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Focus on State and Local Taxation: Fewer Hurdles, Faster Benefits for Missouri Works Training Program

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Recently passed legislation expands upon the Missouri Works Training Program. Originally enacted in 2013, the program was established to consolidate Missouri’s workforce programs into a single streamlined program.
July 14, 2017

Recently passed legislation expands upon the Missouri Works Training Program. Originally enacted in 2013, the program was established to consolidate Missouri’s workforce programs into a single streamlined program. The program incentivized business expansion and job retention for qualifying companies by allowing them access to capital through withholdings or tax credits. During the 2017 legislative session, HB 93 was passed and approved by the Governor. The bill is effective as of August 28, 2017.

Summary of New Changes

  • Investment made before acceptance of benefits proposal now qualify
  • Benefits now available to consortiums if majority are qualified
  • Up-front funding rather than withholding retention now available

The bill modifies the definition of new capital investment previously set forth in 2013. Costs incurred at a project facility prior to the acceptance of the benefits proposal can now be considered new capital investment by the qualified company. Under the original law, companies had to wait for the acceptance of the benefits proposal before incurring any costs for project work or machinery purchases and before even announcing any plans for new capital investment.

The bill aims to be more inclusive to smaller businesses in Missouri working to expand and hire and retain new workers. The bill allows businesses that may not be independently eligible for the program to join with other businesses and form a consortium. As long as a majority of the consortium meets the qualifications, all businesses within the consortium are eligible for the Missouri Works Training Program.

The new up-front funding option uses appropriation from the general revenue fund. Under the previous law, some of the qualifying company’s withholding taxes would be retained as funding for its projects. Under HB 93, any appropriations from the general revenue fund will simply reduce the amount of withholding taxes retained for the project.

The full text of this legislation is available on the Missouri House of Representatives website.

Please contact one of RubinBrown’s State and Local Tax professionals to assist you in understanding the impact that this law change may have on you and your business.

 

Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.

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