Starting a Business in St. Louis?
Here’s the latest on Incentives & Resources available for new businesses.
Starting a business comes with big decisions, like where and how to invest your time and money. In St. Louis City, several economic development incentives are designed to make those investments easier by lowering upfront costs and encouraging redevelopment.
St. Louis Development Corporation’s (SLDC) goal is simple: make it easier for businesses to grow in St. Louis. The SLDC team helps guide businesses through these programs and connect them with the right resources along the way.
SLDC’s Role
The incentive process can involve multiple city departments, boards and regulatory steps. That’s where SLDC can assist new businesses opening in St. Louis.
Rather than navigate each step independently, businesses can collaborate with SLDC, helping connect people with the right departments, coordinate approvals, and keep projects moving forward.
“We want to make it as easy as possible for new businesses to open in St. Louis,” says Zach Wilson, Vice President of Economic Development Incentives at SLDC. “We encourage people to contact us as soon as they can so we can share available resources and help guide them through the process.”
Why Incentives Matter for the City of St. Louis
Incentives are designed to encourage investment, job creation and neighborhood revitalization to combat population decline and vacancy, and to remain competitive locally, regionally and nationally with other municipalities that offer a better return on investment than the City of St. Louis.
More job opportunities.
Increased economic activity.
Higher property values.
Increased long-term tax revenue for the city.
When Should Businesses Explore Available Tax Incentives?
One of the most important pieces of advice from SLDC’s Economic Development Incentives team is to explore incentives early. Ideally, businesses should contact SLDC before signing a lease, purchasing property or starting construction.
Why? Many incentive programs require multiple levels of approval before financial commitments are made. Starting construction or purchasing property before the process begins can sometimes make a project ineligible for incentives.
Reaching out early allows SLDC to help evaluate the project and determine what programs and incentives may apply. To get started, please contact Zach.
Business Incentives Available in the City of St. Louis
One of the most frequently used incentives for businesses investing in property is real estate tax abatement.
When a business renovates or redevelops a property, the improvements increase the building’s assessed value, resulting in higher property taxes. Tax abatement temporarily freezes a portion of the property taxes based on the building’s value before improvements.
For example:
A property owner currently pays $50,000 in property taxes annually based on the property’s current assed value.
A business invests $1 million in renovations of the property.
Normally, the investment would increase the building’s assessed value and taxes. With tax abatement, a portion of the original value is frozen at the pre-development level, resulting in lower taxes.
This allows the business to reinvest savings into their operations, employees or continue improvements.
Common projects:
Renovating an existing building.
Office conversions.
Mixed-use developments.
Most abatements last ten years, though timelines vary depending on the project and location.
Learn more about real estate tax abatement here.
Personal Property Tax Abatement:
Equipment purchases can be one of the largest startup expenses, especially for manufacturers and industrial businesses.
Personal property tax abatement can reduce taxes on machinery and equipment used in manufacturing operations. While the program applies to a smaller pool of businesses, it can provide significant savings for companies investing in production infrastructure.
Learn more about personal property tax abatement here.
Construction Sales Tax Exemption:
Businesses renovation or building new space in the city may also qualify for construction sales tax exemption.
This incentive eliminates sales tax on many construction materials and hard costs associated with development projects. For projects involving large renovations or new construction, the savings can be substantial.
To learn more about construction sales tax exemption, please contact SLDC’s incentives team.
Enhanced Enterprise Zone (EEZ):
Some areas of the city are currently designated as Enhanced Enterprise Zones (EEZ) — targeted districts for economic development where businesses can access additional incentives from both SLDC and the Missouri Department of Economic Development.
To qualify for EEZ incentives, businesses must make a minimum capital investment of $100,000 and create at least two new jobs.
Benefits include:
STL EEZ: Offers 10-year real estate tax abatement for businesses meeting the requirements.
MO EEZ: Offers several additional benefits to qualifying businesses, which may include:
Job creation tax credit.
Investment tax credit.
Up to 50 percent corporate income tax exemption.
Personal property tax incentives for qualifying equipment or assets.
Learn more about the SLDC EEZ here. Learn more about the Missouri Department of Economic Development EEZ here.
View the EEZ Map here.
Tax Increment Financing (TIF):
Some major projects require elements beyond the building itself, such as parking, sidewalks, streets or other infrastructure. Tax Increment Financing (TIF) helps fund those improvements by capturing a portion of future increases in real estate and economic activity tax revenue generated by the project.
In simple terms:
A development project increases property value and economic growth.
Part of the resulting increase in tax revenue is set aside and helps repay the costs of the project’s improvements.
Common projects:
Large commercial projects.
Mixed-use developments.
Major redevelopment projects.
Learn more about TIF here.
New Markets Tax Credits (NMTC):
New Markets Tax Credits (NMTC)incentivize community development and economic growth in low-income or distressed communities. NMTC funding enables investors to make larger investments than would otherwise be possible.
Common projects:
Grocery stores.
Manufacturing facilities.
Community facilities.
Commercial redevelopment.
Downtown St. Louis Retail Incentive Program:
SLDC and Greater St. Louis, Inc. have partnered to launch an incentive program to attract new street-level retail activity in Downtown St. Louis, including:
Downtown pop-ups.
Sidewalk cafés.
Tenant Improvements (interior and exterior).
Learn more about the Downtown St. Louis Retail Incentive Program here.
Tax Exempt Revenue Bond Financing:
For larger development or expansion projects, businesses can explore tax exemptrevenue bond financing — a financing method for major projects providing long-term capital.
Because the interest earned by investors is exempt from federal — and often state — income taxes, borrowers can typically access lower interest rates than traditional financing. These bonds usually support long-term financing with amortization periods of 20 to 30 years, making them a potential option for large capital projects.
Eligible projects:
Multi-family housing projects (20 percent of units reserved for households meeting income guidelines).
Fixed assets for land, buildings, construction or equipment.
Fixed asset financing for 501(c)(3) non-profit corporations.
Publicly owned facilities and pollution control facilities.
Learn more about Tax Exempt Revenue Bond Financing here.
Whether a business qualifies for tax incentives or not, SLDC is here to help. Through its Business Assistance Center, entrepreneurs can get guidance on permits, licensing and other requirements needed to get started. Learn more about the Business Assistance Center here or connect with the SLDC team to explore the best path.