Economic development director outlines tax credit proposal

Missouri Economic Development Director David Kerr said he isn’t critical of the tax credits currently offered to boost business in the state – but he and Gov. Jay Nixon are recommending a $314 million cap on tax credits.

Friday morning, Kerr outlined the proposal at a breakfast event with the Springfield Area Chamber of Commerce.

“We just can’t afford everything we’ve done before,” he said.

Of the 61 tax credit programs available, only two – related to senior services – will be unaffected by the cuts. The other 59 will share the $314 million cap, he said, noting $650 million in credits were authorized in 2009.

The 59 programs will be consolidated into six categories, with each getting a suggested minimum for funding, Kerr said, adding that 20 percent of the allotted money will be “at-large” dollars available to any of the categories.

Nixon and Kerr’s proposal also changes the way tax credits are approved. Individual projects will have to go through a review process to determine whether they’re eligible for tax credits, he said.

“Projects will be evaluated based on their ability to provide a return on investment, not on an entitlement basis,” Kerr said.

Criteria for approval and the evaluation process have not yet been determined, but the details will go through a public comment period before the program is finalized.

In the past 45 days, four businesses with interests in southwest Missouri – John Deere Shared Services, Kraft Food Inc., Boyd Aluminum Manufacturing Co. and Service Vending Co. – have announced expansions of their local facilities in 2010, with all getting state tax credits for adding jobs and investing in the area.[[In-content Ad]]