Tax Credit Market Shifts Away from Real Estate
ST. LOUIS - State officials say a market shift is behind the recent decline in real-estate related tax credits redeemed by Missouri businesses and individuals.
The state Revenue Department reports a $103 million overall annual decline in tax credits cashed in the fiscal year that ended in June. That includes a $55 million plunge in the historic preservation tax credit and another $20 million drop in the low-income housing credit.
The St. Louis Post-Dispatch reports that tax credits under Missouri's Quality Jobs tax credit grew by $5 million in that same period and have nearly tripled since 2010.
The Missouri Department of Economic Development calls the recent changes in tax credit use "a direct reflection of the state's economic activity."