The Enhanced Enterprise Zone Program was originally established to encourage economic development and new job creation by providing tax credits and real estate tax abatements to new or expanding businesses located within a designated Enhanced Enterprise Zone.
Enhanced Enterprise Zones are specified geographic areas designated by local governments and certified by the Department of Economic Development (DED). Zone designation is based on certain demographic criteria, the potential to create substantial jobs in a targeted industry and a demonstrated impact on local industry cluster development.
The Enhanced Enterprise Zone program is a discretionary program offering state tax credits, accompanied by local real property tax abatement, to Enhanced Business Enterprises. Tax credits may be provided each year for five tax years after the project commences operations.
To receive tax credits for any of the years, the facility must create and maintain the minimum:
- New or expanded business facility 2 new employees and $100,000 new investment;
- Replacement business facility 2 new employees and $1,000,000 new investment;
- Health insurance at all times, of which at least 50% is paid by the employer
- Eligible investment expenditures include the original cost of machinery, equipment, furniture, fixtures, land and building, and/or eight times the annual rental rate paid for the same. Inventory is not eligible.
PROGRAM BENEFITS/ELIGIBLE USES
This tax credit can be applied to:
- Ch. 143 Income tax, excluding withholding tax
Tax credits can only be applied to tax liability for the year in which they were earned. The tax credits are refundable or may be transferred sold or assigned. The sales price cannot be less than 75% of the par value of such tax credits. For additional information regarding the EEZ Program, please visit the DED website: www.missouridevelopment.org