JEFFERSON CITY, Mo. — Missouri has more than 60 different tax credits currently on the books. Though one has never been utilized, others are not approving new projects, and some are capped at millions of dollars.
The Senate Appropriations Committee took a deep dive into all the tax credits available in the state of Missouri on Wednesday morning. The 63 tax credits are administered by seven state agencies and two commissions.
The Department of Economic Development handles the most tax credits with 32 under their purview. The Department of Revenue handles 11, the Department of Social Services handles 5, the Department of Agriculture handles 5, Department of Insurance, Financial Institutions & Professional Registration oversees 4, the Department of Natural Resources oversees 2, the Missouri Housing Development Commission handles 2, the Department of Health & Senior Services handles 1, and the State Tax Commission oversees 1.
Not all of the tax credits have had funds authorized in the last several years, some have sunset, and one has never need used.
The Advanced Industrial Manufacturing Zones Act was enacted on August 28, 2016, and allows retention of withholding tax of new jobs under qualifying circumstances. No one has used the program to date and it is set to expire on August 28, 2023.
The Missouri Low Income Housing Tax Credit Program had no news funds authorized for FY 2018 or FY 2019 yet still has outstanding liability as a 10-year tax credit. For example, $169,138,875 was redeemed through the program in FY 2018.
In FY 2018, the Missouri Works New Jobs Training Program was authorized for $10,930,600 and issued $10,930,600.
A tax credit being zeroed out, or sunsetting, does not release the state from the liability incurred from issuance while the program was operating.
Sens. Bill Eigel and Denny Hoskins both sought to determine Missouri’s current overall tax credit liability. As of 6 p.m. Wednesday, Eigel had not received an answer.
A full analysis of Missouri’s tax credits can be found below:
Alisha Shurr is a reporter for the Missouri Times and Missouri Times Magazine. She joined the Missouri Times in January 2018 after working as a copy editor for her hometown newspaper in Southern Oregon. Alisha is a graduate of Kansas State University. Contact Alisha at email@example.com.