The Missouri Senate spent several hours last night working on a wide-ranging tax credit bill, which they gave first-round approval to at around 3:30 this morning.
Senate Bill 120 would drastically cut incentives for Historic Preservation and low income housing. Historic Preservation tax credits would be capped at $50 million a year, instead of the current $140 million, and low income Housing incentives would be capped at $55 million a year. Senator Jamilah Nasheed (D, St. Louis) criticized the move.
“What we’re trying to do is a slap in the face to Ronald Reagan – you might as well just slap him twice!" Nasheed said during floor debate. "The man that so many of the Republicans cherish was the man that cultivated and established this program, and now all of a sudden it's not good enough."
Nasheed had sponsored an amendment that would have maintained the current $190 million cap on low income housing tax credits, but it was defeated. The bill would also create a freight forward tax credit for all airports in Missouri, not just Lambert International in St. Louis. It's sponsored by State Senator Eric Schmitt (R, Glendale).
“Tax credit reform and finding a way forward on economic development for our state has been clearly identified for a long time as a priority," Schmitt said. "It’s something that we wanted to work on early, it’s February, and I think everybody was committed to that – everybody wanted to work together.”
Other amendments include one that would create Angel Investor tax credits to encourage investment in start-up companies. The bill needs one more Senate vote before moving to the Missouri House.
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