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HB 3214

Creates the Manufacturing Opportunity Zones Act for large manufacturing developments with access to transportation and proximity to electricity, gas, and water

2026 Regular Session Introduced by Mike Costlow and 1 co-sponsor

Missouri creates Manufacturing Opportunity Zones with fast permitting, utility readiness funding, and a 2027 corporate tax exemption for qualified manufacturing companies.

Referred: Emerging Issues(H)
#businessandcommerce #economicdevelopment #naturalresources #departmentof #taxcredits #utilities
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Bill Summary · HB 3214

Summary of HB 3214 (Missouri; 2026)

Main purpose and intent

  • Establishes the Manufacturing Opportunity Zones Act to promote large manufacturing developments by designating zones with enhanced infrastructure access (transportation, electrical capacity, water, gas, and data connectivity).
  • Aims to accelerate permitting, support utility availability, attract manufacturing investment, and provide targeted economic incentives for qualified manufacturing companies starting in 2027.

Key provisions and changes

  • 143.071 (corporate income tax changes)

    • Maintains existing corporate income tax framework but introduces a tax incentive for “qualified manufacturing companies” starting in tax year 2027.
    • A “qualified manufacturing company” is defined as:
    • A firm, partnership, joint venture, association, or corporation classified under NAICS manufacturing codes 31-33, and
    • Either owns all property in Missouri or owns property in Missouri with an adjusted basis of at least $1 million at year-end.
    • Eligible to be exempt from the corporate tax provisions of section 143.071 starting in 2027 (details pending in the enacted text, but the bill notes the exemption applies to qualified manufacturing companies).

  • 620.1920 (Manufacturing Opportunity Zones Act)

    • Creates the concept of Manufacturing Opportunity Zones (MOZs) as designated areas within Missouri that align with federal Qualified Opportunity Zone principles (per 26 U.S.C. 1400Z-1 and 1400Z-2) and are tailored to support large manufacturing developments.
    • MOZ criteria include:
    • Access to key infrastructure: transportation, large electrical transmission capacity, adequate water and gas resources, and robust data connectivity.
    • Department of Economic Development (DED) responsibility:
    • Establish a fast-track advanced permitting process for sites within MOZs.
    • In cooperation with the Department of Natural Resources, publish an annual report by January 15 each year detailing utility readiness, capacity, and deficits in the MOZs.
    • Utility and grid support (Public Service Commission involvement):
    • Coordinate with electric utilities on small-scale or pilot innovative tech projects (e.g., renewable generation, microgrids, energy storage) to enhance operational knowledge and to ensure capacity meets ongoing demand within MOZs.
    • DED may transfer funds from the MOZ Utility Fund to the PSC to enable access to missing utilities in MOZs.
    • Define “electrical corporation” for this purpose (consistent with existing Missouri law, excluding certain entities as specified).
    • DED and PSC to develop necessary rules/regulations for implementation.
    • MOZ Utility Fund:
    • Create the Manufacturing Opportunity Zone Utility Fund in the state treasury.
    • Fund sources: a 1% user fee on electric, water, and gas within MOZs, plus grants, gifts, and other funds.
    • The fund is dedicated; disbursements require appropriation, and remaining funds do not revert to general revenue at the end of the biennium.
    • Investments and interest earned accrue to the fund.
    • Small business loan guarantees:
    • DED to develop a single-purpose loan guarantee program to supplement federal guarantees for manufacturing investments in MOZs.
    • A 10% guarantee (not to exceed 90% total) available to all Small Business Administration (SBA) loans taken by manufacturing or technology companies within MOZs.
    • Rules and regulations:
    • DED to promulgate rules necessary to implement MOZ provisions.
    • Rules must encourage lender participation and establish eligibility criteria.
    • Rulemaking provisions align with Missouri’s administrative procedures (chapter 536), including sunset or severability constraints if related constitutional provisions are struck down.

Who is affected

  • Qualified manufacturing companies (as defined) could receive tax-related relief starting in 2027.
  • Large manufacturing developers and projects locating within MOZs would benefit from:
    • Fast-track permitting processes.
    • Enhanced utility readiness and potential utility investment via the MOZ Utility Fund.
    • Access to a loan guarantee program to support capital investments.
  • Utilities and electrical providers operating within or serving MOZs may participate in pilot projects and collaborative planning to ensure capacity and reliability.
  • Department of Economic Development and the Department of Natural Resources, along with the Public Service Commission, would implement regulatory, reporting, and coordination functions.

Procedural and timeline aspects

  • Designation and implementation timeline:
    • MOZ designations align with federal Qualified Opportunity Zones (per 26 U.S.C. 1400Z-1/1400Z-2), but tailored to Missouri manufacturing needs.
    • Fast-track permitting process for MOZ sites to be established by the Department of Economic Development.
    • Annual reporting on utility readiness and capacity due by January 15 each year.
  • Tax provisions:
    • The corporate income tax exemption for qualified manufacturing companies becomes effective for tax years beginning in 2027, subject to the definitions and ongoing statutory framework.
  • Funding and governance:
    • Creation of the MOZ Utility Fund with a dedicated, non-reverting funding source from a 1% fee on utilities within MOZs.
    • The fund is dedicated, with investment of reserves and potential transfers to the PSC for utility-related purposes.
    • DED and related agencies to issue rules and manage loan guarantees and reporting.

Notable details

  • The bill emphasizes large manufacturing developments with strong infrastructure prerequisites.
  • It creates a self-funding mechanism (1% utility fee) to sustain utility readiness and capacity investments within MOZs.
  • It provides a targeted tax incentive for qualifying manufacturing entities starting in 2027.
  • It includes a cooperative framework among DED, DNR, and the PSC to address electricity, water, and gas utilities, including possible pilot technologies (renewables, microgrids, energy storage).

If you’d like, I can provide a side-by-side comparison with existing Missouri incentives or a one-page quick-reference outline for policymakers and stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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