Does Missouri have too many state tax credits? Do these credits have a public purpose? These are some of the questions addressed in a report issued on June 30, 2017, by a special committee formed earlier this year by Governor Eric Greitens.
The committee notes that the use of tax credits “is extensive and expanding.” In the fiscal year 2016 alone, over $575 million redemptions were claimed by taxpayers. The committee believes that reforming Missouri’s current tax credits could save state revenue and allow the state to create “a simpler, fairer, and lower tax burden.”
Major reforms are recommended for some of Missouri’s more expensive tax credits. For example, the committee recommends capping the historic preservation credit at no more than $50 million annually, down from the current cap of $140 million.
The Benevolent Tax Credits, such as those benefiting the work of pregnancy resource centers and domestic violence shelters, receive warm commendation, and the committee recommends that the General Assembly consider increasing the funds authorized for these programs.
The Missouri Catholic Conference has been a strong supporter of the Benevolent Tax Credits, including those for pregnancy resource centers, maternity homes, and food pantries. The committee’s report should make it easier to persuade state legislators to reauthorize these programs when their “sunset” dates come up.
See Tax Credit Reform Report for more details.