Purpose

Provide real property tax abatement to new or expanding businesses in a Missouri Enhanced Enterprise Zone.

Eligible Areas

Enhanced Enterprise Zones are specified geographic areas designated by local governments and certified by the Department of Economic Development (DED). Zone designation is based on certain demographic criteria, the potential to create sustainable jobs in a targeted industry and a demonstrated impact on local industry cluster development.

Eligible Applicants

Individual business eligibility will be determined by the zone based on creation of sustainable jobs in a targeted industry or demonstrated impact on local industry cluster development. Gambling establishments, retail trade, and food and drinking places are prohibited from participating. Service industries can be eligible if a majority of their annual revenues will be derived from services provided out of the state. DED will consult with the local government in determining eligibility.

How the Program Works

The Enhanced Enterprise Zone Program is a discretionary program offering real propterty tax abatement to Enhanced Business Enterprises. Tax abatements may be provided each year for up to ten tax years after the project commences operations.

To receive tax abatement in any of the ten years, the facility must create at least 2 new jobs and $100,000 in new investment in that year as compared to the base year (the year prior to the commencement of operations at the facility).

Eligible investment expenditures include the original cost of machinery, equipment, furniture, fixtures, land and building, and/or eight times the annual rental rate paid for the same. Inventory is not eligible.