04 May 2011

Missouri HIstoric Tax Credits in Danger

Following is an email that was forwarded to me today regarding a massive cut proposed to the Missouri Historic Tax Credit legislation: 

From: Jerry Schlichter [mailto:jschlichter@uselaws.com]
Sent: Wednesday, May 04, 2011 1:01 PM
Subject: Historic Tax Credit
After 12 years of success and Missouri becoming the national model, the Historic Tax Credit may be devastated in the next few days as the Legislative session comes to a close.

The Senate has passed a bill, Senate bill 280, which drastically slashes the credit to $75 million from the $140 million cap that was previously put on it, which itself was a 25% cut from the level it had been.

It is critical that supporters of the Historic Tax Credit weigh in NOW to key legislators to show their opposition to this.  Some of the facts that demonstrate why this is bad for the state follow, but feel free to give your own reasons, and in your own words, if you contact legislators.
1. The Historic Tax Credit is by far the most productive jobs law, producing 43,000 documented jobs in a study for the Missouri Growth Association; 
2. Other states are going in the opposite direction with their credit. For example, Iowa increased its credit by $30 million because of its job creation; Kansas removed its cap; Minnesota passed a historic tax credit as its flagship economic development strategy, and the model for it was Missouri; 
3. Developers are leaving Missouri and going to neighboring states because of their encouraging use of their historic tax credit and increasing its availability; 
4. To create new tax credits and destroy the historic tax credit for other hoped-for projects and hoped-for jobs, as the Senate bill does, makes no sense when it would kill the credit as we know it, with its proven track record at producing tens of thousands of jobs; 
5. The exemption from the cap for small projects, which is eliminated by the Senate bill, would end the redevelopment of Main Street projects and neighborhood revitalization; 
6. We have been the national model of success, having revitalized parts of many cities and towns, and the credit pays for itself; 
7. The budget for this year or next year will not be affected by this action.
The key legislators and their contact information are:
In the House:

Representative Steven Tilley, Speaker of the House
MO House of Representatives
201 West Capitol Avenue, Rm. 308A
Jefferson City, MO 65101

Representative John Diehl
Missouri House of Representatives
201 West Capitol Avenue, Rm. 309
Jefferson City, MO 65101

Representative Timothy Jones
Missouri House of Representatives
201 West Capitol Avenue, Rm. 302A
Jefferson City, MO 65101

In the Senate:

Senator Eric Schmitt
Missouri State Senate
201 W. Capitol Avenue, Rm. 323
Jefferson City, MO 65101

Senator Ron Richard
Missouri State Senate
201 W. Capitol Avenue, Rm. 431
Jefferson City, MO 65101

We will never get the historic tax credit back if it is slashed like this, and the 12 years of success in developing cities and small towns throughout the state and creating jobs will be over.

Thanks for your consideration.

Jerry Schlichter
Missouri Coalition for Historic Preservation and Economic Development

Jerome J. Schlichter
Schlichter, Bogard & Denton
100 S. 4th Street, Suite 900
St. Louis, MO 63102
314/621-6115 Phone
314/621-7151 Fax

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