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Focus On Real Estate: New Recommendations For Missouri Tax Credit Programs

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This past July, Missouri Governor Jay Nixon created a commission to review the state’s current tax credit programs and make recommendations for greater efficiency and enhanced return on Missouri’s investments in these programs.
December 6, 2010

This past July, Missouri Governor Jay Nixon created a commission to review the state’s current tax credit programs and make recommendations for greater efficiency and enhanced return on Missouri’s investments in these programs.

Today, the Missouri Tax Credit Review Commission submitted their report. The key recommendations in the commission’s report include:

  • Eliminate or not reauthorize 28 tax credit programs, which they state have “outlived their usefulness and do not create a justifiable benefit in relation to their cost to taxpayers”
  • Improve the “efficiency of 30 tax credit programs to provide a greater return on investment for taxpayers”
  • Make tax credit programs subject to review by the General Assembly according to a sunset schedule.
  • Allow the General Assembly to impose an annual cap on all programs currently lacking a statutory cap, which will limit the total amount of tax credits that may be authorized annually
  • Change both the state and federal law to improve the efficiency and overall value of Missouri’s tax credit programs to both the state and the users of the programs
  • Develop a voluntary buy-back or exchange of outstanding tax credits for less than the credits’ face value in order to reduce the state’s overall tax credit liability

The commission estimates that if all the recommendations in the report are adopted, Missouri could realize short and long term savings totaling as much as $220 million.

The commission's recommendations are subject to review and approval by the Missouri General Assembly, which begins its next legislative session in early 2011.

To view the entire report, click here.

Please contact the RubinBrown Real Estate Services Group:

Bryan C. Keller, CPA
Partner-in-Charge
Real Estate Services Group
314.290.3341
bryan.keller@rubinbrown.com

Glenn Henderson, CPA
Partner
Real Estate Services Group
913.499.4429
glenn.henderson@rubinbrown.com

Jim Massaro, CPA
Partner
Real Estate Services Group
303.698.1883
jim.massaro@rubinbrown.com