2008 Woodie Awards
State sends credit to envelope company
Julie Williams
Issue date: 11/8/07 Section: News
Now that Kirksville's status as a DREAM city is sealed, Commercial Envelope Manufacturing Company is one of the first businesses to reap the benefits.
Gov. Matt Blunt announced Tuesday that the company has been approved for $100,000 in development tax credits. The credit is part of a statewide effort to create jobs.
"We created the DREAM initiative to provide Missouri's small and mid-sized towns the same access to economic development tools as larger communities," Blunt said in a press release. "This grant for DREAM city Kirksville will help generate new economic growth and add to this community's outstanding potential."
Phil Tate, director of job creation for Kirksville Regional Development Inc., said the credit is part of the initial incentive package offered to the company in exchange for coming to Kirksville.
Commercial Envelope has been in Kirksville for two years, but Tate said it just now is receiving the credit because it had to reach a certain level of investment before it was eligible to apply. Tate said another part of Commercial Envelope's original commitment to the city was creating 91 area jobs in a three-year period.
"It's good news," he said. "They're on their projected schedule as far as investment and employees."
Tate said Commercial Envelope can either put the credit toward its accumulated state income tax liability in Missouri or sell the credit on the open market if it hasn't built up much income tax liability. He said selling the credit probably would bring between $85,000 and $90,000.
"The development tax credit program is a transferable tax credit," Tate said. "Some tax credits you either use against liability, or you lose them."
Paperwork and contracts currently are under review, but Tate said the company should receive the actual tax credit before the end of the year.
Keener Tippin, spokesman for the Missouri Department of Economic Development, said the purpose of the development tax credit program is to facilitate a business project to create new jobs.
Gov. Matt Blunt announced Tuesday that the company has been approved for $100,000 in development tax credits. The credit is part of a statewide effort to create jobs.
"We created the DREAM initiative to provide Missouri's small and mid-sized towns the same access to economic development tools as larger communities," Blunt said in a press release. "This grant for DREAM city Kirksville will help generate new economic growth and add to this community's outstanding potential."
Phil Tate, director of job creation for Kirksville Regional Development Inc., said the credit is part of the initial incentive package offered to the company in exchange for coming to Kirksville.
Commercial Envelope has been in Kirksville for two years, but Tate said it just now is receiving the credit because it had to reach a certain level of investment before it was eligible to apply. Tate said another part of Commercial Envelope's original commitment to the city was creating 91 area jobs in a three-year period.
"It's good news," he said. "They're on their projected schedule as far as investment and employees."
Tate said Commercial Envelope can either put the credit toward its accumulated state income tax liability in Missouri or sell the credit on the open market if it hasn't built up much income tax liability. He said selling the credit probably would bring between $85,000 and $90,000.
"The development tax credit program is a transferable tax credit," Tate said. "Some tax credits you either use against liability, or you lose them."
Paperwork and contracts currently are under review, but Tate said the company should receive the actual tax credit before the end of the year.
Keener Tippin, spokesman for the Missouri Department of Economic Development, said the purpose of the development tax credit program is to facilitate a business project to create new jobs.
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