Exciting news this week, as legislation expanding Associated Industries of Missouri’s Manufacturing Jobs Act to all types of manufacturers received first round passage in the House of Representatives.
House Bill 627, the Manufacturing Infrastructure Investment Act, is handled by Rep. Nick King (R-Liberty). It is designed to follow up on the success of the Missouri Manufacturing Jobs Act of 2010. A series of incentives that encourage businesses to invest in new products and increased production lines of manufacturing, the Manufacturing Jobs Act has spurred an automotive industry renaissance in Missouri that has seen phenomenal growth at Ford Motor Company in Claycomo, the General Motors plant in Wentzville, and at small and mid size manufacturers throughout the state that provide parts to the automakers in Missouri and beyond.
Statistics published by the Missouri Economic Research Information Center show that manufacturers and suppliers in the automotive industry in Missouri have invested $1.29 billion in capital investments, added or retained 14,000 jobs and supported an additional 21,000 jobs since the Act was passed in 2010.
House Bill 627 would allow manufacturers that make significant infrastructure investments to make new products or expand manufacturing of existing products to retain withholding taxes on jobs retained at their facilities. Suppliers to participating facilities would be able to retain withholding taxes on new jobs created at their facilities, with a lower job requirement than is required under other programs.
The benefits are exactly the same as those provided in the auto industry. And taxpayers are protected because the investment amounts are significant and there are no tax credits associated with the program. AIM is proud to have authored this program and is working hard to pass it during the 2015 legislative session.
Currently the bill is awaiting final approval in the House which requires a recorded vote before it can move on to the State Senate.