Missouri Coalition for Historic Preservation and Economic Development

The Governor’s Tax Credit Review Commission (TCRC) reviewed the final Historic Tax Credit Sub-Committee’s report November 17th.  The Historic Tax Credit Sub-Committee recommended keeping the $140 Million dollar cap in place as a change in cap will not have a direct impact and will not have an immediate effect on the state’s budget.

It had been determined overwhelmingly that uninhibited market forces determines the level of redevelopment that takes place in our urban cores and the level of HTC’s will rise and fall as a result.

The final Tax Credit Review Commission (TCRC) meeting was held yesterday in Columbia, MO. The Coalition attended each meeting and heard testimony regarding the Historic Tax Credit program from many Missourians. Their comments were overwhelmingly in favor and very positive about the program’s successes.

 The TCRC has indicated there will be suggested changes to all 61 Tax Credit programs made in the TCRC report. The report will be submitted to the Governor around Thanksgiving.

On July 21, 2010, Gov. Jay Nixon announced the creation of a Tax Credit Review Commission that will review the state's 61 tax credit programs and make recommendations for greater efficacy and enhanced return on investment. Gov. Nixon named 25 business, community and legislative leaders to serve on the commission.

The commission will analyze the efficacy and return on investment for each of the state's 61 tax credit programs and make recommendations for modifications as appropriate.

Tax Credit Review Commission Web Site

For immediate release, please see this press release from the Coalition for Historic Preservation & Economic Development:

"Governor Nixon's tax credit commmission criticized as lacking enough representation of people who know economic benefits of Historic Tax Credits."

Please see this Executive Summary for a 2010 study on Historic Tax Credits, "An Evaluation of the Missouri Historic Preservation Tax Credit Program's Impact on Job Creation and Economic Activity Across the State." The study was prepared for the Missouri Growth Association and conducted by St. Louis University.

A link to the full Study can be found by clicking here.

See this article of the RCGA Special Edition, dated May 18th, 2010: ""Tax Credits Get a 'Bad Rap' in Jefferson City".

The Coalition agrees with Dan Mehan, President of the Missouri Chamber of Commerce, who said in a press conference shown in the St. Louis Business Journal in April 2010, “Economic development is not anti-education and two should not be pitted against each other. Now, more than ever, Missouri needs a balanced approach that addresses both the needs of job creation and systems to provide an educated work force, The two do not work against each other. They go hand in hand.”

Representatives of pregnancy crisis centers, children's agencies, domestic violence shelters and Catholic charities teamed up Monday to tout the benefits of tax breaks for benevolent organizations.

Republican House leaders have defended tax credits as good economic development tools and have denounced efforts to sharply curtail them.

Rep. Shane Schoeller, R-Willard, who organized Monday's news conference with the charities, said he wants to delay any changes to Missouri's tax credit system for at least a year so it can be studied further.

Some charities oppose Gov. Jay Nixon's plan to rein in the state's tax credit programs, fearing that their funding source could be crowded out by politically influential recipients.

Rep. Shane Schoeller, R-Willard, and three other House Republicans held a press conference Monday with organizations that benefit from benevolent tax credits to express opposition to the governor's latest proposal.

Floated just last week, it would cap business and job development tax credits at $150 million, cap subsidies for low-income housing at $75 million and cap the rehabilitation of historic homes and buildings at $75 million annually.