JEFFERSON CITY | Capping seven weeks of intense debate, Missouri legislators gave final approval Wednesday to a new tax-credit program that could bring an aircraft assembly plant to Kansas City.
The legislation, which passed 138-14 in the House, now heads to the governor.
The program would offer up to $240 million in tax credits over eight years to companies investing at least $300 million in the state and creating more than 1,000 jobs.
The legislation is designed to attract Bombardier Aerospace, a Canadian aircraft company, to build a $400 million plant at Kansas City International Airport, but it could be applied to other large-scale “megaprojects.”
Lawmakers on Wednesday said the bill gives Missouri the tools it needs to compete with other states and countries for such projects.
“With the success of this Bombardier project, the world once again knows … that Missouri is back in the game,” Lt. Gov. Peter Kinder said. “This portends many good things for the future.”
The legislation does not ensure that Bombardier will come to Kansas City. The company is also considering a site near Montreal, and the Canadian government is expected to offer incentives well in excess of Missouri’s offer.
Greg Steinhoff, Department of Economic Development director, said the state was putting the finishing touches on the deal it will offer to Bombardier and will make its final pitch soon.
The company will make its decision before the end of the year, Steinhoff said, and would like to choose a site in time for the Farnborough Air Show, a major industry event in July.
In a statement released after the bill was passed, Gov. Matt Blunt applauded lawmakers’ efforts to enhance economic development in the state but stopped short of endorsing the measure.
“It would be a mistake to turn down a company interested in locating in Missouri, but it would also be a mistake to rush into a deal with a company without examining if it is a good deal for the taxpayers,” Blunt said in the statement. “I look forward to reviewing this legislation when it is sent to my desk.”
The version approved Wednesday is vastly different from one originally passed in the House in April. That plan called for up to $880 million in tax credits and contained fewer safeguards to ensure a return on the state’s investment.
The bill now requires a specific rate of return on repayment of the tax credits and includes provisions for an immediate refund if Bombardier fails to meet the requirements of the deal.
The changes came about in the Senate, where lawmakers scrutinized the deal much more closely and slowed its progress until the concerns were addressed. The Senate approved the bill last week.
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