The Missouri Chamber of Commerce and Industry is supporting legislation aimed at strengthening domestic supply chains by expanding production of critical materials and pharmaceuticals in Missouri.
According to the U.S. Geological Survey, 36 of the 60 minerals identified as vital to the nation’s economy and national security can be found in Missouri — positioning the state as a potential leader in this sector.
Lawmakers recently heard testimony on SB 1553, sponsored by Sen. Kurtis Gregory (R-Marshall), before the Senate Economic and Workforce Development Committee. The proposal focuses on three key strategies to attract investment and expand in-state manufacturing.
Expanding the manufacturing sales tax exemption
The bill clarifies that Missouri’s existing manufacturing sales tax exemption applies to critical materials and critical pharmaceuticals.
Gregory said this change would ensure that energy, machinery, equipment and materials used to produce these items receive the same tax treatment as other manufactured goods, reducing costs for companies looking to invest in Missouri facilities.
Missouri Defense and Energy Independence Act
The legislation would also create the Missouri Defense and Energy Independence Act, establishing tax credits for companies investing in facilities that produce priority materials or medicines.
Beginning Jan. 1, 2027, the Missouri Department of Economic Development could award credits to companies investing at least $5 million in qualifying costs:
Eligible expenses would include building, expanding or converting facilities, as well as purchasing manufacturing equipment.
Grants for early project costs
The proposal also establishes the Grants for Independence from Foreign Influence Fund.
Grants of up to $500,000 would be distributed through the Missouri Development Finance Board to help companies cover early project costs before facilities are completed.
Testifying in support, Anthony Caruso of the University of Missouri System said decades of globalization have weakened the nation’s metal supply chain.
“It is now our job to reverse this vulnerability caused by offshoring,” Caruso told lawmakers, noting that states such as Tennessee and North Carolina are already offering aggressive incentive packages to attract manufacturers.
Jared Hankinson, vice president of government affairs for the Missouri Chamber, said the legislation would help Missouri capitalize on its natural resources and existing industry partnerships.
“Missouri is already well positioned to be a major player in critical material manufacturing,” Hankinson said. “From what we have in the ground to the consortiums helping move this work forward, there is strong momentum. What we lack are the incentive tools this legislation would provide to help build the infrastructure needed for long-term growth.”
For more information, contact Hankinson at jhankinson@mochamber.com or (573) 634-3511.
