Senate Bill 280 Damaging to Historic Tax Credit Program
The language of Missouri Senate Bill 280 added to Substitute for House Bill 116 (SB116), which recently passed Senate, includes language that would severly damage the Missouri Historic Tax Credit Program. Introduced by State Senator Chuck Purgason of the 33rd District, the bill modifies tax credits based upon the recommendation of the Missour Tax Credit Review Commission created by Gov. Jay Nixon in July 2010. The current Historic Tax Credit program, which created over 1,500 jobs in 2010 alone, would be modified by:
- Placing a cap of $75 million, down $140 million inposed in 2009
- Drastic cuts in credits for rehabilitation of owner-occupied houses from $250,000 to $50,000 in credits
- Prohibiting the combination of Historic and Low Income Tax Credits for one project
- Prohibiting credits for homes if the purchase is over $150,000.
- Sunsets Historic Tax Credit authorizations August 28, 2015
However, the proposed economic development bill in the House includes a more reasonable ragne of changes. Known as Missouri House Bill 905 and attached to House Committe Substitute for Senate Bill 100 (HCSSB100), includes several modifications based upon recommendations made by the Historic Tax Credit Subcommittee of the Governor's Tax Credit Commission. These changes include:
- Tying language definitions in the state's program to the federal rehabilitation tax credit program
- Establishing a $115 million cap for 15 years and then the cap is removed (redemptions of the tax credit in Fiscal Year 2010 were about $100 million)
- Raising the limit on small deal exceptions from $275,000 in credits to $500,000
- Allowing the Historic Preservation Tax Credit to be used in conjunction with other credit programs, often a necessary step when financing the rehabilitation of a historic commercial building
- Setting up a third party process
- Retaining the $250,000 cap on credits an owner can claim on owneroccupied houses, but makes thosewith a purchase price of more than $400,000 ineligible.
Please contact your State Senator and ask them to strongly oppose SSHB116. Contact your State Representative and tell to support the historic tax credit provision of HCSSB100. Find your local legislator using your full nine digit zip code here.