Missouri Legislators Approve Tax Break for Expansion of Kansas City Nuclear Facility

Legislators in Missouri Pass Tax Break for Kansas City Nuclear Facility Expansion

Kansas City, Missouri – Lawmakers in the state of Missouri have approved a significant tax break aimed at enhancing the expansion of a nuclear weapons parts manufacturing facility located in south Kansas City. The legislation, passed on Friday in the final hours of the annual legislative session in Missouri, would authorize a sales tax exemption on construction materials used in the expansion of the National Nuclear Safety Administration campus, a facility operated by Honeywell International Inc.

A Historic Development for the Missouri Economy

The legislation received overwhelming support in the state House with a 141-2 majority in favor. It will now be reviewed by Gov. Mike Parson. State Representative Chris Brown, a Republican from Kansas City, commented on the decision, labeling it as a “win-win.”. Brown stated, “It’s a small ask on the sales tax exemption. It’s really about economic development. And at the end of the day…it’s about making sure we are keeping our nuclear facilities, our nuclear defenses — keeping them safe, keeping them dependable, and keeping them reliable.”

The National Nuclear Security Administration, an agency under the U.S. Department of Energy, has earmarked over $3 billion for the expansion of its facilities in Kansas City, employing thousands of workers to manufacture non-nuclear components of nuclear weapons. If completed by the administration itself, the project would be exempt from sales tax due to the government entity status. However, to expedite the process, the federal government plans on utilizing a private developer for the expansion, making this exemption pertinent.

Looking Forward: The Impact of the Legislation

Citing economic growth and job creation as the two key benefits of the expansion, supporters of the legislation argue that the exemption for the private developer would keep costs on par with what the federal government would pay. They predict the growth stimulated by the expansion would counterbalance the losses from the exemption.

Predictions suggest the bill will divert a combined estimate of over $150 million in state, county, city, and Kansas City zoo sales tax revenue in the following decade. While the exact cost cannot be confirmed, legislative staff have recognised this impact as “significant.”

The expansion is expected to add 2.5 million square feet of facilities and create thousands of jobs, contributing substantially to the modernization of the nation’s nuclear weapons stockpile. As stated by the former Sen. Greg Razer, “We need to modernize this to keep them safe to ensure that accidents don’t happen.” The expansion aligns positively with the strategic plan to reinforce nuclear defenses and ensure their reliability.

Progress continues in Kansas City through these fiscal and construction measures, contributing to the preservation and advancement of national security and local job growth. The expansion of the National Nuclear Security Administration will create a strong foundation for the economic and employment growth in the Kansas City region.