The Missouri Chamber of Commerce and Industry is supporting legislation to extend the Deal Closing Fund, an important tool for economic development.
A hearing was recently held on SB 103, sponsored by Sen. Mike Bernskoetter (R-Jefferson City), which would extend the Deal Closing Fund until 2031.
The Deal Closing Fund is part of the Missouri Works program, the state’s top incentive tool for business expansion and retention. Missouri Works incentivizes job creation in the state by allowing companies to keep a portion of their withholding taxes for a set period. It also issues tax credits to qualified companies under certain circumstances.
The Deal Closing Fund allows some Missouri Works tax credits to be paid on the front end to help with the costs associated with locating or expanding a business in Missouri. This option is scheduled to expire on June 30, 2025, but, if approved, SB 103 extends the option until June 30, 2031.
Director of the Missouri Department of Economic Development Michelle Hataway told the Senate Government Efficiency Committee that extending the Deal Closing Fund will help Missouri stay competitive against states such as Arkansas and Kansas in the fight to bring in new jobs. These states have no cap on their deal closing funds.
“We are cautious when we offer these awards because we want to make sure there is good job creation and there’s a large amount of investment and return to the state,” Hataway said.
The Missouri Chamber has a long history of championing Missouri Works, as the program supports the Missouri 2030 goal of becoming a leading state for job growth.
Cade Tremain, manager of governmental affairs for the Missouri Chamber of Commerce and Industry, said the Missouri Works Deal Closing Fund has helped in the expansion and retention of businesses.
“By making the extension into 2031, it will ensure that businesses have access to the tools they need to strengthen our workforce,” Tremain said.
A companion bill, HB 1168, is sponsored by Rep. Jeff Knight (R-Lebanon).
For more information, contact Tremain at ctremian@mochamber.com or (573) 634-3511.
