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KIRKSVILLE, MO. -- Calling small businesses the backbone of Missouri's economy, Governor Jay Nixon and state lawmakers are giving the state's small businesses a bit of a tax break.

"This targeted tax cut is an important step in the right direction for Missouri's small businesses. It will help our entrepreneurs keep more of the money they worked so hard to earn instead of sending it off to Jefferson City," Nixon said.

Nixon was at Kelly's Furniture in Kirksville Thursday where he signed copies of the Bipartisan Jobs Bill, also known as House Bill 191.

The new law eliminates the state's franchise tax for more than 16,500 small businesses in Missouri.

Nixon told KTVO that means an average savings of about $875 per year; more for some, less for others.

Before the ceremonial bill signing in Kirksville, the governor took a quick tour of Kelly’s Furniture store, which is in the middle of an expansion project.

"I want to tell you, as governor, it's exciting to sit here and have to talk a little bit louder because there's a saw working over my right shoulder to expand a business in the state of Missouri," said Nixon.

The governor said the goal of the new legislation is to eliminate unnecessary burdens on small businesses to help them grow and create more jobs. 

“I just ask everybody as we travel the state to continue to shop locally if you can, to support the businesses that invest in your community, and it pays huge dividends," Nixon said.

The jobs bill received overwhelming, bipartisan support in both chambers of the General Assembly. The Senate passed the bill 28-6, and the House vote was 153-to-2.

Nixon officially signed the new legislation into law last week.