Missouri Quality Jobs Program Sections

Purpose of MQJ ► To facilitate the creation of family supporting jobs (average wage of new jobs is county average wage or higher) in Missouri that offer health insurance benefits to employees ► Businesses may be either existing and expanding or new to Missouri

Who can participate? ► Eligible projects  Facilities and employees located in Missouri  For-profit  Non-profit ► Ineligible Projects  Gambling  Retail Trade  Food and Drinking Places  Educational Services  Public utilities  Educational services  Religious organizations  Public administration  Ethanol distillation or production & biodiesel production  Delinquent in non-protested taxes or payments (state, federal or local)  Filed or publicly announced intention to file bankruptcy ► (if a company filed for bankruptcy in 2009, it may qualify if certain conditions are met)

Multiple facilities/companies ► A company may treat facilities located within fifteen miles of each other or within the same county as one project facility if engaged in the same business activity ► A parent company may apply for the program with multiple wholly owned subsidiaries as one project

Special Requirements ► Companies cannot simultaneously earn MQJ benefits at the project facility with other state programs:  Enterprise Zone/Enhanced Enterprise Zone  Business Facility  Rebuilding Communities  Brownfield Jobs/Investment tax credits ► Special conditions apply when MQJ and other programs affecting state withholding taxes are used at the same time.  New Jobs Training  State TIF  MODESA

Missouri Quality Jobs ► New jobs must meet criteria  Average wage must be at least the county average wage  Health insurance must be offered with at least 50% of the premium paid by the employer for all full-time employees in Missouri  Must be scheduled to work an average of 35 or more hours a week at the project facility ► If the employee spends less than 50% of their work time at the facility, they can still be considered at the facility if certain conditions are met.

Missouri Quality Jobs ► Three segments of program  Small/Expanding  Technology  High Impact

Small/Expanding projects ► Criteria  Rural areas – 20 or more new jobs created within 2 years of approval  Non-rural areas – 40 or more new jobs created within 2 years of approval (Boone, Buchanan, Clay, Greene, Jackson, St. Charles, St. Louis City & County) ► Benefit  retention of 100% of state withholding tax for new jobs ► 3 years if average wage of new jobs is % of county average ► 5 years if average wage of new jobs is greater than 120% of the county average

Small/Expanding Project Example 3 year benefit Project – 50 new jobs in year 1 with no additional new jobs in years 2-3; average starting wage is $40,000; locating in St. Charles County

Small/Expanding Project Example 5 year benefit Project – 50 new jobs in year 1 with no additional new jobs in years 2-5; average starting wage is $45,000; locating in St. Charles County

Technology projects ► Criteria  10 or more new jobs created within 2 years of approval  NAICS code for business activity must be an approved Technology NAICS ► Benefit  5% of payroll of new jobs for 5 years plus Average Wage Bonus if qualified  Benefit in form of retained withholdings and state tax credits  NOIs received after June 4, 2009 are not subject to the per company cap

Technology Project Example Project – 10 new jobs in year 1 plus 5 additional new jobs each year in years 2-5; average starting wage is $43,000; locating in Jackson County; facility has NAICS approved for Technology portion of program

High Impact projects ► Criteria  100 or more new jobs created, the first within 1 year of approval, remaining 99 within two years of hiring first new job ► Benefit  3% of payroll of new jobs plus Average Wage Bonus and/or Local Incentives Bonus if qualified  NOIs received after June 4, 2009 are not subject to the per company cap

High Impact Project Example No programs affecting withholdings Project – 200 new jobs in year 1 plus 50 additional new jobs each year in years 2-5; average starting wage is $75,000; locating in St. Louis County; local incentives of at least 50% of the new local revenue generated, over 10 years

High Impact Project Example With New Jobs Training Program Project – 200 new jobs in year 1 plus 50 additional new jobs a year in years 2-5; average starting wage is $75,000; locating in St. Louis County; local incentives of at least 50% of the new local revenue generated, over 10 years

Average Wage Bonus ► Average Wage Bonus  Based on percentage of new job average wage to county average wage ► Greater than 120 and up to 140% - Company receives additional 1/2% of payroll of new jobs ► Greater than 140% - Company receives additional 1% of payroll of new jobs

Local Incentives Bonus ► Local Incentives Bonus  Bonus based on the local incentives provided to the project as a percentage of new local tax revenue generated by the project, over 10 years ► 10-24% - Company receives additional 1% of payroll of new jobs ► 25-49% - Company receives additional 2% of payroll of new jobs ► 50% or more – Company receives additional 3% payroll of new jobs

Quality Jobs ► Tax credits capped at $80 million annually ► Withholdings are not capped

Multiple MQJ projects/NOIs ► No limit to the number of projects for a company as long as the minimum program requirements are met for each project ► NOI must be filed to begin a new project period (no new jobs will be added to the previous project when next NOI is received by DED), establishing a new base employment number and job creation deadline ► Multiple MQJ projects may be concurrent

Two NOI example (Phased Project) Project – 200 new jobs in year 1 (NOI I), 150 new jobs in year 2 (NOI 2); average starting wage is $42,000; locating in Greene County; local incentives of at least 50% of the new local revenue generated, over 10 years

Same project – One NOI Project – 200 new jobs in year 1, 150 new jobs in year 2 ; average starting wage is $42,000; locating in Greene County; local incentives of at least 50% of the new local revenue generated, over 10 years

Application Process ► Company completes and submits Notice of Intent (NOI) ► NOI is approved or denied within 30 days of receipt ► When company reaches threshold, complete the Application to Retain Withholding Taxes ► DED reviews Application to Retain to ensure all program requirements are met ► DED issues approval to Department of Revenue (DOR) ► DOR notifies company that they can begin retaining withholdings and gives further instruction on the DOR process ► Company files MQJ Annual Report/Tax Credit application within 30 days of the end of the company’s tax year

MQJ Tax Credit ► MQJ tax credit can be applied to Chapter 143 (state income tax, excluding withholding tax) and Chapter 148 (financial institutions tax). ► MQJ tax credits must be claimed within one year of the close of the taxable year that they were issued. ► MQJ tax credits must be applied to tax liability for the year in which they were earned. ► MQJ tax credit is refundable, sellable, transferrable or may be assigned.

Contact Information Ronda Anderson – or Matt Fischer – or Melody Worley – or Quality Jobs Program Department of Economic Development 301 W High Street, Suite 770 PO Box 118 Jefferson City, MO Fax: