Section 620.1641

Title XL ADDITIONAL EXECUTIVE DEPARTMENTS

Chapter 620

Effective - 28 Aug 2026, see footnote   

  620.1641.  Citation of law — definitions — tax credit for project costs of critical materials or critical pharmaceuticals — amount of credit, cap — procedure — fund crated, use of moneys for grants — rules — sunset provision. — 1.  This section shall be known and may be cited as the "Missouri Defense and Energy Independence Act".

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

  (1)  "Critical materials", metal or metal complexes included on the list of critical materials as published by the United States Department of the Interior that serve an essential function in key energy, defense, and consumer product technologies and have a high risk of supply chain disruption;

  (2)  "Critical pharmaceuticals", pharmaceutical active ingredients, key starting materials, or essential finished pharmaceuticals identified as critical to national security or public health and having a high risk of supply chain disruption as included on the list published by the United States Food and Drug Administration;

  (3)  "Department", the Missouri department of economic development;

  (4)  "Missouri development finance board" or "MDFB", the Missouri development finance board established under section 100.265;

  (5)  "Notice of intent", a form developed by the department and available online, completed by the qualified company, and submitted to the department stating the qualified company's intent to request tax credits under this section as provided in subsection 5 of this section;

  (6)  "Project facility", the building or buildings used by a qualified company at which critical materials or critical pharmaceuticals will be produced or processed;

  (7)  "Qualified company", a firm, partnership, joint venture, association, private or public corporation regardless of whether organized for profit, or headquarters of such entity registered to do business in Missouri, that is a nontraditional defense contractor, as such term is defined in 10 U.S.C. Section 3014, as amended, and that incurs qualified project costs.  Qualified company shall not include any company headquartered in a country identified by the United States Director of National Intelligence as a country that poses a risk to the national security of the United States in at least one of the three most recent annual threat assessments of the U.S. intelligence community issued pursuant to Section 108B, federal National Security Act of 1947 (50 U.S.C. Section 3043b);

  (8)  "Qualified project costs":

  (a)  Costs incurred by a qualified company for the construction, expansion, or conversion of facilities and acquisition of equipment for the production of critical materials or critical pharmaceuticals, including, but not limited to:

  a.  Site preparation;

  b.  Building construction or renovation;

  c.  Machinery and equipment acquisition and installation, including any specialized manufacturing equipment;

  d.  Utility infrastructure; and

  e.  Environmental compliance systems;

  (b)  Qualified project costs shall not include any costs incurred by a qualified company utilizing a contractor unless:

  a.  Such contractor is selected through an open bidding process and is headquartered in Missouri and for whom at least eighty-five percent of the workforce used for any work performed by the contractor for a qualified company reside within Missouri; and

  b.  Such contractor maintains an existing United States Department of Labor registered apprenticeship program;

  (9)  "State tax liability", any liability incurred by a taxpayer pursuant to the provisions of chapter 143 or chapter 148, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265 and related provisions;

  (10)  "Tax credit", a credit against the tax otherwise due under chapter 143 or chapter 148, excluding withholding tax imposed under sections 143.191 to 143.265.

  3.  (1)  For all tax years beginning on or after January 1, 2027, the department may award a qualified company tax credits for qualified project costs incurred by the qualified company on or after January 1, 2027, provided that no tax credit shall be authorized for any qualified company that incurs less than five million dollars in qualified project costs.  The amount of the tax credit shall be equal to:

  (a)  For qualified companies that incur qualified project costs of at least five million dollars, but less than^* fifteen million dollars, twenty percent of such qualified project costs; and

  (b)  For qualified companies that incur qualified project costs of at least fifteen million dollars, twenty-five percent of qualified project costs.

  (2)  Tax credits authorized by this section shall not be refundable, but may be carried forward for ten subsequent tax years or until the full amount of the tax credit has been redeemed, whichever occurs first.

  (3)  Tax credits authorized by this section may be transferred, sold, or otherwise assigned by filing a notarized endorsement thereof with the department that names the transferee, the amount of tax credit transferred, and the value received for the credit, as well as any other information reasonably requested by the department.  For a qualified company with flow-through tax treatment to its members, partners, or shareholders, the tax credit shall be allowed to members, partners, or shareholders in proportion to their share of ownership on the last day of the qualified company's tax period.

  4.  The cumulative amount of tax credits that may be authorized pursuant to this section shall not exceed forty million dollars in any fiscal year.  If the amount of tax credits applied for in a fiscal year exceeds forty million dollars, tax credits shall be allowed based on the order in which they are claimed.

  5.  A qualified company seeking tax credits authorized by this section shall submit a notice of intent to the department.  Upon approval of a notice of intent to receive tax credits under this section, the department and the qualified company shall enter into a written agreement, which shall specify, at a minimum:

  (1)  The types and amounts of critical materials that will be produced or processed at the project facility, along with any supporting information from the federal Department of the Interior, Department of Energy, or Department of Defense indicating a shortage or threat to supply of such critical materials;

  (2)  The types and amounts of critical pharmaceuticals that will be produced or processed at the project facility, along with any supporting information from the federal Food and Drug Administration, Department of Defense, Department of Veterans Affairs, or Department of Health and Human Services indicating a shortage or threat to supply of such critical pharmaceuticals;

  (3)  The estimated amount of capital investment to be made and the estimated number of new jobs to be created at the project facility;

  (4)  Clawback provisions, as may be required by the department;

  (5)  Financial guarantee provisions as may be required by the department; and

  (6)  Any other provisions the department may require.

  6.  (1)  There is hereby created in the state treasury the "Grants for Independence from Foreign Influence Fund", which shall consist of at least ten million dollars appropriated by the general assembly and any gifts, contributions, grants, or bequests received from federal, private, or other sources.  The state treasurer shall be custodian of the fund.  In accordance with sections 30.170 and 30.180, the state treasurer may approve disbursements.  The fund shall be a dedicated fund and, upon appropriation, moneys in the fund shall be used solely as provided in subsection 7 of this section.

  (2)  Notwithstanding the provisions of section 33.080 to the contrary, any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund.

  (3)  The state treasurer shall invest moneys in the fund in the same manner as other funds are invested.  Any interest and moneys earned on such investments shall be credited to the fund.

  7.  (1)  The department shall develop and implement grants for independence from foreign influence as provided in this subsection.

  (2)  The department shall establish procedures for the solicitation, evaluation, and approval of grant applications received from a qualified company.  A qualified company may submit a grant application for the award of moneys for qualified project costs incurred by the qualified company as provided in this subsection.

  (3)  The department shall evaluate each application and approve or reject such application.  Subject to appropriations, upon approval of an application, the MDFB shall serve as the third-party administrator of the grant funds, and shall disburse the grant award from the grants for independence from foreign influence fund in an amount not to exceed five hundred thousand dollars per grant application.

  (4)  Moneys granted to a qualified company under this section shall be used solely for qualified project costs incurred before the completion of the project facility.

  8.  The department shall promulgate all necessary rules and regulations for the administration of this section including, but not limited to, rules relating to the verification of a qualified company's qualified project costs.  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.  Pursuant to section 23.253 of the Missouri sunset act:

  (1)  The program authorized pursuant to this section shall automatically sunset on December 31, 2036, unless reauthorized by an act of the general assembly;

  (2)  This section shall terminate on September first of the calendar year immediately following the calendar year in which the program authorized pursuant to this section is sunset; and

  (3)  The provisions of this subsection shall not be construed to impair or impede the state's fulfillment of any obligations, including the authorization, issuance, or redemption of tax credits, incurred pursuant to this section prior to the date the program authorized pursuant to this section is sunset.

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(L. 2026 S.B. 1553)

*Word "that" appears in original rolls.

Sunset date 12-31-36

Termination date 9-01-37