Missouri Tax Credit News
Missouri Tax Commission - the Toothless Tiger - December 10, 2012
The Missouri Tax Credit Commission that was appointed by Governor Nixon in 2010 has reconvened and is preparing to issue its updated report very shortly. The recommendations this time around are substantive, but not as draconian as the those recommended in 2010. The commission proposes lowering the cap on the Missouri historic tax credit program to $90 million. The previous recommendation was $75 million. The recommendation for the Missouri low-income housing tax credit cap is $135 million.
Ok, now it is prediction time. Nothing will get done. The commission was appointed by the Governor and many legislators correctly point out that they make the laws, not appointed commissions. There is clearly resentment with respect to the process. There are also several larger issues that will likely to gridlock the legislature. First, they will wrestle with Obamacare. Missourisians overwhelmingly voted to not create their own healthcare exchange. However, many legislators seem deteremined not to let the federal the government dictate Missouri's program. Another example is the bill introduced by Senator Eric Schmitt. He wants Missouri to exempt a significant portion of business income to level the playing field with similar legislation recently enacted in Kansas. That will make for a lot of debate and will further take away attention from tax credit reform.
In summary, lot's of headlines and tough talk but no tax credit reform AGAIN.
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