The State legislature in Missouri has recently taken steps for the worse in both the state low-income housing tax credit and historic tax credit arenas. Recently, the legislature enacted SB 590, which pared back the total annual allocation of State Historic Tax Credits to $90 million, down from $140 million previously. While the bill also includes an additional $30 million in credits for qualifying census tracts, the decrease in total volume has led to concern of a slowdown in the historic rehabilitation boom in the state. In addition, the new bill requires Tax Credit project applicants to be approved by the Missouri Housing Development Commission, versus the current “first come, first served” method of issuing credits. This has led to concern amongst developers about the fairness of the Commission in awarding Credits to particular developments, and a concentration of awardees in the large cities with better connections to the Commission.
The recent modification to the Historic tax credit program is just the latest in a series of changes in the Missouri Tax Credit landscape, as former Governor Eric Greitens attacked the Low-Income Housing Tax Credit program throughout the last few months of his governorship until his resignation in June. Under pressure from the Governor, the Commission did not award any state LIHTC awards for 2018, halting numerous developments and decreasing the available options for low-income tenants. In addition, the move has altered Midwest developers’ plans, with eyes shifting towards stable and expanding programs from neighboring states such as Illinois, where the state legislature is expected to vote soon on a bill expanding the state Historic Tax Credit.
Clocktower Tax Credits, LLC possesses the expertise and investor base to assist any Missouri developers navigating the tricky current Tax Credit situation, helping developers monetize their Credits while the Show-Me state programs continue their volatility.
If you have questions on the status of the Missouri programs or for help monetizing any Missouri tax credit assets, please contact David Curtis at (978) 440-0742 or DCurtis@ClocktowerTC.com.