Missouri House approves new development incentives

Missouri lawmakers are aiming to attract large economic development projects with a new type of incentive modeled on a strategy used elsewhere.

A bill given first-round approval Tuesday by the House would let local governments issue special obligation bonds to help pay for a project. The bonds could be paid off by tapping certain state and local taxes as well as local hotel taxes generated by the new development.

Projects generally would need to involve a $50 million capital investment with expectations to generate $50 million in sales per year.

The measure is backed by House Majority Leader Tim Jones and House Minority Leader Mike Talboy. They say Kansas has used a similar program to beat out Missouri for new projects.