Missouri Coalition for Historic Preservation and Economic Development

Sponsored by: Senator Lager

Key Cutback Proposals: Annual allocations; $50 million annual cap on historic preservation tax credit; Population distribution for historic preservation tax credit; $25,000 limit for residential rehabilitation; Sunset for historic preservation on June 30, 2011; Elimination of rebuilding communities tax credit; Prohibits layering of tax credits; $25 million cap on Brownfield.

Senate Bill 121
Institutes a two-year moratorium on all state tax credits

Sponsored by: Senator Purgason

Current Bill Summary
This act prohibits the issuance or redemption of any tax credit, now or hereafter authorized under Missouri law, from August 28, 2009, to August 28, 2011

Senate Bill 142
Requires mandatory review and sunset of certain tax credit programs

Sponsored by: Senator Bartle

Current Bill Summary
Under current law, the sunset act terminates new programs six years after their effective date unless the program is reauthorized. If the program is reauthorized, the program will terminate twelve years from the date of reauthorization. This act modifies the sunset act to terminate new programs three years from their effective date and, if reauthorized, programs will terminate three years from the date of reauthorization. This act requires the Joint Committee on Tax Policy to review all state tax credit programs which are not currently subject to a sunset. The joint committee is required to report its findings to the General Assembly. Effective December 31, 2013, no tax credits, authorized under programs which are not subject to a sunset, may be issued unless the general assembly adopts a concurrent resolution approving and re-authorizing such tax credit program after it has been reviewed by the joint committee, or a general law is enacted modifying provisions of such tax credit program. Any tax credit program re-authorized in accordance with this act will be deemed a new program and thus subject to the sunset act's three year sunset provision.

This act is similar to Senate Bill 735 (2008).

Senator Matt Bartle (R-8th District) prefiled Senate Bill 735 December 1, 2007.  This bill is similar to the threat posed by last session's Senate Bill 86, which was introduced by Senator Brad Lager, (R-12th District). Senate Bill 735 requires a formal review of all tax credits and provides for a gradual sunset of all such programs, unless the general assembly would act to reauthorize them.

The 2007 Legislative Session ended on May 18, 2007.  The Historic Tax Credit survived the session, but not without a number of close calls.  For example, Senator Lager (R-Maryville) proposed an amendment to sunset all tax credit programs, which would have been a direct hit to the Historic Tax Credit and Rebuilding Communities Credit.  This amendment initially slipped through the House and could have been enacted had it not been for the watchful eyes of our lobbyist. As we all know, a sunset on the Historic Tax Credit would destroy this successful economic development tool.