May 5, 2007 10:20 am
Urgent Alert on Immediate Threat to the Historic Tax Credit
ACT NOW
TO HALT SUNSET PROVISION TO THE MISSOURI HISTORIC TAX CREDIT
Call on State Senators to Halt the Sunset Provision to the Missouri Historic Tax Credit
Senate Bill 86 has been amended to add a provision that will automatically sunset the Historic Tax Credit program and all other tax credit programs in 2011 unless the general assembly reauthorizes the program. While this amendment is being portrayed as a “typical review” of all tax credit programs, this is NOT a typical review. The sunset is automatic unless the General Assembly acts to reauthorize the program.
The Historic Tax Credit is one of few widespread economic development tools that work statewide, in small communities and big cities alike. Since 1998, over 900 historic renovation projects have been completed in 37 counties and 55 communities across the state. A sunset provision to the Historic Tax Credit will halt future development in Missouri and put in jeopardy all pending projects.
ACTION REQUESTED:
Please take 10 minutes to contact your Senator and the Senators listed below as well as forward this alert to 5 other people. Please report back to the Jennifer Olmstead at the Historic Tax Credit Coalition at 314-621-6115 or via email at jenniferolmstead@sbcglobal.net
CONTACT:
Please contact Senator Lager, who spearheaded the sunset provision as well as Senate Leadership members:
Senator Brad Lager (R-12), 573-751-1415, Brad.lager@senate.mo.gov
Senator President Pro Tem Michael Gibbons, 573-752-2853, mrgibbons@senate.state.mo.us
Senator Charlie Shields, 573-751-9476, Charlie_shields@senate.mo.gov
Senator Chris Koster, 573-751-8635
Please contact your Senator as well, www.senate.mo.gov/llookup/leg_lookup.aspx
THE MESSAGE:
Tell your Senators:
· Do not group the Historic Tax Credit program with other tax credit programs. Numerous committees have already reviewed the Historic Tax Credit. A 2005 report on Economic Development Incentives commissioned by Governor Blunt, recommended maintaining this important economic development tool in its current form.
· Don’t alter what is working. The Historic Tax Credit program is one of the few economic development tools that is working statewide.
· Any small change to the Historic Tax Credit will create uncertainty and halt redevelopment in our state; developers need stability. Any small change to the Historic Tax Credit will create uncertainty and cause developers to reconsider their investment in the state.
· The Tax credit is a prudent approach to economic development. It stimulates investment that wouldn’t happen otherwise.
· Unlike other tax credits, four dollars ($4) must be invested in Missouri’s economy for months or years while the renovation work progress, before the issuance of one dollar ($1) of tax credit. The renovated buildings must be ready to open and the state must certify the completed renovations, along with a third party, before the tax credit is issued.
· A sunset on the Historic Tax Credit will bring a halt to redevelopment in Missouri. Developers will not buy a building, pay carrying costs, insurances, taxes and architect fees without knowing that the credit is available without a sunset.
· Investment in historic renovation projects would disappear, taking with it the millions of dollars of state tax revenues it generates. When the federal government suddenly altered the federal historic tax credits in 1986, historic renovation in the state of Missouri declined by 96%.