DED approves tax credit for expansion

The Department of Economic Development (DED) has announced that Enhanced Enterprise Zone state tax credits totaling $996,165 have been approved for an expansion at the Nestle Purina PetCare Company in Stoddard County. The Nestle Purina plant is located on Highway Y north of Bloomfield and manufactures a variety of pet care products, including cat litter which is marketed under the name Tidy Cat.

According to DED representative Carol Shoemaker, the tax credits will lead to the creation of 19 new jobs and a new investment of $64,200,000 at the Nestle Purina plant. John Fougere, media director at DED, the tax credit will facilitate expansion at the plant including the creation of a new product line.

The Stoddard County Industrial Development Authority worked in conjunction with the Chamber of Commerce in assisting to obtain the tax credit for Nestle Purina.

"For Missouri's economy to get back on track, we must do everything we can to create good-paying jobs and encourage economic development," said DED Director Linda Mart'nez. "I am pleased that DED is playing an active role in enhancing Bloomfield's economic development efforts."

The Enhanced Enterprise Zone program was implemented in 2004. Enhanced enterprise zones are specified geographic areas designated by local governments and certified by the Department of Economic Development. Zone designation is based on certain demographic criteria, the potential to create sustainable jobs in a targeted industry and a demonstrated impact on local cluster development.

State tax credits are awarded on the basis of proposals submitted to DED. These proposals are evaluated on the basis of how much new investment will be made by the company. The idea behind the Enhanced Enterprise Zones is to create new jobs or preserve existing jobs.

Shoemaker said the tax credit can be utilized by a company only on expansion of "real property or the purchase of equipment." Fougere said there are strict controls concerning the tax credits and documentation is required showing that new jobs were created.