Layering Incentives in Business Renovation
Chapter 353 Tax Abatement:
Commercial Redevelopment Guidelines
Chapter 353 tax abatement is a State of Missouri redevelopment tool that Excelsior Springs uses to encourage owners to invest in downtown and the surrounding district. When you make qualifying improvements to your property, the increase in assessed value that results from that work is abated — meaning your property taxes are held at their pre-improvement level rather than climbing because of the investment. For most projects the abatement runs for up to ten years, or until the value of the abatement equals your eligible project costs, whichever comes first, with the exact term and amount set by the program’s guidelines. In practical terms, you can restore, rehabilitate, or expand your building and recover the cost of those improvements before the added value is taxed, which makes it far more affordable to bring an older property up to its full potential.
The program is administered through the Excelsior Springs Redevelopment Corporation, a Chapter 353 urban redevelopment corporation owned by the City and managed by a board of directors. A property owner begins by submitting an application describing the planned improvements and their eligible costs. The Redevelopment Corporation reviews the project and, if it meets the program’s guidelines, recommends it to the City Council, which approves the abatement by ordinance. The owner then completes the approved work, and once it is finished and certified, the property is conveyed to the Redevelopment Corporation by quitclaim deed and immediately conveyed back — a paper transfer that places the property under Chapter 353 and starts the abatement while the owner keeps full ownership and control throughout. This structure gives individual owners a streamlined, cost-effective path to partial tax abatement in exchange for improving their downtown properties.
Click here for complete details and application.
Ameren Missouri
Ameren Missouri BizSavers® program offers cash incentives for virtually any cost-effective energy efficiency project. Whether you’re running a small business or large corporation, your company may qualify to get cash back for improvements to your facility’s lighting, building controls, ventilation, cooling systems and more. With the BizSavers® program you can start saving today and boost your bottom line tomorrow. Learn more
Downtown Excelsior Partnership
Provides help with facade improvements to businesses in the downtown historic district.
Opportunity Zones
Excelsior Springs has two designated Opportunity Zones in the state of Missouri. Created by the Tax Cuts and Jobs Act of 2017, the Opportunity Zones program provides investors with a treasury-certified capital-gains tax deferral, based on their investment in the designated areas. The program seeks to revitalize and create jobs in areas that otherwise may not be considered by investors. Learn more
Enhanced Enterprise Zone
The purpose is to provide tax credits and property tax abatement to new or expanding businesses in an Excelsior Springs designated Enhanced Enterprise Zone. State tax credits may be provided each year for up to 5 tax years, after the project commences operations. Local benefits within zone include an abatement of at least 50% of taxes on improvements to real property for a period of at least 10 years; in no case can the abatement exceed 25 years. Click here for more information (PDF).