Missouri Senate Bill SB658

Missouri 2022 Regular Session

• Introduced: 1/5/22
• Refer: 1/10/22

Caption

Prohibits tax credits for the construction or rehabilitation of residences located in certain distressed areas after August 28, 2022

Impact

One of the results of SB 658 is that it will limit tax credits for certain construction and rehabilitation projects occurring after August 28, 2022. Under the provisions of this bill, tax credits will not be issued for any projects that commence beyond this date, potentially reducing incentives for development in distressed areas. On the one hand, this change may streamline the system of tax credits and focus resources more efficiently; on the other hand, it may deter investment in housing in these communities, impacting local redevelopment efforts.

Summary

Senate Bill 658 aims to repeal the existing section 135.481 of Missouri state law and replaces it with a new section that regulates tax credits associated with the construction and rehabilitation of residences in specific distressed areas. The bill stipulates that taxpayers who incur eligible costs for new residences in these areas can receive a tax credit equal to fifteen percent of such costs, with a cap of forty thousand dollars per residence over a ten-year period. The bill also establishes tax credits for rehabilitation of residences, with rates depending on the extent of rehabilitation undertaken.

Contention

Discussions surrounding SB 658 have produced notable contention among stakeholders. Proponents argue that the restructuring of tax credits will prevent misuse and ensure that assistance is directed to areas that genuinely need improvement. However, opponents are concerned that the cut-off date for tax credits would stifle construction and rehabilitation efforts, particularly in areas that require revitalization. The balance between fostering economic development and ensuring accessibility to housing in distressed parts of the state has emerged as a central theme in the debates regarding this bill.