This program provides Missouri State income tax credits and, if necessary, guaranteed loans or direct loans to an owner/operator of eligible Brownfield property for up to 100% of remediation costs. It also provides due diligence matching grants to a governmental agency, up to $100,000 or 50% of eligible costs, whichever is less, for the feasibility studies, cost estimates, and other due diligence for an eligible project owned by a governmental entity. Public Infrastructure Grants awarded to a governmental agency, up to $1million for public capital improvements necessary to support the eligible project. Grants are available pending additional State funding.

The purpose of the Brownfield Redevelopment Program is to provide incentives for the redevelopment of commercial/industrial sites abandoned or underutilized due to contamination caused by hazardous substances. The State of Missouri provides incentives to businesses that redevelop and remediate approved sites in accordance with Voluntary Clean up Program ("VCP") established by the Missouri Department of Natural Resources. The program may be used to rehabilitate an existing building contaminated with hazardous substances, or to clear existing structures (as it relates to eligible VCP activities) and build a new facility. The program may also be applicable for contaminated sites that have no existing structures.

Eligible projects must create at least 10 new jobs or retain at least 25 jobs. For projects with multiple companies, companies must create at least 2 jobs and have $100,000 of qualified investment or retain 25 jobs and have $100,000 of qualified investment. The Brownfield property must have been abandoned for at least 3 years from the date of the application or be underutilized. Real property is underutilized if less than 35% of the commercially usable space of the property is used for its most commercially profitable and economically productive use.

The property may be owned by a governmental agency at the time an application is submitted for the determination of eligibility, or the property can be privately owned if project is endorsed by the City of St. Louis.

Remediation tax credit is available for up to 100% of materials, supplies, equipment/ maintenance, labor, professional engineering, consulting/architectural fees, permitting fees/expenses, and direct utility charges incurred during voluntary hazardous-waste remediation. Remediation tax credit may offset state income and/or state franchise tax and may be claimed the year it is earned, or may be taken in equal installments for up to 20 tax years. The owner must demonstrate the credits are the least amount necessary for the project to occur and are limited to the net state economic benefit of the eligible project, as determined by Missouri Department of Economic Development ("DED").

The recipient may assign, sell or transfer, in whole or in part, the Remediation tax credits. If the tax credits are transferred to another taxpayer, that taxpayer may sell, assign or transfer the tax credits to a third part, provided that the owner who sells such credits uses not less than seventy percent of the proceeds of such transaction to finance, develop or improve the eligible project, or another eligible project approved by DED.

An eligible business (which is most businesses except for housing) must occupy the majority of the property upon completion of the rehabilitation. The project may be a mixed-use facility (residential and commercial), but the state economic impact will be based only on the commercial operations. The total amount of state funding, tax credits, or tax exemptions for each eligible project shall be limited to the projected state economic benefit of the eligible project. DED may consider the direct and indirect economic benefits projected to be provided by the eligible project. The Net State economic benefit is the present value of new state tax revenues projected to be caused by the eligible project over a period of 15 years from the start of the project, discounting the incentives provided for the eligible project, the negative impact of the eligible project to competing local businesses, and the new public costs associated with the eligible project.

This program is structured to provide tax and financial incentives that would facilitate a fair return on investment to the redeveloper. Businesses, which locate on the designated Brownfield and meet certain requirements, are eligible for tax credits between $500 to $1,300 per year for each new job created (for 4 to 10 years). The credit is $500 per job for the first 10 jobs. The tax benefits are an additional $400 per job for each new job exceeding 10 new jobs and twenty-five retained jobs. In addition, tax credits are an additional $400 per year for each new job who is "a person difficult to employ" (unemployed for at least three months immediately prior to being employed at the eligible business.

Investment tax credits (each year for 4-10 years) based on 10.1% of the first $10,000 of new qualified investment; 5.1% on the next $90,000 of new qualified investment; and 2.1% of new qualified investment over $100,000. (Note: If the taxpayer were not an existing Missouri business, these percentages would be 10.075; 5.075%; and 2.075% respectively.) The taxpayer may also obtain the 50% income tax exemption, which is that portion of the taxpayer’s income attributed to the eligible project.