What is a tax credit anyway?
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What is a tax credit anyway?

Date: October 27, 2011
By: Stephanie Ebbs
State Capitol Bureau
Links: Missouri Department of Revenue and the House sunset roll call.

JEFFERSON CITY - It was a disagreement on how to handle state tax credits that became the issue that blocked the special session of Missouri's legislature from reaching agreement on the larger package of business tax breaks proposed by the governor for economic development. 

The governor proposed and the Senate adopted termination dates on tax credits, requiring periodic reauthorization by the legislature to continue a tax credit benefit.  The House rejected what are called "sunsets"

The following are some answers to general questions about tax credits.

What is a tax credit?

Why do we have tax credits?

What was the difference between the House and Senate on tax credits?

How much does Missouri spend on tax credits?

How much does Missouri financially benefit from tax credits?

What's the downside to tax credits?

What are some tax credits offered in Missouri?

Where can I find out if I am eligible for any tax credits?

Tax Credit Payments

Revenue lost from tax credits: Fiscal Year 2002 Fiscal Year 2008 Fiscal Year 2011
Corporate Income Tax $73,271,172 $74,244,632 $57,341,705
Individual Income Tax $206,172,658 $307,377,134 $339,100,306
Low-income/senior citizen housing credit $85,901,461 $100,164,994 $114,886,668
Historic Preservation tax credit $32,810,273 $140,111,002 $107,767,393

Information from the Internal Revenue Service and Missouri Department of Revenue websites.