Missouri House Members Reject Expiration Dates for State Tax Credit Program
Recently, the Missouri House has overwhelmingly rejected an attempt to end tax credits for the developers of low-income housing and historic buildings. House members defeated an amendment to an economic development bill that would have placed a July 2018 expiration date on the two programs. Instead, they adopted an amendment allowing lawmakers to consider a measure in 2016 that would prohibit the tax credits.
Low-income housing is the state's most expensive tax credit, costing the treasury about $143 million a year, up from $12 million just a decade ago. Senate leaders insist the programs must have an expiration date. House leaders said that would make it too easy for a single senator to block the program's renewal in the future.
Missouri is one of 13 states that offer such credits, which developers pair with a federal credit to generate construction funds. Missouri is second to Georgia in state credits awarded, or second to Hawaii if the credits are analyzed on a per-capita basis, according to a 2008 audit.