Show-Me State Times

The Missouri Chamber of Commerce and Industry is backing legislation to extend the Deal Closing Fund, a key element in the state's economic development strategy. Recently, a hearing took place regarding SB 103, introduced by Sen. Mike Bernskoetter (R-Jefferson City), which proposes extending the fund's availability until 2031.

The Deal Closing Fund is integral to the Missouri Works program, the state's primary incentive for business growth and retention. The program encourages job creation by allowing companies to retain part of their withholding taxes for a specified time and provides tax credits under certain conditions.

Currently set to expire on June 30, 2025, the Deal Closing Fund permits some Missouri Works tax credits to be disbursed upfront to assist with costs related to establishing or expanding businesses in Missouri. If passed, SB 103 would extend this option through June 30, 2031.

Michelle Hataway, Director of the Missouri Department of Economic Development, addressed the Senate Government Efficiency Committee about the importance of extending the fund. She emphasized that it would help Missouri remain competitive with neighboring states like Arkansas and Kansas that do not impose caps on their deal closing funds. "We are cautious when we offer these awards because we want to make sure there is good job creation and there’s a large amount of investment and return to the state," Hataway stated.

The Missouri Chamber has consistently supported Missouri Works as it aligns with their goal for Missouri 2030: becoming a leading state in job growth. Cade Tremain, manager of governmental affairs for the chamber, noted that extending the fund until 2031 would ensure businesses have access to necessary resources for workforce strengthening. "By making the extension into 2031, it will ensure that businesses have access to the tools they need to strengthen our workforce," Tremain said.

Additionally, Rep. Jeff Knight (R-Lebanon) sponsors HB 1168, a companion bill supporting this initiative.