Businesses planning to expand, relocate or create new jobs in Missouri may be eligible for valuable state incentives through the Missouri Works Program. Designed to encourage business growth and job creation, the program can provide qualifying employers with state withholding tax retention and, in some cases, refundable, transferable and saleable tax credits.
What Is the Missouri Works Program?
The Missouri Works Program is an economic development initiative administered by the Missouri Department of Economic Development (DED). The program encourages companies to invest in Missouri by providing incentives tied to job creation, payroll growth and employee wages.
Benefits may include:
- Retention of state withholding tax generated by new jobs
- State tax credits
- Refundable, transferable or saleable tax credits, depending on the program and project details
Who Qualifies for Missouri Works?
Both for-profit and nonprofit organizations can qualify if they are undertaking projects that create new jobs and meet wage, investment and health insurance requirements. Eligibility depends on the specific program category and the details of the project.
What Are the Main Missouri Works Programs?
Missouri currently offers several program options with different requirements and benefits.
Some of the most commonly utilized programs include:
- Statewide Works
A business may qualify if it:
- Creates at least 10 new jobs
- Pays an average wage of at least 90% of the county average wage
- Offers health insurance and pays at least 50% of employee premiums
- Meets program requirements established by the DED
One advantage of the Statewide Works program is that there is no minimum capital investment requirement. Benefits include retention of 100% of state withholding tax generated from new jobs for five years, or six years for certain long-established Missouri companies.
- Mega Works
Businesses undertaking larger expansion projects may qualify for Mega Works incentives if they create at least 100 new jobs and meet additional wage requirements. Benefits equal 6% or 7% of new payroll, depending on the program tier.
What Benefits Are Available?
Depending on the program and project details, businesses may receive:
- State withholding tax retention
- Refundable tax credits
- Transferable or saleable tax credits
- Additional discretionary incentives in certain situations
Incentives are calculated based on new payroll, job creation and compliance with wage and health insurance requirements.
Why Timing Matters
One of the most important aspects of the Missouri Works Program is timing. These incentives are designed to encourage certain activities, and the incentives should be secured prior to these growth activities taking place. Starting a project too early may affect eligibility for incentives. The DED reviews each project, establishes eligibility requirements and sets the timeline for achieving job creation goals.
What Ongoing Requirements Should Businesses Expect?
Companies receiving Missouri Works benefits are required to submit annual reports demonstrating that they continue to meet program requirements. Reporting often includes information related to:
- New jobs created
- Payroll levels
- Health insurance compliance
Failure to meet program requirements could result in benefits ending or repayment obligations in certain circumstances.
Is the Missouri Works Program Right for Your Business?
If your organization is considering expansion, hiring additional employees or investing in Missouri operations, the Missouri Works Program may provide incentives that help offset project costs. However, qualification requirements and benefits vary significantly based on the specifics of each project.
Evaluating eligibility early in the planning process can help businesses maximize available incentives and avoid actions that could affect qualification.
Questions about the Missouri Works Program or other tax credits and incentives? Contact your Honkamp advisor to discuss opportunities available to your business.