During his State of the State address, Gov. Eric Greitens announced he would do a “thorough, end-to-end audit” of Missouri’s tax credit system, and last week signed an executive order creating a special committee to do a “top to bottom review.”
But some Missouri lawmakers are not waiting for the results of the review and have already filed bills that would scale back several incentives and restructure how they’re approved.
First, Senate Bill 285 would shrink annual caps on a dozen tax credits, including the two largest: historic preservation and low-income housing. In addition, the bill would gradually shrink the income tax on corporations to 4 percent from the current 6.25 percent. It’s sponsored by Sen. Andrew Koenig, R-Manchester.
Meanwhile, Rep. Kathryn Swan, R-Cape Girardeau, is taking what could be viewed as a stricter approach. She’s sponsoring House Bill 101, which would require nearly all of the state’s tax credit programs to be approved each year as part of the state budget.
Other tax credit proposals being considered so far:
- HB 296 – would reduce all tax credits proportionally if the state income tax rate is lowered
- HB 718 – would place an expiration date on all corporate tax credits in Missouri
- SB 39 – would place a cap on the total amount of tax credits that can be authorized each year
- SB 346 – would require all tax credits to be appropriated every year starting July 1, 2019
Read more: St. Louis Public Radio