Missouri State Senator Will Krause (R-Jefferson City) recently introduced SB 163, which reauthorizes certain tax credits, prohibits further authorization of certain tax credits, and modifies state historic preservation tax credit (HPTC) and low-income housing tax credits (LIHTCs). More specifically, the act would establish a $110 million cap for authorizations of 9% LIHTCs, and a $20 million cap of 4% LIHTCs for FY 2014 and would gradually reduce the amount of LIHTCs that may be authorized from FY 2015 to FY 2017. SB 163 stipulates that no more than $27.5 million in 9% LIHTCs and $5 million in 4% LIHTCs may be authorized after January 1, 2017 and June 30, 2016, respectively.
In addition, beginning in FY 2014, the bill would establish an $80 million cap for historic preservation tax credits and would gradually reduce the amount of HPTCs that can be authorized after FY 2016 to $20 million for each subsequent year. The act also prohibits the Department from issuing more than $125,000 in HPTCs per project for non-income producing residential rehabilitation projects.
Finally the bill would prohibit stacking 9% LIHTCs with state HPTC and would reduce the carry-back of LIHTCs from three years to two years and would allow HPTCs to be carried back one year or forward five years.
