OVERVIEW
The Enhanced Enterprise Zone (EEZ) program provides financial incentives for certain qualifying projects by providing real property tax abatement for improvements to real property made within the EEZ for new or expanding businesses to create jobs and make investments in targeted industry sectors provided they are located within the EEZ.

STATUTORY REQUIREMENTS
Development projects and businesses proposed for EEZ local abatement benefits must meet certain statutory conditions required by the State of Missouri in 135.950 to 135.973, RSMo. 

REQUIREMENTS OF ELIGIBLE APPLICANTS
In order to be eligible to obtain local real property tax abatement of at least 50% for 10 years:

1. The business must be located within an approved Enhanced Enterprise Zone area.

2. The business must be one of the approved business clusters.
3.  Not all projects will be granted incentives simply because a request is made that fits within the parameters set out in this Policy. Each grant of incentives will be considered on a case-by-case  basis by the City.

BENEFITS

1.  At least 50% property tax abatement on the new improvements for a minimum of 10 years.

• • A business may qualify for an additional abatement at the City of Kearney’s discretion upon demonstration of a special need or unique benefit to the community.

APPROVED BUSINESS CLUSTERS 
Projects must be for business and industry types specifically authorized by the State of Missouri and the City of Kearney.  Businesses must fall within the North American Industry Classification system (NAICS) industry codes as approved by the City of Kearney.  The business clusters approved by the City of Kearney are broad, allowing for a wide variety of business types.

 Industry codes ELIGIBLE are:

Sector Name	NAICS
Agriculture, Forestry, Fishing & Hunting	11
Utilities	22
Construction	23
Manufacturing	31, 32, & 33
Wholesale Trade	42
Transportation & Warehousing	48 & 49
Information	51
Finance & Insurance	52
Real Estate & Rental & Leasing	53
Professional, Scientific, & Technical Services	54
Management of Companies & Enterprises	55
Administrative & Support & Waste Management & Remediation Services*	56
Health Care & Social Assistance	62
Arts, Entertainment, & Recreation*	71
Accommodation & Food Services*	72
Other Services*	81

*Subject to limitations provided below.

Certain types of businesses and industry clusters are not available for participation in EEZs and are prohibited by state statute from receiving the state tax credits. 

 Industry Codes NOT ELIGIBLE are:

Sector Name	NAICS
Gambling Establishments	7132
Retail Trade	44 & 45
Educational Services	61
Religious Organizations	8131
Public Administration	92
Food & Drinking Places	722
Waste Collection	5621
Waste Treatment & Disposal	5622
Mining, Quarrying, & Oils & Gas Extraction	21

 

LOCAL PROPERTY TAX ABATEMENT
A business facility meeting the above criteria is eligible for real property tax abatement of at least 50% of the increase in ad valorem taxes of the improvements made to real property for a period of 10 years following the date such improvements were assessed unless the applicant provides or demonstrates a special need or unique benefit to the community.  

Any tax abatement will be reviewed by the City of Kearney’s Enhanced Enterprise Zone Board and will be awarded at the discretion of the Board of Aldermen and after a public hearing to obtain opinions of the public and other political subdivisions.  The Board of Aldermen, at its discretion, may approve a larger abatement.

No exemption shall be granted for a period of more than twenty-five years, provided that during the ten years prior to the expiration of the EEZ, no exemption shall be granted for a period of more than ten years.

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Contact:
Carolyn Yatsook, Economic Development Director
 cyatsook@kearneymo.us
816.551.3008