The state House has passed legislation its sponsor calls a “starting point” for negotiations with the Senate on tax credits and incentives.
House Economic Development Committee chairwoman Anne Zerr (R-St. Charles) tells the House the legislation combines several issues that have been vetted by the chamber in recent years and in this session.
“This takes a broad-based approach to reviewing economic development tax credits. We’re capping some that aren’t currently capped, we’re cutting the cap on others and we’re extending some that are beneficial and worthy of continuance, sunset some whose effectiveness has ended and it adds four incentives that are targeted towards certain industries.”
The bill would set higher caps on tax credits for historic buildings and low-income housing development than Senate legislation. Also unlike the Senate, it would also extend a credit for developers who take up large amounts of land.
It includes streamlined business incentives and would call them “Missouri Works,” with a cap of $50 million dollars. It also contains incentives for data storage centers, exporting international cargo from Missouri airports, angel investments and research and development.
Zerr maintains the package would save the state money.
“With the cut of the tax credits in the bill we have a net savings of $73 million in reduced cap space. That’s different than authorization or issuances, I realize that.”
The legislation is HB 698.