MO HB3231

Establishes Missouri Innovation Zones in participating cities' downtown or main street districts, offering coordinated economic development incentives including property tax abatement, tax increment financing, and streamlined permitting through a mandatory "one-stop shop" review process with 30-45 day approval timelines

Creates a 100% state income tax exclusion for new Missouri residents earning at least $70,000 annually who establish primary residence in an innovation zone, with full recapture if residency requirements are not maintained

Authorizes employer incentives including a withholding retention credit up to 3% of wages for up to 10 years for businesses maintaining zone presence, plus a $5,000 tax credit per relocated employee for employers bringing workers from out of state

Establishes an office-to-residential conversion tax credit of 25-30% of qualified conversion expenditures, capped at $50 million annually, for converting office buildings at least 25 years old into predominantly residential use

Creates a Rural Missouri Development Fund funded by 10% of net-new property tax revenue from the top 5% wealthiest participating cities' innovation zones, and an Innovation Zone Public Safety Fund receiving 50% of net-new state revenue for police, infrastructure, and public realm improvements