Tax Credits 2008Tax Credits 2008
The massive tax credit for Bombardier
The most controversial tax credit proposal (and outrageous, given Missouri's financial situation including the cuts to human services and the projected $450 million state budget deficit in 2010) was HB 2393 (SS/SCS/HCS/HB2393). This act creates a new type of project (known as a mega-project) within an enhanced enterprise zone.
The objective of this proposal was to bring Bombardier Aerospace, a Canadian company, to Kansas City. A massive tax credit of $880 million over 22 years was the initial proposal. Due to strong opposition from citizens, a new plan was adopted that would award no more than $240 million over 8 years.
SS/SCS/HCS/HB2393 was finally passed on May 7 and approved by the Governor on May 22. For a summary and the bill text, click here.
State Auditor's Report on Low Income Housing Tax Credits
State Auditor Susan Montee, released her audit report on the Low Income Housing Tax Credit this week. You will find the "summary" and the complete audit report here:
The report is eye-opening and disheartening. a state program so inefficient that, at best, only 40 cents of every taxpayer dollar spent on affordable housing actually helps build it. But there is more the public should know, especially about the developers and others who have been making huge profits through this program. We should encourage the news media to spend the time and money for more investigation of this program.
It is obvious that changes in the legislation for Missouri's state housing tax credit program are needed. MTJ will continue to follow this subject closely.
The St. Louis Post-Dispatch, Springfield News-Leader, and the Columbia Tribune have published excellent reports about this program.
Here are some key reports by Terry Ganey of the Columbia Tribune:
http://www.columbiatribune.com/2008/Mar/20080302Feat004.asp
http://www.columbiatribune.com/2007/Oct/20071028Feat004.asp
http://www.columbiatribune.com/2007/Jul/20070722Feat006.asp
http://www.columbiatribune.com/2007/Jul/20070701Feat006.asp
http://www.columbiatribune.com/2007/Jun/20070603Feat009.asp
http://archive.columbiatribune.com/2008/feb/20080228news001.asp
http://archive.columbiatribune.com/2007/may/20070527news002.asp
http://archive.columbiatribune.com/2007/may/20070527news007.asp
Last Update 6/7/08