Missouri House Committee to Consider Tax Credit-Busting Bill Tomorrow

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