Historic Tax Credit Attacked Again!
We need your help!
The Historic Tax Credit is under attack again this year. The Governor has proposed to restructure the program and give complete control to the Director of the Department of Economic Development “with discretion on the amount to award; whether to award any amount at all; and, whether to award any or all of a particular year’s credits allocation” (How Do We Get There? DED Tax Reform Proposal, Section 3h).
This “reform” would turn a market-driven program based on objective criteria into a political process for whatever party is in power. You should have received a packet in the mail that includes a letter asking for your financial support to preserve Missouri’s Historic Tax Credit program as well as three letters to mail to Governor Jay Nixon, Senator Charlie Shields, and Speaker Ron Richard. We ask that you distribute the enclosed fundraising campaign packet to a minimum of seven of your associates and vendors. This will require only a few minutes of your time but can have a significant impact. To make it easy we have enclosed an email letter for you to use. Your support is critical.
Here are the bills we are now monitoring and working on:
Even if the Governor’s plan was adopted today it would not impact funding for education or anything else for two years.
HB2399
A hearing was held for HB2399 on Tuesday, April 6th before the House Jobs and Economic Development Committee. The bill would implement the Governor's plan to place control of the tax credits under the Department of Economic Development. The Coalition was instrumental in gathering supporters from around the state so that more than 150 people showed up to oppose the bill, crowding the room and outside hallway. We were very successful and as a result the bill did not get out of committee.
For 12 years, the Coalition for Historic Preservation and Economic Development has worked to keep an effective Historic Tax Credit Program in place. The Coalition's presence in Jefferson City is needed to ensure continual and effective monitoring of the legislature. In every single legislative session since its creation in 1998, the Historic Tax Credit has been threatened, and every single year, the Coalition has been instrumental in helping to save it.
SB895
Senator Dempsey's Omnibus Economic Development bill -- SB895 -- includes the Missouri Science and Innovation Reinvestment Act (MOSIRA). Senators Dempsey, Crowell and Shields introduced three amendments that would be destructive to the historic tax credits and other tax credit programs, including lowering the cap on historic tax credits from $140 million to $100 million. As a result of the hearing on HB2399, the language of placing complete control of the tax credits under the Department of Economic Development has been removed from SB 895.
Now we need your help!
This is the best Jobs, Sustainable and Green Building program we have. The greenest building is the one that is already built. 66 communities across our state have used this program and they are becoming employment centers. Five surrounding states are modeling programs after ours, uncapping their programs or raising the caps. Kansas has removed its cap on credits while Iowa legislators increased their cap on credits by $30 million because they recognize the job generating power of this program. Minnesota started a 20% uncapped program, Oklahoma made its 20% uncapped program fully transferable and Illinois is working on its own program. Without your financial support, we cannot keep our lobbyist and staff coordinator working to protect the Historic Tax Credit. We are the best "insurance" available to lobby legislators and promote statewide education about programs that have transformed downtowns in St. Louis and Kansas City and Mainstreets in places like Carthage and Hannibal.
Please give so we can help you and Missouri move forward.
Thank you,
Jerry Schlichter, President Deb Sheals, Secretary
Eric Friedman, Vice President Brian Bruce, Treasurer
P.S.
Here is a sample email you can send to associates that you would like to include in the fundraising campaign:
Dear ________,
Missouri’s Historic Tax Credit program is under attack again this year. The Governor has proposed to restructure the program and give complete control to the Director of the Department of Economic Development “with discretion on the amount to award; whether to award any amount at all; and, whether to award any or all of a particular year’s credits allocation” (How Do We Get There? DED Tax Reform Proposal, Section 3h) This is the worst attack on the program since its inception; the program the Wall Street Journal calls “ a model for the nation.” This reform would turn a market-driven program based on objective criteria into a political process for whatever party is in power.
Even if the Governor’s plan were adopted today it would not impact funding for education or anything else for two years.
The Historic Tax Credit program has contributed to over 43,000 jobs, $670 million in taxes and $2.9 billion in private investment since its inception. 66 communities across our state have used this program and they are becoming employment centers.
This is the best Jobs, Sustainable and Green Building program we have. The greenest building is the one that is already built. 66 communities across our state have used this program and they are becoming employment centers. Five surrounding states are putting in programs like ours, uncapping their programs or raising the caps. Kansas has removed its cap on credits while Iowa legislators increased their cap on credits by $30 million because they recognize the job generating power of this program. Minnesota started a 20% uncapped program, Oklahoma made its 20% uncapped program fully transferable and Illinois is working on its own program. You will receive a letter, requesting your commitment and financial donation to support the Coalition’s work. The coalition is the best "insurance" available to lobby legislators and promote statewide education about programs that have transformed downtowns in St. Louis and Kansas City and Mainstreets in places like Carthage and Hannibal. I support the Coalition’s work to preserve the program and encourage you to do the same by contributing to the campaign. Thank you.
P.S. Be sure you are on the mailing list by going to www.savehistorictaxcredit.org
Sincerely,
____________