approval", a document submitted by the department to the

qualified company that states the benefits that may be provided by this

program;



(2) "Average wage", the new payroll divided by the number of new

jobs;



(3) "Commencement of operations", the starting date for the qualified

company's first new employee, which must be no later than twelve months

from the date of the approval;



(4) "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 qualified company that in conjunction with their project

is relocating employees from a Missouri county with a higher county average

wage, the company 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;



(5) "Department", the Missouri department of economic development;



(6) "Director", the director of the department of economic

development;



(7) "Employee", a person employed by a qualified company;



(8) "Full-time employee", an employee of the qualified company that

is scheduled to work an average of at least thirty-five hours per week for

a twelve-month period, and one for which the qualified company offers

health insurance and pays at least fifty percent of such insurance

premiums;



(9) "High-impact project", a qualified company that, within two years

from commencement of operations, creates one hundred or more new jobs;



(10) "Local incentives", the present value of the dollar amount of

direct benefit received by a qualified company for a project facility from

one or more local political subdivisions, but shall not include loans or

other funds provided to the qualified company that must be repaid by the

qualified company to the political subdivision;



(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 direct local revenue", the present value of the dollar

amount of direct net new tax revenues of the local political subdivisions

likely to be produced by the project over a ten-year period as calculated

by the department, excluding local earnings tax, and net new utility

revenues, provided the local incentives include a discount or other direct

incentives from utilities owned or operated by the political subdivision;



(13) "New investment", the purchase or leasing of new tangible assets

to be placed in operation at the project facility, which will be directly

related to the new jobs;



(14) "New job", the number of full-time employees located at the

project facility that exceeds the project facility base employment less any

decrease in the number of full-time 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. An employee that

spends less than fifty percent of the employee's work time at the facility

is still considered to be located at a facility if the employee receives

his or her directions and control from that facility, is on the facility's

payroll, one hundred percent of the employee's income from such employment

is Missouri income, and the employee is paid at or above the state average

wage;



(15) "New payroll", the amount of taxable wages of full-time

employees, excluding owners, located at the project facility that exceeds

the project facility base payroll. If full-time employment at related

facilities is below the related facility base employment, any decrease in

payroll for full-time employees at the related facilities below that

related facility base payroll shall also be subtracted to determine new

payroll;



(16) "Notice of intent", a form developed by the department,

completed by the qualified company and submitted to the department which

states the qualified company's intent to hire new jobs and request benefits

under this program;



(17) "Percent of local incentives", the amount of local incentives

divided by the amount of new direct local revenue;



(18) "Program", the Missouri quality jobs program provided in

sections 620.1875 to 620.1890;



(19) "Project facility", the building used by a qualified company at

which the new jobs and new investment will be located. A project facility

may include separate buildings that are located within one mile of each

other such that their purpose and operations are interrelated;



(20) "Project facility base employment", the greater of the number of

full-time employees located at the project 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 full-time employees located at the

project facility. In the event the project facility has not been in

operation for a full twelve-month period, the average number of full-time

employees for the number of months the project facility has been in

operation prior to the date of the notice of intent;



(21) "Project facility base payroll", the total amount of taxable

wages paid by the qualified company to full-time employees of the qualified

company located at the project facility in the twelve months prior to the

notice of intent, not including the payroll of the owners of the qualified

company unless the qualified company is participating in an employee stock

ownership plan. For purposes of calculating the benefits under this

program, the amount of base payroll shall increase each year based on an

appropriate measure, as determined by the department;



(22) "Project period", the time period that the benefits are provided

to a qualified company;



(23) "Qualified company", a firm, partnership, joint venture,

association, private or public corporation whether organized for profit or

not, or headquarters of such entity registered to do business in Missouri

that is the owner or operator of a project facility, offers health

insurance to all full-time employees of all facilities located in this

state, and pays at least fifty percent of such insurance premiums. For the

purposes of sections 620.1875 to 620.1890, the term "qualified company"

shall not include:



(a) Gambling establishments (NAICS industry group 7132);



(b) Retail trade establishments (NAICS sectors 44 and 45);



(c) Food and drinking places (NAICS subsector 722);



(d) Public utilities (NAICS 221 including water and sewer services);



(e) Any company that is delinquent in the payment of any nonprotested

taxes or any other amounts due the state or federal government or any other

political subdivision of this state;



(f) Any company that has filed for or has publicly announced its

intention to file for bankruptcy protection;



(g) Educational services (NAICS sector 61);



(h) Religious organizations (NAICS industry group 8131); or



(i) Public administration (NAICS sector 92).





Notwithstanding any provision of this section to the contrary, the

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;



(24) "Related company" means:



(a) A corporation, partnership, trust, or association controlled by

the qualified company;



(b) An individual, corporation, partnership, trust, or association in

control of the qualified company; or



(c) Corporations, partnerships, trusts or associations controlled by

an individual, corporation, partnership, trust or association in control of

the qualified company. As used in this subdivision, 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, 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, and ownership

shall be determined as provided in Section 318 of the Internal Revenue Code

of 1986, as amended;



(25) "Related facility", a facility operated by the qualified company

or a related company located in this state that is directly related to the

operations of the project facility;



(26) "Related facility base employment", the greater of the number of

full-time employees located at all related facilities 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 full-time employees located at all

related facilities of the qualified company or a related company located in

this state;



(27) "Related facility base payroll", the total amount of taxable

wages paid by the qualified company to full-time employees of the qualified

company located at a related facility in the twelve months prior to the

filing of the notice of intent, not including the payroll of the owners of

the qualified company unless the qualified company is participating in an

employee stock ownership plan. For purposes of calculating the benefits

under this program, the amount of related facility base payroll shall

increase each year based on an appropriate measure, as determined by the

department;



(28) "Rural area", a county in Missouri with a population less than

seventy-five thousand or that does not contain an individual city with a

population greater than fifty thousand according to the most recent federal

decennial census;



(29) "Small and expanding business project", a qualified company that

within two years of the date of the approval creates a minimum of twenty

new jobs if the project facility is located in a rural area or a minimum of

forty new jobs if the project facility is not located in a rural area and

creates fewer than one hundred new jobs regardless of the location of the

project facility;



(30) "Tax credits", tax credits issued by the department to offset

the state income taxes imposed by chapters 143 and 148, RSMo, or which may

be sold or refunded as provided for in this program;



(31) "Technology business project", a qualified company that within

two years of the date of the approval creates a minimum of ten new jobs

involved in the operations of a technology company as determined by a

regulation promulgated by the department under the provisions of section

620.1884 or classified by NAICS codes; or which researches, develops, or

manufactures power system technology for: aerospace; space; defense;

hybrid vehicles; or implantable or wearable medical devices;



(32) "Withholding tax", the state tax imposed by sections 143.191 to

143.265, RSMo. For purposes of this program, the withholding tax shall be

computed using a schedule as determined by the department based on average

wages.



2005



620.1878. For the purposes of sections 620.1875 to 620.1890, the

following terms shall mean:



(1) "Average wage", the new payroll divided by the number of new

jobs;



(2) "Commencement of operations", the starting date for the qualified

company's first new employee, which must be no later than twelve months

from the date of the proposal;



(3) "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. The department shall publish the county average wage

for each county at least annually;



(4) "Department", the Missouri department of economic development;



(5) "Director", the director of the department of economic

development;



(6) "Employee", a person employed by a qualified company;



(7) "Full-time equivalent employees", employees of the qualified

company converted to reflect an equivalent of the number of full-time,

year-round employees. The method for converting part-time and seasonal

employees into an equivalent number of full-time, year-round employees

shall be published in a rule promulgated by the department as authorized in

section 620.1884;



(8) "Full-time, year-round employee", an employee of the company that

works an average of at least thirty-five hours per week for a twelve-month

period, and one for which the qualified company offers health insurance and

pays at least fifty percent of such insurance premiums;



(9) "High-impact project", a qualified company that, within two years

from commencement of operations, creates one hundred or more new jobs;



(10) "Local incentives", the present value of the dollar amount of

direct benefit received by a qualified company for a project facility from

one or more local political subdivisions, but shall not include loans or

other funds provided to the qualified company that must be repaid by the

qualified company to the political subdivision;



(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 direct local revenue", the present value of the dollar

amount of direct net new tax revenues of the local political subdivisions

likely to be produced by the project over a ten-year period as calculated

by the department and net new utility revenues, provided the local

incentives include a discount or other direct incentives from utilities

owned or operated by the political subdivision;



(13) "New investment", the purchase or leasing of new tangible assets

to be placed in operation at the project facility, which will be directly

related to the new jobs;



(14) "New job", the number of full-time, year-round employees located

at the project facility that exceeds the project facility base employment

less any decrease in the number of full-time equivalent employees at

related facilities below the related facility base employment;



(15) "New payroll", the amount of wages paid by a qualified company

to employees in new jobs;



(16) "Notice of intent", a form developed by the department,

completed by the qualified company and submitted to the department which

states the qualified company's intent to hire new jobs and request benefits

under this program;



(17) "Percent of local incentives", the amount of local incentives

divided by the amount of new direct local revenue;



(18) "Program", the Missouri quality jobs program provided in

sections 620.1875 to 620.1890;



(19) "Project facility", the building used by a qualified company at

which the new jobs and new investment will be located. A project facility

may include separate buildings that are located within one mile of each

other such that their purpose and operations are interrelated;



(20) "Project facility base employment", for the twelve-month period

prior to the date of the proposal, the average number of full-time

equivalent employees located at the project facility. In the event the

project facility has not been in operation for a full twelve-month period,

project facility base employment is the average number of full-time

equivalent employees for the number of months the project facility has been

in operation prior to the date of the proposal;



(21) "Project period", the time period that the benefits are provided

to a qualified company;



(22) "Proposal", a document submitted by the department to the

qualified company that states the benefits that may be provided by this

program. The effective date of such proposal cannot be prior to the

commencement of operations. The proposal shall not offer benefits

regarding any jobs created prior to its effective date unless the proposal

is for a job retention project;



(23) "Qualified company", a firm, partnership, joint venture,

association, private or public corporation whether organized for profit or

not, or headquarters of such entity registered to do business in Missouri

that is the owner or operator of a project facility. For the purposes of

sections 620.1875 to 620.1890, the term "qualified company" shall not

include:



(a) Gambling establishments (NAICS industry group 7132);



(b) Retail trade establishments (NAICS sectors 44 and 45);



(c) Food and drinking places (NAICS subsector 722);



(d) Utilities regulated by the Missouri public service commission;



(e) Any company that is delinquent in the payment of any nonprotested

taxes or any other amounts due the state or federal government or any other

political subdivision of this state; or



(f) Any company that has filed for or has publicly announced its

intention to file for bankruptcy protection;



(24) "Related company" means:



(a) A corporation, partnership, trust, or association controlled by

the qualified company;



(b) An individual, corporation, partnership, trust, or association in

control of the qualified company; or



(c) Corporations, partnerships, trusts or associations controlled by

an individual, corporation, partnership, trust or association in control of

the qualified company. As used in this subdivision, "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, "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, and ownership shall be determined as provided in Section 318 of the

Internal Revenue Code of 1986, as amended;



(25) "Related facility", a facility operated by the qualified company

or a related company located in this state that is directly related to the

operations of the project facility;



(26) "Related facility base employment", for the twelve-month period

prior to the date of the proposal, the average number of full-time

equivalent employees located at all related facilities of the qualified

company or a related company located in this state;



(27) "Rural area", a county in Missouri with a population less than

seventy-five thousand or that does not contain an individual city with a

population greater than fifty thousand according to the most recent federal

decennial census;



(28) "Small and expanding business project", a qualified company that

within two years of the date of the proposal creates a minimum of twenty

new jobs if the project facility is located in a rural area or a minimum of

forty new jobs if the project facility is not located in a rural area and

creates fewer than one hundred new jobs regardless of the location of the

project facility;



(29) "Tax credits", tax credits issued by the department to offset

the state income taxes imposed by chapter 143, RSMo, or which may be sold

or refunded as provided for in this program;



(30) "Technology business project", a qualified company that within

two years of the date of the proposal creates a minimum of ten new jobs

with at least seventy-five percent of the new jobs directly involved in the

operations of a technology company as determined by a regulation

promulgated by the department under the provisions of section 620.1884 and

classified by NAICS codes;



(31) "Withholding tax", the state tax imposed by sections 143.191 to

143.265, RSMo.



Top



Missouri General Assembly



Copyright © Missouri Legislature, all rights reserved.