End of Missouri legislative session report by AIJP | Tax Credit Archives | Informative Articles | Missouri Tax Credits

The end of the legislative session produced more tension as the Senate made attempts to once again slash the Historic Tax Credit program. In a veiled attempt to call for tax credit reform Senator Lembke introduced SS for HB 1865 which would have cut the Historic credit cap to $75 million. They tried to leverage the need to extend the sunsets on several benevolent tax credits along with adding a new amateur athletic tax credit by calling for a reduction in the historic program.

The Senate refused to extend the sunset beyond August 28, 2012 for charity programs such as food pantries, children's crisis care centers, pregnancy resource centers, residential treatment agencies and developmental disability care providers which had been included on several bills in both the House and Senate. Senator Schaefer (R- Columbia) tried to amend the bill and place the sunsets at five years rather than one year as proposed but the amendment was defeated. Senator Keaveny (D- St. Louis) tried to amend the bill and place the cap on the historic program back to $140 million and it was defeated. A role call vote was requested and his amendment was beaten by the vote 28-3. Then SS HB1865 bill to cut the historic credits to $75 million and give the charity tax credits a one year sunset extension and add the amateur athletic tax credit was passed 28-3. Senator Curls (D- Kansas City) was the only other Senator to vote with us.

However, the bill was not accepted by the leadership in the House of Representatives. Speaker Tilley, Floor Leader Jones along with Reps Diehl and Zerr recognized the attempt to hold the programs hostage in exchange for slashing the most successful economic development program in the last decade.

On the last the last two days of session talks continued to try and forge a compromise to get the sunsets extended. Senator Richard (R- Joplin) introduced a Senate Substitute for HB 1278 and 1152 on the last day to cut the historic program to $75M in exchange for approving the other programs. Once again the House rejected the proposal and the bill died in the Senate.

The unfortunate outcome of these last ditch efforts was the perception that the charity tax credit programs were being allowed to sunset this year because the supporters of historic revitalization were not willing to reduce their cap. Although several Senators that have attacked our program will be leaving due to term limits there is a growing push by other Senators to make changes in tax credit programs starting with historic's. I will provide a more detailed review of the session in another report.

Jim Farrell
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AIJP
THE ALLIANCE FOR INVESTMENT, JOBS & PRESERVATION IN MISSOURI