© 2022 St. Louis Public Radio
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Other

MO lawmakers sign off on DaimlerChrysler incentives

By AP/KWMU

Jefferson City, MO – Lawmakers on Monday gave final approval to millions of dollars of tax incentives for DaimlerChrysler, which has promised to expand plant in Fenton.

State, local and county governments have pledged $54 million for the $1 billion plant. The state portion of those breaks includes $16 million for job training, which can be offered without legislative approval, and $16 million for industrial development bonds.

The House approved the development bonds by a 143-0 vote on Monday. The Senate had passed the bill in February. It now goes to Gov. Matt Blunt.

To receive the state incentives, the plant must keep current employment levels for at least the next three years.

The proposal is one of several bills designed to stem the tide of lost auto manufacturing jobs. Earlier this year, Ford Motor Co. announced its plan to close an assembly plant in Hazelwood.

Overall, Missouri's six vehicle plants employ 16,000 workers, create an additional 54,000 jobs, pay $236 million in state taxes and account for almost 3% of the state economy.

In the past few months, the House has approved bills to give consumers a tax break if they buy hybrid vehicles and to waive the state's 4.225% sales tax on any vehicle manufactured in Missouri. Neither proposal has made it to the Senate floor.

Other

Send questions and comments about this story to feedback@stlpublicradio.org.