A wide array of financial incentives are available to new businesses that choose to locate a business in Higginsville or to existing businesses that choose to expand. The following is an overview of some of the programs offered.
Finance Programs
Industrial Revenue BondsCities or counties are authorized, by a program known as Chapter 100, to issue industrial revenue bonds. This process involves the issuance of revenue bonds by the city or county to fund the costs of the particular project. It may be possible to exempt most of the real and personal property tax of buildings and machinery financed by a Chapter 100 bond if the city or county owns the property financed by the bonds.
Action Fund LoanFor-profit manufacturing, processing and assembly companies located in a non-entitlement area that has wages above the county average and provide medical benefits may be eligible for a loan which may be used for the purchase of new machinery and equipment or working capital. The loan must be made in cooperation with a city or county.
Tax Incentives
Sales Tax ExemptionMachinery and equipment used to establish a new manufacturing facility or expand an existing manufacturing facility is exempt from local and state sales/use tax, provided such machinery/equipment is used directly to manufacture a product ultimately intended for sale.
Inventory ExemptionManufacturer’s inventories including raw materials, goods in process and finished goods, as well as goods and wares of retailers, distributors, and wholesalers are exempt from all state and local property taxes.
Public Infrastructure Incentives
Industrial Infrastructure GrantsCommunity Development Block Grants assist local governments in the development of public infrastructure that allows industries to locate new facilities, expand existing facilities, or prevent the relocation or closing of a facility. Grants must be made in cooperation with a city or county sponsor.
Tax Increment Financing (TIF)TIF facilitates the redevelopment of blighted areas by providing essential public infrastructure. This program may be used to cover the costs of publicly provided project improvements by using the anticipated increases in real estate and sales tax revenues to retire the bonds sold to finance qualifying redevelopment costs.
Training Assistance
Customized Training ProgramThe Customized Training Program provides training assistance for employers who are hiring and training workers for newly created jobs or retraining workers as a result of new capital investment. The Customized Training Program can assist with specific training needs.
New Jobs Training ProgramThe New Jobs Training Program provides training assistance for employers with a sound credit rating who are creating a substantial number of new jobs. Local community colleges initially finance training through the sale of certificates. The certificates are repaid by using tax credits from the employer’s regular withholding that is based on a percentage of the gross wages paid to employees in the new jobs.
Local Incentives
Utility IncentivesThe City of Higginsville municipally owned electric utility, in an effort to encourage industrial and commercial development, may offer rate reductions to new or expanding businesses that meet certain usage and job creation requirements.