Enhanced Enterprise Zone
The City of Springfield administers 4 enhanced enterprise zones consisting of the Springfield, North Springfield, Southeast Springfield and West Springfield Enhanced Enterprise Zones. Combined, they encompass nearly all of the Springfield and the surrounding unincorporated portions of Greene County.
Sections 135.950 through 135.973 RSMo.
City of Springfield Resolutions 9243, 9745, 9746, and 9747
City of Springfield Special Ordinances 24774, 25710, 25711, and 25712
Businesses that operate within the following business clusters are eligible for EEZ incentives provided they are located within an Enhanced Enterprise Zone and make improvements to their property.
By NAICS Codes
- 21: Mining, Quarrying, and Oil and Gas Extraction
- 22: Utilities
- 23: Construction
- 31-33: Manufacturing
- 42: Wholesale Trade
- 48-49: Transportation and Warehousing
- 51: Information
- 52: Finance and Insurance
- 53: Real Estate and Rental and Leasing
- 54: Professional, Scientific, and Technical Services
- 55: Enterprise Management
- 56: Administrative and Support and Waste Management and Remediation Services
- 62: Health Care and Social Assistance
- 71: Arts, Entertainment, and Recreation
- 72: Accommodation and Food Services; excluding eating and drinking establishments
- 81: Other Services
Section 135.950(9) RSMo. Excluded industry sectors.
All gambling establishments (NAICS industry group 7132), retail trade (NAICS sectors 44 and 45), education services (NAICS sector 61), religious organizations (NAICS industry group 8131), public administration (NAICS sector 92), and food and drinking places (NAICS subsector 722) are excluded from receiving Enhanced Enterprise Zone benefits.
Value-added agricultural products.
Section 135.950(9)(b)RSMo. Headquarters exception.
Headquarters or administrative offices of an otherwise excluded business may qualify for benefits if the offices serve a multistate territory. In the event a national, state, or regional headquarters operation is not the predominant activity of a project facility, the new jobs and investments of such headquarters operation is considered eligible for benefits under this section if the other requirements are satisfied.
Section 135.950(9)(b)RSMo. Additional requirement for service industries.
Service industries may be eligible only if a majority of its annual revenues (51% or more) will be derived from out-of-state. This means that the revenues are earned from out-of-state projects or customers.
Property Tax Abatement
Qualified businesses locating in the Enhanced Enterprise Zone are entitled to receive local real property tax abatement on 50% of the new investment (excluding land and personal property) for a period of ten (10) years.
In order to encourage sustainable building practices, qualified businesses may also be entitled to an additional 25% real property tax abatement (75% total abatement) if the business facility achieves a Silver rating or higher under the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) program.
State Tax Credits
State tax credits can be applied to income taxes, excluding withholding taxes, as defined in Chapter 143 RSMo. The tax credits are refundable, and may also be transferred, sold, or assigned. Tax credits are disbursed by the Missouri Department of Economic Development at its discretion based on economic benefit to the state, the number of new jobs, wages, the amount of capital investment, and the availability of state funds. In order to qualify for state tax credits, a business must meet the qualification requirements for property tax abatement and create, on an average annual basis, at least two new jobs and $100,000 of new investment.
Property Tax Abatement
The City Economic Development Director is designated as the Enhanced Enterprise Zone (EEZ) Administrator. Upon application by a business, the EEZ Administrator certifies to the County Assessor that the business is physically located in the Zone and is an eligible industry to receive abatement
State Tax Credits
The Springfield Area Chamber of Commerce works with individual businesses to obtain tax credit proposals from the State Department of Economic Development. Tax credits are awarded when the company fulfills the obligations of the proposal.
Enhanced Enterprise Zone Policies
- Businesses that locate or expand within a designated enhanced enterprise zone and qualify as one of Springfield's targeted industries are entitled to 50% abatement on improvements for 10 years.
- Property tax abatement will typically not be granted above the 50% level, except in those cases where the development achieves a Silver rating or higher from the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) program. Those projects will be granted a 25% bonus abatement (75% total abatement).
- Businesses must apply for Enhanced Enterprise Zone abatement prior to the County Assessor assessing the improvements and certifying the improvements to the County Collector.
- Property taxes will not be reduced below the amount of tax on land and improvements paid in the year preceding the certification for Enhanced Enterprise Zone abatement.
All projects will be reviewed for consistency with both the policies for the desired incentive as well as the general policies listed on the Overview and General Policies page.