Nance: co-sponsored legislation gets boost from Governor Nixon at Ford Assembly Plant

JEFFERSON CITY, Mo. – Legislation sponsored by Rep. Jerry Nolte and co-sponsored by Bob Nance got a boost Tuesday from Governor Jay Nixon, who spoke in support of the Manufacturing Jobs Act at the Ford assembly plant in Claycomo. HB 1675, which creates the Manufacturing Jobs Act, would allow qualified manufacturers and their suppliers to retain a percentage of their withholding taxes when creating or retaining certain jobs.

“I appreciate the efforts by the Governor to get this bill passed. This bill will help retain and create jobs in our districts without using tax credits” said Nance.

HB 1675 would allow qualified manufacturers in Missouri to keep 50 percent of their withholding tax from retained jobs for 10 years. To qualify, a manufacturer has to earn at least 10 percent of their revenues from products exported outside the United States or 20 percent of revenues on products exported outside Missouri, make at least a $100,000 capital investment per full-time employee, and manufacture a new product. In addition, any supplier with more than 10 percent of their revenues coming from a qualified manufacturer would be able to retain 100 percent of their withholding tax on newly created jobs for three years, as long as they create at least five qualifying new jobs. The bill also includes taxpayer protections in the event the manufacturer or supplier fails to meet the requirements of the act.

The legislation is not about picking winners and losers, but instead is meant to be another tool in Missouri’s economic development toolbox that will allow the state to attract and retain manufacturers. “Without this legislation, Missouri could not compete against other states who offer incentives to attract major manufacturers like Ford” said Nance.

The bill would help retain the more than 3,700 jobs currently provided by the Ford Motor Company factory in Claycomo, but the legislation is designed to help medium and small businesses as well.

This legislation passed the Senate committee on April 15 and was assigned to the Governmental Accountability and Fiscal Oversight Committee where it awaits a vote before going to the floor of the Senate for discussion.