Lt. Gov. Peter Kinder and Sen. Jamilah Nasheed, D-St. Louis, vowed to do “whatever it takes” to restore about $14 million in low-income housing tax credits during the 2014 legislative session.
Gov. Jay Nixon arranged for the Missouri Housing Development Commission to suspend projects that use the tax credits to get Republican support for creating up to $150 million a year in tax breaks to lure Boeing’s new 777X plant. The commission was set to hand out this year’s batch of low-income housing tax credits for 32 projects on the same day that the House passed the Boeing bill.
Kinder called the deal “specious and spurious,” noting the broad support for the Boeing package. “That bill was going to be on the governor’s desk regardless,” Kinder said. “It is a ruse to say we should link this action by the Housing Commission to the Boeing bill.”
For several years, Nixon has been pushing for changes to Missouri’s menu of more than 60 tax credit programs. The low-income housing credit at $144 million last year was the costliest of the bunch, and it has been a prime sticking point. Its supporters have fended off cuts, while its critics have defeated any new tax credit proposals until the low-income housing and historic rehabilitation programs are pared back.