SS HB 578 -- TAX CREDITS

This bill allows taxpayers to receive up to 100% of the federal
low-income housing credit for qualified Missouri projects which
began after January 1, 1997, as a credit against Missouri taxes
for tax year 1997 and thereafter.  Under current law, taxpayers
are only allowed to use 20% of the federal tax credit as a
credit against Missouri taxes.

HB 578 -- STATE INCOME TAX (Williams, 121)

This bill allows taxpayers to receive 100% of the federal low--
income housing credit as a credit against Missouri taxes for tax
year 1997 and thereafter.  Under current law, taxpayers are only
allowed to use 20% of the federal tax credit as a credit against
Missouri taxes.

FISCAL NOTE:  Loss to All State Funds of $5,280,000 for FY 1998,
FY 1999, and FY 2000.

HB 578 -- STATE INCOME TAX

CO-SPONSORS:  Williams (121), Tate

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 14 to 7.

This bill allows taxpayers to receive 100% of the federal low--
income housing credit as a credit against Missouri taxes for tax
year 1997 and thereafter.  Under current law, taxpayers are only
allowed to use 20% of the federal tax credit as a credit against
Missouri taxes.

FISCAL NOTE:  Loss to All State Funds of $5,280,000 in FY 1998,
FY 1999, & FY 2000.

PROPONENTS:  Supporters say that this bill will provide
incentives for affordable housing and encourage future economic
development.

Testifying for the bill were Representatives Williams (121) and
Tate; and the Jeffery Smith Company.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Research Analyst

HB 578 -- Taxation

Co-Sponsors:  Williams (121), Tate

This bill allows taxpayers to receive 100% of the federal low--
income housing credit as a credit against Missouri taxes for tax
year 1997 and thereafter.  Under current law, taxpayers are only
allowed to use 20% of the federal tax credit as a credit against
Missouri taxes.