The Missouri Senate today passed a wide-ranging tax credit bill that drastically lowers the caps on Historic Preservation and Low Income Housing programs.
Senate Bill 120 would cap Historic Preservation incentives at $50 million a year, instead of the current $140 million, and Low Income Housing incentives would be capped at $55 million a year, instead of the current $190 million. That bill is now in the hands of the Missouri House, where Speaker Tim Jones (R, Eureka) has indicated that he and other House leaders don’t like the drastic cuts.
“I don’t understand the argument as to why giving someone a tax credit and lowering their tax burden is bad," Jones told reporters. "As Republicans, we’re always looking to cut taxes (and) lower tax burdens, (and) that’s exactly what tax credits do, with the added bonus of incentivizing jobs and job creation in the state.”
Meanwhile, Democratic Governor Jay Nixon issued a statement praising the Republican-led State Senate for passing a tax credit bill that contains: “long-overdue reforms to our state's largest tax credit expenditures, which would yield significant savings for taxpayers in years to come."
The bill also contains $60 million in air cargo incentives that could be used at all of Missouri’s airports.
Follow Marshall Griffin on Twitter: @MarshallGReport