All Roll Calls
Yes: 415 • No: 83
MissouriHB32312026 Regular SessionHouseWALLET
Establishes the "Missouri Innovation, Public Safety, and Accountability Act"
Sponsored By: Brad Christ (Republican)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
23 provisions identified: 9 benefits, 2 costs, 12 mixed.
Investors can defer Missouri income taxes
Taxpayers other than C corporations can defer some or all Missouri income tax by investing the deferred amount. They must choose qualifying Missouri opportunity-zone property, a business, or an approved fund. A qualifying fund must hold at least 90% of its assets in qualifying investments on required measurement dates. The election and investment are due by the individual tax-return deadline, without extensions. Annual reports require an independent certified public accountant's certification. Deferral ends upon sale, loss of qualification, other specified events, or the investment's tenth anniversary. Before then, 4.7% of the taxpayer's share of investment net income is included in Missouri income tax; remaining deferred amounts stay deferred.
Investors can transfer business investment credits
Investors making cash investments in qualified Missouri business securities can transfer associated tax credits to another individual, not a company. The investor cannot already have claimed the credits, and recipients use them against Missouri income tax within program limits. The Missouri Technology Corporation assesses which businesses offer the greatest economic benefit to an innovation zone or Missouri. Based on that assessment, it can allocate full or partial credits for state issuance.
Smaller zone employers gain incentive access
A qualified company in a certified innovation zone can apply for a benefit agreement with at least three covered employees there. This replaces otherwise applicable minimum new-job requirements for applying. The lower threshold does not itself create a withholding benefit for retained employees. The covered innovation incentives are accounted for separately and do not reduce amounts available under the referenced Missouri Works annual limits.
Expanded projects get public accountability rules
Officials, authority commissioners, employees, and consultants planning expanded projects must disclose direct or indirect interests in covered property. Those with such interests must stop official involvement, voting, and project communications. Limits on acquiring interests begin when they learn of the project or receive its first public notice, whichever comes first. Public progress hearings occur five years after a development area and plan are established, then every five years; expanded projects are covered unless local officials decide otherwise. Hearing notices must run weekly during the four preceding weeks.
Cities gain expanded downtown financing tools
Cities can designate more downtown areas for development financing, covering only parcels that directly and substantially benefit. Areas must qualify as blighted or conservation areas and support renovation projects. They must advance a major initiative or have at least 50% of structures aged 35 years or older. Combined with an existing development area, the expanded area cannot exceed 10% of the city. FEMA-designated 100-year floodplain property is excluded unless protected by a structure inspected and certified by the U.S. Army Corps of Engineers. Areas generally must stay one-half mile from development areas certified after August 28, 2026, and before the new designation. With approval, a city outside any county can reduce—but not eliminate—that distance.
Zone businesses get faster city approvals
Participating cities must offer coordinated online filing, dated receipts, and published checklists for covered local development applications, incentives, and business approvals—not state incentives or separately governed approvals. Cities have 15 calendar days to flag incomplete applications; otherwise, applications count as complete on day 16. Decisions generally are due within 30 days, or 60 days for applications needing variances, rezoning, hearings, governing-body action, or qualifying construction, use changes, or substantial renovations over 100,000 square feet. Cities can extend review once by up to 15 days with timely written notice, but cannot demand unlisted materials or conditions unauthorized when submitted. Missing a decision deadline generally means approval, without replacing required legislative votes, safety, environmental, health, zoning, or state and federal approvals; scorecard incentives also require verified tier eligibility and granted variances and zoning approvals.
Companies gain credits for major investments
Qualifying companies can receive tax credits worth up to 2.5% of new capital investment after accepting a state proposal. They must invest at least $30 million within two years in a certified Missouri innovation zone, or $50 million elsewhere. Eligible investment covers the three years starting on the notice-of-intent date. Data storage centers cannot qualify. Companies must sign a state agreement, file annual reports, and avoid claiming specified state incentives for the same jobs, wages, or investment.
Employers get credits for worker moves
For tax years beginning January 1, 2027, qualifying innovation-zone companies get credits for relocation expenses they actually pay. The nonrefundable credit covers up to $5,000 per eligible employee each tax year, with a five-year carryforward. Workers must move from outside Missouri for a new job, earn at least $70,000 annually, and establish Missouri residence. Companies must have three eligible relocated employees or new jobs, or commit to that level within 12 months of first claiming. Existing Missouri businesses must establish a new or additional zone location and retain at least 95% of baseline payroll at pre-existing locations. State approval is required, and specified other benefits cannot use the same payroll or moving expenses. Credits are subject to recapture if workers do not maintain their Missouri primary residence for 12 consecutive months.
New rules for counting redevelopment revenue
An expanded project's baseline normally is the calendar year before the city approves it. If specified economic activity or state sales tax revenue falls in the following year, the city can instead use the year after approval, with statutory business exclusions. A business moving between facilities in the same county within one year can also qualify for a special revenue-counting rule. The city or authority must find that the business directly benefits from development financing; only economic activity taxes above its baseline count. These rules change project financing calculations, not household or business tax rates.
Cities face redevelopment approval deadlines
Beginning August 28, 2026, the department can approve up to four new municipal applications for covered development areas, plans, or projects. It must consider geographic balance and cannot approve new applications after December 31, 2032. New expanded-project applications cannot be approved after January 1, 2037. Eligible cities seeking expanded-area revenues must submit boundary maps or records by December 31, 2030, identifying possible projects, sites, and related amendments. Each city is limited to the expanded area identified in its submission.
Required disadvantaged business programs end locally
Specified large cities and counties no longer must approve disadvantaged business programs for redevelopment authority projects. The former requirement included equal-opportunity employment plans and programs for minority- and women-owned businesses with worker ethnicity goals. The repeal covers home rule cities with over 400,000 people spanning multiple counties, cities outside a county, and charter counties with over 1 million people.
Longer downtown funding with refinancing limits
Expanded projects can receive State Supplemental Downtown Development Fund money after a city applies to the Department of Revenue and satisfies project and certificate requirements. The maximum financing term rises from 25 to 30 years. Terms over 15 years need specific approval from the Department of Revenue director in the approval certificate. Funding cannot outlast local tax allocations and ends when the city terminates development financing. Using this financing to repay or refinance old public redevelopment debt requires express economic development director approval and an application containing new or expanded projects outside the old debt's projects.
More financing tools for downtown redevelopment
Cities and redevelopment authorities can use special development funds for expanded projects, but specified revenue spending needs annual city approval. Approved costs include site preparation, structural work, utilities, environmental cleanup, stormwater work, landscaping, and existing eligible costs—not interior improvements. The Department of Economic Development must list eligible costs in an approval certificate. Authorities can transfer property at fair market value for uses allowed by the expanded plan. For areas tied to applications approved before January 1, 2013, cities or authorities can bypass normal developer selection when hiring the original developer or its affiliate, with written notice to their governing body at least 10 days before signing.
Older approvals shape redevelopment financing access
Major initiatives with approval certificates issued before January 1, 2013, qualify under the expanded development rules. County-designated census places count as municipalities for the covered financing rules only with an approval certificate issued before that date. These changes govern project eligibility, not household benefits.
Cities gain zones for business incentives
Eligible cities can voluntarily establish one certified Missouri innovation zone covering no more than 10% of city land. The zone must be contiguous and cover a qualifying downtown, commercial core, central business district, or Main Street district. The Department of Economic Development reviews the city's master plan and certifies the zone. Applicants inside its boundaries gain access to the law's incentives, subject to each incentive's eligibility and performance requirements. Data storage centers cannot receive incentives under this provision.
Business aid faces clawbacks, investors retain credits
A qualified business can lose its status for substantial noncompliance not corrected with supporting evidence within 120 days after written notice is mailed. It can also lose status for moving its headquarters or substantial Missouri-created jobs out of state within 10 years of aid. Loss of status bars more credits and future approval and can require repayment. Lawful investors' issued credits are not canceled solely because the business later loses status, though the business can face repayment of those amounts. Investors cannot recover covered investment damages from Missouri, its economic development department, or the Missouri Technology Corporation, including for businesses denied qualified status.
Business credits require reports, protect secrets
Before investor credits are issued, qualified businesses must give the Missouri Technology Corporation investor names, addresses, taxpayer identification numbers, and investment proof. They must also supply other reasonably requested information. Businesses receiving covered credits must report annually by February 1 and report changes in business qualifications or investor eligibility. Reporting violations can lead to loss of qualified status. The Department of Economic Development and the corporation must securely protect submitted confidential information, including trade secrets, customer lists, production data, and covered commercially valuable information.
Cities apply new redevelopment tax calculations
Expanded development areas use special property-value rules for 25 calendar years after financing starts, while that financing remains active. Officials use the certified initial assessed value for debt-service levy calculations. Payments in place of property taxes and tax levies use current assessed values. For Missouri facilities moving into project areas, the state sales-tax increment is revenue above the calendar year before relocation. Another calculation counts sales-tax revenue from businesses moving from outside Missouri, using a baseline year after municipal project approval. These rules determine revenue tied to project financing; they do not directly change household tax rates.
Local taxes fund downtown projects longer
For expanded projects, taxes on starting property values stay with local taxing districts; payments tied to value increases fund redevelopment. This property-value allocation lasts up to 25 calendar years unless the city ends it sooner by ordinance. Projects approved for state downtown financing also direct 50% of area economic activity taxes to development funds; cities can choose more. That allocation lasts 25 years, or up to 30 years at the city's option, unless ended sooner. Cities seeking state financing must commit all specified property-tax substitute payments and economic activity taxes deposited in the fund to project costs or debt for at least 25 years; cities or authorized local bodies, not the state, can issue project debt.
New residents' city taxes fund redevelopment
Cities can count earnings taxes from new residents of primarily residential buildings, including mixed-use buildings, in expanded project areas. Residents must not have lived in the area during the baseline year; the calculation uses the voter-approved city tax rate. For approved expanded projects seeking the state residential income tax increment, 70% of this city increment goes to redevelopment, or more at the city's option. The allocation lasts 25 years, or up to 30 years at the city's option, unless financing ends sooner; it does not apply when the Department of Revenue finds enough additional economic activity taxes substitute for it. Residents' tax bills do not fall, and surplus money returns to the city after all project costs and debt are paid and financing ends by ordinance.
New residents' state taxes support redevelopment
Development financing can use up to 70% of estimated state income tax on wages paid to qualifying new residents. Residents must live in primarily residential buildings and must not have lived in the project area during the baseline year. The rule covers expanded project areas and other project areas approved on or after August 28, 2026. It supports project financing, not a tax cut for residents.
Redevelopment reporting expands, payment penalties soften
Expanded-area taxpayers remitting sales taxes or income tax withholdings must report jobs, related payroll, and baseline and reporting-period sales taxes. Municipalities and authorities must file annual project information, including jobs created and retained, and report relocating businesses by February's last day. The department can inspect sites and records; reports and specified payment information are public records. Missing annual reports can make a city ineligible for downtown fund payments. The Department of Revenue can withhold payments from a noncompliant project, but missing reports no longer automatically blocks payment.
Workers' state taxes help finance projects
Approved expanded projects can use up to 50% of estimated state income tax on wages from qualifying new and retained jobs. Retained jobs must face a risk of moving out of Missouri without the project. The economic development director can raise the share to 70% after finding substantial state benefits and that the project likely needs the higher contribution. Approval certificates can preserve the tax rate used in calculations, even after a rate cut or repeal; a qualifying Department of Revenue certificate also replaces the usual actual-revenue limit with its stated calculation. These financing rules do not lower workers' income tax bills.
Sponsors & Cosponsors
Sponsor
Brad Christ
Republican • House
Cosponsors
John Hewkin
Republican • House
LaKeySha Bosley
Democratic • House
Roll Call Votes
House vote • 5/14/2026
House Adopts - SS#2
Yes: 118 • No: 23
House vote • 5/14/2026
Reported Do Pass
Yes: 7 • No: 1
House vote • 5/14/2026
Truly Agreed To and Finally Passed
Yes: 119 • No: 24
Senate vote • 5/13/2026
Third Read and Passed
Yes: 25 • No: 7
House vote • 3/26/2026
Third Read and Passed
Yes: 119 • No: 27 • Other: 2
House vote • 3/26/2026
Reported Do Pass
Yes: 7 • No: 1
House vote • 3/11/2026
Reported Do Pass
Yes: 11 • No: 0
House vote • 3/4/2026
HCS Reported Do Pass
Yes: 9 • No: 0 • Other: 1
Actions Timeline
Delivered to Secretary of State (G)
7/13/2026HouseApproved by Governor (G)
7/13/2026HouseDelivered to Governor
5/28/2026HouseSigned by President Pro Tem
5/28/2026SenateConstitutional Objection Filed
5/28/2026SenateSigned by House Speaker
5/28/2026HouseHouse Message
5/14/2026HouseTruly Agreed To and Finally Passed - AYES: 119 NOES: 24 PRESENT: 0
5/14/2026HouseHouse Adopts - SS#2 AYES: 118 NOES: 23 PRESENT: 0
5/14/2026HouseTaken Up
5/14/2026HouseReported Do Pass - AYES: 7 NOES: 1 PRESENT: 0
5/14/2026HouseVoted Do Pass
5/14/2026HouseExecutive Session Completed
5/14/2026HouseReferred: Fiscal Review
5/13/2026HouseReported to the House with... - SS#2 SCS
5/13/2026HouseThird Read and Passed - AYES: 25 NOES: 7 PRESENT: 0
5/13/2026SenateSS#2 Adopted
5/13/2026SenateSS#2 Offered
5/13/2026SenateSS Withdrawn
5/13/2026SenateTaken Up
5/13/2026SenatePlaced on Informal Calendar - SA 1, adopted and SS SCS, as amended, pending
5/7/2026SenateSS Offered
5/7/2026SenateTaken Up for Third Reading
5/7/2026SenatePlaced on Informal Calendar
5/7/2026SenateReported Do Pass
5/7/2026Senate
Bill Text
Truly Agreed
5/14/2026
Perfected
3/23/2026
Committee Substitute
3/4/2026
Senate Substitute
3/4/2026
Introduced
2/9/2026
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