We need to encourage Missouri businesses and other entities that can help boost our economy to invest in our state. A beneficial incentive for such companies to call our state home is to offer tax credits. However, we need to ensure that when we offer tax credits, Missouri is receiving a positive return on investments. Independent studies have indicated that certain tax credits return $3 to $4 for every dollar Missouri invests. Others return less than 25 cents. In previous sessions, the General Assembly did not come together in reining in certain tax credits. This year, we are working together and getting things done to help initiate a better system for our tax credits.

The matter of benevolent tax credits was one of the first priorities examined in the upper chamber. These tax credits generally help charities, such as food pantries and child advocacy organizations. Recently, SB 20, 15 & 19 received approval from the Senate and was sent to the House for its consideration. The bill is designed to help many Missourians who are most in need, and would:

• Extend the Public Safety Officer Surviving Spouse tax credit program;
• Eliminate provisions authorizing unused funds from the Special Needs Adoption tax credit be used for the Children in Crisis tax credit, establish a $2 million cap for in-state adoptions, and prohibit the use of this tax credit for out-of-state adoptions;
• Extend the sunset to December 2019 on the section of state law that creates the tax credit for certain taxpayers who modify their homes to make them accessible for a disabled resident;
• Reauthorize the tax credit for contributions to pregnancy resource centers (to sunset December 2019) and prohibit the assignment or transfer of this particular tax credit;
• Also reauthorize the tax credit for donations to food pantries (to sunset December 2019) and reduce the cap to $1.25 million per fiscal year.

Another measure given the green light by the Missouri Senate and sent to the House is SB 10 & 25, which addresses a tax credit for amateur sporting events. These fun events have the potential to bring in much beneficial revenue for the state. Fans would purchase tickets to various events in our state; a portion of ticket sales would go toward an incentive to offset the cost local organizations incur during these events. It’s these events when people spend money locally on food, hotel rooms, sports merchandise, and so on, creating a positive impact on our economy. If we provide an incentive for amateur sporting events to come to Missouri, visitors will flock to our state and, hopefully, enjoy themselves and book a return visit.

Senate Bill 10 & 25, specifically, would create a refundable income and financial institutions tax credit which would be available for sports commissions, certain nonprofit organizations, counties, and municipalities to offset expenses incurred in attracting amateur sporting events to the state, such as the Olympics trials and national collegiate championship games. Applicants would have to submit their game support contracts to the Department of Economic Development for approval. This tax credit would equal $5 for every ticket sold to the sporting event or 100 percent of eligible expenses incurred, with no more than $3 million in tax credits issued per fiscal year.

I’m proud of the progress the Missouri Senate has made regarding tax credit reform; the 2013 legislative session has been very productive thus far, taking steadfast actions toward making the Show-Me State the best possible place to live. If you have questions about tax credits, feel free to contact my Capitol office. You can also listen to my audio interview regarding tax credits by visiting my Multimedia page on my Missouri Senate website at www.senate.mo.gov/cunningham. Thank you and God bless.