September 1, 2014

Tax credit overhaul clears Senate (AUDIO)

A top priority of the governor and of legislative leaders has cleared the state Senate and is on its way to the House. The tax credit overhaul bill is the one that kept senators working until 3-30 Wednesday morning, hashing out competing views. It’s the bill that lowers the limits on the two biggest tax credit programs in Missouri–historic preservation, and low-income housing.

But the bill also establishes a couple of new tax credits. One encourages development of Lambert-St. Louis Airport as an international trade transport hub. Another provides credits for companies setting up data centers–computerized installations that store huge amounts of information.

Backers of the plan say the reductions in use of tax credits will mean state government will be keeping more of its money. Some members hope those funds are put into underfunded programs.  Others think they should underwrite additional tax cuts.

The proposal heads to the House which traditionally has been more favorably disposed than the Senate in tax credits as an economic development tool .  Dempsey says the final version will be written later this  session by lawmakers working out differences between the House and the Senate.

AUDIO: Final passage debate 23:12