tax credits

Tim Bommel, Mo. House Communications

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.

Marshall Griffin/St. Louis Public Radio

Supporters of creating a so-called “Angel Investment” tax credit in Missouri testified in favor of legislation Wednesday before a State Senate committee.

Senate Bill 91 would provide incentives to wealthy investors, dubbed “Angels,” who are looking for start-up opportunities, preferably in high-tech and Internet-based businesses.  Kansas City Mayor Sly James was one of several witnesses hoping to persuade committee members to approve the bill.

Marshall Griffin/St. Louis Public Radio

The Missouri Senate spent several hours last night working on a wide-ranging tax credit bill, which they gave first-round approval to at around 3:30 this morning.

Senate Bill 120 would drastically cut incentives for Historic Preservation and low income housing.  Historic Preservation tax credits would be capped at $50 million a year, instead of the current $140 million, and low income Housing incentives would be capped at $55 million a year.  Senator Jamilah Nasheed (D, St. Louis) criticized the move.

UPI/Bill Greenblatt

Legislation that would revive three benevolent tax credits that died last year has been passed by the Missouri House.

via Flickr/alancleaver_2000

(Updated at 8:00 p.m.)

A Missouri Senate committee has conducted a review of the state's numerous tax credit programs and their impact on the state budget.

The Senate Appropriations Committee looked at the economic performance and cost of the tax credits Monday before starting work on Gov. Jay Nixon's proposed budget for the 2014 fiscal year.

The 61 tax credit programs currently offered by Missouri are expected to take up $630 million of the state's revenue for the current fiscal year.

Marshall Griffin/St. Louis Public Radio

It appears so far that the Missouri Senate may no longer be the place where tax credits go to die.

In years past, proposed incentives for such things as historic preservation or amateur sporting events would have faced a filibuster threat from a group of fiscally conservative Republicans in the Senate.  But the leaders of that group are gone due to term limits, and perhaps that’s why this year’s amateur sports incentives bill was allowed to receive a Senate floor vote.  State Senator Will Kraus (R, Lee’s Summit) says the atmosphere has changed.

Marshall Griffin/St. Louis Public Radio

Legislation that would revive three benevolent tax credits in Missouri is being considered by a State House committee.

Tax breaks for food pantries, pregnancy resource centers and the Children in Crisis program all expired last year when lawmakers failed to pass any type of tax credit reform package.  Scott Baker, State Director of the Missouri Food Bank Association, testified today in favor of renewing the incentives.  He says according to the USDA, Missouri has the nation’s 7th highest food insecurity rate.

(Jerry W. Lewis' Flickr page)

Updated 1/2/2013 with the credit's legislative developments.

While “fiscal cliff” negotiations are happening in the nation’s capital, a lesser known issue is also on the table. And depending on the outcome, thousands of jobs in Missouri could be at stake.

Gerald Nickelson is a worker at CG Power Systems in Washington, Missouri. As he walks around the factory, he points out a line of workers in front of a machine, wrapping coil. Later, the coil will be housed inside a green metal tank and shipped off as a complete transformer.

Marshall Griffin/St. Louis Public Radio

Missouri Governor Jay Nixon’s (D) Tax Credit Review Commission has released its revised list of recommendations.

Some of the original recommendations have been scaled back.  The new list calls for shrinking the cap on Historic Preservation tax credits to $90 million, instead of $75 million as proposed two years ago, and reducing the cap on Low Income Housing to $135 million instead of $80 million.  The caps for Historic Preservation and Low Income Housing are currently $140 million and $195 million, respectively.  The new report also drops the recommendation to put expiration dates on all tax credits.

via Flickr/alancleaver_2000

Members of a panel created to review Missouri’s tax credits are leaning towards recommending that the cap on Historic Preservation tax credits be cut nearly in half.

The incentives program is popular with developers, but Democratic Governor Jay Nixon and a group of Republican State Senators say it’s draining off revenues from the state budget.

Tom Reeves co-chairs the subcommittee looking into Historic Preservation tax credits. He says he favors much of the recommendation from two years ago to reduce the annual cap from $140 million a year to $75 million a year.

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