7 th 2 MISSOURI'S BUSINESS CLIMATE

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1 EXECUTIVE SUMMARY

2 2 MISSOURI'S BUSINESS CLIMATE 6TH-BEST STATE FOR ADVANCED MANUFACTURING ANNUAL GROWTH 8TH-BEST STATE FOR OUTPUT GROWTH IN ADVANCED MANUFACTURING Missouri is a strategic business location for companies requiring access to all of North America via any mode of transportation. We are a global leader in agtech, aerospace and automotive manufacturing, financial services, logistics and transportation and much more. Let us introduce you to Missouri. ONE OF THE BEST TRACK RECORDS IN THE U.S. FOR FISCAL RESPONSIBILITY 7 th 7TH-BEST STATE FOR ECONOMIC DIVERSITY MISSOURI IS A RIGHT-TO-WORK STATE Global or North American headquarters in Missouri 3 MILLION WORKERS

3 INDUSTRIES 3 The diversity of the state s economy creates the potential for even stronger long-term investment. Missouri has the 7 th most diverse economy in the nation and is thriving across many industries. ADVANCED MANUFACTURING NETWORK: Missouri is a center for advanced manufacturing excellence, making the latest in military and commercial aircraft, and many of America's top selling trucks and vans. NORTH AMERICA S LOGISTICS CENTER: Missouri knows logistics, and can get your product to the global market quickly and efficiently. We are North America s rail, river, road, air and pipeline crossroads. FINANCIAL & PROFESSIONAL SERVICES: Missouri has a depth of talent, with more than 236,000 employed in financial services and many more providing technical support to companies nationwide. GLOBAL AGTECH LEADER: Missouri is the global leader in agtech and gateway to the future of advanced farming, leading the way with innovative technology and research that is transforming agriculture. ENERGY SOLUTIONS: Missouri s innovative energy research and manufacturing positions Missouri as a prime location for companies in the energy sector. FOOD SOLUTIONS: Missouri s robust food production sector includes more than 300 companies due to Missouri s leading role in agriculture and easy access to global distribution. HEALTH INNOVATION: Cerner, Centene and Express Scripts are all companies synonymous with Missouri s reputation in health innovation. These companies, and others across the state, are remaking the health industry.

4 4 INCENTIVES Missouri has a solid track record supporting companies with customized, performancebased incentives. MISSOURI WORKS One of our signature programs to help create jobs and investment, the Missouri Works program, offers achievable, flexible, and competitive benefits to companies expanding in or relocating to Missouri. The program offers multiple categories with different minimum thresholds to fit the needs of almost any business considering Missouri. MISSOURI WORKS TRAINING Missouri s training programs are designed to be extremely flexible so companies can effectively train their current and future workforce in new or improved processes. Funding can be targeted to include areas such as technical training, quality training, or soft skills training. MISSOURI BUILD The BUILD program provides financial incentives for the location or expansion of certain large-scale projects in Missouri. DATA CENTER INCENTIVES Data centers may be eligible to receive an exemption from state and local sales taxes associated with a variety of activities necessary to build or expand a facility in Missouri. MISSOURI TAX ABATEMENTS & EXEMPTIONS Missouri Chapter 100 industrial revenue bonds allow local governments to offer personal property and real property tax abatement to companies. Under Chapter 100, the facility, construction materials and certain tangible personal property may be purchased tax exempt by the City/County and then leased back to the Company. The Chapter 353 abatement is an incentive that can be utilized by cities to encourage the redevelopment of blighted areas by providing real property tax abatements. SALES TAX EXEMPTION FOR MANUFACTURERS This benefit provides a state sales tax exemption to qualifying manufacturing companies. CORPORATE INCOME TAX Missouri s corporate income tax index ranks 5 th best in the nation at 6.25 percent with an effective tax rate that is only 5.2 percent. An important tax advantage for Missouri businesses is that two allocation options are offered for calculating income: (1) the three-factor formula, based on sales, property and payroll or (2) the single-factor formula, based only on sales in Missouri. In 2016, Missouri led the nation as the only state that allowed companies to annually select the income allocation formula that resulted in the lesser corporate income tax liability. Today, Missouri is one of only two states to offer this strategic advantage for manufacturing and service companies. MISSOURI WORKS ELIGIBILITY CRITERIA Program Min. New Jobs Min. New Private Capital Investment Min. Avg. Wage Automatic Benefit Zone Works 1 2 $100,000 80% of County Avg. Wage Retain 100% of WH Rural Works 2 2 $100,000 90% of County Avg. Wage Retain 100% of WH Statewide Works 10 N/A 90% of County Avg. Wage Mega Works N/A 120% of County Avg. Wage Mega Works N/A 140% of County Avg. Wage Retain 100% of WH; Additional tax credits may be available 6% of new payroll; Additional tax credits may be available 7% of new payroll; Additional tax credits may be available 1 Project facility must be located in an Enhanced Enterprise Zone. 2 Project facility must be located in a rural county, which would NOT include Boone, Buchanan, Clay, Greene, Jackson, St. Charles, and St. Louis City and County. WH means the retention of the state withholding tax of the new jobs Benefit period for all categories is 5 years, or 6 years for existing Missouri companies.

5 TAXES 5 PERSONAL INCOME TAX Missouri applies an income tax of $315 plus six percent of federal taxable income over $9,000. Taxable income may be reduced by a portion of federal income tax liability. Additional deductions include an allowance for each dependent, personal exemption, and federal standard or itemized deductions (which includes a deduction for FICA taxes paid through withholding). PROPERTY TAXES Property taxes are assessed and collected at the local level and vary by taxing jurisdiction. In Missouri, companies typically pay both real property tax and business personal property tax, unless the local jurisdiction is offering to abate some or all property taxes. Inventory is not taxable. EFFECTIVE CORPORATE INCOME TAX OF 5.2 PERCENT, THE 5TH LOWEST IN THE U.S. SALES/USE TAX EXEMPTIONS SALES TAX The state sales tax rate is percent. Local tax jurisdictions can impose an additional local sales tax. Certain transactions are automatically exempt from sales tax, including the purchases of machinery and equipment and the consumption of energy used in the manufacturing process. UNEMPLOYMENT INSURANCE Most companies doing business in Missouri are required to pay unemployment insurance. In 2017, Missouri was ranked as having the 7 th Best Unemployment Tax Index by The Tax Foundation. PROPERTY TAX EXEMPTIONS NO INVENTORY TAX 140 POST-SECONDARY DEGREE-GRANTING INSTITUTIONS HIGH SCHOOL GRADUATION RATE OF 87.3 PERCENT

6 6 I N F R A STR U C TU R E AN D TR AN S P O R TATIO N 2 - DAYS D R I V E Missouri is central and connected with one of the most expansive U.S. highway systems, every Class 1 railroad, two of the nation's three largest rail terminals, and quick and efficient river infrastructure via the two largest river systems in North America. Not to mention, from Missouri you can fly nonstop to 73 cities across North America. With half of the continental U.S. population within one-day's drive, it's easy to see why we are North America's logistics center. 1 - DAY D R I V E 29 Metropolitan area 136 Maryville St. Joseph Hannibal Columbia 70 Warrensburg 72 Mexico Marshall Kansas City Railroad lines: BNSF CN CP CSX KCS NS UP 61 Moberly 24 Airports Micropolitan area Kirksville 159 Ports 50 Sedalia «Jefferson City St. Louis Rolla 160 Farmington Ft. Leonard Wood Lebanon Cape Girardeau Springfield Joplin 60 Branson West Plains Sikeston Poplar Bluff Kennett

7 MEET OUR TEAM 7 STEVE JOHNSON, CEO steve@missouripartnership.com SUBASH ALIAS, SVP subash@missouripartnership.com CLINT O NEAL, VP OF BUSINESS RECRUITMENT clint@missouripartnership.com DEBORAH PRICE, VP OF BUSINESS RECRUITMENT & GENERAL COUNSEL deborah@missouripartnership.com DENNIS PRUITT, CECD, VP OF INTERNATIONAL BUSINESS RECRUITMENT dennis@missouripartnership.com

8 Ready to get started? The Missouri Partnership team is here to assist you today, in six months, and in six years. We are an expert resource to support you when the time is right to look at Missouri. Founded in 2007, the Missouri Partnership is a public-private economic development partnership and works in partnership with the Missouri Department of Economic Development, the Hawthorn Foundation and economic development agencies across the state. The Missouri Partnership works closely with companies evaluating Missouri as a potential expansion destination. We reduce your expansion risk through first-class support and site selection assistance. Think of us as your business expansion concierge service. Our team is committed to your success and works statewide to find the best solutions for your unique business goals and challenges. 120 South Central Avenue, Suite 1535, St. Louis, MO Burlington St, Suite B-4, North Kansas City, MO