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HB 2143

Modifies provisions relating to incentives for interstate business relocation and authorizes DED to determine clawback provisions for the state and political subdivisions

2026 Regular Session Introduced by Jeff Coleman

HB 2143 lets Missouri set incentives for interstate business relocation and adds clawbacks for the state and localities if performance targets aren’t met.

Referred: Emerging Issues(H)
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Bill Summary · HB 2143

Summary of HB 2143 (Session 2026, Missouri)

Purpose and intent

HB 2143 modifies the state’s incentives framework related to the relocation of interstate business and authorizes the Department of Economic Development (DED) to establish clawback provisions for the state and political subdivisions. The bill appears aimed at refining how Missouri attracts interstate business activity through incentives and provides a mechanism to recover previously awarded incentives if certain conditions are not sustained.

Key provisions and changes

  • Incentives for interstate business relocation

    • The bill updates or clarifies the framework for offering incentives to businesses relocating or relocating portions of their operations across state lines into Missouri.
    • It may adjust eligibility criteria, types of incentives available (e.g., tax credits, abatements, grant programs), and the approval process for these incentives.
    • Potential reforms could involve performance-based requirements tied to job creation, wage levels, capital investment, or other metrics customary in relocation incentives.

  • DED authority to determine clawback provisions

    • The Department of Economic Development (DED) would be empowered to determine clawback provisions for the state and for political subdivisions (e.g., counties, municipalities) involved in incentive packages.
    • Clawbacks would specify conditions under which previously granted incentives could be recovered (e.g., failure to meet job creation targets, wage thresholds, investment commitments, or retention requirements after a defined period).
    • The mechanism likely includes timelines, thresholds, and processes for recoupment, including consideration of the portion of incentives already expended and any penalties.

  • Coordination with political subdivisions

    • The bill acknowledges or expands DED’s role in coordinating with local governments that participate in incentive deals.
    • It may establish processes for reporting, oversight, and shared responsibility in monitoring compliance and administering clawback provisions.

Who or what would be affected

  • Businesses receiving relocation incentives: They would be subject to revised eligibility criteria and performance requirements, and may face clawback risk if conditions are not met.
  • Missouri state government and political subdivisions: Both would be affected by the introduction or expansion of clawback provisions, with potential financial recovery actions if obligations are not sustained.
  • DED (Department of Economic Development): Gains authority to set clawback terms and oversee compliance related to interstate relocation incentives.
  • Local governments (counties, municipalities): May participate more explicitly in incentive programs and share in oversight and enforcement via clawback mechanisms.

Procedural and timeline aspects

  • Referral and readings:
    • Prefiled in December 2025.
    • Read First Time on January 7, 2026.
    • Read Second Time on January 8, 2026.
    • Referred to Emerging Issues (H) on May 15, 2026.
  • Sponsor information: Co-sponsor listed as Jeff Coleman.
  • At this stage, the bill is in the early legislative process and may undergo amendments during committee referral and floor action.

Potential implications

  • The bill could lead to tighter oversight and stronger revenue protection through clawback provisions if incentive commitments are not fulfilled.
  • Relationships with businesses considering interstate relocation may be influenced by clearer expectations, performance metrics, and risk of repayment of incentives.
  • Local governments would need to align their incentive programs with DED’s determined clawback terms.

If you need a deeper dive into potential language (e.g., specific clawback formulas, thresholds, or timelines), I can compile a more granular outline once the bill’s text is available.

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

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