Missouri Gov. Jay Nixon is announcing a plan to end a business "border war" with Kansas over economic development.
Both states have used economic incentives and bonds to compete for businesses to locate or expand. Missouri and Kansas have committed hundreds of millions of dollars to the efforts.
Nixon planned to announce his proposal Tuesday in a speech to the Greater Kansas City Chamber of Commerce. He says it will promote growth in the Kansas City region.
Kansas lawmakers cut taxes in each of their past two sessions, at the urging of Republican Gov. Sam Brownback.
Missouri's Republican-dominated Legislature approved tax cuts this year largely in response to the Kansas cuts.
But Nixon, a Democrat, vetoed the measure, and an effort to override the veto fell short in September.