The Low Income Housing tax credit is one of many that may be capped if the legislature follows the recommendations of the state’s tax credit review commission.
The state put $176 million toward the Low Income Housing tax credit last year; the second highest allotment of all tax credits. Tom Sullivan with the Affordable Housing Coalition realizes that puts the credit on the chopping block, but says his group is trying to convince legislators it’s different from other credits.
“The Low Income Housing tax credit is unique in that it provides both the social benefit and an economic benefit. So in addition to providing jobs and generating a lot of tax revenue for the state of Missouri, it also provides housing which of course is badly needed these days,” Sullivan said.
Sullivan thinks there is support in the state House.
“Speaker Tilley has already said that he’s a supporter of economic development tax credits,” Sullivan said.
But he anticipates a tougher go in the Senate
“The Senate has some loud opponents of pretty much all tax credits,” Sullivan said.
Sullivan thinks some legislators have seen the value of this particular tax credit; compared to the others possibly facing caps or elimination.
“I think so. When the senior citizen housing facility opened in Columbia earlier this year we had both Democratic and Republican Representatives there, and they spoke of the good that the tax credit does,” Sullivan said.
It will be up to legislators to decide whether to act on the tax credit review commission’s recommendations in the session starting next week.
“We hope to get our information out there. I think it’s going to be a topic that’s discussed quite a bit this year in the legislature. I think we’re gonna have the co-chairs of the tax credit review commission testifying before legislative committees. I think the whole subject is going to get quite a bit of discussion this year,”
The tax credit review commission recommends the legislature restructure and cap the low income housing tax credit.