This week in the Missouri Senate, we spent several hours working on a tax credit reform bill. In the end, our hope is to limit state spending on tax credits and only keep those credits that provide a good return of investment on your tax dollars.
By reining in inefficient tax incentives, Senate Bill 120 could potentially save Missourians about $1.3 billion over the next 15 years. We worked for more than 10 hours debating this measure.

Senate Bill 120 addresses several tax credits specifically, including the Wood Energy Producers tax credit, data storage centers, Angel Investment Act, Low Income Housing, Historic Preservation, Export Incentive Act and Brownfield Remediation tax credit. The proposal would lower the caps on many existing tax credits and set limits on the new programs, which would limit spending.

It is important to remember that tax credits are not a part of the appropriations process. They do, however, lower the amount of general revenue available to budget for other programs. Lawmakers have spent the better part of five years trying to put tax credits in the forefront of debate and get them under control.
Senate Bill 120 still has a long way to go before it is passed. If the Missouri House considers the bill, they will likely amend the measure, and it is impossible to know what changes they will make. Both the House and the Senate would then take their respective versions to conference committee.

We are nearing the halfway point of the legislative session and still have a lot of ground to cover. Senators will likely start debating the bills for the upcoming budget soon. I will continue to keep you updated about the action in the Capitol with my weekly columns.

As always, if you have any questions or concerns, please do not hesitate to contact my office. Thank you.