Missouri plans rural development program in Georgia

JEFFERSON CITY, Mo. – A new bill from Sen. Justin brun would provide additional incentives to investors contributing to rural Missouri companies if it is adopted by the legislature.

brown SB 675 – considered the Missouri Rural Workforce Development Act – would provide an incentive for those who invest in a fund to distribute to rural areas of the state. Participants would be eligible for a tax credit covering 15 percent of an investment per year for four years beginning two years after an investment has been made.

senator-justin-brun
Senator Justin Brown

The bill, as tabled, would cap credits at $ 25 million per year.

“Time and time again, capital investors tell us that the availability of state tax credits is one of the most critical factors when considering business start-up and expansion proposals,” Brown said. said previously. “More often than not, they will go through states that do not come to the negotiating table with their own stake in the game. Investors want to know that state governments are willing to share the investment and become partners in the game. job creation.

Investors who have invested at least $ 100 million in small communities across the country, including $ 30 million in Missouri, would be eligible to apply to the Department of Economic Development (DED) to receive credits. Recipients would be required to distribute 60 percent of their investment commitments within two years and 100 percent within three years.

The bill requires that 70 percent of investments be made in small rural businesses with 250 or fewer employees.

Rural fund programs are expected to submit annual reports to DED and may apply to leave the program six years after an initial investment. The DED could recover credits from investors who do not comply with the requirements that the legislation would create.

Georgia, which has been named the best state for economic development, has a similar agenda on the books. the Georgia Agribusiness and Rural Employment Act 2017 created a tax credit opportunity for investors in Peach State, leading to 1,000 new or retained jobs, investments in 33 rural communities and 56% more income over tax credits, according to a report by the Georgia Technology Center for Economic Development.

Georgia economic development officials attributed the program to creating these jobs in places like Pearson, a town of 2,700 people in southern Georgia. The Cady Bag Company received maximum participation from the program and created 124 full-time jobs that are still there, in addition to other jobs this year.

According to the study, Missouri would receive $ 166 million in private capital investment in the first three years of the program’s life cycle, thereby increasing revenue through income, sales, and property taxes.

Of Missouri’s 114 counties, only 11 have populations greater than 90,000, according to the center.

A similar invoice was considered late in the previous session, although it failed to make it to the Senate. However, this session it is expected to lobby for the extension of several tax credits related to the agricultural industry.

Agriculture is the business of the state high-tech industry, employing nearly 400,000 Missourians and earning an estimated $ 88 billion annually. Missouri is the 2nd largest farm among the US states.

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