1. Missouri Works Program
RSMO Effective August 28, 2013 Presenters: Sallie Hemenway and Amanda Watts

2. PURPOSE OF THE MISSOURI WORKS PROGRAM
To facilitate the creation of quality jobs through targeted business projects for both expansion and recruitment.

3. Missouri Works Overview
Program includes:
Five “new job” categories for participating businesses (Rural Works, Zone Works, Statewide Works, Mega Works 120, and Mega Works 140);
One “retention of jobs” category for existing Missouri businesses;
Benefits made up of retaining state withholding taxes and/or refundable state tax credits;
Both “statutory” and “discretionary” benefits;
Replaces former Missouri Quality Jobs program, Rebuilding Tax Credit program, Enhanced Enterprise Tax Credit program and Development Tax Credit program.

4. Funding Availability
State Withholdings - there is no annual program limit on the retained state withholding taxes.
Refundable/Sellable Tax Credits – (job creation projects only): $116 million program limit for FY16 forward.

5. Proposal from DED/Partnership versus Direct Application from Company
MO Works may be incorporated into a DED or Missouri Partnership incentive proposal, or;
MO Works may be accessed by a company submitting a “Notice Of Intent (NOI)”;
DED has 5 days to respond to the proposal request and 30 days to respond to a direct NOI.

6. Important Eligibility Dates
Announcement May Occur
Investment May Occur
Jobs May be Hired
Company Receives Proposal
After Date Proposal Sent from DED
Date Proposal Sent from DED (Investment will only count as new investment after the proposal has been accepted by the company.)
After NOI received by DED
Company Applies Directly (NOI)
After NOI Approval

7. Unique Characteristics
Discretionary component adds new considerations
Least amount necessary to make the project occur;
Benefit shall not exceed projected fiscal net to the state;
Ability to negotiate;
Standard criteria for adding discretionary benefits;
Performance agreements.
But/for requirement

8. Who can participate? Eligible Applicants
For-Profit and Non-Profit businesses
Headquarters, administrative or research and development offices of otherwise excluded businesses that serve a multi-state area

9. Ineligible Applicants
Gambling establishments
Store front consumer-based retail trade establishments
Food and drink places
Public utilities
Educational services
Religious Organizations
Ethanol distillation or production
Biodiesel production
Healthcare and social services
Businesses that are delinquent in payment of any non-protested taxes or other payments (state, federal, local)
Businesses that have filed for or have publicly announced their intention to file for bankruptcy, unless certain requirements are met

10. New Job Creation Project Benefits
Program
Min. New Jobs
Min. New Private Capital Inv.
Min. Avg. Wage
Health Ins. Offered & Paid at Least 50%
Benefits
Zone Works
(Note 1) 2
$100,000
80% of County Avg. Wage
Yes
Retention of WH, 5 or 6 years (Note 3)
Rural Works
(Note 2)
90% of County Avg. Wage
Statewide Works 10
N/A
Retention of WH, 5 or 6 years
(Notes 3 & 4)
Mega Works 120
100
120% of County Avg. Wage
6% of new payroll, 5 or 6 years
Mega Works 140
140% of County Avg. Wage
7% of new payroll, 5 or 6 years
Note 1: Project facility must be located in an Enhanced Enterprise Zone.
Note 2: Project facility must be located in a “rural” county, which would NOT include Boone, Buchanan, Clay, Greene, Jackson, St. Charles, and St. Louis City and County.
Note 3: Benefit period is 5 years, or 6 years for existing Missouri companies (those that have been operational in Missouri for at least 10 years).
Note 4: Companies may be proposed discretionary incentives of up to a maximum of 9% of new payroll if certain criteria are met.

11. Zone Works Criteria Located in an Enhanced Enterprise Zone.
Minimum of 2 new jobs within 2 years of the date of the NOI approval.
2 new jobs and “project facility base employment” must be maintained throughout the duration of the 5 or 6 year benefit period.
Minimum of $100,000 in new private capital investment within 2 years of the date of the NOI approval.
Average wage of the new jobs must be at least 80% of the county average wage.
Statutory benefit is the retention of the state withholding tax on the new jobs for a period of 5 years if the company has been in business in the State of Missouri less than 10 years or 6 years if the company has been in business in the State of Missouri more than 10 years.

12. Rural Works Criteria
Located in a “rural” county, which would NOT include Boone, Buchanan, Clay, Greene, Jackson, St. Charles, and St. Louis City and County.
Minimum of 2 new jobs within 2 years of the date of the NOI approval.
2 new jobs and “project facility base employment” must be maintained throughout the duration of the 5 or 6 year benefit period.
Minimum of $100,000 in new private capital investment within 2 years of the date of the NOI approval.
Average wage of the new jobs must be at least 90% of the county average wage.
Statutory benefit is the retention of the state withholding tax on the new jobs for a period of 5 years if the company has been in business in the State of Missouri less than 10 years or 6 years if the company has been in business in the State of Missouri more than 10 years.

13. Statewide Works Projects
Minimum of 10 new jobs within 2 years of the date of the NOI approval.
10 new jobs and “project facility base employment” must be maintained throughout the duration of the 5 or 6 year benefit period.
Average wage of the new jobs must be at least 90% of the county average wage.
Statutory benefit is the retention of the state withholding tax on the new jobs for a period of 5 years if the company has been in business in the State of Missouri less than 10 years or 6 years if the company has been in business in the State of Missouri more than 10 years.
May be proposed additional discretionary incentives.

14. Mega Works 120
Minimum of 100 new jobs within 2 years of the date of the NOI approval.
100 new jobs and “project facility base employment” must be maintained throughout the duration of the 5 or 6 year benefit period.
Average wage of the new jobs must be at least 120% of the county average wage.
Statutory benefit to the company will be 6% of new payroll in a combination of retention of withholdings and tax credits.
The benefit is for a period of 5 years if the company has been in business in the State of Missouri less than 10 years or 6 years if the company has been in business in the State of Missouri more than 10 years.
May be proposed additional discretionary incentives.

15. Mega Works 140
Company must create a minimum of 100 new jobs within 2 years of the date of the NOI approval.
100 new jobs and “project facility base employment” must be maintained throughout the duration of the 5 or 6 year benefit period.
Average wage of the new jobs must be at least 140% of the county average wage.
Statutory benefit to the company will be 7% of new payroll in a combination of retention of withholdings and tax credits.
The benefit is for a period of 5 years if the company has been in business in the State of Missouri less than 10 years or 6 years if the company has been in business in the State of Missouri more than 10 years.
May be proposed additional discretionary incentives.

16. Discretionary Benefits
Additional discretionary benefits may be offered to a company through a proposal for Statewide, Mega 120 and Mega 140 Works projects prior to submitting the Notice of Intent.
The criteria for consideration for discretionary benefits include:
The least amount necessary to obtain the company’s commitment
The overall size (number of jobs, payroll, new capital investment) and quality (average wages, growth potential of the company, multiplier effect of the industry) of the project
The financial stability and creditworthiness of the company
The level of economic distress of the project area
The competitiveness of alternative locations
The percent of local incentives committed to the project

17. But/For
Prior to the receipt of a DED proposal or approval of a notice of intent, none of the following can have occurred or the NOI will be denied:
Significant, project-specific site work at the project facility.
Purchased machinery or equipment related to the project.
Publicly announced its intention to make new capital investment at the project facility.

18. Additional Requirements
A business cannot simultaneously receive benefits for the same capital investment or the same jobs for the following programs:
Rebuilding Communities
Development Tax Credit
Enhanced Enterprise Zone
Missouri Quality Jobs
Missouri Manufacturing Jobs
Special conditions apply when Missouri Works is used at the same time as other programs that affect state withholding taxes such as Missouri Training, State TIF and MODESA.

19. Program Agreements
MO Works provides for actual agreements to be executed between the Company and DED;
The Agreement is executed upon approval of the first NOI;
The Agreement shall specify, at a minimum:
The committed number of new jobs, new payroll, and new capital investment;
The term of the benefits;
The term of required reporting;
The date or time period during which the tax credits shall be issued.

20. Program Agreements - continued
Claw-back provisions as may be required by the department including;
A material misrepresentation in the application;
A bankruptcy;
A relocation outside of the state;
Dropping below the minimum job threshold;
Dropping below the committed jobs (or a percentage thereof) and payroll during benefit term;
Failing to comply with the reporting requirements;
Failing to provide required capital investment.

21. Clawbacks Clawbacks may: Clawbacks are designed to:
Include only a portion of a benefit;
Include the whole benefit;
Eliminate the discretionary component of a benefit;
Apply annually versus the full term.
Clawbacks are designed to:
Encourage realistic estimates.
Clawbacks are not designed to:
Eliminate competitiveness;
Penalize natural business shifts.

22. Multiple NOI’s
There is no limit on the number of NOI’s a company can submit.
Program benefits can occur concurrently for multiple NOI’s.
The benefits per NOI will be for a different set of new jobs.

23. Program Contact Information
Amanda Watts or Melody Worley or Greg Havener or To find the Project Manager for your community: