Richard: We must get Missourians back to work

In his weekly report, Sen. Ron Richard, R-Joplin, addresses job creation:

Our number one priority this year in the Senate is job creation. As we work on legislation to encourage economic development in our state, it is important to remember that there is not just one answer to stimulating the economy in our state—we have to take a multi-tiered approach. Whether targeting fast-growing areas of industry, ending lawsuit abuses that cost businesses money, or encouraging companies to expand by freezing corporate franchise taxes, we need to be open to the many ways we can help get Missourians back to work.

I serve as vice chairman of the Senate Committee on Jobs, Economic Development and Local Government. In this committee, we review much of the legislation proposed to help create jobs and encourage economic growth in our state. In the committee this week, we reviewed several bills designed to target specific areas of business and encourage them to establish and grow in our state.

One of these bills, Senate Bill 217, which I am sponsoring, would create a state and local sales and use tax exemption for data storage centers looking to establish or relocate to our state. Even with a lot of construction of new facilities stalling due to the sluggish economy, these centers are popping up throughout the country because of the growing need for digital storage. Companies including credit card providers, retailers, and Internet search engines all need data storage, and if we can position our state to be a desirable site for these businesses, it is sure to attract quality jobs. The legislation would provide tax breaks for new data centers for the purchase of all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication services used, as well as purchases of tangible personal property for the construction, repair, or remodeling of a new data storage center.

We also discussed Senate Bill 246 in committee, which would create tax incentives to encourage investment in technology-based early-stage Missouri companies. One way that entrepreneurs can grow their business is through “angel investments”—a type on investment from an individual who provides capital for a business start-up. These are often high-risk investments, so the legislation would provide a tax credit for investors who contribute the first $500,000 in equity investment for a qualified business, if the business is unsuccessful.

Senate Bill 252 is legislation that would extend tax incentives available to those researching and developing agricultural biotechnology and plant genome products, and prescription pharmaceuticals consumed by animals. Under current law, no new tax credits could be approved, awarded or issued after Jan. 1, 2005. The bill would extend these credits and allow qualifying researchers to apply and receive them, encouraging this type of research in our state.

The bills discussed in committee each address a specific economic development issue, but together, they can work to encourage business growth and development in the state. We are also continuing to work on the issues that the Senate President Pro Tem announced as legislative priorities on the first day of session. Senate Bill 19, which would freeze the corporate franchise tax and allow businesses to continue to invest in our state was approved by the Senate and sent to the House for debate this week. We must remain open to ideas on how to best improve our state’s economic environment so that we can encourage job growth and get Missourians back to work.