The MAMTEK bill that was on the endangered list in the state senate last night because of an unwelcome amendment, has been resurrected with several changes and has been sent back to the House.
The bill requires communities and the economic development department to do a better job of researching companies that want communities to help finance their developments. Sponsors say the goal is to keep other communities from falling into the same trap that Moberly fell into last year with the MAMTEK sweetener plant. Moberly issued millions of dollars in bonds but MAMTEK shut down its development with the building half finished.
The bill has amendments that create a new tax credit program to lure big time athletic events to Missouri, that limit credits for historic preservation, and set up annual reviews for other tax credit programs. Cape Girardeau Senator Jason Crowell says tax credits need to be controlled because the state is giving away too much of its income each year. He says Missouri will forego about $700 million in income this year because the credits.
He says one major target next year will be low income housing tax credits, which Crowell says is “a killer to the state.”
The House has to agree with the Senate changes in the bill before it can be sent to the governor. Some compromises might have to be worked out between the House and the Senate but senate sponsor Jim Lembke of St. Louis thinks there’s plenty of time to do that in the last two days of the legislative session.