Morning Briefing - April 17, 2024
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April 16, 2024

Mo. legislature plans tax breaks for KCNSC extension

By ExchangeMonitor

The Missouri House of Representatives was set to vote as soon as this week on bills that would give tax breaks for the planned expansion of the Kansas City Nuclear Security Campus in Missouri. 

On Monday, the legislation was on the informal third reading calendar of the state’s 163-member House of Representatives, meaning the measure has been debated and approved by the committees with jurisdiction over it and could be called for a vote by the full chamber at any time.

The bills would exempt from local sales tax nearly all materials or services procured to construct new buildings for use by the Kansas City National Security Campus (KCNSC), the National Nuclear Security Administration’s (NNSA) manufacturing hub for non-nuclear nuclear-weapon parts. 

The tax exemptions would expire on Aug. 28, 2034 and apply to “any portion of a nuclear security enterprise located in any city with more than four hundred thousand inhabitants and located in more than one county” in Missouri, according to the bills.

If approved by the House, House Bill 2710 and 2681 would have to pass the state Senate before Gov. Laura Kelly (D) could sign them into law. So far, the bills have strong support in the lower chamber.

Rep. Chris Brown (R-District 16), a realtor whose district includes Clay County, sponsored the bills. The south edge of Brown’s sixteenth district is about 30 miles north by road of the Kansas City National Security Campus (KCNSC).

Honeywell Federal Manufacturing and Technologies, a Honeywell subsidiary, is the NNSA’s prime contractor at KCNSC. The company’s contract expires Sept. 30, 2025, but NNSA Administrator Jill Hruby in February said the agency planned to extend the incumbent.

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