Housing (Economic Development)

SB 1668 - This act establishes the "Missouri Innovation, Public Safety, and Accountability Act". The act authorizes a city to submit an innovation district master plan to the Department of Economic Development for the establishment of an innovation district. The master plan shall include the geographic boundaries, identification of vacant or underutilized property, public safety and infrastructure priorities, a general strategy for surplus or incremental state revenues, and high-level projections of anticipated housing units, jobs, business, and population impacts. The Department's authority to approve or deny an application shall be limited to determining whether the geographic boundaries are reasonable. All other application information shall be considered informational and not subject to approval, modification, or denial by the Department. The Department shall adopt and administer a single, standardized master scorecard to evaluate incentives for projects located within an innovation district. The scorecard shall establish uniform criteria, provide predictability and transparency, rank projects based on measurable outcomes, establish intermediate incentive tiers for projects that do not meet full eligibility, and assign project applications to incentive tiers based on the master scorecard. The scorecard shall include categories as described in the act. An application for incentives shall be approved or denied by a reviewing authority within forty-five calendar days. Failure to issue a determination shall result in approval of the application. (Section 620.6000) A city establishing an innovation district shall establish a fast track permitting process for projects located within the district, including the designation of a single, empowered point of contact that is authorized to coordinate reviews and issue binding determinations on behalf of all relevant departments, agencies, and offices. The city shall waive, reduce, or defer discretionary, duplicative, or extraordinary permit and development fees for projects within the district. For properties not subject to an existing tax increment financing plan or property tax abatement, fifty percent of the incremental increase in real property tax revenues generated after designation shall be deposited into the innovation district's public safety fund. The city shall adopt policies providing building code flexibility for adaptive reuse projects, as described in the act. The Department shall prepare and submit a biennial written report to the General Assembly summarizing the performance of the innovation district program, as described in the act. (Section 620.6003) The act establishes the "Rural Missouri Development Fund" for the purpose of supporting economic development, infrastructure, housing, workforce development, and related community-building activities in rural and smaller communities in the state. Any municipality in the top five percent of assessed valuation in the state and that has an innovation district shall deposit ten percent of new property tax revenues into the Rural Missouri Development Fund. Such funds shall be awarded to rural and smaller municipalities, and regional development organizations. The moneys shall be used for rural education, public infrastructure improvements, public safety, housing development, workforce development, and health care community service facilities. (Section 620.6006) The act establishes the "Innovation District Public Safety Fund", which shall be composed of fifty percent of net new state tax receipts generated in the innovation district. Moneys in the fund shall be used for capital or operating expenditures related to public safety and public realm improvements within the district. A project sponsor may apply to the Department for a construction-phase withholding advance. If the application meets all technical requirements, the Department shall disburse the construction-phase withholding advance. (Section 620.6009) For all tax years beginning on or after January 1, 2027, any person who is not a resident of this state and that establishes a primary residence within an innovation zone shall be eligible for an income tax exclusion. (Section 620.2012) The act authorizes an employer to enter into a withholding agreement with the Department for the retention of a portion of withholding taxes of employees located within an innovation district. The Department may establish aggregate or annual program caps by rule to manage fiscal exposure. Retained withholdings shall be used solely for qualifying reinvestment expenditures, as defined in the act. (Section 620.2015) For all tax years beginning on or after January 1, 2027, the act authorizes an eligible employer to claim a tax credit in an amount equal to $5,000 per eligible employee for relocation expenses incurred in moving such employee from out of the state into an innovation zone. (Section 620.2018) For all tax years beginning on or after January 1, 2027, the act authorizes a taxpayer to claim a tax credit in an amount equal to twenty-five percent of conversion expenditures incurred for converting nonresidential property into residential property. The tax credit may be claimed against the taxpayer's income tax liability or sales tax liability. (Section 620.2021) The act authorizes a city to establish a Missouri Opportunity Zone, which shall be conterminous with the innovation district boundaries. A taxpayer may elect to defer payment of state income taxes if such income tax liability is invested in a qualified Missouri Opportunity Zone investment, as defined in the act. This act shall sunset on August 28, 2036, unless reauthorized by the General Assembly. This act is substantially similar to provisions in SS#2/SCS/HCS/HBs 3231 & 2531 (2026). JOSH NORBERG

HB 3268 creates a tax credit for Missouri businesses or organizations that provide specific services to homeless individuals. Eligible entities must be certified by the Department of Economic Development as providers of employment services, direct employment (at minimum wage for 28+ hours/week), or housing (rented/leased at income-based rates). Certified providers can claim up to $10,000 annually against their state income tax, with a total annual cap of $1 million across all credits. The program expires December 31, 2032, unless renewed by the legislature.

SB 1688 extends Missouri's Downtown Economic Stimulus Act (MODESA) to allow existing approved development projects (like those in Kansas City and St. Louis) to expand their incentives. It authorizes up to 85% of new state income and sales tax revenue generated in designated development areas to fund project costs, and extends project timelines to 35 years for tax obligations and payments in lieu of taxes. The bill removes previous requirements like displacement percentage limits and proof that projects couldn't be financed without state incentives. This directly affects developers and municipalities with approved MODESA projects that were previously unable to secure new approvals after 2013.

SB 1694 extends Missouri's Downtown Economic Stimulus Act (MODESA) to support existing downtown redevelopment projects approved before 2013. It allows developers to modify project areas (including noncontiguous zones outside central business districts), extend project timelines to 35 years, and use tax increments (up to 85% of state income tax and sales tax revenue) to fund development costs. The bill directly affects developers of approved projects, municipalities with designated development areas, and the state through new tax increment financing mechanisms. Key changes include removing requirements for new applications, eliminating displacement percentage rules, and enabling expanded project areas without new approval.

HB 2955 creates a Missouri tax credit for businesses and organizations providing services to homeless individuals. Eligible taxpayers (such as job training agencies, employment providers, or housing organizations) can claim up to $10,000 annually in income tax credits for services like job training, employment (28+ hours/week at minimum wage), or housing support specifically for homeless persons. Certification by the Department of Economic Development is required, with annual renewal, and credits are non-refundable but carry forward for up to three years. The total annual credit amount is capped at $1 million. This bill directly affects service providers who meet the certification criteria, not homeless individuals themselves.