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Missouri Works

Missouri Department of Economic Development (DED)

WH retention or tax credits, 5–6 yrs

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The short version

Missouri's flagship withholding-based jobs incentive

Missouri's primary economic development incentive for business expansion and retention — allows companies creating net new full-time jobs to retain a portion of state income taxes withheld from new employees' wages, or receive tax credits equal to that amount. Five program tiers (Zone Works, Rural Works, Statewide Works, Mega Works 120, Mega Works 140) calibrate the job count and wage thresholds to project size and location. Benefit period is 5–6 years. Minimum thresholds start at just 2 new jobs in Enterprise Zones and rural counties.

Funding type
Program
Level
State
Amount
Benefit equals the state income tax withheld by the company from qualifying new employees' wages, retained for 5 years (6 years for companies with 10+ years of Missouri operations). Zone Works / Rural Works / Statewide Works: retain 100% of withholding on new jobs for 5–6 years. Mega Works 120: 6% of new payroll annually for 5–6 years. Mega Works 140: 7% of new payroll annually for 5–6 years. Qualified Military Projects: tax credits equal to estimated withholding for up to 15 years. A 50-person expansion averaging $55,000/year generates approximately $137,500/year in MO state withholding — which the company retains in full under Statewide Works.
Realistic amount
For a 50-job expansion at $55K average wage under Statewide Works: approximately $137,500/year in retained withholding ×…
Deadline
Rolling — submit Notice of Intent (NOI) at any time during site selection. 2-year deadline from NOI approval to meet minimum job creation and investment thresholds.
Status
active
States
MO
Payment model
milestone

Who qualifies

Hard requirements

What it covers

Eligible expenses

  • Benefit is based on state income tax withheld from qualifying new employee wages — no eligible expense restriction on how retained funds are used
  • Zone/Rural Works require $100,000 minimum capital investment in qualifying Missouri business assets (equipment, machinery, real property)
  • New full-time positions paying the applicable wage threshold (80–140% of county average) generate the withholding retention benefit

Ineligible expenses

  • Part-time or temporary employees do not count as qualifying jobs for withholding retention
  • Jobs transferred from existing Missouri locations do not count as net new
  • Retail sales, food service, healthcare, and most consumer-facing operations are ineligible
  • Companies with outstanding Missouri tax delinquencies or active bankruptcy proceedings are ineligible
  • Equipment purchased or site work begun before DED NOI approval cannot be counted toward Zone/Rural Works capital investment

How to apply

  1. 1

    Submit Notice of Intent (NOI) to DED before project commences

    Complete the NOI form and upload to DED's Financial Services Box account, or mail to DED Jefferson City office. DED confirms the base employment date and reserves estimated benefit amount. This must happen before any significant site activity or public announcement.

    ~4 hrs

  2. 2

    DED reviews and approves NOI

    DED determines which Missouri Works tier applies, verifies eligibility, establishes the base employment count, and sets the 2-year window for meeting minimum thresholds. DED issues a program proposal outlining estimated benefits.

    ~4 hrs

  3. 3

    Create qualifying jobs and investment within 2-year window

    Hire net new full-time Missouri employees meeting the applicable tier's wage and hours requirements. For Zone/Rural Works, complete the $100,000 capital investment. Jobs must be new to Missouri — not transferred from another MO location.

    ~4 hrs

  4. 4

    Execute Missouri Works agreement with DED

    Once eligibility is confirmed, sign the formal agreement with DED establishing job commitments, wage floors, benefit period, and accountability provisions. Agreement also establishes recapture conditions.

    ~4 hrs

  5. 5

    Retain withholding tax on qualifying employees for benefit period

    For standard tiers: retain (rather than remit to the state) the MO income tax withheld on qualifying new employees for 5–6 years. For Mega Works: receive tax credits equal to 6–7% of new payroll annually. File annual reports with DED confirming continued compliance.

    ~4 hrs

Insider tip

File the NOI before ANY public announcement or site work — DED has denied benefits for projects where the company bought land or broke ground before submitting the NOI. Zone/Rural Works are highly accessible for very small operations (2-job minimum).

Deadline & timing

Critical: no significant project-specific site work, equipment purchases, or public announcements before NOI is approved by DED. Benefits run for 5 years (6 for established MO companies) from the date the company begins meeting thresholds.

Programs that stack well

Related programs

Justine PETERSEN Housing & Reinvestment Corporation
Justine PETERSEN — Small Business Microloans
$500–$150,000 Missouri Technology Corporation (MTC)
Missouri Technology Corporation (MTC) Proof of Concept Grant
Up to $100,000 Missouri Department of Economic Development (DED)
Missouri Quality Jobs Program
Varies — % of new payroll AIDT (Alabama Institute for Workforce Development) / Alabama Department of Commerce
AIDT — Alabama Industrial Development Training
Free (in-kind, all costs covered)

Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.