JEFFERSON CITY — A measure (SB 379) sponsored by Sen. Joe Keaveny, D-St. Louis, to modify provisions of the state’s Distressed Areas Land Assemblage Tax Credit Act is slated for a hearing at noon (or upon the Senate’s morning recess) in the Senate Lounge on Wednesday, March 27, in the Senate Jobs, Economic Development and Local Government Committee.

The purpose of the tax credit program, passed in 2007, is to support the redevelopment of blighted and poverty-stricken areas into productive use. The Distressed Areas Land Assemblage Tax Credit Act is currently set to expire on Aug. 28. Senate Bill 379 would, among other provisions, extend the amount of time the Department of Economic Development can authorize tax credits under this program until Aug. 28, 2019.

Recently, hearings were conducted for similar measures in the House of Representatives and testimony was given in support of extending the lifespan of the Distressed Areas Land Assemblage Tax Credit Act. The act’s extension would help benefit projects in Kansas City and St. Louis and build economic prosperity in both the project areas and beyond, while creating more job opportunities for Missourians.

A project currently underway in north St. Louis that has met the rigorous criteria to qualify for the Distressed Areas Land Assemblage Tax Credit Act and would benefit from the program’s extension is the NorthSide Regeneration Project. The north side of St. Louis, in particular, suffers from a high rate of poverty, and Sen. Keaveny notes that the area’s extreme poverty requires the state to spend approximately $25 million extra each year for social welfare services. The Distressed Areas Land Assemblage Tax Credit Act aims to reduce such spending by strengthening the economic base of the local community.  

“This tax credit program is beneficial because not only does it encourage revitalization of broken down communities, but it helps to turn a large budget liability for the state into a valuable asset for economic development,” Sen. Keaveny said. “By extending the sunset on the program, Missouri can see the return on its $47 million investment and get more citizens into good-paying careers.”

To learn more about SB 379, please visit the Missouri Senate website at www.senate.mo.gov.

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