MissouriCities could create innovation zones and use development incentives
Eligible Missouri cities could seek certified innovation zones that coordinate development reviews, direct certain new revenues to public safety, and offer targeted tax benefits.
What it does
Eligible cities could seek certification for one downtown-focused innovation zone, with coordinated reviews, local reinvestment, public-safety funding, and access to listed development incentives.
Approved businesses, investors, employers, and property owners could receive targeted tax benefits for investment, job creation, employee relocation, and converting older offices into housing.
Municipalities could finance approved downtown projects with specified tax increases, but projects would need public review, state approval, revenue limits, and time-limited financing.
Argument forFaster coordinated reviews and dedicated safety and infrastructure funds could help cities reuse vacant buildings and improve certified downtown areas.
Argument againstTax credits and redirected tax revenue could reduce money available for general public services if projects do not produce the expected economic activity.
More detail
Eligible cities could voluntarily seek certification for one Missouri innovation zone and use listed state and local development incentives there. A zone must be contiguous, cover a downtown or main commercial area, and cover no more than 10% of the participating city. The city must submit a master plan and maintain required application, review, fee, safety, infrastructure, and reinvestment policies. The department must certify the zone before zone incentives are available. Data storage centers cannot receive these incentives, and existing tax increment financing or tax-abatement agreements remain unchanged. The department generally must decide a complete zone application within 45 calendar days; the program would sunset 10 years after its effective date unless reauthorized, while approved benefits could continue.
Qualified businesses, investors, employers, and property owners could claim or receive specified tax credits, withholding benefits, or income-tax deferrals. The provisions cover qualifying businesses and investments in certified innovation zones, certain rural Missouri businesses, qualifying office-to-residential conversions, and eligible employees relocating to a zone. Benefits require department or Missouri Technology Corporation approval and must meet investment, job, wage, location, reporting, and compliance rules. Some benefits have annual or per-business limits, cannot be combined for the same wages or investment, and may be recaptured if requirements are not met. The office-conversion credit may be up to 25% or 30% of qualifying costs, and the angel-investment credit may be 40%, 50%, or 60% depending on location. Most listed credits apply for tax years beginning on or after January 1, 2027; relocation and employer benefits generally depend on certification and approved agreements.
Municipalities could use specified increases in local and state tax revenues to finance approved downtown development projects and expanded projects. The financing applies to approved development areas and projects, including certain expanded projects in central business districts, subject to statutory boundaries and flood-plain limits. Projects require municipal action, public notice and hearings, a development plan, and state approval before certain revenues can be collected or disbursed. State support is limited by projected state benefits, annual and project limits, available revenue, and any required appropriation. Some tax revenue must remain in special funds for project costs, while other portions continue going to taxing districts under the stated rules. New applications could be approved on or after August 28, 2026, with up to four applications and no approval after December 31, 2032; financing terms could last 25 years or, if allowed, up to 30 years.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jul 13Delivered to Secretary of State (G)Latest
- Jul 13Approved by Governor Mike Kehoe (G)Became Law
- May 28Delivered to Governor
- May 28Signed by President Pro Tem (S)
- May 28Constitutional Objection Filed (S)
- May 28Signed by House Speaker (H)
- May 14House Message (H)
- Vote recorded Reported Do Pass (H) - AYES: 7 NOES: 1 PRESENT: 0. Result: pass.Lower
- Vote recorded Truly Agreed To and Finally Passed - AYES: 119 NOES: 24 PRESENT: 0. Result: pass.Lower
- May 14Truly Agreed To and Finally Passed - AYES: 119 NOES: 24 PRESENT: 0Major
- May 14House Adopts (H) - SS#2
- May 14Taken Up
- May 14Reported Do Pass (H) - AYES: 7 NOES: 1 PRESENT: 0Minor
- May 14Voted Do Pass (H)Minor
- May 14Executive Session Completed (H)
- May 13Referred: Fiscal Review(H)Minor
- Vote recorded Third Read and Passed (S) - AYES: 25 NOES: 7 PRESENT: 0. Result: pass.Upper
- May 13Reported to the House with... (H) - SS#2 SCS
- May 13Third Read and Passed (S) - AYES: 25 NOES: 7 PRESENT: 0Passed Senate
- May 13SS#2 Adopted (S)
- May 13SS#2 Offered (S)Minor
- May 13SS Withdrawn (S)Major
- May 13Taken Up
- May 7Placed on Informal Calendar - SA 1, adopted and SS SCS, as amended, pending
- May 7SS OfferedMinor
- May 7Taken Up for Third Reading (S)Minor
- May 7Placed on Informal Calendar
- May 7Reported Do Pass (S)Minor
- Apr 20Voted Do Pass (S)Minor
- Apr 20Executive Session Held (S)
- Apr 16Executive Session Scheduled - Monday, April 20, 2026, 3:30 p.m., Senate Lounge - 3rd Floor
- Apr 16Referred: Fiscal Oversight(S)Minor
- Apr 15SCS Reported Do Pass (S)Minor
- Apr 15SCS Voted Do Pass (S)Minor
- Apr 15Executive Session Held (S)
- Apr 8Public Hearing Held (S)
- Apr 2Public Hearing Scheduled (S) - Wednesday, April 8, 2026, 10:00 a.m., Senate Committee Room 1 - 1st Floor
- Mar 31Second read and referred: Economic and Workforce Development(S)
- Mar 30Reported to the Senate and First Read (S)Minor
- Mar 26Third Read and Passed (H) - AYES: 119 NOES: 27 PRESENT: 2Passed House
- Vote recorded Reported Do Pass (H) - AYES: 7 NOES: 1 PRESENT: 0. Result: pass.Lower
- Vote recorded Third Read and Passed (H) - AYES: 119 NOES: 27 PRESENT: 2. Result: pass.Lower
- Mar 26Taken Up for Third Reading (H)Minor
- Mar 26Placed on the Informal Third Reading Calendar (H)Minor
- Mar 26Reported Do Pass (H) - AYES: 7 NOES: 1 PRESENT: 0Minor
- Mar 26Voted Do Pass (H)Minor
- Mar 26Executive Session Completed (H)
- Mar 24Referred: Fiscal Review(H)Minor
- Mar 23Perfected with Amendments (H) - HA 1, adopted
- Mar 23HCS Adopted (H)
- Mar 23Title of Bill - Agreed To
- Mar 23Taken Up for Perfection (H)
- Mar 23Placed on the Informal Perfection Calendar (H)
- Mar 11Reported Do Pass (H) - AYES: 11 NOES: 0 PRESENT: 0Minor
- Vote recorded Reported Do Pass (H) - AYES: 11 NOES: 0 PRESENT: 0. Result: pass.Lower
- Mar 10Voted Do Pass (H)Minor
- Mar 10Executive Session Completed (H)
- Mar 4Referred: Rules - Legislative(H)Minor
- Vote recorded HCS Reported Do Pass (H) - AYES: 9 NOES: 0 PRESENT: 1. Result: pass.Lower
- Mar 4HCS Reported Do Pass (H) - AYES: 9 NOES: 0 PRESENT: 1Minor
- Mar 4HCS Voted Do Pass (H)Minor
- Mar 4Executive Session Completed (H)
- Feb 25Action Postponed (H)
- Feb 25Executive Session Continued
- Feb 18Public Hearing Completed (H)
- Feb 18Public Hearing Continued (H)
- Feb 12Referred: Commerce(H)Minor
- Feb 10Read Second Time (H)Minor
- Feb 9Introduced and Read First Time (H)Introduced
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