Incentives

ENHANCED ENTERPRISE ZONE We are willing to go the extra mile to bring your project to St. Joseph. There are a number of programs for which you may qualify, including Enterprise Zone, Customized Training, and special rates from local utilities. There is also a local pool of money available as grants to qualifying companies. For more information about the incentives offered by the state of Missouri, visit the Department of Economic Development Web site. TRAINING PROGRAMS Missouri New Jobs Training Program The New Jobs Training Program (NJTP) provides education and training to workers employed in newly created jobs in Missouri. The new jobs may result from a new industry locating in Missouri or an existing industry expanding its workforce in the state. NJTP is administered through Missouri's community college districts. In St. Joseph, NJTP services are provided by the Metropolitan Community Colleges system. The program provides assistance in reducing the cost associated with expanding a workforce or locating a new facility through these training services:     Customized training designed for the specific needs of the industry  Adult basic education  General occupational skill training  On-the-job training (OJT) Training assistance can include skill assessment, orientation, pre-employment training, training facilities and equipment, instructor salaries, curriculum development, travel, and a variety of other training-related services. Through OJT, the employer can receive a reimbursement of up to 50% of wages paid to workers in the new jobs. The OJT benefits may be in effect up to six months for each new job. Eligible businesses include manufacturing, processing, and assembling firms, as well as companies that conduct research and development, or that provide services in interstate commerce. Retail businesses and health and professional services do not qualify for the program. Funds to pay for the training are provided through certificates that are repaid using a portion of the new employees' state withholding tax for a period of up to 10 years. The certificates are sold through the local community college district. The tax withholding is equal to 2.5% of gross wages for the first 100 new jobs, and 1.5% for the remaining new jobs. To repay the training and certificate costs, the tax withholding for projects in excess of $500,000 may be claimed up to eight years, and those projects not in excess of $500,000 may be claimed up to 10 years. Missouri Customized Training Program The Missouri Customized Training Program (MCTP) helps Missouri employers with funding to offset the costs of employee training and retraining. It assists new and expanding businesses in recruiting, screening, and training workers, and it helps existing employers retain their current workforce when faced with needed upgrading and retraining. The MCTP, through local education agencies, will help an employer identify training needs and develop a training program unique to the employer's needs. MCTP staff will help the employer customize a comprehensive training program, which can include classroom skill training, on-site or in cooperation with the local school system, as well as on-the-job training (OJT), and task-oriented profiling. Examples of expenses which might be covered under the program are: Curriculum development Instructor salaries Instructional supplies Vendor trainers Pre-employment training Up to 50% of OJT trainee's wages Programs are custom-designed to meet the specific needs of the companies involved: Employers have options for building their workforce. Working closely with the company's personnel department, MCTP can help recruit, screen and test potential trainees. Assistance is also available in developing job classifications, job specifications, and interviewing techniques. Classroom skill training can take place at the work site, at local educational centers, or a combination of both. Instructors may be provided by the MCTP, by vendor trainers, or the company may use its own employees. Training can be conducted in the work environment. Designed primarily for newly created jobs, OJT helps make the most of training new workers by reimbursing companies up to 50% of a trainee's wages in order to offset training costs and reduced productivity. Task-oriented profiling can provide occupational profiles to eligible companies at no charge to the employer. Companies may use the profiles as a basis for training plans, job descriptions, hiring tools, and detailed "process documentation" which is very helpful with training associated with ISO 9000. Length of training is tied to the skill level and experience of the trainee, the skill level required for the job, and the time needed for the trainee to become productive. In addition, companies may request training assistance as often as needed. MCTP may provide ongoing training programs. To ensure a steady supply of trained labor, ongoing training required for new products, processes or equipment may be provided. Or, if needed, help is available to retain and retrain a company's current workforce with new upgraded skills. Applications will be reviewed and approved based on the number of new jobs created in Missouri, job retention, cost effectiveness, the level of wages an employee will receive as a result of customized training, and retraining needed as a result of substantial capital investments. UTILITY DISCOUNTS Electricity KCP&L's electric rates are among the lowest in the state and region. KCP&L offers economic development rate reductions for a period of five years with the following percentage reductions by year after start-up: year 1 - 30%, year 2 - 25%, year 3 - 20%, year 4 - 15% and year 5 - 10% for companies which meet their criteria. Water The purpose of Missouri-American Water Company’s Economic Development Rider is to encourage industrial and commercial development in Missouri. Eligible customers will receive discounts of 30%, 24%, 20%, 15%, and 10% off their pre-tax bills during their first, second, third, fourth, and fifth contract years, respectively. Water service under this rider is only available in conjunction with local, regional, and state governmental economic development activities where incentives have been offered and accepted by the customer. Customers must meet certain usage and job creation requirements. Please contact the St. Joseph Area Chamber of Commerce or Missouri-American Water Company (816-233-8844) for more details. LOCAL INCENTIVES The voters in Buchanan County approved an Economic Development sales tax in 1996 to provide grants to new and expanding companies. The funds are allocated at the discretion of the Buchanan County Commissioners, with the guidance of the Buchanan County Economic Development Fund Advisory Board. In addition, funding for infrastructure may be available through various programs. For more information, contact Brad Lau at 816-364-4109. FINANCING Missouri also offers a variety of methods of issuing low-cost, long-term Industrial Revenue Bonds (IRBs). The proceeds of an IRB issue may be used to finance up to 100% of the cost of fixed assets such as infrastructure, land, buildings, machines, and equipment. Certain types of IRBs allow for the exemption of the real and personal property tax of buildings and machinery financed by the bond. Finally, Tax Increment Financing (TIF) is designed to help finance improvements to property in designated redevelopment areas using tax revenues resulting from those improvements. FOREIGN TRADE ZONE Saint Joseph offers local companies the benefit of a Foreign Trade Zone designation which allows certain types of merchandise to be imported into the zone without going through formal customs entry procedures or paying import duties. The local zone in Saint Joseph is operated by Pony Express Warehousing and 25 acres of land is currently available for new development within the designated zone area. Benefits of the Saint Joseph Foreign Trade Zone include:  Imports can be admitted and held in a FTZ without paying U.S. Custom duties.  FTZ users can pay the duty on component materials or merchandise produced from component materials, whichever is lower.  Custom duties are never paid on merchandise exported from the FTZ.  Duties are reduced or eliminated on material subject to defect, damage, obsolescence, waste or scrap.  Merchandise may be exported and returned to a FTZ without duty payment.  Spare parts may be stored, returned or destroyed without duty payment.  Delays in customs clearances and duty drawbacks are eliminated.  Duties are not owed on labor, overhead, or profit attributed to FTZ production operations.  Quality control inspections can identify sub-standard goods to be destroyed or returned without duty.  No duty is owed on in-bond, zone to zone transfer of FTZ merchandise. Contact the Business Development department with the Chamber of Commerce to learn more about how the Saint Joseph Foreign Trade Zone can benefit your company.