Tax Credits

Identical proposals in the Missouri House and Senate would overhaul Missouri’s tax code and slash more than a billion dollars in state revenue.

In a nutshell, the bill would lower the top state income tax bracket to 4.8 percent, which is lower than the tax cut that passed three years ago capping the top rate at 5.5 percent. The proposal would also completely exempt anyone who makes less than $4,000 a year from paying state income taxes.

The Missouri Senate could soon approve legislation that would give tax credits to people who donate money to fund private school scholarships.

Under Senate Bill 32, anyone could make donations to nonprofit groups that would use the funds to set up education savings accounts.

Then, parents could use those accounts to pay tuition at the school of their choice, including religious schools.

It wasn't that long ago that Republican leaders in the Missouri House and Senate were deeply divided and nearly at each other's throats over tax credits.

In 2011, an entire special legislative session was devoted to approving a wide-ranging tax credit bill that centered around incentives designed to transform Lambert-St. Louis International Airport into an international cargo hub. But differing opinions over the role of tax breaks and concerns that they were getting out of hand sabotaged the special session, and there have been no major attempts since then to give the system a makeover.

Enter Gov. Eric Greitens in 2017.

Updated 3:30 p.m. Jan. 2, with renewed opposition from Gov.-elect Greitens - If those who want state help to build a new Major League Soccer stadium in St. Louis had hoped for softening from the incoming governor, no change is apparent. At an event to announce a new public safety director, Gov.-elect Eric Greitens said he has "completely ruled out state funding for stadiums.

He repeated an earlier description the idea: "I do not support welfare for millionaires. I look forward to meeting with the leaders of the MLS project to see if there's a way for them to bring private sector funding to bring a soccer team to the state of Missouri."

A proposed tax cut that conformed to conditions laid out by Gov. Jay Nixon was radically altered Monday in an effort to move the overall proposal forward.

The Missouri House has passed legislation to create tax incentives to lure wealthy high-tech investors to the Show-Me State.

The Missouri House passed legislation on Thursday curtailing two of the state’s largest tax credit programs. 

State Rep. Anne Zerr’s bill would reduce the historic preservation tax credit’s cap to $90 million from $140 million. That program helps refurbish older buildings and has been used extensively throughout St. Louis.

The bill would also gradually reduce the cap on the tax credit for low-income housing to $110 million from $140 million. That credit provides an incentive for developers to build housing for the working poor, elderly and disabled.

Tax cuts and tax credits were the center of attention at hearings conducted by two Missouri House committees Tuesday night.

First, the House Ways and Means Committee approved this year’s attempt to cut taxes.  House Bill 1253, or the Broad-Based Tax Relief Act of 2014, would tie the state’s income tax rate for business owners to economic growth, dropping the tax rate by 10 percent each year if certain conditions are met, with the ultimate goal of cutting taxes by 50 percent. 

This article first appeared in the St. Louis Beacon. - Long before the Missouri General Assembly became paralyzed over the scope and size of tax credits, it wasn't unusual for the Show-Me State's political leaders to reach economic development accords.

Missouri senators have given up their attempt to pass an overhaul of some of the state's tax credit programs for businesses and developers.

Supporters of the bill set it aside Friday after Republican Sen. Brad Lager, of Savannah, spoke against it for an hour in a filibuster that could have otherwise continued until the session's mandatory end at 6 p.m.

The legislation would have created tax incentives for international air cargo exports, computer data centers and investors in startup technology companies.

Leaders in the Missouri House and Senate have just one day left to reach agreement on a number of unresolved issues, including an ongoing dispute over how to control spending on state tax credits.

"There's four or five things I've promised senators that we'd get to," said Republican floor leader Ron Richard, including some form of an economic development bill.

The two chambers remain divided over the cap on historic preservation and low-income housing credits. The House has sent a proposal over to the Senate, but it's likely to fail.

Governor Jay Nixon (D) has vetoed legislation that would eliminate a tax credit for elderly Missourians who rent their homes.