Senate Committee Hears Tax Credit Results
JEFFERSON CITY - State agency representatives told a senate committee Monday more than $600 million were redeemed in tax credits last year as debate heats up over changes to the credits.
Department of Economic Development Acting Director Chris Pieper said about $467 million of these credits were redeemed through his department. The department oversees 24 of the state's 61 tax credit programs, including the Low Income Housing Tax Credit and the Historic Preservation Tax Credit. Legislation this year has called for caps for both of these programs.
Sallie Hemenway, the director of the department's Business and Community Services Division, said the Historic Preservation Credit created almost 2,400 jobs last year. Legislation this year has called for a tighter cap on redemptions permitted for this credit. Hemenway said not all tax credits that are issued to applicants are actually redeemed. Redemption is the point at which the state actually loses tax revenue.
During testimony, the Department of Revenue's Joel Allison said about $57 million worth of tax credits were redeemed through the Property Tax Credit for renters. Gov. Nixon has called for the elimination of this credit in his budget, echoing a recommendation from the Tax Credit Review Commission in 2010.