Committee Studies Tax Credits

This week, the Interim Committee on Tax Credit Efficiency and Reform met for the third time to explore Missouri's various tax credit programs. The committee is tasked with examining the social and cost analysis benefits of the programs, their return on investment, economic development incentives and other goals for tax credits. The chairwoman of the committee, Sen. Cindy O'Laughlin (R-Shelbina), said the committee is focusing on the "dominant" low-income housing tax credit program, the senior citizen circuit breaker, Missouri Quality Jobs Act, and the historic preservation and Missouri Works tax credit programs. At Monday's hearing, numerous witnesses told the committee of the oversight that goes into awarding their tax credits and the benefits to the community. The tax credit programs have cost the state in excess of $500 million a year since 2009, which is 5-6% of General Revenue. The committee expects to issue a final report on recommendations for tax credit reform in the near future.

The MCC has supported tax credit programs that benefit seniors, low-income citizens and women facing unplanned pregnancies over the years and will report on the committee's report in future Updates.