HB 564 Summary

• Exempts machinery, equipment, and computers used by data center and server farm facilities exceeding 50,000 square feet from state and local sales and use taxes effective January 1, 2012.

• Establishes the Missouri Advantage Act with five-tier project classifications based on investment in qualified property and number of new employees hired, ranging from Tier 1 ($1 million investment, 10+ employees) to Tier 5 ($30 million investment).

• Provides tax credits to qualified businesses of 3-6% based on average wages of new employees, plus investment credits of 3-10% on qualified property for Tier 1-4 projects.

• Allows credits to be used for income tax liability reduction, withholding tax liability reduction, or sales and use tax refunds on materials and equipment used in approved projects.

• Requires recapture of benefits if taxpayers fail to meet required employment and investment levels or maintain them during the entitlement period, with collections allowed for three years after the entitlement period ends.