Choose Saint Joseph for new business, and we’ll offer you the incentives to help you succeed.
Midwestern Work Ethic Plus Lower Costs of Doing Business, All in St. Joseph
Businesses locating in St. Joseph area are eligible for many incentive programs that can lead to direct cost reductions upon initial development. Because St. Joseph is a city deeply committed to business success, some of the programs also reduce annual operating costs. In addition to outstanding incentives, the tax structure offered by St. Joseph and Buchanan County is lower than many other nearby cities, and utility fees also reflect a lower cost than other metropolitan areas.
Aggressive Incentives Built for New Quality Job Creation and Investment
St. Joseph is aggressive in the case of incentives to bring quality projects to our city. The St. Joseph Economic Development Partnership will work diligently to structure an incentive package that is attractive and forward thinking. We are dedicated to working with all involved to create a mutually-beneficial project that will assist your company in successfully achieving its goals and becoming an integral part of the St. Joseph community. Our successes with Triumph Foods, Hillshire Brands and Boehringer Ingelheim Vetmedica, Inc., in the location and expansion of their most modern and technologically-advanced facilities are prime examples of this ability.
St. Joseph offers the benefit of a Foreign Trade Zone designation, and KCP&L’s electric rates are among the lowest in the state and region, including economic development rate reductions for companies which meet heavy load criteria.
Buchanan County Economic Development Fund – Funded by the one-quarter cent sales tax originally passed in 1996, the funding provides flexible dollars for economic development projects. Usually the funds are provided in the venue of five-year forgivable loans, contingent upon certain milestones of job creation and investment being met.
St. Joseph Industrial Foundation – Recently the Foundation approved the concept of providing a $50,000 deferred, no-interest loan, that would balloon at the end of five years. The Foundation has been a major investor in business park and shell building development.
Chapter 100 Bond Program – Mechanism for real and personal property tax abatement to finance economic development projects whereby the City or County issues Industrial Revenue Bonds that are tax exempt that are purchased by the company. Under the arrangement, the governmental entity retains ownership of the real and/or personal property and leases it back to the company. Because title to the real and/or personal property is held in the name of the City during the lease term, the City has the ability to abate a portion of the taxes.
Missouri State Incentives
The state of Missouri 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 percent 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. Tax Increment Financing (TIF) is designed to help finance improvements to property in designated redevelopment areas using tax revenues resulting from those improvements.
Missouri Works Program – The Missouri Works Program is established to provide tax incentives for qualified companies. A ”qualified company” is generally a firm, partnership, joint venture, association, private or public corporation, or headquarters of such entity registered to do business in Missouri that is the owner or operator of a project facility at which new or retained jobs and any new capital investment are or will be located, and which certifies that it offers health insurance to all full-time employees of all its facilities located in the state and pays at least 50% of the premiums for such insurance. Read more…
Quality Jobs – For eligible projects (meeting the average wage and health insurance requirements) this program allows for the retention of the state withholding tax of new jobs and provides tax credits that are refundable, transferable and/or saleable. The amount of tax credits per project is determined by the state, based on economic impact. Read more…
Other Programs for Special Circumstances
Tax Increment Financing – A mechanism where the use of the increased property taxes associated with the increased value of property is used to finance project-related infrastructure improvements.
Chapter 353 Tax Abatement – A redevelopment mechanism whereby tax abatement is provided to a for-profit “urban redevelopment corporation” and is extended to the real property found in a designated blighted area (please see the program detail attached).
Improvement Districts – With a Community, Neighborhood, or Downtown Improvement District, an established district is voted in by the property owners and the municipality issues bonds to pay for eligible infrastructure improvements. The bonds are then paid for by special assessments against the real property.
BUILD Program – State program designed to assist large projects in reducing infrastructure and equipment expenses through the issuance of bonds and tax credits if the project can demonstrate the need for funding.
Economic Development Riders:
St. Joseph’s electrical utilities are extremely competitive with other areas of the country. Headquartered in Kansas City, Mo., KCP&L provides electrical service to St. Joseph and ranks among the largest wholesale marketers of electricity and natural gas in North America. Several incentive programs are available to new and expanding businesses and commercial customers with high energy demands.
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 percent, year 2 – 25 percent, year 3 – 20 percent, year 4 – 15 percent and year 5 – 10 percent for companies which meet their criteria.
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 percent, 24 percent, 20 percent, 15 percent, and 10 percent 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.
Benefits of a Foreign Trade Zone:
St. 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 St. 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 St. 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 St. Joseph Metro Chamber to learn more about how the St. Joseph Foreign Trade Zone can benefit your company.