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Committee recommends eliminating nearly half of Missouri's tax credits

By Marshall Griffin, St. Louis Public Radio

Jefferson City, Mo. – A committee appointed to look at Missouri's system of tax credits is recommending that nearly half of them be eliminated.

Twenty-eight of the state's 61 tax credit programs would go away if lawmakers follow the advice of the committee appointed by Democratic Governor Jay Nixon. The committee is co-chaired by former Republican State Senator Chuck Gross.

"(They) have outlived their usefulness, and do not create a justifiable benefit in relation to their cost to taxpayers," Gross said during a conference call today with reporters.

The programs being targeted include some that provide incentives for Missouri's wine producers, the self-employed who pay for their own health insurance, and film producers wanting to make movies in Missouri.

"Some of them have such a low return to the state that an investment of a dollar by the state and not receiving at least a dollar in return just was not a good idea to continue, we believe," Gross said.

The committee drafted the recommendations for Governor Jay Nixon to give to lawmakers for next year's legislative session.

They also include placing a cap on any tax credit that currently does not have one. And the cap on the state's widely-used historic preservation tax credit would be cut by more than half, from $140 million a year down to $75 million.

Gross says over time the state would save $220 million if all recommendations are adopted.

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