Tax credits on chopping block (AUDIO)missourinet.com
The state senate has voted to kill 25 tax credit programs in the next seven years. Some programs will be reduced in steps before they disappear.
Two of the biggest credits marked for eventual execution are for low income housing construction, to be cut by $40 million in three years, and historic preservation credits, which will be cut by $60 million this year. Both programs are to disappear in 20-18.
One of the strong advocates for the cuts is Maryville Senator Brad Lager, who says Missouri is on the hook for $1.3 billion of low income housing tax credit redemptions in the next ten years.
Lager says the state is giving away millions of dollars for low income housing and historic preservation at a time when it can’t fund education. He says historic preservation and low income housing tax credits give the state only ten to 20 cents in return for each dollar the state invests in those projects.
Lager says Kansas is doing it right…and Missouri is not.
–most of which, he says, don’t generate long-term jobs.
The tax credit changes are part of the economic development bill sent to the House. That’s the one that provides tax credits making the first step to establish a China trade hub at Lambert-St. Louis airport. The proposal could be taken up by the house in the middle of next week.
Here are the tax credit programs affected and the dates they will disappear:
As soon as the bill goes into effect:
1) The Neighborhood Preservation Tax Credit;
2) The Brownfield Jobs and Investment Tax Credit;
3) The Small Business Incubator Tax Credit;
4) The MDFB Bond Guarantee Tax Credit; and
5) The MDFB Infrastructure Development Contribution Tax Credit
The authorization of tax credits under the following programs will be prohibited after August 28, 2014:
1) The Family Farm Breeding Livestock Tax Credit;
2) The Agricultural Product Utilization Tax Credit;
3) The New Generation Cooperative Tax Credit;
4) The Qualified Beef Tax Credit; and
5) The Wine and Grape Producer Tax Credit.
The authorization of tax credits under the following programs will be prohibited after August 28, 2015:
1) The Domestic Violence Shelter Tax Credit;
2) The Maternity Home Tax Credit;
3) The Pregnancy Resource Center Tax Credit;
4) The Shared Care Tax Credit;
5) The Youth Opportunities Tax Credit;
6) The Disabled Access Tax Credit;
7) The Family Development Account Tax Credit;
8) The Residential Treatment Agency Tax Credit;
9) The Food Pantry Tax Credit;
10) The Neighborhood Assistance Program;
11) The Public Safety Officer Surviving Spouse Tax Credit;
12) The Affordable Housing Tax Credit;
13) The Special Needs Adoption Tax Credit;
14) The Children in Crisis Tax Credit; and
15) The Residential Dwelling Access Tax Credit.
The authorization of tax credits under the following programs will be prohibited after August 28, 2018:
1) The Low-Income Housing Tax Credit;
2) The Historic Preservation Tax Credit; and
3) The Brownfield Remediation Tax Credit.
Where, under current law, a tax credit was subject to the sunset act, the sunset provision is modified to sunset such program on the date provided above.
The limitations on tax credit authorizations provided in the act will not impair an administering agencies ability to issue tax credits that were authorized prior to the date on which authorizations are prohibited, nor will they affect a taxpayer’s ability to redeem such tax credits.
REPEAL OF CERTAIN TAX CREDIT PROGRAMS
This act repeals the following tax credit programs:
1) The Charcoal Producers Tax Credit;
2) The Self-Employed Health Insurance Tax Credit; and
3) The Health Care Access Fund Tax Credit.
(The list is supplied by the Senate Information Office)
A complete summary of the bill as sent to the House can be found at: HERE
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