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Missouri Quality Jobs Program

Missouri Quality Jobs Program. Sections 620.1875-620.1890. Purpose of MQJ. To facilitate the creation of family supporting jobs (average wage of new jobs is county average wage or higher) in Missouri that offer health insurance benefits to employees

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Missouri Quality Jobs Program

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  1. Missouri Quality Jobs Program Sections 620.1875-620.1890

  2. Purpose of MQJ • To facilitate the creation of family supporting jobs (average wage of new jobs is county average wage or higher) in Missouri that offer health insurance benefits to employees • Businesses may be either existing and expanding or new to Missouri

  3. Eligible projects Facilities and employees located in Missouri For-profit Non-profit Ineligible Projects Gambling Retail Trade Food and Drinking Places Educational Services Public utilities Educational services Religious organizations Public administration Ethanol distillation or production & biodiesel production Delinquent in non-protested taxes or payments (state, federal or local) Filed or publicly announced intention to file bankruptcy (if a company filed for bankruptcy in 2009, it may qualify if certain conditions are met) Who can participate?

  4. Multiple facilities/companies • A company may treat facilities located within fifteen miles of each other or within the same county as one project facility if engaged in the same business activity • A parent company may apply for the program with multiple wholly owned subsidiaries as one project

  5. Special Requirements • Companies cannot simultaneously earn MQJ benefits at the project facility with other state programs: • Enterprise Zone/Enhanced Enterprise Zone • Business Facility • Rebuilding Communities • Brownfield Jobs/Investment tax credits • Special conditions apply when MQJ and other programs affecting state withholding taxes are used at the same time. • New Jobs Training • State TIF • MODESA

  6. Missouri Quality Jobs • New jobs must meet criteria • Average wage must be at least the county average wage • Health insurance must be offered with at least 50% of the premium paid by the employer for all full-time employees in Missouri • Must be scheduled to work an average of 35 or more hours a week at the project facility • If the employee spends less than 50% of their work time at the facility, they can still be considered at the facility if certain conditions are met.

  7. Missouri Quality Jobs • Three segments of program • Small/Expanding • Technology • High Impact

  8. Small/Expanding projects • Criteria • Rural areas – 20 or more new jobs created within 2 years of approval • Non-rural areas – 40 or more new jobs created within 2 years of approval (Boone, Buchanan, Clay, Greene, Jackson, St. Charles, St. Louis City & County) • Benefit • retention of 100% of state withholding tax for new jobs • 3 years if average wage of new jobs is 100-119% of county average • 5 years if average wage of new jobs is greater than 120% of the county average

  9. Small/Expanding Project Example3 year benefit Project – 50 new jobs in year 1 with no additional new jobs in years 2-3; average starting wage is $40,000; locating in St. Charles County

  10. Small/Expanding Project Example5 year benefit Project – 50 new jobs in year 1 with no additional new jobs in years 2-5; average starting wage is $45,000; locating in St. Charles County

  11. Technology projects • Criteria • 10 or more new jobs created within 2 years of approval • NAICS code for business activity must be an approved Technology NAICS • Benefit • 5% of payroll of new jobs for 5 years plus Average Wage Bonus if qualified • Benefit in form of retained withholdings and state tax credits • NOIs received after June 4, 2009 are not subject to the per company cap

  12. Technology Project Example Project – 10 new jobs in year 1 plus 5 additional new jobs each year in years 2-5; average starting wage is $43,000; locating in Jackson County; facility has NAICS approved for Technology portion of program

  13. High Impact projects • Criteria • 100 or more new jobs created, the first within 1 year of approval, remaining 99 within two years of hiring first new job • Benefit • 3% of payroll of new jobs plus Average Wage Bonus and/or Local Incentives Bonus if qualified • NOIs received after June 4, 2009 are not subject to the per company cap

  14. High Impact Project ExampleNo programs affecting withholdings Project – 200 new jobs in year 1 plus 50 additional new jobs each year in years 2-5; average starting wage is $75,000; locating in St. Louis County; local incentives of at least 50% of the new local revenue generated, over 10 years

  15. High Impact Project ExampleWith New Jobs Training Program Project – 200 new jobs in year 1 plus 50 additional new jobs a year in years 2-5; average starting wage is $75,000; locating in St. Louis County; local incentives of at least 50% of the new local revenue generated, over 10 years

  16. Average Wage Bonus • Average Wage Bonus • Based on percentage of new job average wage to county average wage • Greater than 120 and up to 140% - Company receives additional 1/2% of payroll of new jobs • Greater than 140% - Company receives additional 1% of payroll of new jobs

  17. Local Incentives Bonus • Local Incentives Bonus • Bonus based on the local incentives provided to the project as a percentage of new local tax revenue generated by the project, over 10 years • 10-24% - Company receives additional 1% of payroll of new jobs • 25-49% - Company receives additional 2% of payroll of new jobs • 50% or more – Company receives additional 3% payroll of new jobs

  18. Quality Jobs • Tax credits capped at $80 million annually • Withholdings are not capped

  19. Multiple MQJ projects/NOIs • No limit to the number of projects for a company as long as the minimum program requirements are met for each project • NOI must be filed to begin a new project period (no new jobs will be added to the previous project when next NOI is received by DED), establishing a new base employment number and job creation deadline • Multiple MQJ projects may be concurrent

  20. Two NOI example (Phased Project) Project – 200 new jobs in year 1 (NOI I), 150 new jobs in year 2 (NOI 2); average starting wage is $42,000; locating in Greene County; local incentives of at least 50% of the new local revenue generated, over 10 years

  21. Same project – One NOI Project – 200 new jobs in year 1, 150 new jobs in year 2 ; average starting wage is $42,000; locating in Greene County; local incentives of at least 50% of the new local revenue generated, over 10 years

  22. Application Process • Company completes and submits Notice of Intent (NOI) • NOI is approved or denied within 30 days of receipt • When company reaches threshold, complete the Application to Retain Withholding Taxes • DED reviews Application to Retain to ensure all program requirements are met • DED issues approval to Department of Revenue (DOR) • DOR notifies company that they can begin retaining withholdings and gives further instruction on the DOR process • Company files MQJ Annual Report/Tax Credit application within 30 days of the end of the company’s tax year

  23. MQJ Tax Credit • MQJ tax credit can be applied to Chapter 143 (state income tax, excluding withholding tax) and Chapter 148 (financial institutions tax). • MQJ tax credits must be claimed within one year of the close of the taxable year that they were issued. • MQJ tax credits must be applied to tax liability for the year in which they were earned. • MQJ tax credit is refundable, sellable, transferrable or may be assigned.

  24. Ronda Anderson – 573-522-9062 or ronda.anderson@ded.mo.gov Matt Fischer – 573-522-2790 or matt.fischer@ded.mo.gov Melody Worley – 573-751-9048 or melody.worley@ded.mo.gov Quality Jobs Program Department of Economic Development 301 W High Street, Suite 770 PO Box 118 Jefferson City, MO 65102 www.ded.mo.gov Fax: 573-522-4322 Contact Information

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