May 10, 2019 – The Missouri House approved an amendment to a bill that would provide incentives for auto manufacturers following a thorough debate last night.
The amendment would provide incentives for expenditures made by a qualified motor vehicle manufacturer to retool or reconfigure a facility directly related to the manufacturing of a new product, the expansion or modification of an existing product, or a redesign of an existing product.
Total maximum program benefit would be $100 million over 10 years, with a maximum benefit of $50 million per company investing $750 million within five years of acceptance of an agreement with the DED.
To qualify, the company must invest $500 million for such retooling or reconfiguration within three years of Department of Economic Development (DED) approval of a notice of intent, a contract used in such projects between the company and the Department. If approved, a company may receive a maximum amount of $5 million in tax credits per year. The proposal would cap the tax credits at $10 million per year for all qualifying companies. The tax credits may be issued after January 1, 2023, each year for five years. If a company invests an additional $250 million within the first five years, the company may receive the benefit for an additional five years.
A possible project at the General Motors plant in Wentzville, MO, was discussed during the floor debate. According to the GM Corporate Newsroom, the 3.7 million square foot facility currently occupies 569 acres and employs approximately 4,250 people. The site makes the Chevrolet Colorado and GMC Canyon mid-size trucks and Chevy Express and GMC Savana full-size vans.
The bill also contains Governor Parson’s priority Fast Track scholarship/loan program and deal closing fund through the Missouri Works program. You may find a more detailed summary about Senate Bill 68 by clicking here.