Tax Credit Report
5:25 pm
Wed December 15, 2010

Incoming Mo. House Speaker critical of tax credit report

The incoming Speaker of the Missouri House is again voicing doubts about a report that recommends eliminating nearly half of the state’s tax credit programs.

The report, issued by a special commission created by Democratic Governor Jay Nixon, says eliminating 28 tax credit programs and capping the remaining 33 could save the state around $220 million.

House Speaker-Elect Steven Tilley (R, Perryville) says the report does not take into consideration the financial impact from tax credits, and that cutting them could harm the state budget.

“I can already sense that (the governor is going to) take this report and come up with incorrect conclusions and try and potentially submit us a budget that’s based off potential savings that we don’t believe are there,” Tilley said.

 Tilley added that he doesn’t think there is, “(anywhere) near $220 million worth of savings.”

“But we look forward to looking through this and identifying which tax credits have outlived their usefulness and get rid of them.”

And Tilley had this message for Governor Nixon:  “Don’t do what you did in the past with federal stimulus and base a budget off $220 million that isn’t gonna materialize.”

The commission appointed by the governor also recommends cutting the annual cap on historic preservation tax credits by more than half.

The 2011 session begins next month.