Section 620.6021

Title XL ADDITIONAL EXECUTIVE DEPARTMENTS

Chapter 620

Effective - 28 Aug 2026, see footnote   

  620.6021.  Relocation incentive, Missouri one-start program — definitions — tax credit, amount, requirements — rules — sunset provision. — 1.  This section establishes an employer relocation incentive within the Missouri one-start program under sections 620.800 to 620.809 for eligible qualified companies that create new jobs in a certified Missouri innovation zone.

  2.  As used in this section, the following terms mean:

  (1)  "Eligible relocated employee", an individual who:

  (a)  Relocates from a location outside the state of Missouri to accept employment in a new job with an eligible qualified company;

  (b)  Establishes a primary residence within the state of Missouri; and

  (c)  Earns annual wages of at least seventy thousand dollars;

  (2)  "Eligible relocation expenses", includes reasonable and necessary one-time costs incurred in connection with a covered employee's relocation to or within the state of Missouri that are paid directly by the eligible qualified company or reimbursed by the eligible qualified company to the eligible relocated employee, which may include:

  (a)  Moving and transportation expenses for household goods and personal effects;

  (b)  Travel expenses associated with the relocation;

  (c)  Temporary housing expenses incurred during the relocation period; and

  (d)  Relocation-related professional services, as further defined by rule of the department;

  (3)  "Eligible qualified company", a business entity that meets the definition of an eligible qualified company under subdivision (16) of section 620.800, except that the exclusions for store-front consumer-based retail trade establishments and food services and drinking places shall not apply to a company located within a certified Missouri innovation zone that otherwise satisfies the requirements of this section, and that:

  (a)  Was not conducting business operations within the state of Missouri and establishes a business location within a certified Missouri innovation zone or is an existing Missouri-based business entity that establishes a new or additional business location within a certified Missouri innovation zone, provided that such eligible qualified company retains at least ninety-five percent of its aggregate gross payroll at its preexisting Missouri location, as compared to the applicable baseline payroll; and

  (b)  Satisfies all other requirements of this section;

  (4)  "Primary residence", a dwelling unit located within the geographic area described in paragraph (b) of subdivision (1) of this subsection that the eligible relocated employee occupies as their principal place of residence for Missouri income tax purposes, whether owned or leased, and that they intend to use as such residence during the period required under this section;

  (5)  "State tax credit", a credit against the tax otherwise due under chapter 143 or 148, and shall not be applied against any tax required to be withheld or remitted by the eligible qualified company under chapter 143.

  3.  An eligible qualified company shall not receive withholding retention benefits under section 620.6018 for wages or payroll amounts used to calculate relocation tax credits under this section.  The department shall ensure that no payroll is used to generate benefits under both sections.  In addition, no eligible qualified company shall claim a relocation tax credit under this section for the same employee relocation expenses for which it has claimed reimbursement under the Missouri one-start program under sections 620.800 to 620.809.  Tax credits claimed under this section shall be applied after withholding tax credits available to the eligible qualified company under section 620.809 have been applied for the same tax year.

  4.  For all tax years beginning on or after January 1, 2027, an eligible qualified company shall be allowed to claim a tax credit against the company's state tax liability in an amount equal to the eligible relocation expenses actually incurred and paid by the company on behalf of an eligible relocated employee during the tax year in which the employee relocated to a certified Missouri innovation zone, not to exceed five thousand dollars per tax year per eligible relocated employee.

  5.  (1)  An eligible qualified company applying for a state tax credit under the provisions of this section shall submit an application to the department in such form and manner as prescribed by rule and shall be subject to the application completeness, review, and approval timelines set forth by rule.  If the eligible qualified company meets all criteria required under the provisions of this section and section 620.6000, and approval is granted by the department, the department shall issue a tax credit certificate in the appropriate amount.

  (2)  In determining the amount of benefit to an eligible qualified company under this subsection, the department may consider the following factors:

  (a)  The amount of projected net fiscal benefit to the state of the project and the period in which the state would realize such net fiscal benefit;

  (b)  The financial stability and creditworthiness of the qualified company;

  (c)  The level of economic distress in the area.

  6.  Tax credits issued under the provisions of this section shall be nonrefundable but may be carried forward to subsequent tax years up to five years.  No tax credit claimed under this section shall be assigned, transferred, sold, or otherwise conveyed.

  7.  If an eligible relocated employee fails to maintain the primary residence requirement for twelve consecutive months following relocation, any state tax credit attributable to such relocated employee shall be subject to recapture from the eligible qualified company.  The amount subject to recapture shall be added to the eligible qualified company's tax liability for the tax year in which the failure occurs and shall be due and payable on the eligible qualified company's next tax return.  If no Missouri income tax return is otherwise required to be filed for such tax year, the department of revenue may assess and collect such amount in the same manner as any other tax due under chapter 143 or 148.  The recapture mechanism in this subsection governs the recovery of tax credits issued under this section and operates independently of the department's repayment authority under section 620.803; nothing in this subsection shall be construed to limit or supersede any separate repayment obligation arising under section 620.803 with respect to other benefits received under the Missouri one-start program.

  8.  The department of economic development, in coordination with the department of revenue, shall promulgate all necessary rules and regulations for the administration of this section.  Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.  This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2026, shall be invalid and void.

  9.  Notwithstanding the sunset and termination provisions applicable under sections 620.800 to 620.809 to the contrary, this section shall sunset ten years after August 28, 2026, unless reauthorized by an act of the general assembly.  Any agreement entered into under this section prior to the sunset shall continue in full force and effect in accordance with its terms, and the department shall retain authority to administer, enforce, audit, and take action under any such agreement after the expiration of this section.

  10.  The incentives authorized under this section shall be administered and accounted for separately from any credit or withholding limitation applicable to the Missouri one-start program under sections 620.800 to 620.809, and amounts authorized under this section shall not reduce the availability of funds otherwise allocable under sections 620.800 to 620.809.

  11.  Notwithstanding any minimum new job creation requirements otherwise applicable under the Missouri one-start program under sections 620.800 to 620.809, or any department guidelines or rules promulgated thereunder, an eligible qualified company located within a certified Missouri innovation zone shall be eligible for a relocation tax credit under this section if such company employs, or commits to employing within twelve months of the date on which the first relocation tax credit is claimed under this section, not fewer than three eligible relocated employees or new jobs at its certified Missouri innovation zone location.

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(L. 2026 H.B. 3231 & 2531)

Sunset date 8-28-36