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Friday, May 8, 2009

Tax Credit Action in the State Legislature

Yesterday the Missouri House of Representatives passed the House Committee Substitute (HCS) to Senate Bill 377. Now included in the bill is a $150 million cap on the historic tax credit with a $250,000 (in credits issued) exemption and a $250,000 (in credits issued) per-project cap on residential rehabs. The $150 million cap might not have much impact with healthy "micro" exemptions like these. The question: Is this a good enough micro exemption to keep present level of tax credit activity going?

Meanwhile, Representative Tim Flook (R-Liberty) offered an amendment to the HCS for SB 377 that, among other things, changed the language of the Distressed Areas Land Assemblage Tax Credit (DALATC) to allow issuance of up to $20 million per year instead of the current $10 million. On the House floor, Rep. Flook stated that a group of representatives had met with developer Paul J. McKee, Jr. to see his plans for north St. Louis, and that those plans needed an extra boost during this session. Of course, McKee still has to be designated redeveloper by the St. Louis Board of Aldermen in order to apply for the DALATC. Since the DALATC credits must be spent on development within the project area, the higher issuance could mean more immediate development activity after McKee receives the credits.

Flook's amendment passed.

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