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Incentives

Incentives

 

In today’s highly competitive and global economy, officials in St. Charles County and the State of Missouri recognize the importance business incentives can play in attracting and retaining large-scale business investments.

In St. Charles County, each business project is evaluated by its merits on a case-by-case basis by the municipality where the business is or will be located.

Some guiding principles used by local decision-makers include the goal of creating full-time, permanent jobs paying at 90% or above the annual County average wage, bringing substantial new investment to the community, and strengthening and expanding the local tax base.

The intended outcome is a win-win-win situation fostering business success and profit, offering good employment opportunities for local residents and helping provide for the public services everyone in the community expects and enjoys.

The following list of incentives is a general overview of key state and local programs.

Chapter 100

Under State statute, local cities and counties have the authority to issue Chapter 100 industrial revenue bonds (IRBs) for eligible large-scale office, industrial, and commercial development that involves either substantial new job creation and/or new capital investment in the community. Ownership of the development is held by the local government which passes along a negotiated level of local tax abatement to the business who in turn makes payments in lieu of taxes (PILOTS) until the bonds are fully repaid.

Tax Development District (TDD)

A Transportation Development District (TDD) allows local government to establish a special assessment district to finance needed road work, interstate and interchange projects, and other transportation oriented projects that will foster economic development. These funds are repaid by a either by special assessment, additional property taxes or additional sales taxes in the established district.

Community Improvement District (CID)

A Community Improvement District (CID) allows for property or business owners within a specific area to form either a not-for-profit corporation or a political subdivision with the authority to raise funds through special assessment or additional taxes to fund necessary public infrastructure improvements.

Tax Increment Financing (TIF)

Tax Increment Financing or TIF permits the use of a portion of local property and sales tax to assist funding the redevelopment of certain designated areas within a community that are classified as “blighted,” “conservation” or an “economic development” area as defined by Missouri Statutes.

On-The-Job Training 

The “On-the-Job Training” Program or OJT is administered by the St. Charles County Department of Workforce Development and utilizes state and federal funds to help qualifying businesses by underwriting the salary of new employees by as much as 50% for up to 6 months.

Missouri One Start

Missouri One Start provides a tailored workforce strategy to address each businesses unique needs. At no cost to eligible businesses, the team at Missouri One Start will customize services ranging from pre-employment screening and recruitment to designing job-specific training both during and after the onboarding process. This comprehensive workforce program provided by the State of Missouri ensures businesses have the right workforce, with the right skillset, at the right time.

Missouri Linked Deposit 

The Missouri Linked Deposit Program partners with lending institutions to provide low-interest loans to help create and retain jobs, expand the economy and strengthen communities statewide. By reducing the interest rate on certain loans that borrowers can use to improve their businesses, the program helps qualified lenders from Missouri better serve Missouri-based companies and agricultural operations. The program also provides funds for local governments to serve the interests of their constituents. Using the program allows lenders to lower the interest rates to the borrower by about 2-3 percent.

The Missouri Linked Deposit Program is well-funded with a total of $720 million available, and the State Treasurer’s office is prepared to use the program to its highest potential. The program has proven successful in creating and retaining jobs, expanding the economy and strengthening communities statewide for nearly 25 years.

The program’s eligibility guidelines have expanded through the Treasurer’s economic development legislation, Invest in Missouri, making low-interest loans available to more borrowers including small businesses creating jobs, alternative energy producers and consumers, agriculture operations and local governments.

Missouri Works

As the state’s number one incentive tool for expansion and retention, this program helps businesses access capital through withholdings or tax credits to embark on facility expansions and create jobs. This program can also help businesses purchase equipment to maintain its facility in Missouri.

Missouri Build 

This State bond program offered through the Missouri Department of Economic Development can assist with public or private infrastructure to support a business project or the new capital improvements at the project location. Eligible business projects involve either $15 million in capital improvements and the creation of 100 new jobs within three years, or over $10 million in capital improvements and 500 new jobs created within three years in a “distressed community.”