INSIGHTS

Legislation Modifies Missouri’s Business Incentive and Worker Training Programs

SB 68 renames the Missouri Works Training Program to the “Missouri One Start Program,” which provides flexible funding for a company’s training costs associated with a new facility, expansion or retraining project.  Companies may utilize industry training funds to offset training costs for new products, new manufacturing processes, technological innovation, and productivity improvement.   Under SB 68, a company is no longer required to retain its current number of employees, instead becoming eligible by maintaining at least one-hundred jobs in the year preceding the application.

Opportunity Zones: Seize The Opportunity

As part of the Tax Cuts and Jobs Act of 2017, Congress designated certain Qualified Opportunity Zones to encourage new investment in economically-distressed communities through tax incentives. Opportunity Zone investments are intended to infuse new capital, development and economic growth in such Opportunity Zones. To date, the U.S. Treasury Department has issued two sets of guidance and proposed regulations regarding this developing tax incentive.

Missouri Legislation Restricts Historic Preservation Tax Credits

Recent legislation reduces the amount of Historic Preservation Tax Credits (HTC) available annually and imposes additional restrictions on developers seeking HTC to support historic rehabilitation projects. Senate Bill 590 and Senate Bill 773, enacted during the 2018 legislative session, reduce the annual aggregate cap on HTC for projects receiving $275,000 or more in tax credits from $140 million to $90 million, with an additional $30 million available for projects on properties located in qualified census tracts.

New Tax Incentives Available for Port-Related Activities in Missouri

Beginning in 2017, new tax incentives are available for manufacturers or distributors of manufactured goods shipped through Missouri ports. Senate Bill 861 (2016) enacted three new tax deductions for companies transporting cargo through water ports and airports in Missouri. See Sections 143.2100-.2115, RSMo. The Missouri Department of Economic Development (DED) and the Missouri Department of Revenue (DOR) are charged with jointly administering the new tax deductions. Taxpayers and tax professionals should be aware of these deductions and take steps to determine their eligibility for the 2017 tax year.

Beware: The Dangers of Forbearance Agreements with Lenders

In situations where commercial borrowers (developers, businesses, etc.) are in default on a promissory note, the lender may offer to enter into a “forbearance agreement” or some other form of deferment agreement with the borrower. These are often presented by the lender as a generous concession on their part in order to give the borrower additional time to try to work its way out of the problem.