A plan to limit tax breaks that encourage construction of low income housing, historic preservation of historic structures, and cleanup of abandoned properties known as Brownfields is under study at the capitol.. Corporations are the ultimate beneficiaries.
The big targets are low income housing tax credits–the state owes almost one-billion dollars to companies with those credits—historic preservation–where the state’s liability totals 275-million dollars–and Brownfields Remediation which shows a 26-million dollar liability. Overall, the state is waiting for companies to redeem more than two billion dollars in tax credits.
Defenders of the programs say their benefits outweigh the costs.
But those who want the programs reduced say they drain millions away from schools and social programs—although the main tax credit reform bill indicates cuts to the credit programs would let the state phase out the corporate income tax within five years. Backers say ending the corporate tax will lead to more business development in Missouri.