Categories
Historic Preservation Missouri Legislature Public Policy

Missouri House Committee to Consider Tax Credit-Busting Bill Tomorrow

by Michael R. Allen

What’s Happening

Tomorrow (April 6th) the Job Creation and Economic Development Committee of the Missouri House of Representatives will consider HB 2399, the bill that would gut Missouri’s successful historic preservation tax credit program. The committee will meet at 1:00 p.m. in Hearing Room 6 of the capitol.

Why It’s Bad

The bill, introduced by Representatives Steve Hobbs (D) and Sam Komo (R), would rescind most of the state’s current tax credit authorizations and institute a new set of provisions. The bill would implement the policy proposed by Governor Jay Nixon (D) and would turn over much discretionary power to the Department of Economic Development, whose director is always a political appointment.

HB 2399’s worst aspects:

  • Eliminates tax credit provisions of all programs except the circuit breaker and homestead preservation credits, and would create six new programs;
  • Place a global credit cap of $314 million on all modified credits with annual fluctuation.
  • Cap “redevelopment” credit issuance at $78.5 million, which is 35% of FY 2009’s level. The historic rehabilitation, low income and land assemblage programs would compete for issuance.
  • Potential eliminate standards and review for the historic rehabilitation credit. There is no provision to continue the current review by the State Historic Preservation Office and no mention of the Secretary of the Interior’s Standards for Rehabilitation.
  • Give the DED director full discretion on whether to issue credits: “The decision of whether to authorize a tax credit under this section and the amount of any credit to be authorized is committed to the discretion of the director of the department of economic development…” (135.841.1)
  • Give DED full discretion to award 20% of all state tax credits to which ever program they choose. (135.840.7)

    The net result will be a highly politicized tax credit environment where one person — the DED director — will have broad discretionary power. The potential for special interest domination of Missouri’s tax credits — now simply a legislative problem — will be realized. Instead of rewarding incentivized economic activity, tax credits will reward personal political connections. Homeowners and small businesses will have hard time using the historic rehabilitation tax credit competing against large companies — and large companies the get the credits won’t be subject to the current level of oversight!

    What You Can Do

    Please contact members of the committee and let them know you oppose HB 2399.

    Flook, Timothy, Chair-Liberty R, Tim.Flook@house.mo.gov — 573-751-1218

    Brandom, Ellen, Vice Chair-Sikeston R, Ellen.Brandom@house.mo.gov — 573-751-5471

    Brown, Michael R. Kansas City D, Michael.Brown@house.mo.gov — 573-751-7639

    Corcoran, Michael George St. Louis County (St. Ann) D, Michael.Corcoran@house.mo.gov — 573-751-0855

    Diehl, John St Louis County (Town and Country) R, John.Diehl@house.mo.gov — 573-751-1544

    Jones, Tishaura St. Louis City D, Tishaura.Jones@house.mo.gov — 573-751-6800

    Komo, Sam Jefferson County (House Springs) D, Sam.Komo@house.mo.gov — 573-751-6625

    Kratky, Michele St. Louis City D, Michele.Kratky@house.mo.gov –573-751-4220

    Kraus, Will Lee’s Summit R, Will.Kraus@house.mo.gov — 573-751-1459

    McGhee, Michael Odessa R, Mike.McGhee@house.mo.gov — 573-751-1462

    Riddle, Jeanie Fulton R, Jeanie.Riddle@house.mo.gov — 573-751-5226

    Scharnhorst, Dwight St. Louis County (Fenton) R, Dwight.Scharnhorst@house.mo.gov — 573-751-4392

    Schoeller, Shane Springfield R, Shane.Schoeller@house.mo.gov — 573-751-2948

    Spreng, Michael St. Louis County (Florissant) R, Michael.Spreng@house.mo.gov –573-751-9628

    Webber, Stephen Columbia D, Stephen.Webber@house.mo.gov — 573-751-9753

    Zerr, Anne St. Charles R, Anne.Zerr@house.mo.gov –573-751-3717

    To find your Representative go to http://www.house.mo.gov/ and enter your nine digit zip code

    • One reply on “Missouri House Committee to Consider Tax Credit-Busting Bill Tomorrow”

    Wow. I thought the former Governor of Illinois was corrupt. Give a political appointee the power to control millions in tax credits? And Republicans are supporting this? Sounds like everyone is bought and paid for by developers. I pay for Missouri.

    Comments are closed.