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Financial Incentives

The City of Union, Missouri and the Union Development Corporation (UDC) are proud of our existing industrial community and are committed to ensuring their success.  Equally important to our community is the ability to provide an advantageous environment for new industries through local incentives, lower land costs and an available, trainable workforce. 

The City of Union, Missouri and the Union Development Corporation may consider offering local incentives, including Chapter 100 Bonds, Industrial Revenue Bonds, discounted land price, and waiver of building permit fees for qualified industrial projects.   

In addition, several other State and Federal incentives are available to qualifying businesses. 

Franklin County is currently offering the following loan program:

Franklin County Revolving Loan Fund (RLF) - Provides short and long term financing opportunities to individuals and companies within Franklin County, Missouri.  The goal of the FCRLF will be to assist eligible areas in the retention, expansion and creation of private sector employment opportunities.

The State of Missouri offers the following incentive packages:

Small Business Loan Program - Missouri businesses with five employees or fewer may apply for loans of between $2,500 and $25,000. The loans are typically repaid over a ten-year term and at a low interest rate of 3 percent. The program's process requires the submission of a business plan by eligible applicants.

Brownfield Program - Provides financial incentives for the redevelopment of commercial/industrial sites owned by a government agency or that are privately owned. The sties must have been abandoned for at least three years and have contamination caused by hazardous substances.

Business Facility Tax Credit Program - State income tax credits are provided to the business based on the number of new jobs created and amount of new investment at the qualifying facility. The credits are provided each year for up to ten years after the project commences operations. 

Film Production Tax Credit Program - Provides a state income tax credit to qualified film production companies up to 50% of the company's expenditures in Missouri for production or production related activities necessary for the making of a film, not to exceed $1 million in tax credits per project. 

Loan Guarantee Fee Tax Credit Program -Provides state tax credits to an "eligible small business" for the amount of a guarantee fee paid to either the U.S. Small Business Administration or the U.S. Department of Agriculture for a small business loan. 

Missouri Works Program - Program benefits are (a) the retention of the state withholding tax of the new jobs and/or (b) state tax credits, which are refundable, transferable and/or saleable.  If you create a minimum of 2 new jobs and wages average 90% of Franklin County's average wage, you may benefit from this program.

Mutual Fund Tax Apportionment - Stimulates the mutual fund industry in the state by allowing those certified by DED to utilize a more favorable state income apportionment method for tax purposes.

Chapter 353 Tax Abatement - Tax abatement is available to for-profit "urban redevelopment corporations" organized pursuant to the Urban Redevelopment Corporation Law. Tax abatement under the Urban Redevelopment Corporations Law is extended to real property that has been found to be a "blighted area" by the city.

Chapter 100 Sales Tax Exemption, Personal Property - Provides a sales tax exemption on tangible personal property purchased through Chapter 100 bonds for non-manufacturing purchases.  Companies eligible for Chapter 100 bond financing include manufacturing, warehousing, distribution, office, research and development, agricultural processing, and services in interstate commerce. Retail, services in intrastate commerce and others are not eligible.

Sales Tax Exemption - Machinery 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. 

Small Business Incubator Tax Credit Program - The Missouri Department of Economic Development (DED) may issue a 50% state tax credit to a taxpayer who makes a contribution to an approved incubator sponsor in Missouri.

Wine and Grape Tax Credit Program - Assists vineyards and wine producers with the purchase of needed new equipment and materials, by granting a state tax credit for a portion of the the purchase price.

 Missouri Department of Economic Development - All Programs