In relation to the $8 billion plus the state expended in FY 12, the fiscal impact of the benevolent credits is exceedingly modest. For example, the pregnancy resource credit had an annual cap of $2 million annually.
A tax credit commission established by Governor Nixon recently issued a new report revising an earlier recommendation made by the commission in 2010. In 2010 the commission recommended a sunset date on all of the benevolent credits. In the new report the commission is finally recognizing that these small credits are not the fiscal issue and so the recommendation is simply that these credits be reviewed every few years.
The commission is now focusing the attention where it should have been all along – on the top ten credits that have the most impact on the state budget, particularly the tax credits for historic preservation and low income housing.
Click here to read the commission’s report.