Key insights
- Missouri Works may provide significant financial benefits for businesses creating net new jobs in the state.
- Qualified companies can retain employees’ Missouri withholding taxes on wages — which would otherwise be remitted — and/or use discretionary benefits of refundable tax credits to offset their state tax liability.
- The program allows companies to create as few as two new jobs to receive the benefits and there’s no penalty if the job commitment requirements aren’t met.
Get tax benefits for your economic development efforts.
Missouri Works is the state’s main economic development incentive program, used to drive job creation and encourage facility and equipment investment.
One of the program’s distinctive features is its low job creation thresholds. Unlike many other economic incentives requiring substantial employment numbers, Missouri Works recognizes the importance of both large and small businesses in driving local economies. The program allows companies to create as few as two new jobs to receive the benefits and there’s no penalty if the job commitment requirements aren’t met.
What are the Missouri Works benefits?
The Missouri Works benefits are designed to encourage business growth through job creation and capital investment. Qualified companies can retain employees’ Missouri withholding taxes on wages — which would otherwise be remitted — and/or use discretionary benefits of refundable tax credits to offset their state tax liability.
Once a company qualifies, there are multiple tiers with different eligibility criteria and benefit levels. For example, if a company is in a state Enhanced Enterprise Zone, it qualifies for the Zone Works tier, where companies only need to create two net new jobs paying a minimum of 80% of the county average wage and make a minimum capital investment of $100,000. Companies in this tier qualify for retaining state withholding taxes, with a benefit period extending five to six years. Companies could also qualify for additional discretionary refundable tax credits if the project is competitive.
Which organizations can qualify for Missouri Works?
- Both for-profit businesses and nonprofit organizations may participate.
- Ineligible companies include gambling establishments, food and drinking places, public utilities, educational services, religious organizations, public administration, ethanol production, biodiesel production, health care, and social services.
- Retail trade establishments may be eligible in third- or fourth-class counties.
- Remote or telecommuting jobs — that meet certain criteria — may count toward the program.
How to apply for Missouri Works
The first step in obtaining benefits is filing a notice of intent (NOI) with the state Department of Economic Development. The NOI provides a snapshot of the company’s business plans, outlining projected job creation, capital investment, and other key parameters. The NOI must be submitted prior to any job creation, capital investment, or public announcements regarding the project.
How we can help
Missouri Works provides an opportunity for eligible businesses to receive financial incentives in return for job creation and capital investment in Missouri. There is very little risk to participating in the program, but companies must properly and timely apply before an intended project begins.
CLA’s tax professionals can help you identify which of your intended business plans would qualify for Missouri Works and assist with completing the application, timely submitting it (i.e., prior to the implementation of the qualified business plan), and maintaining compliance.
We’re hosting virtual office hours on Wednesday, August 7 at noon CT for an hour to answer any questions you have about the program.
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