Enterprise Zone Income Modification

To claim the modification, you must first receive notification of approval from the Department of Economic Development. If you or your spouse have exempt income from a business facility located in an enterprise zone that has been approved by the Department of Economic Development, enter one-half of the Missouri taxable income attributed to the new business facility in the enterprise zone (refer to Form 4354) on Line 21. For additional information, you can access the web site at www.ded.missouri.gov or contact:

Department of Economic Development
Incentives Section
P.O. Box 118
Jefferson City, MO 65102-0118.

How the Program Works

State income tax credits are provided to a business based on the number of new jobs and amount of new investment created at the qualifying facility. The business may earn credits based on the facility's new jobs and investment, the number of zone residents and "special" employees hired and trained for the facility.

There is a possible income exemption, partial tax credit refund, and property tax abatement on improvements to real property provided certain requirements are met.

The credits are provided each tax year for up to a ten-year period after the project commences operations. Each enterprise zone has a different expiration date for the income tax credits.

Funding Limits

The tax credits are earned each tax period for up to a 10-year period, depending on the zone's expiration date. Possible tax credits include:

$400 for each new job created at the project;
2% of the new capital investment over $100,000 created at the project;
$400 for each zone resident employee (prorated on 365 days);
$400 prorated on 365 days for each "special" employee hired (person must be unemployed for at least 90 days when hired, or eligible for AFDC or the General Relief program);
$400 per employee trained, who is a zone resident or was unemployed for 90 days when, hired;
Up to $75,000 refund of unused credits earned by new facilities only; and
At least a 50% abatement for at least 10 years on improvements made to real property used for manufacturing, mining, warehousing, or wholesale distribution. Abatement may be offered to other types of companies if the facility creates at least 50 new full-time jobs.

There are no carry-forward provisions. Credits are re-earned each tax year for up to 10 years, depending on the life of the enterprise zone.

Contact:

MO Department of Economic Development
Incentives Section
301 West High Street
P.O. Box 118
Jefferson City, MO 65102

Phone: 573-751-0717

Fax: 573-751-7384

E-mail: dedfin@ded.state.mo.us

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