JEFFERSON CITY, Mo. - The Missouri Senate passed an overhaul of the state's economic incentives Monday that would eliminate tax breaks for some low-income seniors and disabled residents while creating new aid programs to encourage international trade and the development of high-tech businesses.
Senators estimated the reduction of existing tax breaks would more than offset the creation of new incentives, saving the state a total of $1.6 billion over the next 15 years.
The Senate's 32-2 vote sends the bill to the House, which can accept it or request negotiations with two weeks left in the legislative session. There was no debate on the bill Monday; that occurred during a lengthy session last week that ended early Thursday morning. Senators have praised the massive bill as a compromise among competing factions which for the past several years have pushed either for an expansion or restriction of the state's economic incentives.
The legislation reduces or eliminates many of Missouri's existing tax credits and combines several current business incentives into a new program that would give the Department of Economic Development flexibility to grant upfront cash to some businesses in order to close deals to locate or expand in Missouri. Economic development officials have said that provision is essential for Missouri to keep pace with the cash-incentive plans already offered in some other states.
Another new program in the bill seeks to transform St. Louis-Lambert International Airport into a hub for international trade. It would offer up to $360 million of tax breaks over 15 years for freight forwarders, warehouses, businesses that ship agriculture products to foreign companies and manufacturers that convert imports into new products. The provisions of the "Aerotropolis Trade Incentive and Tax Credit Act" are prompted largely by interest from a Chinese cargo company but would apply to all kinds of products shipped to or from any country. |
