Missouri · Jobs · MO-WORKS-001
Missouri Works Tax Credit
Publication revised September 24, 2026. Sourcebook page 162.
Credit amount / calculation
Approved projects may retain withholding on qualifying new jobs for five or six years; larger projects can receive payroll-based credits.
Business fit and eligible activity
Expanding manufacturers can earn performance-based credits, but the program has strict pre-project timing. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Eligibility and practical use
This is a hiring credit, not an equipment credit. It becomes interesting only when the planned headcount clears the program threshold and the new jobs satisfy wage, hours, location, and retention rules. A logging contractor should confirm that its industry or work location is within the eligible class before counting the jobs. Hiring before the required certification or reservation can jeopardize the credit. Page
Illustrative business benefit
An approved rural mill creates six qualifying jobs and invests $100,000. If eligible new-job withholding is $12,000 each year, five years of retention is $60,000; a six-year term would be $72,000. These are assumed withholding amounts, not a guaranteed award.
Timing / first action
Seek approval before starting the overall project, including site work or construction. Submit the notice of intent at the required time and confirm the current program tier, county-wage test and benefit term.
Official sources
Related programs
New Investment Tax Credit
up to
Effective August 28, 2026, this credit targets very large capital projects and will usually be above small-mill scale.
Qualified Research Expense Tax Credit
Generally
Manufacturers with increased Missouri qualified research expenses can apply for an allocation-limited credit.
Wood Energy Tax Credit
$5 per ton of processed material for up to five years
Rare forest-specific production credit for processed wood products made from Missouri forest-product residue.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.