Is the Grass Always Greener n Betty Nelsn-Ekey Managing Directr Stephanie Harris, CPA Senir Assciate Lynne Cbin Senir Assciate the Other Side? June 12, 2014
CBIZ Hiring Incentives Abut CBIZ MHM HQ in Cleveland Ohi 6,000 emplyees natinwide id with internatinal cnnectins The Tax Incentives Team Kansas City is hme base Natinal practice Expertise in every state
CBIZ Hiring Incentives What We D Our gal is t help ur clients make an infrmeddecisin decisin andmeetprgram requirements Negtiate incentives Review prpsals Prepare side by side state cmparisn Prvide the prs and cns Prepare all paperwrk
Overview D yu think ther states have mre incentives and mre funding than Missuri? The grass may nt be greener n the ther side! Tw f my team members will be presenting infrmatin abut surrunding states State Overview Eligible Industries State Prgram Criteria Cmparisn f Missuri Wrks t the cntiguus State s Prgram: Kansas/Illinis/Arkansas/Iwa Scenaris Questins
Abut the Presenters Lynne Cbin Respnsible fr prjects in a 15 state area, primarily Suth and East f Missuri. Lynne will be prviding an verview f Kansas and Arkansas. Stephanie Harris Respnsible fr prjects in a 14 state area, primarily Nrth and East f Missuri. Stephanie will be prviding an verview f Illinis and Iwa.
CBIZ Hiring Incentives Qualifying Industries - Missuri Examples f industries eligible fr prgram: Fr prfit/nn prfit businesses Administrative r R &D ffice that serve a multistate territry Headquarters (regardless f industry, natinal HQ may qualify) Ineligible Industries include: Gambling establishments, religius rganizatins, stre frnt cnsumer based retail, educatinal services, fd and drinking establishments, public utility, public administratin, healthcare and scial services, ethanl r bidiesel prductin
Categry Min # Jbs in 2 Years Missuri Wrks Required % f Cunty Avg. Wage (CAW) Minimum Capital Investment Benefit Zne Wrks 2 net new 80% f CAW $100,000 Retain 100% f WH Rural Wrks 2 net new 90% f CAW $100,000 Retain 100% f WH Statewide Wrks 10 net new 90% f CAW n/a Retain 100% f WH Max. Up t 9% f payrll Mega 120 100 net 120% f n/a 6% f payrll new CAW Max. Up t 9% f payrll Mega 140 100 net new 140% f CAW n/a 7% f payrll Max. Up t 9% f payrll
Missuri Overview Categry Statutry vs Discretinary Applicatin Prcess Prgram Criteria Benefit Cash vs Credit Reprting Clawback Other Missuri Statutry & Discretinary Ntice f intent (NOI) Hiring, investment & wages 100% f new emplyee w/h up t 9% f payrll Cash refundable, transferable & sellable Annual Benefits end at default Hiring can begin after NOI 35 hurs/week full time
CBIZ Kansas Hiring PEAK Incentives Prgram Eligible industries include: Manufacturing Healthcare Sciences Si & Services Transprtatin & Lgistics Energy Sustainable Agriculture Prfessinal & Technical Services Headquarters (including the ineligible industries) Ineligible Industries include: Retail Trade, Public Administratin, Educatinal Services, Utilities, Nn Prfits, Religius Organizatins, and Casins
Categry Rural Cunties Criteria fr Kansas Withhlding Prgrams Min # Jbs in 2 Years 5 net new Required% f Cunty Median Wage (CMW) Minimum Capital Investment Benefit 100% f CMW n/a Retain up t 95% f WH Metr Cunties High Impact 10 net new 100 net new 100% f CMW n/a Retain up t 95% f WH 100% f CMW n/a Retain up t 95% f WH
Cmparisn Categry Missuri Kansas Statutry vs Discretinary Statutry & Discretinary Discretinary Applicatin Prcess Ntice f fintent t(noi) Offer/prpsal frm the state t 30 day minimum fr applicatin Prgram Criteria Hiring, investment & wages Hiring & wages Benefit Cash vs Credit 100% f new emplyee w/h up t 9% f payrll Cash refundable, transferable & sellable Up t 95 % f new emplyee w/h Cash Reprting Annual Quarterly & 3 annual reprts Clawback Benefits end at default Depending n default: reduced benefit (term r cap) r pay back Other Hiring can begin after NOI 35 hurs/week fulltime Hiring can begin after applicatin 20 hurs/week full time
CBIZ Illinis Hiring EDGE Incentives prgram Eligible cmpanies must add t the exprt ptential f Illinis: Manufacturing Prfessinal & Technical Healthcare Sciences & Services Services Businesses with state Transprtatin & Lgistics incme tax liability Energy Sustainable Agriculture Ineligible Industries include: Retail Trade, Persnal Services, Nn Prfits, Religius and Gvernment Organizatins, and Casins
Small: <100 emplyees Criteria Large: >100 emplyees $1 M capital li investment $5 M capital linvestment 5 new FT jbs 25 new FT jbs Benefits: Incme tax credit equal t new emplyee state withhlding (avg. 5% f grss pay) up t 10 years Tax credit capped at amunt f investment and/r length f prject investment
Cmparisn Categry Missuri Illinis Statutry vs Discretinary Statutry & Discretinary Discretinary Applicatin Prcess Ntice f Intent (NOI) 90 day minimum Applicatin must be accepted Prgram Criteria Hiring, investment & wages Hiring & investment w/in 2yrs cmpetitive cmpnent Benefit 100% f new emplyee w/h up t 9% f payrll Tax credit = IL w/h n new emplyees Cash vs Credit Cash refundable, transferable & sellable Tax Credit Reprting Annual 2 reprts each year Clawback Benefits end at default Must maintain jbs fr 5 years Other Hiring can begin after NOI 35 hurs/week fulltime NPV f 10 year lease 35 hurs/week full time
CBIZ Hiring Incentives Arkansas Qualified Industries Manufacturing Office sectr business Design and develpment f Natinal r reginal HQ prepackaged sftware, digital Firms engaged in cmmercial, cntent prductin. Eligible ibl physical and bilgical research cmputer related businesses must Scientific and technical services derive at least 75% f their revenue businesses that derive at least 75% frm ut f state f sales f their revenue frm ut f state Mtin picture prductin that sales derive at least 75% f their revenue frm ut f state f sales Distributin centers r intermdal facilities Ineligible Industries include: Retail Trade, Persnal Services, Nn Prfits, Religius and Gvernment Organizatins
Advantage Arkansas Tier Payrll Threshld Benefit based n payrll f new, full-time permanent emplyees 1 $125,000 1% f payrll 2 $100,000000 2% f payrll 3 $75,000 3% f payrll 4 $50,000 4% f payrll Arkansas cunties are ranked int fur tiers based n pverty rate, ppulatin grwth, per capita persnal incme and unemplyment rate. Create Rebate prgram minimum payrll threshld is $2,000,000. Rebate is 5% f the cmpany s annual payrll fr new full-time permanent emplyees. ees
Cmparisn Categry Missuri Arkansas Statutry vs Discretinary Statutry & Discretinary Statutry Applicatin Prcess Nticef Intent (NOI) Applicatin Prgram Criteria Hiring, investment & wages Based n lcatin & wages Benefit Cash vs Credit 100% f new emplyee w/h up t 9% f payrll Cash refundable, transferable & sellable % f payrll Bth Reprting Annual Annual Clawback Benefits endat default Benefits end at default Other Hiring can begin after NOI 35 hurs/week fulltime Hiring can begin after applicatin 30 hurs/week full time
CBIZ Hiring Iwa Incentives Examples f cmpanies eligible fr prgram: Manufacturing Headquarters Healthcare Sciences & Services Transprtatin & Lgistics Energy Sustainable Agriculture Ineligible Industries include: Retail Trade r Service Industry
Iwa High Quality Jb Prgram
Cmparisn Categry Missuri Iwa Statutry vs Discretinary Statutry & Discretinary Discretinary Applicatin Prcess Ntice f Intent (NOI) Prject initiatin rule min 90 days Prgram Criteria Hiring, investment & wages 120% CAW, Investment, Lcal match, sufficient benefits Benefit 100% f new emplyee w/h up t Lans, tax credits, exemptins, 9% f payrll refunds Cash vs Credit Cash refundable, transferable & sellable Bth Reprting Annual Annual + 2 prgram (3 & 5 yr) Clawback Benefits end at default Reduced benefits Other Hiring can begin after NOI 35 hurs/week fulltime Min. 5 year lease Only cnsider majr renvatins fr investment
There are many ther prgrams! Zne Related Industry Related Research & Develpment Innvatin r Technlgy Ptential Benefits: Exemptin n tax paid n building materials Investment tax credit n qualified prperty Incme tax credit fr hiring f dislcated r ecnmically disadvantaged individual Sales tax exemptin Utility tax exemptin Real Estate Transfer Tax Waiver Real estate tax rebates fr sft csts (legal, engineering, architectural) related t prject Training cst reimbursement
Example Scenaris
We want every cmpany t btain and maximize the incentives that are available. We can help at all stages f the incentive prcess - Prpsal, Applicatin, Reprting and Meeting the Deadlines. Please call us befre it s t late! Betty Nelsn-Ekey (913) 234-1069 Stephanie Harris (913) 234-1718 Lynne Cbin (913) 234-1841