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Health & Fitness

House Approves Tax Credit Reform (House Bill 698)

The Mo House of Representatives builds on their efforts to stimulate our economy through tax cuts by also passing a tax credit reform bill meant to promote even more job growth in our state.

This week in the Missouri House of Representatives, we built on our efforts to stimulate our economy through tax cuts by also passing a tax credit reform bill meant to promote even more job growth in our state. The legislation we passed takes a broad-based approach to reviewing our tax credit programs that are meant to attract and keep businesses that provide good, family-sustaining jobs.

The bill contains many of the economic development incentives I have mentioned in previous reports that would help to attract data storage centers and high-tech startup companies, and to encourage foreign trade. It also creates the Missouri Works business incentive that combines several existing credits into one program with greater flexibility for state economic development officials to award tax credits.

The bill also puts caps in place on existing tax credit programs for historic buildings and low-income housing, and ends some credits that have proven to no longer be effective. In addition, the bill requires the General Assembly to review our tax credit programs every five years. With this we can ensure the credits that are working to attract businesses and create jobs will continue, and we can reduce or eliminate the ones that prove not be as beneficial to our state.

Find out what's happening in Fenton-High Ridgewith free, real-time updates from Patch.

Overall, the bill generates a net savings of $73 million each year in reduced tax credit cap space. It now moves over to the Senate where it will certainly see a great number of changes made.

As the sponsor of the bill said on the floor, this is really just a starting point for negotiations. We will see where our discussions with the Senate end up. The Senate has already passed its own version of tax credit reform that differs from House plan. However, we know the goal we share with our Senate colleagues is to make certain our tax credit programs are producing results in the form of new, good-paying jobs for Missouri families.

Find out what's happening in Fenton-High Ridgewith free, real-time updates from Patch.

To monitor HB 698, please click on the following link:

http://www.house.mo.gov/billsummary.aspx?bill=HB698&year=2013&code=R

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