Incentives and Support
Strong partnerships between the Jefferson City Area Chamber of Commerce, the City of Jefferson, and the County of Cole result in competitive incentive packages for new and existing businesses looking to relocate or expand their operations. Area schools also get involved by offering training programs or degree options to ensure a skilled and qualified workforce for your business and industry.
Working with community partners, our economic development staff stands ready to offer an aggressive incentive package which meets the goals of your business or your clients. Information about programs and incentives are listed below. For additional information, please contact us at 573-638-3582.
- Enhanced Enterprise Zone (EEZ)
The Enhanced Enterprise Zone (EEZ) provides tax credits to new and expanding businesses in a specific geographic area designated by local governments and certified by the Missouri Department of Economic Development. The program offers state tax credits and local real property tax abatement to eligible businesses.
- Tax credits are equal to:
- 2% of new payroll
- .005% of new private investment (inventory is ineligible)
- Tax credits may be provided each year for five tax years
- Tax abatement is equal to:
- Real property tax abatement at a 50% level for 10 years
Professionals at local banks and financial institutions are experienced in working with state and local financing programs which exist to support business start-ups and expansions. These experts are familiar with procedures for accessing programs which offer low interest rates or tax-exempt bonds for property acquisition, construction and/or equipment at an attractive interest rate.
- Tax Incentives
In an effort to encourage new full-time, year-round jobs, federal, state and local tax incentives are available to new or expanding businesses in Jefferson City/Cole County. The amount of credits is based on the company's overall investment and the economic impact of the project. Following are examples of the tax benefits available to businesses:
Federal Tax Credits & Exemptions
50% federal income tax deduction on corporate state income tax
Property tax exemption on business and industrial inventories
Sales/use tax exempted on manufacturing equipment, pollution control equipment, materials and supplies used to install equipment, electricity consumed in manufacturing process
State Tax Incentives
Missouri's corporate tax rate is the 5th lowest in the nation
Combined state and local sales tax rate is 7.725%
In Jefferson City, only Missouri income is taxed
There are no taxes on inventories
Local Tax Incentives
No earnings tax
Low property tax rates
Sales tax option for capital improvements
- Missouri Linked Deposit Program
The Missouri Linked Deposit Program partners with lending institutions to provide low-interest loans to help create and retain jobs, expand the economy and strengthen communities statewide. By reducing the interest rate on certain loans that borrowers can use to improve their businesses, the program helps qualified lenders from Missouri better serve Missouri-based companies. Using the program allows lenders to lower the interest rates to the borrower by about 2-3 percent.
- Eligibile businesses include new, existing or expanding firms located in Missouri that employ 10 or more full-time employees annually. They must create at least one job for each $50,000 borrowed un the Missouri Linked Deposit Program
- Eligibility guidelines have expanded to increase access to small business loans to companies with less than 100 full-time employees up from companies with less than 25 full-time employees