Committee hears industry-backed Missouri Works investment track that targets $50M capital projects

Missouri business and economic-development leaders told the House Committee on Economic Development that House Bill 2654 would fill a longstanding gap in the state's incentive toolkit by creating a capital-investment track inside the Missouri Works program.

Presenter Jeff Nye (for the bill sponsor) described the new track as incentive-based and fiscally neutral to existing program funding. "The minimum qualification for investment is $50,000,000, and that would qualify them for a 2 and a half percent tax credit," Nye said, explaining the track targets large, durable capital investments and excludes data centers to protect the program fiscally.

Michelle Hathaway, director of the Missouri Department of Economic Development, told the committee the $50 million threshold comes from research and conversations with site consultants and mirrors elements used in other states (Tennessee, Georgia, South Carolina). Hathaway said the credit amount is earned only after the investment occurs and asserted the track would help retain or attract high‑value projects without requesting new appropriations.

Multiple regional economic-development directors and statewide business groups (including the Missouri Chamber of Commerce, Associated Industries of Missouri and local REDIs) testified in favor, saying the measure would help Missouri compete with neighboring states and capture large manufacturing or advanced-manufacturing expansions that include significant capital outlays even if they do not create large additional FTE counts immediately.

Committee members asked if the $50 million threshold could be lowered to capture more mid-sized projects; presenters said the threshold can be discussed and that the department would provide additional analysis. No committee vote on HB 2654 was recorded during the hearing.