Missouri Tax Credit News
Excerpt from the Coalition for Historic Preservation and Economic Development - July 16, 2010
We thought you would find the following excerpt from a recent e-mail of interest.
Dear Coalition Members,
It has recently been brought to our attention and confirmed that the Department of Economic Development (DED) has instituted a new policy on the Historic Tax Credit Program (HTC) by where the existing review process has been changed to include an additional step called "an expanded review process". This added step is being implemented after initial project review and also after the final audit of completed projects has been reviewed and signed off by the State Auditor.
Extended Review Letter
$47 Million in Tax Credit Reductions Targeted!
Part of the $350 million in line item vetos and expenditure restrictions for the FY2011 budget that went into effect July 1 included $47 million to come out of existing tax credit programs. See the attached file from the Office of Administration website.http://oa.mo.gov/bp/facts2011.htm (See item 40.)
The whole extended review comes from that decision, and it affects both preliminary and final HTC applications.
This new process has been implemented without clarification on the length of time being allocated for the added review and who within DED is responsible for conducting the expanded HTC review. Per the letter to project applicants all questions have been directed to an incentive specialist. (please see picture)
The added step slows down the whole process and thus reduces the number of Historic Tax Credit certificates being issued as a result. Doing so also increases existing approved project costs significantly and prohibits new projects from closing because the undocumented element regarding the "expanded review process" creates uncertainty for the financial organizations about when final approvals will be obtained.
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