MHDC Tax Committee | Tax Credit Archives | Informative Articles | Missouri Tax Credits

Today, February 9th, 2010 the MHDC tax committee is meeting in St. Louis. The purpose of the meeting is to hear the consultants report with respect to the certification of Missouri low income housing tax credits. The goal of the committee is to increase the value of Missouri low income housing tax credits.

Under the current rules, Missouri low income housing tax credits sell at a substantial discount. This occurs because the purchaser must purchase a 10 year stream of credits and assume the risk of recapture. Also, those reselling the Missouri low income housing tax credits must subject their buyers to a complex partnership structure. If the credits were certificated, they could easily be traded like the other Missouri transferable tax credits: historic tax credits, Brownfield tax credits, Neighborhood tax credits, Film Production tax credits, etc. The implications are significant and we await the recommendations of the committee with great interest.