Missouri could save more than $600 million over the next decade if a Senate proposal on capping spending on low-income housing tax credits is approved. However, a state budget writer won’t count on the potential savings as he drafts the state’s next spending plan.
The Senate Appropriations Committee chair, Sen. Dan Hegeman, said the savings could go toward offsetting health care costs for the poor or raising funds for education.
The savings could go toward Gov. Mike Parson’s plan to rebuild or replace 250 Missouri bridges, which requires a $350 million loan.
The Senate proposal would cap the tax credits at 72.5 percent of what the state gets in federal tax credits.
Read more: St. Louis Post-Dispatch.