Missouri Senate supports plan to restore low-income housing tax credits

The Missouri Senate has given initial approval to a measure that would revive low-income housing tax credits in the state after more than a year of uncertainty surrounding the development incentive.

Under the plan, the state would offer $115 million in tax credits for the 2020 fiscal year. The credits would be capped at 72.5 percent of what Missouri receives in federal tax credits.

In late 2017, then-Gov. Eric Greitens oversaw the elimination of the incentive for the 2019 fiscal year, claiming developers abused the program to enrich themselves.

Greitens’ replacement, Gov. Mike Parson, opposed that move. Since taking office, Parson has signaled a willingness to restore the program while also calling for reforms.

Critics of the program say it fuels wasteful spending and favors developers. Backers say it provides necessary incentive for the construction of housing for low-income and elderly Missourians.

Read more: St. Louis Post-Dispatch

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