Missouri Business Headlines

Ending soon, lawmakers seek to extend the Manufacturing Jobs Act

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Not long after the Manufacturing Jobs Act became law in 2010, Missouri’s automotive industry shifted into high gear.

Rep. Nick King

Rep. Nick King

Both Ford and General Motors invested hundreds of millions of dollars to grow their manufacturing footprints in the state. Thousands of jobs were retained and created. In exchange for the job growth, the automotive companies were allowed to keep withholding taxes.

“It’s a proven program,” said Tracy King, vice president of governmental affairs with the Missouri Chamber. “It has increased the automotive presence here in Missouri. We’d like it to continue.”

However, time is running short if the Manufacturing Jobs Act has a future in Missouri. Without an extension, the program will expire on October 12. Rep. Nick King, a Republican from Liberty, has proposed extending the program for another 12 years, through 2028.

Rep. King said that the extension would allow more time for Missouri’s automotive suppliers to grow and take advantage of the benefits under the Manufacturing Jobs Act.

“Although the maximum amount of withholding tax is currently being retained by the manufacturers, there are still many opportunities available for suppliers,” he said.

jobsbadgeTo date, Rep. King said the program has helped manufacturers add more than 7,000 new jobs in Missouri. Suppliers have brought on an additional 700 new workers.

“It’s a bill that is working,” Rep. King said. “It is providing significant benefits both to the state and to the manufacturers and suppliers. There’s really no need to cut it off. Allowing it to continue will allow additional opportunities to bring more suppliers to the state.”

Rep. King’s proposal to extend the Manufacturing Jobs Act is contained in House Bill 1391. It received a hearing in a House committee on April 5. Rep. King is also sponsoring House Bill 1389, which would expand the Manufacturing Jobs Act to all manufacturers. That bill awaits debate on the House floor.

For more information, contact Tracy King at tking@mochamber.com or by phone at 573.634.3511.

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